Ford dealers review commissions scheme for smaller cars

Article by Christian A., 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

Recommended

McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
While Honda’s new 2018 HR-V will be rolling out at the dealerships with just a few updates, the company is certainly not giving up its spot as the best-selling vehicle...
by - August 18, 2017
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