Why become Sales Manager?

[Salesman84]

Hi everyone,

I just recently went to apply for a salesperson position at a large dealership in a major metro area, and was offered the sales job OR new car sales manager because they are splitting stores new and used and the current #2 SM will go to the used side. So they want 2 dedicated new sales managers.

Ive been in the auto industry 2 years, selling 28 cars a month average for all 2 years even from month 1. I made $210k in 2011. I wanted to move to this larger store to make even more because I did my numbers at a smaller suburb store where we were always low on inventory and customers. Also, the new store has a better pay plan. So I think I can do ~$250k in this new store in sales.

OR, they offered me sales manager, obviously next to the experienced guy learning, for $8-12k a month. That seems fair to me for a rookie that doesnt know the job. But I cant figure out how to justify losing that much money to 'move up'. Some people will say 'time off' and easier work schedule. But thats not me, I dont take days off really. I'll work just as hard and for half the money?

What are future salary prospects of a GSM or GM? Also, just because Im a good salesperson, and I do think I could make a good sales manager, I dont really see that I would make a great GM for any reason other than Im good with numbers and information (Mechanical Engineer originally).

Is there an upside to being Sales Manager?

 

[bzweifel]

Based on your info:
Keep in contact with your customers, don't go into management.

 

[ddavis]

Based on your info:
Keep in contact with your customers, don't go into management.

Customers remain loyal to the dealership over salespeople. Those of us, that have been in the business for a long time, have seen the "grass is greener scenario" many times. I can tell you from experience it rarely works out. I have friends that wouldn't even consider a management job because they have such a following that they make great money and work less hours. They pretty much do what they please.

 

[Jerry Thibeau]

Is there an upside to being Sales Manager?

Do you want to sell cars the rest of your life? If the answer is "yes," then stay a sales rep. But realize you are at the far end of the spectrum when it comes to pay and that probably won't get much higher. In an economic downturn that number will go down. If the answer is "no," then take the Sales Manager role. Sometimes you have to take a step backwards to before you can move forwards.

This would be an stepping stone in your career path. GM's can make a lot more than what you are making as a salesperson. If one day you want to move to the other side and consult, this will give you a lot of credibility. Where do you want to be in 10 years? That's the real question you need to ask.

 

[Salesman84]

GM's can make a lot more than what you are making as a salesperson.

What salary range do you believe GMs (non owners) in decent large metro areas make?

Speaking to the GM, he implied that one salesperson they have makes about $300k a year, and on certain months made more than he did. So I take that to mean that with the ups and downs, the GM is making about $30k a month? And this is at a very successful store.

I have a feeling I can average $20k a month at this store in sales. Knowing what a GM makes would help decide how long I can take a $100k a year hit in hopes of making it back as a GM someday. And thats a big if. GM spots are not handed out as easily as sales manager obviously. And there are many more in the hunt, for a singular position.

Any people care to share average GM salary info?

 

[Jerry Thibeau]

Any people care to share average GM salary info?

I've seen some GM make under 100K and I've seen those you make north of $500K. You also find that some dealer groups like the GM to have a stake in the business, so you could become a part owner as well.

On another note, here we have all these people unemployed and dealerships struggle to find talent. Kudos to you for stepping outside your comfort zone and making a great living in the automotive business. We need more people like you applying. I firmly believe that a lot of those unemployed people out there choose to be unemployed because they think they deserve the type of job they had. What they don't realize is that if they apply themselves they could make it in another industry like you have. Not too many people making the money you are making. You should write a book about your transformation. How much were you making as an engineer? I have to believe you've doubled your pay since then. You might never have become an engineer had you known what you know now. What market are you in and what brands are you selling?

 

[ddavis]

At the risk of being the voice of doom and gloom, I know more GMs that died in stores, from strokes or heart attacks, than retired. The first store, where I was a manager, lost two this way. I knew six that died at a store. I don't know one that retired. At my last stores, the GM had a heart attack before he turned 50. How many have you seen fired after over fifteen years? You get fired as a GM and it is usually a downward spiral from then. Yes, they make a lot of money and they earn every dime. They had better be banking it.

 

[Salesman84]

You should write a book about your transformation. How much were you making as an engineer? I have to believe you've doubled your pay since then. You might never have become an engineer had you known what you know now. What market are you in and what brands are you selling?

Thanks for the kind words. I won't be writing a book as it would be too short and too simple to be considered advice. "Show up early, stay late, and when you're there actually WORK, not waste time". If only I could of followed my own advice on the last part I would have sold even more.

I always found that the hardest part for me of being in sales was always being 'on fire'. It's those days, weeks, or even months you work hard because you can just FEEL that the work you invest right now will lead to a sale one way or another, so you DO it with some kind of drive and passion. And the sales happen, just like you know they would. The hardest part is being in that zone for as long as possible. Thats all there really is to it. Average salespeople I think only have that for a day at a time, sometimes even less. I feel like a few times I had it an entire MONTH at a time and could produce 33-36 cars a month. And then sometimes I would crash a bit, get pissed off at something combined with being too tired, and maybe I would fall out of it for even as long as 3-4 days. Those months would end in the low 20s. Working hard to stay in the zone, to be the way you are on your BEST days as often as possible is the key.

Anyway.

I ended up taking the sales job instead, because I honestly want to go to this larger store and see what kind of numbers I can do. If I dont do it I'll always wonder. Also, having only worked at a small store for 2 years (5 salespeople), I think I can learn some valuable things being in sales in this large store (20 salespeople) that later would make me more valuable if I did go into management at this store, and probably with a bit more respect than some rookie going into salesmanager at a national leading store after only 2 years experience in the car business.

Regarding engineering, I never actually went into the field after college. I wasted a bit of time after college, and went into the car business as probably my first real job at 25 years old. 27 now. I have friends at good companies making $70k as mechanical engineers in California (where I am). I have software engineer friends making $120k and probably one or two hit it big with stock options. I guess I just have to do the best I can. Thank god I actually enjoy it.

 

[Jerry Thibeau]

The hardest part is being in that zone for as long as possible. Thats all there really is to it. Average salespeople I think only have that for a day at a time, sometimes even less.

This about sums up why most people don't perform. You have to have that drive every day. And we can also blame managers who don't motivate and then allow complacency. Would you like to know why you can sell 30 cars and the rest of the folks only sell 10? Normally it's because they let you. Had others been taking their fair share of opportunities you would not be getting as many. People don't come to work to work anymore. They look for non productive things to do so they can kill time. I see this happen so often in our business.

 

[joe.pistell]

This about sums up why most people don't perform. You have to have that drive every day. And we can also blame managers who don't motivate and then allow complacency. Would you like to know why you can sell 30 cars and the rest of the folks only sell 10? Normally it's because they let you. Had others been taking their fair share of opportunities you would not be getting as many. People don't come to work to work anymore. They look for non productive things to do so they can kill time. I see this happen so often in our business.

Same topic as seen by the awesome communicator Joe Webb