Thursday, June 7, 2007

Why don't they give car salesmen bonuses for being nice?

It is easy enough to tape them (hey, England tapes the whole country). You might have two hundred clips of a particular salesman interacting with a customer, but the incentive will work if someone watches only two or three of them. Pay for the input, not the output of sales or profit.

Repeat business really does matter, and so does being nice.


MikeK said...

I don't know if you've seen it already, but a few years ago, a journalist for went "undercover" as a car salesman at several different car dealerships, and he provided some great insight into the whole process that allowed me to get my last car at a huge discount (MSRP $29,000, paid $20,000). Also interesting is the comparison between te Japanese and American car dealerships.

It's here.

Anonymous said...

Ironically, a good friend of mine went to purchase his first new vehicle. He was dressed little better than a street bum and drove to the dealership in a farm truck with 300,000 miles on it and showing it.

Reluctantly, the salesman greeted him and scurried off as if he was late for dinner.

In all reality, he could write a check and purchase half their inventory. That very day, he went to another lot and purchased a $50,000 truck and drove it to the other lot. The same salesman came out very eagerly asking for help. The man replied, "I really didn't want this color but the only lot in town with customer service didn't have it." He got back into his vehicle and drove off.

A penny saved a penny earned? People don't become millionaires spending every dime they make.

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