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      09-15-2005, 11:02 AM   #1
c1pinang
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Confession of how much profit a BMW salesman really make....

Hi Guys,

Thought I would like to share this info with you. These are emails back and forth between me and a BMW sales at West German BMW in Fort Washington, PA (Near Philly)

>From: dreedman@wgbmw.com

> The dealer has to make money on the vehicle and it is a 2006 model so he is not going to give it away. The salesman gets a percentage of the gross profit, usually about 20% so if you offer $800.00 over invoice, he will only net $160.00 for his efforts. Most of the salesmen in the dealership sell between 7 and 15 vehicles per month so if they were all deals like yours, well would that kind of income work for you?
>Dave Reedman
>West German BMW 215-643-3322 Ext. 205
>

Last edited by c1pinang; 09-29-2005 at 07:39 AM.
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      09-15-2005, 11:34 AM   #2
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Don't they get a volume bonus?
Does BMW give a holdback to the dealerships?
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      09-15-2005, 11:41 AM   #3
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Quote:
The dealer has to make money on the vehicle and it is a 2006 model so he is not going to give it away. The salesman gets a percentage of the gross profit, usually about 20% so if you offer $800.00 over invoice, he will only net $160.00 for his efforts. Most of the salesmen in the dealership sell between 7 and 15 vehicles per month so if they were all deals like yours, well would that kind of income work for you?
From my understanding, salesmen get a salary albeit not a very good one, from the dealership. Then they get money from the dealership just for selling a car, from $100 - $300 depending on the dealership. Then whatever the gross(usually 20 percent) on the car. Plus incentives, blah blah blah. So you can definately make a living from it. This guys just trying to give you a guilt trip, run typical salesmen hogwash.
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      09-15-2005, 11:52 AM   #4
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Quote:
Originally Posted by Socom
Don't they get a volume bonus?
Does BMW give a holdback to the dealerships?
im pretty sure i read somewhere on an edmunds post that bmw doesnt have holdbacks..
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      09-15-2005, 12:01 PM   #5
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If i was a salesman, i do what i can to get the most out of a sales. It is just a nature of their job. I would not feel guilty about anything. you are just looking out for your best interest and so is the salesman. if anyone on the forum are in sales, don't get the wrong idea here. it is just part of their job. Sometime you win and sometime you loose, as long as both side are happy at the end, that all it matters.
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      09-15-2005, 01:00 PM   #6
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The numbers just don't add up. You are saying that BMW salesmen make $50-75k/year, and that's not right.

That might be what they start out at, but there are many who make well in excess of $100k. $250-500k/yr is not that uncommon either.
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      09-15-2005, 01:04 PM   #7
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Quote:
Originally Posted by Atty
The numbers just don't add up. You are saying that BMW salesmen make $50-75k/year, and that's not right.

That might be what they start out at, but there are many who make well in excess of $100k. $250-500k/yr is not that uncommon either.
How did you calculate to get $50-75k/year?
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      09-15-2005, 01:18 PM   #8
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my salesguy said he makes anywhere from 7-10K a month
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      09-15-2005, 01:31 PM   #9
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I have a friend who worked at Honda and Mercedez Benz dealers. He said that Mercedes salesmen will make $200 per car if it is a minimum profit sale. 800 dollars over invoice will definitely qulify for the minimum profit. However, if the salesmen can sell about 15 cars a month, his gross income before tax will be about $150,000 ~ $ 175,000 annually. I have no idea about BMW but this will give basic ideas.
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      09-15-2005, 02:18 PM   #10
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Man, with that kinda money, when the time comes for my E90, I'm going in that dealership with battle armor and a spiked mace cause we're going at it.
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      09-15-2005, 02:41 PM   #11
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Quote:
Originally Posted by Red
Man, with that kinda money, when the time comes for my E90, I'm going in that dealership with battle armor and a spiked mace cause we're going at it.
that's what i am talking about...
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      09-15-2005, 02:45 PM   #12
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Wow didn't know car salesmen are that rich.
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      09-15-2005, 03:09 PM   #13
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From what I have seen the money is in used cars and finance.

More money can be made on the trade in than on the new car.
Dealer financing is another profit center.
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      09-15-2005, 07:03 PM   #14
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fredtoo - I agree. I don't begrudge anyone their living, even salesmen (one small step above lawyers). I think some make good money and some don't. Everyone at your job doesn't make the same salary do they? I'd like to think that my CA is doing well. She is the best salesperson I've had, and appreciate everything she's done. As long as I'm not being screwed in a deal, it's nice that everyone can win.
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      09-15-2005, 07:45 PM   #15
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Quote:
Originally Posted by egtlover74
I have a friend who worked at Honda and Mercedez Benz dealers. He said that Mercedes salesmen will make $200 per car if it is a minimum profit sale. 800 dollars over invoice will definitely qulify for the minimum profit. However, if the salesmen can sell about 15 cars a month, his gross income before tax will be about $150,000 ~ $ 175,000 annually. I have no idea about BMW but this will give basic ideas.
Ummmm lets see here...

15 cars a month equals 180 cars a year. So at minimum of $200 per car that comes out to $36,000 year. Long way from 150K! If car salesmen actually made that much everyone would be doing it, the majority dont make anywhere near that much.
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      09-15-2005, 07:56 PM   #16
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Quote:
Originally Posted by Atty
The numbers just don't add up. You are saying that BMW salesmen make $50-75k/year, and that's not right.

That might be what they start out at, but there are many who make well in excess of $100k. $250-500k/yr is not that uncommon either.
I don't know this for a fact but would say with all confidence that of all the BMW salesmen in this country, you could count the ones that earn $500K/yr on one hand. I would be very interested to learn what the most highly compensated BMW salesman in the nation earned. In my experience, for the most part these guys are glorified order takers demonstrating very little in the way of high level sales skills. And add to that an extra measure of arrogance just for kix.
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      09-15-2005, 07:58 PM   #17
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Quote:
Originally Posted by mattldm
Ummmm lets see here...

15 cars a month equals 180 cars a year. So at minimum of $200 per car that comes out to $36,000 year. Long way from 150K! If car salesmen actually made that much everyone would be doing it, the majority dont make anywhere near that much.
That's what i'm thinking.
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      09-15-2005, 08:30 PM   #18
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There is no way a car salesman makes $200,000. I would be very surprised if more than a few took home $100K. I would put a typical luxury sales guy's salary at 50K if I was guessing. One factor that sucks for the salesmen is that you cannot guarantee showroom traffic: if no one comes to the dealership, you are not selling cars no matter how good you are.

Also, think about how many hours they work. By my salesman's card, he was working like 60+ hours a week. Selling cars isn't for everyone and it definately isn't lucrative unless you are VERY good.

Think about it...what are most sales guys doing when you walk in? They are either sitting there doing nothing or talking to each other. They aren't selling cars every day.
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      09-15-2005, 10:08 PM   #19
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According to this article. This salesman at Brian Jessel in Vancouver B.C. makes $200,000 plus per year ($160,000 US). Interesting article......I believe that Brian Jessel is the largest BMW dealer in Western Canada and possibly all of Canada. This salesman mentioned in the article along with about 4 or 5 other salesman at Brian Jessel were in the newspapera few months ago for achieving "BMW Master" sales level (whatever that is).

http://brianjessel.bmw.ca/en/pub/promotions/6.aspx

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      09-15-2005, 10:15 PM   #20
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I believe that the "80/20" rule applies in sales in general. 80% of the money is geneated by 20% of the staff. With that said I do believe that an exceptional salesman can make over 100k/year. But remember that they are few and far between.
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      09-15-2005, 10:20 PM   #21
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Quote:
Originally Posted by topsouls
How did you calculate to get $50-75k/year?

Simple, based on the original idea in this string:

Base Salary: $40,000
Commission: $200/car
Required to sell: 15 cars/mo (one every 1.5 business days)
200 x 15 = $3000 x 12 = $36,000 commission/year

40k + 36k = 76k/year. Not much money - closer to your small town Ford salesman just starting out.
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      09-15-2005, 10:22 PM   #22
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My Uncle worked for a Mitsubishi dealer for 4 very long years!
No way has he ever come close to $40,000.00 per year.
Most saleman wish they could sell 15-20 cars per month.

Infact 9-10 dealers pay commission only & maybe bonus?
Another fact: more $ is made selling the used cars over the new.

He made zip on new cars & especially lease cars!
Many times he came home with only $150.00 per new car sale.
Salesman do not make big $ at any dealership, $100,000.00 they are lying!
Downfall for salesman is the internet, because most buyers know invoice!
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