It may look like a world of balloons and bad tweed. But making a living on the lot is anything but a Sunday drive.
âI donât care what anybody says, verbally,â says Prentiss Smith, the general manager at a Toyota dealership in Brookhaven, Mississippi. âIf they pull up on our lot, they might say theyâre not ready to buy, but thatâs not true.â Salespeople watch for subtle signs to read your mind. âIf itâs a trade-in and Iâm doing an appraisal, I see how much gas is in there,â says Daniel Wheeler, an Oregon-based Hyundai salesman. âIf itâs a quarter of a tank or below, itâs usually a fairly good sign [a customer is] ready to purchase.â David Teves, a California-based salesman who writes the blog Confessions of a Car Man, says he can determine a customerâs mood by the parking spot they choose. âThereâs a place at the end of our lot we call âLaydown Laneâ because the people who park there are too timid to park out front. Theyâre either total âlaydownsââwhich means they buy whatever you want for whatever priceâor they have extremely bad credit.â
A potential customer is an âup,â a new salesperson is an inexperienced âgreen-pea,â and a buyer with no credit history is a âghost.â Taking up too much of a salesmanâs time without actually buying? Youâre a âstroke.â If youâre lugging paperwork aroundâlike newspaper ads or car reportsâyouâre a âprofessor.â And âone-legged shoppersâ are customers without their spouses, which is a regular excuse for why they canât buy right nowâgotta ask the old ball and chain!
The best lingo appears when a customer is on the fence about buying a car: Thatâs when, sometimes, dealerships will insist they take the car home for the night. This is called âpuppy-dogging.â Mark McDonald, a career car salesman and author of the âCar Salesman Confidentialâ column at MotorTrend.com, explains: âWhen customers show it to their friends and neighbors, they will make such a fuss over itâjust as they would a new puppyâthat theyâll have no choice but to buy it.â
Forget about the high failure rates, pressures to sell, and potential debts to their employers. Car salespeople also have to endure brutal tactics used by fellow salespeople. For example: Itâs your day off? Opportunistic coworkers might tell your loyal customers that youâve been fired, sell the car themselves, and keep the commission. âSome people would step over their own mothers to get that car sale,â McDonald says. They also risk life and limb whenever buyers take them out on a test drive. âI once went for a ride with a drug dealer in Oakland who took me on a test drive to collect drug money,â Teves recalls. âAny test drive when you come back alive is a successful test drive.â
âSometimes, a piece of inventory just wonât sell, so the general manager will keep lowering the price,â Wheeler explains. The dealership loses money on these cars, but the salesperson still gets commission. If a car is proving particularly hard to sell, some dealerships hand out cash prizes, called âspiffs,â to whoever finally sells it. As a salesperson, âyou could make $5000 to $10,000 a year on spiffs alone,â McDonald says. In fact, the first car a salesperson usually shows you is a spiff. Instead of promising a specific cash amount, some dealerships have their own âwheel of fortuneâ with various spiff prizes on it. Salespeople could get $100, or they could get nothing, depending on where the wheel lands.
The average car salespersonâs salary in 2012 was just under $45,000. And it doesnât come easy. Many salespeople work purely on commission, meaning they only make money if they sell a car. âWeâre not paid anything for standing there 12 hours a day and not selling,â says McDonald. âAnd if I work a whole week and donât sell a car that week, I make nothing. When I do finally sell a car, I might make a minimum commission, which at my dealership is $125. When you divide that by 60 to 90 hours a week, itâs nothing.â Smith agrees, citing an average success rate of about 20 percent. âWe lose in this industry a whole lot more than we win.â
If a salesperson has a dry spell, some dealerships will let them draw against their commissions until they can pay it back. In car sales lingo, this is called being âin the bucket.â McDonald says, âOnce you get in the bucket, it can be very hard to get out. You could owe $4,000 or $5,000 after two or three months. When that happens, the only thing you can do is quit.â
One strategy for luring customers is to rotate the vehicles around the lot to convey a busy, vibrant environment. âI tell my guys all the time to go out there and move the whole front line of cars,â Smith says. âPlay musical chairs with the cars and customers start moving in. Action creates reaction.â And while thereâs no concrete evidence to support it, an unspoken rule is that balloons somehow sell cars. On slow days, salespeople go nuts with them. âI worked at a dealership where you had to put 150 balloons out every day,â Teves says. âBy the time you were done, you were exhausted. You didnât have any energy left to sell a car.â
In 2015, more than a million Americans work at car dealerships. But that could change. Thanks to the Internet, people now walk into dealerships with their minds already made up. They donât needâor wantâa salespersonâs pitch. It makes sense that some dealerships are trading in their inflatable gorillas for online ads, as the Internet is by far their top referral source. In 2013, brand activity on Twitter alone drove $716 million in car sales, according to marketing analytics firm MarketShare. In other words, for better or worse, selling cars is becoming less of an art that involves human interaction, and more of a science that doesnât.
In a recent Gallup poll, car salespeople were ranked as some of the least honest, least ethical professionals in America, just above members of Congress (who came in last) and below bankers, lawyers, and ad professionals. This stigma has genuinely negative effects: According to a 2007 study published in the Journal of Selling , awareness of this stereotype hurts job performance. When they feel theyâre being judged, salespeople donât try as hard; they think theyâve already lost the sale. Customers then see the salesperson as detached and uncaring, and arenât as likely to buyâand the cycle perpetuates! Managers can help, the study suggests, by training and providing support and empathy for salespeople. Customers can try to keep an open mind. And the salespeople themselves? They can build relationships, follow up after a sale, and remember honesty is the best policy. After all, as Smith says, âIt is our responsibility to help change their opinions.â Of course, that, like puppy-dogging and these things , could just be another hard sell.
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