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.
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.