Pay Plans for Salespeople?

Tom Fohr
Alright... So I'm sure everyone has their a slightly different twist on their salespersons pay plans and different goal on what the pay plan is supposed to accomplish but here is what I am looking for... A pay plan that will motivate the salespeople to not only be concerned about gross but unit volume too (especially for new vehicles). Our gross per vehicle is pretty good and at our store our sales tower has a good grip on controlling that so I'm not too concerned on trying to focus on that. My biggest goal is trying to turn more units and get the salespeople to not turn aways a customer because it is going to be a new vehicle mini, ect. I want them to want and NEED every last deal and to be rewarded for doing so. I have noticed that our average salespersons units are a bit below industry average being that while I do have sales people who are consistantly 8-10-12 units, I have a lot who fall behind and are only averaging 5-6 units. I think part of this is due to the fact that our grosses are so good that ma
Jackie Tyslau
The focus should be directed to appointments, so if the dealership attaches appointments to the pay plan it will take care of the sales. As you know for every 4 appointments made the data shows us that it will results in one sale, 4 appointments, 3 demo's, 2 write up's, 1 close. Put in a plan where your sales people are rewarded for appointments that show, have a board that reflects the weekly appointments, have an individual goal and a sales team goal. Have the managers call and confirm the appointment that way the person is more likely to shaw up when a Manager calls with enthusiasm looking forward to seeing them and assisting them in their vehicle needs. Being focused on appointments helps your sales people to focus on daily activity which is where it all starts Jackie Tyslau
Jacob Jackson
What is your mini? Perhaps it is too small. One thing that we did gave the sales people 2 ways to calculate their pay, one based of gross (like it sounds like you have) and one a graduating scale based off of volume. At the end of each month we would total each up and pay them which ever is greater. In other words, we have a $150 mini, but if they sell ten they would get at least $3000 or their gross commissions, whatever is greater. This way each deal counts because they dont know which plan is going end up being most so they push for both. Hope that helps
Bill  Jones
I think dealers should consider hiring sales people on salary with Bonus plans. A true sales professional does not need a pay plan to motivate them they need a pay plan to reward their hard work. In todays economy you could hire all the talented sales people you want for $55,000 per year and if they don't hit established goals they are out. Do you really need money to motivate or is the fact that most people out of a job won't find a new one for 8-12 months motivation enough?

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