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(A)........With that being said, I rarely negotiate for more than 10-15 minutes. Most of my deals are done very quickly - some customers pay MSRP and I make 500-1500 dollars, other times they haggle to nothing and I make $100 mini. I'm very good at my job so customers like me and they're willing to pay a little more to buy from me - this results in me being very high in the store in terms of gross profit generated.
(B)......the average car salesman sells 10 cars a month, I sell 20-30...with profits that are way above average because I can be extremely charismatic.
I'm probably somewhere in the top 200 in the country of earners in my industry.
(C)..... My first year, I made 100K and this year I will likely clear 160-165K.
Using my very best #2 pencil, I figure if you make $1500 per deal and you sell 30 a month, then you make $4500 a month.
So you would have to work 22 months a year to make 100K. Is that what you do?
Using my very best #2 pencil, I figure if you make $1500 per deal and you sell 30 a month, then you make $4500 a month.
So you would have to work 22 months a year to make 100K. Is that what you do?
Actually, you forgot a zero, $1500 x 30 is $45,000 a month x 12 is $540,000 per year. He can easily make over 100k if he sells 20 per month and makes $500 off each sale, which comes out to $120,000 per year.
Location: In a little house on the prairie - literally
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Quote:
Originally Posted by Listener2307
Using my very best #2 pencil, I figure if you make $1500 per deal and you sell 30 a month, then you make $4500 a month.
So you would have to work 22 months a year to make 100K. Is that what you do?
Whenever I made an offer for a new car - a figure I would write on a piece of paper and shove across the desk to him - the salesman always screwed his face up and said he had to talk to the sales manager. I walked out once and went to another dealership. Why don't salesmen have autonomy? All they are doing is either cutting or increasing his commission.
I buy used cars from private sellers these days. Cash in hand beats 60 months financing.
Why can't one walk into a dealership with $20K and make an offer on a car? A salesman/sales manager knows that is the ultimate deal but can't do it. Cash is instant commissions in one's pocket but the federal government wants to control us.
I think car dealerships are slowly changing their ways now. There are less games, at least in my limited experience. People in general are more knowledgeable and have access to what the market will bear and to what others people have paid.
So less head games and more direct straight to the point.
Personally I'm not out there to get the deal of the century. As long as I'm not getting hosed and I spend less than an hour at the dealer I'm fine with it.
Yes, but it's a lot less, because all you are doing is getting the people into the dealership. The sales staff takes it from there.
I don't think all dealerships operate this way. OP, is this how the internet sales department handles it at your dealership? When I was looking for a car, I emailed four dealerships, told them exactly what I wanted, and asked for their 'out-the-door' price that would include everything including docs, dealer prep and whatever other mark-ups they had in mind. Of the 4, two told me to come in. I wrote back to let them know that I wasn't going to set foot inside to negotiate, and if they wanted to sell me a car to give me their best offer. (I didn't hear back from either of them). The other two were near each other in their offers and since I already had a good idea of invoice price I went ahead with the better offer. I never met any of the sales staff on the floor and saved many hours. Any comments welcomed.
Using my very best #2 pencil, I figure if you make $1500 per deal and you sell 30 a month, then you make $4500 a month.
So you would have to work 22 months a year to make 100K. Is that what you do?
1500 commission is a few times a month - usually msrp with a trade in or a very nice unique used car. I'm not doing that every deal
My avg deal is 500-600 a car. Industry average is a LOT less - I'm very good at what I do obviously
And that is what I question. If that person that you made 1500 dollars with found out 30 minutes later that the next person only made 100 dollars with you--that would make a fantastic experience with both Customers?
.
That never happens. People who pay all the profit are very easy going and happy customers. My survey returns on my biggest deals are always perfect, ALWAYS PERFECT
your idea of a fair deal is where a dealership doesn't make a penny selling a 50,000 car. Any other business, a 50K product is sold with a 10-20 Grand markup. If I told you I'm selling a 50K car 2000 over invoice (a tiny 4% markup, an unbelievably small markup for any other industry) you would have a heart attack
It's okay though, everybody loves working with me - the hardest bargainers and the biggest laydowns
Are the offices bugged so you can hear what the customers are saying when you leave to talk to the sales manager?
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