Buyers Paying $4,000 Front End Profit

Brandon Lewis

I need your feedback. If a company is able to bring you 40 to 50 no-haggle buyers at $4,000 front end profit, would most dealers be willing to pay 50% of the front end profit to that company?

Of course a percentage will go to the salesman, and the dealership keeps the rest.

Brandon

Chris K Leslie

Short answer.. No

You can't accept 100% attribution right from the get go. There is no data to support the scenerio you've presented above. I could be losing more than I am gaining in the long run. 

Brandon Lewis

Chris, what do you mean you could be losing more than you are gaining in the long run? Not sure I follow.

Let's say a company attempted to work with you for 60 days to attempt to sell 40-50 cars during that period - with a $4,000 front end profit. They list the cars on a car buying website you currently are not on.

Again, they get 50% of profit if the cars sell at $4k profit. Is that something you would try for 60 days? Whether or not the company can actually perform is the big question of course, though my question is if you would try it.

Ricky Patrick

I wouldn't try it simply because of the long-term damage it would probably do to business. The automotive business isn't a sprint, so high-grossing a bunch of people for 2 months might hurt your reputation and repeat business long-term. Sounds like the traveling tent sale philosophy (I call them gypsy sales).

Brandon Lewis

I will tell you why I'm asking.

In my city, I have something very valuable that a lot of people want. It is associated with a very famous individual.

What I want to do is announce to the city that anyone that purchases a used car listed on our website for a local dealer, they will one of the items for free. We have 50 of them.

This will sell a lot of cars very quickly, even at a $4k front end profit. So I'm wondering if 50% is fair.

Brandon

Chris K Leslie

In that case do whatever you want. I couldn't possibly tell you it was enough or not enough without even knowing what the thing is. 

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