Was my offer to low?

[wivenhoe]

The thing these brands don't understand is the way they pay their staff is designed to not give the customer the best experience.

Audi for example, Merc etc. probably the same, have targets set out where each sales member has to sell say 15 used cars and 12 new cars each quarter to hit target. Target can give them 30-50% of their wage.
When they sell a car they have add on products, finance, gap insurance, wheel insurance, leather treatment and paint protection etc.
They have to have at least two of those added to make the car count on their target, sell a car with no add ons and it would knock one off your total.
That is why they often say "Take the Gap insurance and I will knock the price off the car so you get it for free."

Your guy who lost his rag was probably a week away from his quarter and still needed half a dozen cars to hit target, it could be the difference between him going home with £2000 in his pay packet and £4000.

Mate of mine says they all start to get very stressed, very pushy and not very nice when it has been a quiet quarter, as, quite understandably they are all worried if they can pay the bills.

So why do they do this?
Because the manufacturer is paying the dealer in the same way, they may have to sell 250 new cars each quarter to to get their bonus, miss out by 3 cars and it could could you £250k.

That is why you will suddenly get silly deals at the end of the quarter. You may be the last car they need to sell, they could give you the car for nothing and be £200k better off.


But if the managers are putting pressure on sales staff as they are pressured and they in turn are being pushy and rude to customers is that really any good for your brand long term?

I used to enjoy buying cars, I now hate it.
I ring up 5 dealers and say "I have seen your car and 5 others, I want to pay £xxx for your car, I have said the same to the others, who ever comes back to me first and says 'Yeah OK' will get my deposit".
It works, there will be one who bites.

I have had some silly deals doing that and far less grief.

When you say they have to sell, presumably that is confirmed orders with deposit. I think this as I achieved great discounts on cars that were on very long lead times so weren’t necessarily going to be delivered towards a quarter end.

 

[gIzzE]

Yeah, new cars need to be ordered and placed, deposits paid on the system.

 

[John]

Oh yes they do!!!!

Just so you know, you've quoted me out of context!

I was stating I didn't think they got a kick-back from the Finance company if they don't sell a car on finance - although I didn't know for sure.

That is why they often say "Take the Gap insurance and I will knock the price off the car so you get it for free."

I bought a car on someone else's behalf not so long ago and they "threw in Gap Insurance for free". In reality, they probably took the price of that off the car and bought it on our behalf so they met the target.

I always look at it from the perspective of "What's in it for them?"