It's also important to note that we posted on hold back. We found grosses were higher this way as it keeps our them pushing to hold the line on pricing.
Seeking innovative pay plan ideas for internet sales managers
- Thread starter tbullard
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- Dec 2, 2009
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My two cents: pay for the exact results you want at the macro level.
It's easy to say, "I want this department to produce 100 cars a month at $1200 a copy." So I pull-out my little dealer calculator and my NADA manual that tells me to keep comp under 22% and I say, OK, I have $120K to spend. I'll hire one guy at $60K and call him the manager, one guy at $40K and call him a rep, and I'm way ahead of the game.
What are the essential elements to building a successful department? Welp, if I'm gonna do 100 cars the right way, thats 400-500 leads a month that need to be answered perfectly and quickly every time.
I'm gonna pay on my peoples' response time.
If I'm gonna do 100 cars the right way, I'm gonna need 150-175 good appointments to show.
I'm gonna pay on appointment shows.
I've found that if you pay people to perform a specific task, they perform that specific task. So decide what your desired behaviors are, and pay people to perform those desired behaviors.
Worked for me
It's easy to say, "I want this department to produce 100 cars a month at $1200 a copy." So I pull-out my little dealer calculator and my NADA manual that tells me to keep comp under 22% and I say, OK, I have $120K to spend. I'll hire one guy at $60K and call him the manager, one guy at $40K and call him a rep, and I'm way ahead of the game.
What are the essential elements to building a successful department? Welp, if I'm gonna do 100 cars the right way, thats 400-500 leads a month that need to be answered perfectly and quickly every time.
I'm gonna pay on my peoples' response time.
If I'm gonna do 100 cars the right way, I'm gonna need 150-175 good appointments to show.
I'm gonna pay on appointment shows.
I've found that if you pay people to perform a specific task, they perform that specific task. So decide what your desired behaviors are, and pay people to perform those desired behaviors.
Worked for me
I was hired as an Internet Sales Manager last June and my pay plan, I believe, has worked well for everyone. I get a salary plus commission for shows and extra if they sell. Like everyone is saying, it's my job to sell an appointment, not a car. If talks get too serious to price, because there are people out there who only want "the best price", I turn it over to a salesman.
Our dealership is Toyota, we average about 150 units a month between new and used, we have 10 other Toyota dealerships in our area, so it's pretty competitive. I average 110-130 appts a month, 80-100 shows, and 40-50 sales. And I get right around 300 leads a month. Work 4 days during the week 9-6, every Saturday 9-6, and Sunday 12-5. I like it.
It is a little tedious at time though. My average response time, according to CRM and Toyota's mystery shops, is 3 minutes. I answer them from home because I get emails to my phone whenever I get a new lead.
Edit: I am also given a phone, iPad, and Computer by my director.
Hope this helps!
Our dealership is Toyota, we average about 150 units a month between new and used, we have 10 other Toyota dealerships in our area, so it's pretty competitive. I average 110-130 appts a month, 80-100 shows, and 40-50 sales. And I get right around 300 leads a month. Work 4 days during the week 9-6, every Saturday 9-6, and Sunday 12-5. I like it.
It is a little tedious at time though. My average response time, according to CRM and Toyota's mystery shops, is 3 minutes. I answer them from home because I get emails to my phone whenever I get a new lead.
Edit: I am also given a phone, iPad, and Computer by my director.
Hope this helps!
Now Blake, why would he want to move from beautiful Va Beach to Waldorf?? Oh wait, liquor sales on Sunday!
Joshua, Suffolk is a lot closer and you wouldn't have to move if ever looking for a change!
- Dec 2, 2009
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Well there are a few reasons:
Because I would make him cradle to grave. Getting the customers in the door is now the hardest part about selling a car. People don’t visit more than one or two dealerships anymore. We sell a car to 45% of appointments; we sell an appointment to 25% of leads. Which has the most room for improvement? He already knows how to get them in the door, that's now the hardest part. I could easily teach him how to test drive and write a deal up. I’ll close his customers while he’s learning, that's a non issue. If he can maintain his percentages with 130-150 leads, that's 19.5 cars. He would make 70-$100,000 /yr depending on gross, keep his normal schedule + have off every Sunday [Charles county blue law, dealers are closed] , and I'd constantly remind him of his awesomeness on a daily basis J
Sounds like a good plan to me.
- Dec 2, 2009
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Now why in the world do that??? You just said that getting people in the door is your biggest challenge. Why would you dilute a propensity for doing just that???
You make him cradle-to-grave, at MOST he can handle 100 leads a month, that's 25 shows and hopefully 15 deliveries. How does that move the needle?
Play to a strength if you want to move the needle! This man gets people in the door!! Pay him to do just that -- work on increasing his show rate.
If it's me, I cut his leads to 150 and pay tiered bonuses at 40% show and a whopper at 50%. At 300 leads he's forced to cherry-pick now; imagine what the right attention and process for all leads would produce.
Thats how you move the needle!
"God grant me the serenity
to accept the things I cannot change;
courage to change the things I can;
and wisdom to know the difference."
-The Serenity Prayer
John, those alcoholics were on to something. I can change the personnel; I cannot change the business plan. That's as simple an answer I can give lol.
- Dec 2, 2009
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Blake, my young Padawan, I believe a man like you has the power to change just about anything he sets his mind to!
Be Jeremy Lin and forge a new destiny!!
(not to talk about how old I am... But I remember the days before the Serenity Prayer was synomous with AA...)
Be Jeremy Lin and forge a new destiny!!
(not to talk about how old I am... But I remember the days before the Serenity Prayer was synomous with AA...)
