Beltway Companies
What's the Deal With Split Deals?
We have all had one time or another where we had to split a deal. Splitting that deal, however, was often easier said than done. Once we had an agreement on the split deal, we thought all was well. However, that is not always the case, and can cause for quite the controversy, which is not what anyone wants or need! To avoid confrontation, frustration, etc. there are some things to consider when splitting deals!
Split Deals Should Be Discussed On the Floor. Managers Do Not Always Have to Get Involved.
This is not to offer that managers should not be aware of the split deal. However, there are times when the sales consultant is not there, or they are with another customer and are not able to work the deal. That said, they should have a go-to sales consultant on the floor. Someone they can count on that will be there to assist them. Sounds easy right?
In most cases it does work, but as mentioned above there are times when the split deal can go south. To avoid the split deals going south, there ought to be guidelines. For example, each sales consultant would select someone to handle their deal if they are not available. And while there will be instances where their back-up is unable to assist them, it will cause less confusion, and the possibility for there to be an issue.
Commission. Who Gets the Stroke on the Board?
If you are splitting the deal with another sales consultant then whoever’s customer it is would get the stroke on the board. There have been instances where if sales consultant ‘A’ has already hit their bonus - hitting the highest tier in commission - then they would gift sales consultant ‘B’ a sale to hit their next tier. While it is not an issue for a sales consultant to split a deal - lending a hand - it can be an issue for a dealership. Wherein, the dealer would be paying an additional bonus plus commission for a sales consultant who would otherwise not have made it. However, looking into the issue, if your sales consultants were taken care of then there would be a lot less of this issue taking place. As it happens far more than you would think.
Have A Signed Agreement. Facts Are Facts.
There can be a lot of grey area when it comes to splitting deals. There are too many situational circumstances. That said, it is best to have a written policy where each one of the sales consultants would sign it, agreeing to have a floor partner who would assist them if they were not able to take care of the deal. This way everyone is on the same page regarding how to approach the split deal. In doing so, it's less likely you will have issues.
Bottom Line: your dealer does not have to make this harder than it needs to be. At the end of the day, you have to work with your sales consultants. The best way to do that is being on the same page regarding split deals. This way you avoid surprises and the unknown, which can have a negative impact on morale. The other benefit of allowing your sales consultants to work together in determining the split deal helps build a team — especially given the fact that the dealer world is usually 100% commission.
How do you approach split deals? It's not too late to join the conversation here!
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3 Comments
Bart Wilson
DrivingSales
If its not in the CRM it didn't happen. Split deals give your dealership the leverage you need to drive CRM usage.
Derrick Woolfson
Beltway Companies
@Bart, agreed - we had a 72hr policy, which helped in many cases.
C L
Automotive Group
We also have a 72 hour policy. I also bare the right to re-assign leads and follow up as I see fit which means that if people are not doing what they are supposed to. I will take their opportunities away and give them to someone else.