Did You Forget How To Make Car Sales Gross?
I was looking at some reports from December from a couple of dealerships the other day and was so happy to see some actual gross made by car sales professionals. Lately, I have been starting to think that salespeople have forgotten how to make car sales gross, but after seeing these numbers, my worries have gone away. I have heard so many salespeople complaining about how hard it is to make any gross because everybody is using the Internet to shop for cars today.
Unfortunately, I have noticed that many salespeople who have joined the ranks in the last few years seem more focused on the sale than the gross made on each sale. I guess if you are paid a flat amount per car or some other kind of car sales pay plan, that is fine, but for most car salespeople, we still get paid on a commission basis, and low gross deals and minis don’t pay very well. There will always be mini deals, but volume will get you some of those big car sales grosses.
You Can Still Make Gross in Car Sales
Just so you know, the deals I was looking at were 3, 4, 5, and 7-pounders, and there was even an 11-pounder. That’s right, an 11-pounder; sure, an 11-pounder is very rare, but there were multiple 3, 4, and 5-pounders. I was amazed and happy to see numbers like that, so I had to do additional research to satisfy my curiosity. I wanted to know who sold these cars and what kind of experience they had as salespeople. Also, I wanted to know if there is a way to source these customers so I would know if these buyers were walk-ins or Internet customers.
I looked at nine of these nice grossing deals sold in one week and broke them down as follows. I didn’t include the eleven-pounder because they are so rare I didn’t think it was fair to include it, but I included 9 deals that were 3, 4, 5, and six-pounders. The stats on these car sales are as follows:
Be Proud on These Car Sales Grosses
|Gross Made||Source||Years Selling Cars|
As you can see from the chart above, experience played a role, but not an overwhelming role. You could say it was the luck of the draw or make any other excuse you want, but no matter what, you think these are respectable car sales grosses, and they will make an excellent addition to your paycheck on payday if you get paid a commission for selling cars.
Through further investigation, I discovered 4 of 5 Internet sales had prices from the Internet but did not buy the exact car they had quotes for; instead, they bought something similar, and one even bought a completely different model. All the information I gathered supports the basics for selling cars and making respectable grosses, so remember these simple things for making gross.
10 Simple Tools for Making Car Sales Gross
- Build Rapport and Earn Their Trust
- Build Value in Yourself, the Product, and the Dealership
- Ask Questions and Listen Carefully
- Determine Needs and Wants
- Concentrate on Their Hot Buttons
- Assume the Sale and the Gross
- Don’t Assume You Know What They Want
- Switch Cars, Trim Levels, and Models
- Sell Accessories and Options
- Focus on the Gross When Making the Sale
There is still gross to be made when you sell cars for a living, but you need to make an effort instead of taking their Internet quote and making a quick mini-deal. These are the kind of car sales grosses that you would see at the dealership before the Internet became such a large part of selling cars. There were mini-deals years ago, and there will be mini-deals for years to come, but there will also be big grossing deals, too, and you need those too if you are to make a six-figure income selling cars.
Later, Fresh Up on the Lot
Steve · April 14 at 8:50 am
What about when your dealer makes 95 percent of the deals mini deals at sticker? I sell front row cars that we’ve had less than 2 weeks for the sticker price and it’s a mini deal. The dealer makes a lot of back end profit but shows usually less than 100 front end on most of the cars. Is it time to think about a new dealer?
Last month I sold 10 cars. 8 were minis. Only 1 of them negotiated off price and that was only 100 bucks. Of the other 2, 1 was only 144 commission that I sold at sticker and 1 was a new car that I was able to get warranty and rust proofing done and got 500.
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