First, I wrote this a few years ago on the Motor Trend Forums and wanted to see what kind of responses I would get here from it:
I’ve been thinking trying to get a law passed or getting some signatures for a petition or something concerning commission based auto sales. Mind you im an ex car sales person myself, and I feel that the commission part of the car sales corrupts the buying experience. I have seen and heard some dirty things when I was selling cars and that’s one of the reason I got out of it. Sales managers and sales reps are rarely sincere, and will do and say anything to get a sale. My old sales manager threw out a lot of deals because he was always thinking about his pockets. Yea i know at the end of the day we are all there to make money but people should be thinking about the customer first. And yes I know not all sales people are like this but majority are.
I just basically wanted to know how most people felt about commission being eliminated from auto sales.Personally, from experience in auto sales and being a customer myself, I think that commission combined with all dealerships being franchised, take away from the customer experience and can cause fraction and greedy behavior in the workplace.
Basically any job that has some kind of incentive, bonus or c omission type of pay has ruthless, non caring people that are only thinking about their pockets (again this is from my experience. Not saying all but most are. I now other people have/had different experiences.).
For example, my girlfriends sister works at a distribution center for a well known retail store. They have some kind of incentive based program called “blue chip”. Basically the more packages you scan or whatever, you get blue chip. But its not much. Especially considering the amount of work that you have to do to get anything decent from it. Its basically a way of getting the people to work faster and harder, and a lot of the people are ruthless about it to the point of tearing up their pay stubs on pay day if they didn’t get enough blue chip.
With car sales, its sickening. I’ve seen snakes from all sides thinking about that next sale or deal. Sales managers sabotaging a sales persons deal because they aren’t getting enough out of the deal on their end (this has happened to me personally), taking a sales without going half on the deal, etc.
Franchises ties into this too and affects the customer and the customers experience, which is all that matters. MSRP’s have becoming almost meaningless, especially with special models and dealers price gouging. There’s no reason the same model and trim of the same exact car should be 5 different prices at 5 different dealers. It even happens with food. I’ve seen a Big Mac almost 7 bucks at a Mcdonald’s in a nice area and just a few miles down the way in a not so nice area, the same Big Mac is almost 3 bucks cheaper.
Why cant I be able to build & price a car on an auto companies site, see what it comes out too, go to the dealer, be greeted by a sales person that’s AT LEAST making a decent salary or hourly wage, see the price I saw on the net, and be gone in 2 hours or less? Anyone agree or disagree with me? What steps would need to be taken for any of this to happen (besides the obvious first step of auto companies needing to take control over dealerships).