Any one have pay plan example or idea's for a vehicle acquisition specialist? Would be responsible for acquiring vehicles for the dealership's inventory through the service drive. Would inspect vehicles, review vehicle history reports, and consider factors such as market demand and profitability. Would negotiate price with service customers. Would you think this would be salary plus commission pay plan. Looked for other threads on this topic within dealerrefresh but didn't see anything so thought I would start one. Dealership writes approx 150-175 RO's per day. Thanks in advance.
pay plan: vehicle acquisition position
- Thread starter KevinO
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I think a flat per vehicle acquired is sufficient in most cases. Make it worth it to them, something like 200-300 depending on the person's experience and their base etc. Your RO traffic means this is likely effort limited not opportunity limited. If they are struggling to get wins and are relatively new to the business have them focus on just presenting appraisals and incentivize that. Hell even a person that collects all the info, plays maitre d with the customer, and tees up a UCM can work.
It's important to define what your guidelines are up front. Establish your vehicle age and odometer limits. You really want to them to take a lot of swings as the conversation doesn't start until you are presenting the customer with an appraisal. I also wouldn't have them try to sell them a car, especially at first, as you get this off the ground. Let that happen organically. The focus is on getting as many appraisal reactions and not clouding the customer, and sales person's decision making with 2 sales. Also please report back on your progress in this thread.
@Alex Snyder probably knows more about this than anyone -
It's important to define what your guidelines are up front. Establish your vehicle age and odometer limits. You really want to them to take a lot of swings as the conversation doesn't start until you are presenting the customer with an appraisal. I also wouldn't have them try to sell them a car, especially at first, as you get this off the ground. Let that happen organically. The focus is on getting as many appraisal reactions and not clouding the customer, and sales person's decision making with 2 sales. Also please report back on your progress in this thread.
@Alex Snyder probably knows more about this than anyone -
- May 1, 2006
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Do you know how many of your monthly sales customers have spent a dollar with you in the past 2 years? Establish what that has been for the last 3 to 6 months and know a decent job is 35%. Then, you have a goal to establish a payplan around.
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Hopefully you'll be checking Delivery Dates (make sure they didn't buy that 2019 3 weeks ago used), how buried they may be etc. (if you sold them the car originally), current rough vehicle value prior to checking overall condition and accurate mileage. If they bought, did they get any extended warranties etc. you may mention "we managed to offer you XXXX for your vehicle since you bought that extended/transferrable warranty last time".
I think it may be detrimental to getting them hyped only to be soul crushed on how little their vehicle may be worth or illustrating just how buried they may currently be if just presenting within basic vehicles specs.
I think it may be detrimental to getting them hyped only to be soul crushed on how little their vehicle may be worth or illustrating just how buried they may currently be if just presenting within basic vehicles specs.
"Do you know how many of your monthly sales customers have spent a dollar with you in the past 2 years? Establish what that has been for the last 3 to 6 months and know a decent job is 35%. Then, you have a goal to establish a payplan around"
Alex, I should had told you that I don't work at the dealership. The dealership is thinking about adding this position and I might be interested in pursuing it. I've seen articles written where they say a base of 300-400 per week and $200- $300 per vehicle acquired?
Sorry but your answer to me went right over my head. Do you or anyone else have any idea(s) for me now that I correctly explained myself?Thank you Jon and Todd aswell. I appreciate your input.
Alex, I should had told you that I don't work at the dealership. The dealership is thinking about adding this position and I might be interested in pursuing it. I've seen articles written where they say a base of 300-400 per week and $200- $300 per vehicle acquired?
Sorry but your answer to me went right over my head. Do you or anyone else have any idea(s) for me now that I correctly explained myself?Thank you Jon and Todd aswell. I appreciate your input.
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- May 1, 2006
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No worries, and thanks for being honest about not getting it. I responded quickly while in a rush to get out the door.
A 35% customer retention rate is a good goal for most dealerships. Here's some math to better explain it.
If you sell 100 customers a month a car, you want at least 35 of those customers to have bought a car from you before or used your service department. The benefit is in lowering the cost of gaining a customer. It costs far less to keep a customer than to get a new customer.
Figuring out the dealership's retention rate would be the first step toward designing a pay plan, in my opinion. If the dealership's retention rate is 20%, then I'd want this person to get the store to 35%. If the store is already doing 35%, then I'd want incremental increases.
Are you familiar with metrics pertaining to the "customer acquisition cost" and "lifetime value?" After discerning the dealership's retention rate, these other metrics will help you put a dollar amount on the pay plan.
It is possible the articles you've read show the proper pay amounts, but I'm one to fully understand the whole enchilada before wrapping someone's income around it.
