Obviously commission structure vary from one dealer to another.
Typically there will be a basic wage, plus commission on each car/product sold - this might be from £700 for a car sale if a high-value car, down to £50 for sale of 'paintwork protection', plus there might be bonuses for hitting targets - e.g. extra £100 if you sell 6 paintwork protection; bonus if you hit 25 cars this month etc etc. Plus there might be overall dealer bonus (profit share type thing or bonus for everyone who works there if dealership hits certain figure over the quarter). So you can see its complex. I have always said that best way is get everyone in the dealership on some kind of overall bonus scheme - that way you turn every single employee into a salesperson and they'll be nagging their relatives to buy a car from you...
I would imagine a poor salesman might make £25k - someone who is good and established should hit £70k or more, plus of course use of vehicles etc.
Friend of mine was a BMW salesman and during the '90's he never earned less than £25k, he made a lot of money and ended up living in a very nice 6-bed house. He left the dealership to go it alone as an independent.
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thanks for above comments
just puzzling sometimes how some sales staff (not just the young ones either) either dont seem that interested at all in trying to help you when you`re in their showroom,or dead keen to make a sale yet come across as dislikeable for other reasons, but must still earn enough to keep them going .-How!!
To me,it wouldnt take much to either come across as a bit more polite or presentable and it would potentially make a big difference to their sales and thus commission.
Shame cos on the contrary have come across a few sales people who are great, and fair at same time.
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a salesman or two posted on here a few weeks ago,they may not seem interested as they seem to think they are pretty good are spotting exactly who has popped in for a look and who has popped into buy!!!!
pop up my local Toyota/Nissan dealership in bournemouth on a Sat and its like a family day out...stick some balloons outside and there is a frenzy...
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just puzzling sometimes how some sales staff (not just the young ones either) either dont seem that interested at all in trying to help you when you`re in their showroom or dead keen to make a sale yet come across as dislikeable for other reasons but must still earn enough to keep them going .-How!!
I agree and sympathise. However I think that some dealer sales people have given up on the passing punter and tend to concentrate on other sales areas such as supplying vehicles to company fleets or to the smaller lease companies which cannot cut deals direct with the manufacturers. In this way they may be a ble to sell 6 or 10 cars at a time instaed of one to every 10 punters they spend time with. As a sales manager myself I have learnt to spot that its can be as hard to do a £50K deal as to do a £3M pound deal in terms of sales effort and resource. Unfortunately the cold hard facts of life are never enjoyable to hear.
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Aprilia are those figures correct, they don't seem to add up
£700 X 25 = £17,500 for the month / £200K+ PA and he walked away to go independant.
Salesmen would be more attentive had they not had 6 timewasters / test drivers (wearing khaki shorts and sandals, "I used to be in the trade you know, I know of what I speak!") before you arrived
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Aprilia are those figures correct they don't seem to add up £700 X 25 = £17 500 for the month / £200K PA and he walked away to go independant.
No, it wouldn't be 25x700 !! If selling high value cars then the commission would be higher and the target a lot lower. On lower value cars the volume would be higher but the commission lower. I don't think commissions on car sales are as high these days as they used to be - there is a lot more competition - hence the reason for 'business managers' to sell you all manner of financial products and services, plus accessories and paint protection etc etc - the car has almost become a 'vehicle' (pardon the pun) for the sale of other products.
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When Aprilia says high value cars I suspect he's talking about the likes of Aston Martins etc.
It's incredibly rare for a salesman to make £700 on the sale of one ordinary car (although entirely possible given a high enough value car) A typical structure that I saw was 10% of the profit after preparation, in most cases this would result in about £50 - £75 per car.
More often than not though the commission was incremented so that as you hit each new increment of units the commission was increased for all of your sales that month. It could be a killer to close a month just 1 car away from your next increment and it wasn't unheard of for sales staff to "buy" a deal off another salesman in order to meet their target...
Blue
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When Aprilia says high value cars I suspect he's talking about the likes of Aston Martins etc.
It was a top-end Jag I had in mind actually.
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When I bought my Berlingo last year from a dealer I asked them if they couldmatch the "car supermarket" price - they said they would do it but the salesman (a very efficient,helpful and pleasant young man) would have to do without his commission. I asked how much that was and the sales manager said £50. I said that they could add that to the price since he had been so helpful.
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Phil
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Very nice of you Phil, but I think this story ranks alongside the old chestnut "let me talk to my manager and see if there's anything more we can do" !
repeated post deleted ! - PU
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Today I ordered a new diesel Corsa.
I'd visited two garages and been on the phone to another. Given that I wasn't paying cash and taking advantage of the 0% finance, I got the distinct impression that there was very little wriggle room. With an GM partners discount taken into account, the most I could get off was an extra saving totalling about £200 by batting one off against the other.
My mate in the know did emphasis the margins were tighter than they've ever been.
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Oh, and all the staff very very helpful, keen and polite. Apart from the saleman in a certain Fiat showroom who spent more time on the phone than he did talking to me, then didn't offer a test drive, as it clearly meant shifting three cars out of the way. When I did test the Grande Punto I didn't like it anyway; terrible road noise!
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Salesmen would be more attentive had they not had 6 timewasters / test drivers
I test drove a few cars (all from different dealers), but didn't buy. I wasn't a time waster though, I had my heart set on some of the cars, but didn't like them after a drive. So either the salesman wasn't good enough, or the cars weren't good enough (I blame the cars).
I had no idea how much car sales men could make. We had a discussion not long ago about how sales people don't know anything, it's all about sales figures etc. How on earth can they make over £25k when they're like that? I could maybe understand somebody selling very expensive cars (Porche, Ferrari, etc.) making around £50k, but not people selling everyday cars.
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But do you ask how much the shop assistant gets when selling you a pair of shoes, or the estate agent when buying a house?
You need to look at the deal versus another deal, clearly the job pays enough to attrat spotty youths into it , or am I getting old?
I earn £53K BTW, in local government- work well over the set hours too for free.
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"estate agent when buying a house?"
Too right, cheeky monkey of the agent that was selling PU's latest home to us offered to handle the sale of our old house, offered discount legal fees (!) despite the fact that it was a private sale ! I then asked him to disclose his commission on our current property and he scuttled off in his Lexus !
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