Sales commission rates?

[positiveions]

Originally Posted by Captain Scott

Hi, The only reason I know about all the contests is my CA is driving a brand new M6 Convertible for all the cars she sold for a given period. she is driving the car for FREE, and was given her choice what car she wanted.

I also have another friend who is a CA who DID win one of the cars for the essay contest, I think he told me BMW gave x amount of cars to CA's all over the country.

Both of these CA's are making over $10,000 a month. It takes selling many cars at $200 a pop to make that kind of money if you get my drift.



Scott

Mon Capitan,
If the CA has highest sales they are given bonuses. I wasn't aware that BMW have written essay contest, and they give the CA bad-ass cars.

[Ali.K_BMW]

Originally Posted by swamp2

The rough figure that gross commission is 1/5th to 1/4th of the difference between invoice and sales price sounds just about right. For most M3's that means buying around invoice is getting around $1k gross commission for the sales person.

I sold an M3 sedan at invoice. I got 230$. I do not agree with your statement. I also sold a 750li at invoice, I got 195$.

[spectrumphoto]

The $200 flat rate is for "Mini" deals (IE deals that have very little mark-up in them like the Invoice +$500 M3 deal) There are plenty of other models selling for more than this and thats where a CA can get $$$ (Example X6 can't be kept in stock here on the west coast as a ton of them are being bought here and exported 3rd party)

Then there are the BMW incentives on certain slow moving models (these are offered by BMW direct) and there are also Dealership incentives (varies per dealership)

You take these 4 factors... Minis to get unit #'s towards bonus goal, regular deals like other new models selling closer to MSRP or Used cars, BMW spiffs, and finally Dealership spiffs thats how a salesperson can gross $10K a month, its not that hard, but does take work on their part. We all work hard for our money and Im sure do not like to work for peanuts or for free so why should CA's be any different. Yet people continually insist of hating on CA's and dealerships. Sure there are bad apples out there but what profession doesn't have them.

[UltimateBMW]

So, if someone walked into a dealership and threw down a list of options they wanted and the price of invoice for an 09 e92 M3 and propositioned his deal here and now. Easy paper work, and easy +1 on the sales tally. If it was clear he would walk if the deal wasn't exactly as he proposed, Would you take it? Or let him go?

(This is meant for the people with CA experience.)

[A97Snipe]

turning out to be more confusing than I thought. what about a hypothetical where a CA sells a car for $1000 over invoice versus $2000 over invoice (same exact car, options, etc)? how much of that extra $1K does the CA get to keep??? my thought is that if it is not much, then the CA won't care as much and will work the deal as best he can with managers to your benefit. but if it is a big $ or %, then he/she isnt exactly going to help you much...

[Captain Scott]

Originally Posted by eatrach73

Mon Capitan,
If the CA has highest sales they are given bonuses. I wasn't aware that BMW have written essay contest, and they give the CA bad-ass cars.

Apparently you did not write an essay why the M car's are so cool. Ask the GM about the contest and get back to us!

[mkoesel]

Originally Posted by trackfiend

I sold an M3 sedan at invoice. I got 230$. I do not agree with your statement. I also sold a 750li at invoice, I got 195$.

That sounds pretty low indeed.

But here's a question for you: how much time did you spend selling the cars? If you can make $200 in one, two, or even three hour's time, that's not bad at all. If I were a CA, I'd be all over the forums trying to sell as many cars as I possibly could. Who care's how much you make per transaction? You sell enough cars and you'll make plenty, and plus you are bound to get a nice bonus if you are one of the top sellers at your dealership, region, etc.

As a corollary, how many cars do you sell personally, and for comparison, how many cars does the top seller you know sell personally? Also, suppose instead of invoice, you sell the car $1000 over invoice? Does your take-home not increase sharply in that case?

Thanks for answering these important questions.

[968PORSCHE]

Come on guys, quit giving the CA's a hard time. These guys are obviously (to me) for real. I spent 6 months selling cars in the 80's and everything they are saying rings true. If you make two $1,000 deals a week and a bunch of mini's in the month, you're hitting $60K. Add another $1,200 deal and some $500 deals and you're knocking on $80K/year. It's a tough job to do day in and day out. You gotta stay up and positive or you starve. As for the chance to buy cars cheap, well that is just another payment hanging over your head if you do not perform. Do the math guys! yes, sometimes they only make $150 bucks on your $50K car!

I hammered some poor chick on an RX7 for a $3,600 gross profit and felt terrible about it later. Everyone was slapping me on the back, but I still remember her telling me how she had saved for like 3 years to buy this thing. Oh well I digress.

[Radiation Joe]

Originally Posted by 968PORSCHE

Come on guys, quit giving the CA's a hard time. These guys are obviously (to me) for real. I spent 6 months selling cars in the 80's and everything they are saying rings true. If you make two $1,000 deals a week and a bunch of mini's in the month, you're hitting $60K. Add another $1,200 deal and some $500 deals and you're knocking on $80K/year. It's a tough job to do day in and day out. You gotta stay up and positive or you starve. As for the chance to buy cars cheap, well that is just another payment hanging over your head if you do not perform. Do the math guys! yes, sometimes they only make $150 bucks on your $50K car!

I hammered some poor chick on an RX7 for a $3,600 gross profit and felt terrible about it later. Everyone was slapping me on the back, but I still remember her telling me how she had saved for like 3 years to buy this thing. Oh well I digress.

+1

[UltimateBMW]

Originally Posted by 968PORSCHE

Come on guys, quit giving the CA's a hard time. These guys are obviously (to me) for real. I spent 6 months selling cars in the 80's and everything they are saying rings true. If you make two $1,000 deals a week and a bunch of mini's in the month, you're hitting $60K. Add another $1,200 deal and some $500 deals and you're knocking on $80K/year. It's a tough job to do day in and day out. You gotta stay up and positive or you starve. As for the chance to buy cars cheap, well that is just another payment hanging over your head if you do not perform. Do the math guys! yes, sometimes they only make $150 bucks on your $50K car!

I hammered some poor chick on an RX7 for a $3,600 gross profit and felt terrible about it later. Everyone was slapping me on the back, but I still remember her telling me how she had saved for like 3 years to buy this thing. Oh well I digress.

And that is exactly why this thread exists. Nobody here wants to get 'hammered' on their M3. $80k a year is a decent salary for just standing around most of the day. If you sell 2 cars a week, that is still only... what? 6 hours worth of work? And those bunch of minis... how many hours of work would you say that is? Not to mention that there are computer systems that can handle all of the paper work easily. All you do is put in the individual numbers. I've seen poeple that have trouble doing things like this, but nobody in this forum should be that inept. So the only truly difficult or skillful part of it all is making the sale.

So this brings up another issue I've been wondering about. How prone are CA's to holding up business ethics? Are many CA's willing to get alittle under the table money to make sure a deal is done at invoice? I'd definately pay a CA $200 straight up for a M3 at invoice. That gives him more money, and saves me 5k. I obviously haven't done this yet, but I'm curious as to how often this might even happen. Especially in a business as underhanded and notoriously shadey as auto sales.

[Captain Scott]

Originally Posted by UltimateBMW

And that is exactly why this thread exists. Nobody here wants to get 'hammered' on their M3.

Especially in a business as underhanded and notoriously shadey as auto sales.

Very true, especially when the car is depreciating like a lead balloon the minute you drive it off the lot.

And as for the other quote, you think so, lol, Always remember a car salesman's motto, There's an ass for every seat!

[mkoesel]

Originally Posted by UltimateBMW

So this brings up another issue I've been wondering about. How prone are CA's to holding up business ethics? Are many CA's willing to get alittle under the table money to make sure a deal is done at invoice? I'd definately pay a CA $200 straight up for a M3 at invoice. That gives him more money, and saves me 5k. I obviously haven't done this yet, but I'm curious as to how often this might even happen. Especially in a business as underhanded and notoriously shadey as auto sales.

I was thinking exactly the same thing UltimateBMW. However, I was actually thinking more like $1k to the CA. I know this may seem exhorbitant to some, but to me $1k over invoice isn't a bad deal. And this especially applies in my case since I want to do ED which will be somewhat more work for the CA. Plus, the guy is basically breaching a contract (I would assume) with BMW and/or the dealership so he is really sticking his neck out.

BTW, I am not saying this is something I would genuinely follow through with, but it has crossed my mind. Let's just say that if a CA PM'd me and offered me this deal, I would definitely not turn it down outright, although I certainly would not promise right now to take it either.

Alternately, I should add, another thing I had wondered is, suppose I just complete a deal as normal with no indication whatsoever there is table money for the CA. And then, afterward, I send him a check unsolicited. Perhaps maybe I am just a kind person, or maybe its just a nice "tip". Will he be contractually obligated to turn it down? Or can he keep it?

[UltimateBMW]

Originally Posted by mkoesel

I was thinking exactly the same thing UltimateBMW. However, I was actually thinking more like $1k to the CA. I know this may seem exhorbitant to some, but to me $1k over invoice isn't a bad deal. And this especially applies in my case since I want to do ED which will be somewhat more work for the CA. Plus, the guy is basically breaching a contract (I would assume) with BMW and/or the dealership so he is really sticking his neck out.

BTW, I am not saying this is something I would genuinely follow through with, but it has crossed my mind. Let's just say that if a CA PM'd me and offered me this deal, I would definitely not turn it down outright, although I certainly would not promise right now to take it either.

Alternately, I should add, another thing I had wondered is, suppose I just complete a deal as normal with no indication whatsoever there is table money for the CA. And then, afterward, I send him a check unsolicited. Perhaps maybe I am just a kind person, or maybe its just a nice "tip". Will he be contractually obligated to turn it down? Or can he keep it?

I would agree. $1k isn't beyond reason. But If they are really making $200 per mini sale, then a $200 tip would effectively double their take on it. I don't think that is bad for a simple sale.

I could easily come up with another 1 or 2 questions following this line of thought, but we appear to have scared off the CA input in this thread. I'd like to hear from one of them on my above posted scenary about walking in, putting down a selected option list with the invoice price and proposing deal or no deal. If the buyer was clearly adamant about this, and the deal could be sealed and done in under 20 minutes, would the CA's here realistically take it? Or would they think they could beat him and make him pay more, even with his already apparent absolute resolve?

[MCoupeFormerSalesman]

From someone who sold bmws a month ago, we don't jump at the opportunity to sell a car at invoice. Especially for an M3 where the customer is particularly demanding. Sometimes you do sell a customer a car and it isn't a lot of work, but that's generally not the case. People always have questions and want service. If you find a dealer who gives you a crazy low price expect the service to be low.

In addition, our rate was 20% of gross profit. Most the salesmen at the dealership were making about $2000 a month. It's not like people are pulling down $4000 every month.

[Ali.K_BMW]

Well sometimes it takes nearly half a day to sell a car in some cases. They bitch and moan over everything. I told a customer flat out yesterday,

"you know what, you can go buy that car at the other dealership if your gonna sit here and argue over every price I give you, I already priced the car at invoice, and threw in mats. I am barely making 100$ dollar and you have the audacity to say that the other guys will do better"

I am sick and tired of people crying over several hundred dollars, shit its a BMW not a fricken honda.

End rant. just proving my point. I would be happy with 200-300 per car, IF I had the chance to sell 5-6 cars a day. But when you have several customers cry over a hundred or two, you don't make squat.

[mkoesel]

Originally Posted by MCoupeFormerSalesman

From someone who sold bmws a month ago, we don't jump at the opportunity to sell a car at invoice. Especially for an M3 where the customer is particularly demanding. Sometimes you do sell a customer a car and it isn't a lot of work, but that's generally not the case. People always have questions and want service. If you find a dealer who gives you a crazy low price expect the service to be low.

Service as in from the service department? The only service I require is what's promised in the service warranty. In my experience the service and sales departments aren't necessarily run the same way. I've have had good sales experiences and crappy service experiences from one dealership, and poor sales experiences and pleasant service experiences from another.

Originally Posted by trackfiend

I would be happy with 200-300 per car, IF I had the chance to sell 5-6 cars a day. But when you have several customers cry over a hundred or two, you don't make squat.

If only there were a way to put the no-bullshit salemen and the no-bullshit customers together. I'll be your best customer ever if I can walk in the door with my order already on paper, hand it to you, and you just give me the car at invoice.

You've got the OP, UltimateBMW and me. That's three. I'll bet there'll be a dozen more inline very quickly if you extend the offer officially. That'll get you started. Jump on every other BMW forum on the net and start extending the same offer for all models and you'll have a line at your door I bet. Just think, you'll never fight for a sale again. Instead, people will be fighting to buy from you.

[Ali.K_BMW]

I would extend it to anyone on here yes. I just don't like people going back and forth to dealerships trying to sqeeze the CA's balls for a extra hundred dollars.

[spectrumphoto]

+1 for TRACKFIEND for the above posts.

Its been many years since I sold cars, but even in my current profession I occasionally get someone who insists on nickel and dime me to death. That drives me up a wall. For those that do it, pt yourself in the other persons shoes. Every business has to make profit, every employee has to make profit. If either or both dont make profit the neither will be in business or working for that long. A dealership is only a "stealership" (hate that term) if you let them be and in those cases its shame on you, not them for being opportunists. Supply and demand runs our economy. I hate mark-ups over MSRP and will never pay them, but I understand them and why they are. The same goes for gas, corn, milk, a hard to get purse for the wife. But thats why its called MSRP and the final sales price can fluctuate over or under that number.

Which leads me to my 2nd point. The CA is not setting a sales price for the car. usually the CA just wants the sale. The problem comes from management and the manager on duty. If he knows that Joe Smoe will most likely walk in and buy the same car for more money or for MSRP within a reasonable time frame then why would he want to let that unit go then and there for several thousand less. Simple economics says hedge my bets and wait and make several thousand more while only waiting a marginally longer time frame. This is why when I buy cars, I do it through managers weather it be the Internet Sales Manager or going to the GSM and having him get me a salesperson who he wants to throw a bone to.

So, don't blame the CA if you can't get your price. Good CA's want the sale, crappy CA's want to milk you and its pretty easy to tell them apart by how they go to bat for the sale with management (typically you can tell just in conversation with them)

[positiveions]

Originally Posted by Captain Scott

Apparently you did not write an essay why the M car's are so cool. Ask the GM about the contest and get back to us!

Mon Capitan, I am not a BMW CA. I am in a totally different field: Student nurse.

[positiveions]

Originally Posted by trackfiend

I would extend it to anyone on here yes. I just don't like people going back and forth to dealerships trying to sqeeze the CA's balls for a extra hundred dollars.

I would

[cipri]

Originally Posted by eatrach73

I would

250-500 in orlando per m3