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Old 05-09-2013, 06:52 PM   #1
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Default Creating Fleet and Commercial Department

Hi all,

I've always worked in large(ish) metros where fleet and commercial did its own thing with autonomy, for the most part. I would order the units, but short of helping with that I would fulfill my GSM duties and the fleet guys would do their thing.

Fast forward to 2013... brand new B dealer (make that C now... that's what we get for batting 200% vs. MSR), 5 salespeople, volume mentality, and no fleet/commercial/outside focus at all.

So far I have been handling on my own with some former clients who have followed me to the new CDJR store in town.

I was just curious as to your guys previous pay/incentive plans for a dedicated fleet and commercial guy. I have always kept them on a normal sales pay plan with the same volume bonuses and such, whether or not the deals were type 1/B/L/E or 5/7. What do you guys think? Or is a salary component best in your eyes?

My plan is to groom one of my guys on the floor. Averages 15 retail on the floor/phone/internet, but I think he has some outside sales potential.

Any training recommendations too?

Lemme know !
mryan55 is offline   Reply With Quote
Old 05-10-2013, 10:45 AM   #2
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We do a fair amount of fleet and commercial business. One person handles it as fleet, and any of us do the commercial because we already know lots of the customers. Fleet bids make no $ upfront but give a good return in Service and Parts. Commercial vehicles generally have decent grosses. That's why I think it's important to have salary and at least minimum comissions on fleet.
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Old 05-13-2013, 04:19 PM   #3
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I think my thoughts parallel those that were recently discussed in the AREA 51 thread concerning BusinessLink - while there are some dealers who can make it work it's a lot harder than it appears.

Concerning a pay plan, I'd agree that a small base salary would make the job more aspirational to your current sales staff and compensate the individual for the amount of time it takes to learn the fleet program rules and incentives.

Concerning training, I remember another post (several years ago) from a small rural dealer who spoke highly of the assistance he received from the Business Center's Fleet Manager. It appeared the Fleet Manager was interested in working with dealers he could trust and once a relationship was formed the dealer would often get referrals for both fleet and retail deals.
XDCX is offline   Reply With Quote
Old 05-13-2013, 04:28 PM   #4
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Originally Posted by birch3x View Post
Fleet bids make no $ upfront but give a good return in Service and Parts.
That's always been my impression of fleet bids too.

I remember a Dodge dealer in Oregon who misread the bid specifications and ordered several hundred K-cars for the state with the 2.2 liter engine when the bid required a 2.5 engine. The dealer didn't catch the mistake until the state rejected the vehicles and by then there were already at least 200 on the ground or in production.

It was a costly mistake that likely caused the dealer a few sleepless nights. On the plus side, the dealer was able to make lemonade out of lemons and managed to retail all of the mis-built units. It was probably the only market in the country where the K-car was outselling Honda.
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