Posted by: Anonymous (Askthemoon@cs.com )
Organization:Anonymous
Date posted: Sat Jan 20 20:34:43 2001
Subject: Underpaid?
Message:
I am sorry for the "Anonymous," but as you all know, what we say here could get back to my GM and cause me trouble. I hope you don't mind. Anyway, I need advice! I do Internet Sales and think I am extremely underpaid. I am relatively new to the car biz and really could use some "veterans'" advice.
I get a flat 25% commission, $300 pack on both new and used, don't get paid on any holdback or dealer incentive cash and have a pititful little base salary of $500. I am the only internet person. I work a lot of hours and I work hard. I maintain the website, create e-advertisements, handle all internet sales, all lease returns and lease retention. I sell between 10-20 cars per month (my average monthly sales are about 12). I get good gross on used, but I sell a product that we must give away on the new side. The market just won't bear more than about $500 a copy on new in my market...oh well...back to my subject.
I work hard and make harldly any money...average monthly income is about $2,200 over the last year. I have been at the same dealership for 3 years and am loyal. I have asked for more money, but I can't get anywhere with my owner. What should I do?

Subject: Underpaid?
Reply Posted by: Michael Hargrove (mhargrove@bluinc.com )
Organization: My Success Company
Date Posted: Sun Jan 21 14:23:18 2001
Message:
Unfortunately, the average salesperson working with new customers (fresh ups) sells between eight and ten cars and makes just about what you are currently making. With the exception of not getting paid on factory incentives, the pay plan you've outlined is generally competitive. Of course, each market is different so you may want to contact other Internet Department managers in your immediate area to be sure.

I wouldn't be looking for work elsewhere if I were you. It sounds like your owner is treating you fairly, which is all we can expect from any employer. Being there for three years also implies a good work environment, all the more reason to stay put.

Your gross average (after three years) concerns me though. Unless you're in a tiny market, after three years, a large percentage (if not most) of the customers you serve should be repeat or referral clients. Not only is the average closing rate of repeat or referral customers around 50%, but the average gross profit is generally much higher as well.

I would ask myself if I was doing everything I could to build my own clientele base and also I'd revisit my prospecting strategies with that clientele. As a large part of your customer base is already digitally connected, keeping in touch with them on a regular basis should be a cakewalk.

If you need any assistance in putting together an effective, systematic way to develop and mine your client base, contact me directly and I'll be happy work on this together with you.

All the best to you Anonymous!

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