I have a question for anyone who has worked for a car dealership.

I recently have been hired on at Honda. I have the opportunity to choose if I want to be on the floor, or in internet sales.

If anyone can help me out with some info to help with my decision, It would be much appreciated. Thanks in advance.

 

I've run across two kinds of dealer "internet sales" people.

One, is actually allowed to make deals via the internet. Start to finish.

The other is NOT allowed to make a deal and seems primarily responsible for getting internet leads to come to the dealership.

Which kind is your dealership?

 

It is a start to finish scenario.

 

EDIT: never mind, read OP's question wrong.

 

Can't help you much since the closest I came to car sales was being in the interview room of a couple of em. I didn't think I could handle the commitment with school and all so I passed, but you have to figure that internet sales will have fewer tire kickers. A lot of times people who walk-in just want to test drive and have zero intention of buying. That's not to say those who e-mail you won't do the same, but there has to be a lower percentage. I could be wrong, but it seems like the average internet buyer is more prepared and serious about buying.

Two members who are currently salespeople IIRC are Colin and black label, maybe shoot them a PM.

 

I just started in sales, but I'm on the floor and most of our business is loyalty based, however we do well on used cars through the internet. We do not however have a separate department. So basically I take floor, incoming calls, referrals, orphan owners, and internet. I guess with no other info, I'd rather be in my position, you have way more opportunities to make a sale than putting all your eggs in one basket(the internet). btw I'm Kia, Nissan, Mitsu and used.

edit; just ask who on average makes more money, be up front in sales no one minds and actually encourages you to be upfront about how much you want to make.

 

internet or floor? if the commission is the same for both, then take the path that has a higher volume of sales. youre in sales to make money, no?

if you dont know that ratio of sales for floor:internet, or cannot get the dealership/current salesmen to release that info, then look at the demographics of the dealership and make an educated decision.

am i missing something?

 

Do internet sales, spam forums, then profit.

 

We bought our acura thru an internet lead. I emailed about the car, they had us come in and deal with another person and it was kind of a turn off. My brother is in floor sales at Honda. Says you make less on internet sales than floor sales. idk...

 

well generally you end up selling cars easier with the internet than the floor. If you literally are only working the floor you'll be a goner. Something like only 10% of walk-ins will buy, but with internet sales, the person basically already wants a specific car so your sales rate is higher. Commission and volume are the issues. The big reason we cannot just tell you either way, is that every dealership works a little different. You really have to be forward and investigate for yourself to find out, it may be where it's mostly preference and set up so everyone has an equal shot, I have no idea

 

Internet sales then i would think the consumer knows more about invoice pricing and what the car goes for. So less commission?

Whereas a walk-in is a sitting duck and most likely try to haggle from MSRP rather than invoice...

Its a guess.

 

This is the trend for the moder internet department. Due to the volume of phone calls and web leads coming in, you can't take your internet department away from their phones and computers long enough to properly show someone a car without missing a bunch of calls and making the leads wait.

Maybe only 10% of walk ins buy on their initial visit but with proper follow up (the key to being a sucessful salesman) you should close a lot more than that or go find a new job. I also remember many intenet leads who were shopping other brands as well as every other store in the area who sold the same brand I did so internet leads aren't a done deal. I will say that for a used car the person knows what they want so those are a little easier in the internet department than they are for the floor sales.

Internet sales means they sent an inquiry to the dealer via the web (or in many cases via phone). The majority of customers (all customers) have done vast internet research before ever setting foot in the dealership. Just because they didn't inquire initially through the internet doesn't mean they don't know how to use it.

To the OP, I have both both in the internet department as well as on the floor. In the end, I prefer the floor better. I can not tell you which one would be a better financial decision for you as that is all dependent on how the pay plan works at the store you would be working for. Where I am my earning potential is much higher on the floor.

I would also add that you shouldn't believe anything a sales manager tells you about how much you will make or can make, that information is most accurately reported by the salespeople themselves.

 

Yeah and out of n number of walk-ins 33%percent will return after a follow-up. Really for internet or floor sales, you both need be good at the presentation, demo, and walk around, You would merely have the benefit of not having to "find the right car." You'd be working mostly with the 10% of customers that know exactly what they want and dont hardly care about you

 

+1
I have done both,In Internet sales you should be able to turn out more units,but also expect more mini deals,also you have to be on the phone alot chasing leads. The internet pricing is more competitive,so not much mark up.
Can start higher on used cars for walk ins vs internet where they have seen the price. Are you good at talking to people on the phone or would you rather be face to face and hustle around the lot and compete with your peers. Its a dog eat dog buisness. your co-workers can be snakes and take your leads. Customers are not loyal and will let anyone help them, Good Luck

 

The first line mentioned is Internet sales. The second line you mentioned is a "BDC" department. Two different job descriptions, IMO..

 

Thanks everyone for your input. What I have learned today from the internet sales guy that is currently there, is that your constantly busy. Following leads, writing emails and calling ppl from the time you get up, till the time you go to sleep. I will have no life if I take this position. He said that he sells about 14-20 cars a month for a total of $5k-$10k depending on spins, spiffs, and bonuses.

The floor guys have a lot of down time where they are staring out the window and drinking coffee. They sell avg of 8-12 cars a month for a total of about $4k-$7k depending on spins, spiffs, and bonuses.

Obviously this all varys depending on you capabilities, but it looks like internet has more potential for a bigger payday at the price of a lot more work.

The only thing that scares me is that none of the floor guys are jumping on this position, so it makes me wonder why.

I am someone who needs to be on the move all the time and keeping busy. Bigger paychecks is a plus too. I also like free time with my wife and son as well, so I guess it's time for a tough decision.

Would still like to hear what you would do if you were in my shoes, if you wish to do so. Thanks all.

 

Because it's more work and they are lazy. They would rather stare out the window drinking coffee until they spot a tire kicker in the lot.

 

That's quite a generalization, it could be that those commission ranges overlap each other and many of them make enough and don't want to do internet sales. Sure there's always a couple idiots that sell themselves short, but to call floor salesman lazy just is just plain wrong. Personally I hate being on the computer for the majority of the day, hence why I'm not in internet sales, it makes me go nuts.

I've been mostly training and observing, but next week I'm up to start selling and I'll tell ya, these other guys work their asses off, We are scheduled 50+ hrs a week, but I hear it usually ends up being 60+ since you can have appointments on your day off. and rarely are my coworkers in their office. I'm in my office the most because I'm working on certifications, but after that I'll be all over.

 

Honestly if this is the case, then do not take either position b/c truly, you'll likely have no life either way. Seriously. After we closed our businesses and sold the assets I took some time off. When I decided to go back to work, it was a crappy job market... so I met with the GM of an Audi dealer through a mutual contact. He offered me the job on the spot. I took some info home with me, discussed pros and cons with my wife, and mulled it over. After that I called our sales guy (we had purchased 2 Audi's there before) and talked to him about it. He wouldn't tell me what he made (which is fine), but said most guys make about $40k-$50k (also keep in mind this was early 2010, when car sales were lower then today). To make that kind of money, they hardly had a day off... worked weekends and holidays, and basically lived there. Why? B/C if they weren't working, they weren't making money. If they took a day off a referral may have come in unannounced, and then they split, or at worse, lose that commission entirely.

They tried to lure me with an $800/mo draw for 3 months, but even then I decided against it. I value my nights, weekends, and holidays too much to work that much for that little. In the end it paid off b/c I found a great corporate opportunity (after more searching) where I'm very happy and still have tons of time for a life outside of the office. And not only am I off weekends and holidays, but I'm paid for it too...

Your financial situation may be different then mine and if you were younger with no family, it would also change things... but if you do not need to work right now and can afford to search a bit more, I'd keep looking.

 

Oh, forgot to mention... I worked at a dealer (service side) for a couple months before I found this opportunity, and the internet guy there got the leads virtually (phone & internet) and when those customers came to the dealership, he was the only one who dealt with them. He owned the sale start to finish. Lastly, I always noticed he was so much busier then the floor guys... so he was pulling in more commission then just about everyone else. I'd say he was probably #2 or #3 overall.

 

wow. the general population is a bunch of instinctive buyers, if thats the case.

Most ppl (i know) spend close to 4 months shopping around for a car. 2 dealers per brand (to price match) @ 3-5 brands. Thats upwards of 10 initial visits to dealerships without even talks of purchase....and that doesnt factor in the number of ppl that walk in with zero intention of buying/leasing.

 

^ Damn, really?

Well, I guess it depends on the situation as well. We never go to a dealership without a referral. I hate walking in and getting some random salesperson... even at Audi or Mercedes. So when we get ready to go shop, we get a referral someone who has already made a purchase from someone, and we go to that person. Typically by then we have done the research so when we go to the dealer, we're just going to buy. And after the test drive, we usually sign everything and write the check then and there.

But, if the people you're mentioning are just going to a dealership blind... then I can see it. But still, 10 trips and 4 months seems like a lot. Time is money, so they better be saving a TON of money to spend that much time car shopping!!!

 

well, my parents for example, would start checking out consumer mags within 6 months of a lease expiring. narrow down the car to 5-7 brands, and then do two dealership visits a saturday for xx saturdays in a row...collect the lease quotes...narrow down the car they want...and then have two dealerships get into a bidding war until they get the lowest lease rate possible. but thats not normal, of course.

 

I guess it also adds some time if you are looking at so many different brands. We kind of stick to a select few, make a decision, research, get a referral, test drive, and buy... so that takes less time then cross shopping 5-7 brands. We also don't lease... so that's a whole different process (and discussion) altogether!!

 

If I were in this situation I would do Internet sales. Frankly I like dealing with people via email and I wouldn't mind doing it all day long. I'm sure you get a lot of people just pinging you for a price but you just email them the price and they disappear if they don't like it. Better to waste 5-10 minutes sending an email than waste an hour on the floor with someone that really doesn't want to buy today IMO. If a floor guy interacts with 1 customer an hour I bet the Internet guy interacts with at least 4. During the week most people are at work and can't visit the dealer 9-5, but they can send an email.

I also suspect people pinging you for a price have already done their research and taken the test drives. They are probably in the final stages of making a purchase.

I'm less of a people person too, which is why I would prefer email

But it's up to you, if you are a great salesman and can interact well with people than you may do better on the floor.

 

Listen....I'm not sure how old you are or how much experience you have in a commission based sales position...But in a commission business, you control your destiny. If you have the drive to do it, you can make a lot of money if you know what you have to do..

 

what I'm saying is the people coming in from the internet are more likely to know exactly what they want. Now of course most people dont buy what they thought they were going to buy but with internet sales in used cars, a person most likely will come in because of 1 specific car. That's all I'm saying as opposed to a customer that really is just shopping around. btw, Monday they're releasing me from training to sell

off topic; Must say I also love having access to the service bays after hours.

 

I used to do internet sales back when I worked for Lexus. I will say it wasn't the most pleasant experience. I'm sure things have changed since then (8 years), but I doubt it's any better. It is very true that internet shoppers know exactly what they want, and majority of the time they are price driven. They will go ANYWHERE to save a buck. Most are overly critical about the experience and end up finding something to complain about. What I say about that? You get what you pay for.

 

Take the floor job.

Person to person sales experience is invaluable, even if you suck at it.

This is all assuming, of course, you can afford to suck at it.

 

I'd take the internet job. You're there to work and make money right?

See if you can get an option to transfer if you don't like either position.

I think dealing with people online/over the phone would be more productive, because it's more likely they've done their research, or are genuinely interested about the car.

 

A good amount of auto purchasing prospects that come in do not wish to talk on the phone. They want to stay hidden behind a computer screen. Trust me. Not fun.

 

My buyer perspective: We purchased our 09 MDX at Clinton Acura solely via email. The same person who responded via email sealed the deal when we came in to pick it up. We never faced another soul at that dealership during our purchase and the paperwork was done in less than 20 minutes after arrival. So, this made our purchase experience the best we've ever had.

 

Same here.

Just not a fan of the whole haggling process that happens at the dealers. I want the pricing and deal almost done before i step in the door.

 

If you value your free time and your faith in man kind to be pleasant then don't take either job. You will occasionally have customers that you love to death whether you make a good commission off of them or not. However majority will piss you off royaly! You wouldn't belive how my perspective of people has changed in the last 7 years. I'm still a very pleasant sales person to deal with but I don't take shit from any customer. The first sign of being an asshole, they're out the door. It's just about not letting people walk on you and having them treat you like a servant. Time wise it's crazy, you're going to miss out on a lot of vacations, weekend excursions, birthdays, cookouts, fun nights, etc. For instance in the last 2 weeks I've put in about 150 hours and that's with taking a day off. Today's the last day of the month but Nissan has a huges bonus out for all the dealerships so mine and a bunch in the area that are close to hitting it are open from 9am-12am...

I'm used to all this but honestly the car business has been steadily declining each year so I'm on my way out. The pay has been great but this is one of those businesses where you realize the saying is true that money isn't everything.

 

I'd choose floor sales over internet sales in a heartbeat. As technologically inclined as I am, I'd still hate having to deal with clients over a keyboard. I'd much rather interact with people in person. Just a more satisfying and enjoyable experience, IMO. I'd also imagine internet sales getting boring pretty quick.

 

At least at my dealership, it isn't haggling, it's figuring out what works for each individual. We take counter-offers and such but it's more financing. Financing is now from 48-96 months that changes everything

 

The salesman @ Clinton Acura and I did a little give and take via email: price and terms.....and when I say 'a little' I mean, three or four quick back-forth emails in the space of fifteen minutes.

Pretty much when I got to the dealer to take delivery (and return my leased AV6), it was just a matter of making certain the paperwork matched the email information. Honestly, we spent more time going over the MDX's features.

I cannot imagine making an auto purchase any other way now. (And a leftover 2010 TSX V6 -- from the same dealership -- may be next on my hit list.)

 

Thanks again everyone. I took the internet job. I have to look out for my families well being first, and go with the money. I started getting leads yesterday and have set two appointments for this weekend. Hopefully I can get a sale under my belt.

Thanks for all the insight. Much appreciated.

 

Good luck!

 

So you guys just try to payment close everybody. I wish it was that easy in this market. People around here are too smart for that. They realize even though you can get to their payment you're hitting them at sticker. LOL