Ford dealers review commissions scheme for smaller cars

Article by Christian Andrei, on February 9, 2011

Salespeople receive small commissions when they sell the Fiesta subcompact and the 2012 Focus compact (which are due in March), which is why many Ford Motor Co. dealers are rethinking compensation plans to keep salespeople motivated to sell them. Ford’s salespeople actually prefer to sell pickups and SUVs, which offer bigger commissions.

They need to be persuaded by Ford and dealers not to ignore the smaller cars. Ford is relying on these cars to reel in the younger buyers and to help widen market share in traditional import strongholds on the coasts.

According to dealers, the typical margin on a truck could go higher than $1,700 while the profit margin on a subcompact such as the Fiesta is only about $300. This means that most salespeople earn about $75 on the sale of a small car but they get hundreds on pickup and SUV sales.

Beau Boeckmann, vice president of Galpin Motors in Los Angeles, said that salespeople have to be “really good…to make an average living.” Boeckmann says that he lost some good salespeople due to shrinking commissions.

Recently, Galpin began sales contests based on customer satisfaction just so that it can supplement those commissions.

Galpin has also started what Boeckmann calls “volume bonuses,” which are paid to those salespeople who sell a certain number of new vehicles. The program allows salespeople to earn extra money even when selling small cars. [via autonews - sub. required]

Topics: ford, dealer

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
WM Motor, a new China-based automaker, recently revealed its forthcoming lineup consisting of affordable electric vehicles. While there is a company is the U.S. that has the same name, they...
by - December 8, 2016
Even when Aston Martin has been mum about the upcoming AM-RB 001 hypercar, Marek Reichman at least has something new to say. In a recent interview with Australia’s Motoring, the...
by - December 8, 2016
The people at Mercedes-Benz are rejoicing. This is simply because for the first time since 1979, Mercedes-Benz has assembled 20,000 – and still counting – examples of the Mercedes-Benz G-Class....
by - December 8, 2016
When Donkervoort Automobielen BV unveiled its Donkervoort D8 GTO-RS limited edition in May 2016, customer interest has been so overwhelming that the Lelystad, Netherlands-based carmaker sold out this one-of-a-kind vehicle...
by - December 8, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries