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Old 13th June 2011, 16:57   #16
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Default Re: Average income of Sales guys in Dealership

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ET learns that a salesman with about five years of experience could look to take home between Rs 12 lakh and Rs 15 lakh per year inclusive of commissions. Against this, a GM or a Hyundai salesman’s salary would be in the Rs 3-5 lakh range.
So, someone selling Maruti/Hundai/GM would make 3 - 5 lakh a year in Matro. Thats not too bad. And these are 2009 numbers, this would have changed upwords in last couple of years.
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Old 13th June 2011, 17:10   #17
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Default Re: Average income of Sales guys in Dealership

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Originally Posted by arjab View Post
1) Dealer does the Road Tax and registration for you:
2) Dealer does the Insurance for you
Thanks Arjab. This is really an eye opener. So one can easily save few thousands bucks, if choose to do the registration and insurance on his/her own?
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Old 13th June 2011, 17:11   #18
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Default Re: Average income of Sales guys in Dealership

Dunno whether the extra earnings at a car dealership are shared by the owner with the sales force. One of my friend owns a Hyundai dealership and he told me that 50% of the insurance amount is given to him by the insurance company. However I guess he would pocket it himself and may be pay the SE only a margin of it.

Apart from this the SE might get a fixed amount on closing a sale but this again will depend on the model. If a Maruti SE sells a diesel Swift / DZire I am sure he gets nothing whereas if he sells, say, a Kizashi, he might be paid a handsome amount.

The SEs also make money out of resale cars like True Value of Maruti.

The figures quoted to anonymous by his cousin seem to be on the higher side.
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Old 13th June 2011, 17:28   #19
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Red face Re: Average income of Sales guys in Dealership

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Thanks Arjab. This is really an eye opener. So one can easily save few thousands bucks, if choose to do the registration and insurance on his/her own?
Can you actually register the vehicle on your own which is actually the dealer's domain. Hell I could not even do it for my Activa. The RTO officials would not entertain individual registration for the sheer reason of losing out on the "other income" from the dealer.

Insurance can be done without involving the dealer.
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Old 13th June 2011, 18:11   #20
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Default Re: Average income of Sales guys in Dealership

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Originally Posted by ghodlur View Post
Can you actually register the vehicle on your own which is actually the dealer's domain. Hell I could not even do it for my Activa. The RTO officials would not entertain individual registration for the sheer reason of losing out on the "other income" from the dealer.

Insurance can be done without involving the dealer.
ghodlur,

This actually varies from state to state. Here in Hyderabad we can register the vehicle ourself. The dealer gives only a temporary registration and usually charges 2-3k if he facilitates the permanent registration process. People opt for it only to avoid the redtape of the process.

However in Bangalore, for example, there is no temp registration. Dunno how it works there but I was surprised to see I got a permanent registration when i took the delivery of my Logan when I was at Bangalore couple of years ago.
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Old 13th June 2011, 18:26   #21
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Default Re: Average income of Sales guys in Dealership

I would agree with arjab. Pretty spot on.

The dealer margins on a car would range from 4 - 10%. So, the SA would definitely try to sell you the insurance, absurd accessories, apart from inflated registration fee and road tax. It would be better to get the accessories fitted outside rather than the dealership, as most of the fitment boys are sourced from odd workshops and are pretty much work like any other road side workshop.
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Old 13th June 2011, 18:29   #22
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Default Re: Average income of Sales guys in Dealership

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Thanks Arjab. This is really an eye opener. So one can easily save few thousands bucks, if choose to do the registration and insurance on his/her own?
Yes, its true. But the problem is in India getting one's vehicle registered at RTO's by oneself is so time consuming and involves so much running around that customer's prefer to leave the registration formalities to the dealer who makes a tidy sum! Also, you know , at the time of a "new" car purchase customer's are usually in an expansive, generous mood ; often forgetting to check what they exactly paid. Also you will notice that in most states, you do not get the Tax Token instantly - it usually reaches you a week/10days later, so there's another element that you'll forget in your new car purchase euphoria as to what you paid as extra

Getting insurance done by oneself is much simpler as most of the companies hawks their policies online and its simpler to get it.
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Old 13th June 2011, 18:41   #23
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Default Re: Average income of Sales guys in Dealership

From my interaction with auto sales guys i have found out that the base salary offered in Metros/cities are better compared to B & C category cities.

Volume players (Maruti/Tata/Hyundai) offer less salary because incentives are assured. As less as 8K in smaller cities to 14K in big cities. Maruti SE in Palakkad (C) get approx 6.5K.

Honda/Toyota/Ford salaries are in the mid range. 10-15K depending on city. Ford SE in Kochi (B) with 3 years experience gets around 10K as salary & another 8K approx as incentive.

In BMW/Mercedes/Audi/Jaguar/Porsche experienced sales guys get 25-30K as base salary irrespective of the city. They are mostly Honda/Toyota sales guys who used to get 15-20K p.m.

Accessories are the goldmine for SE's especially if the dealer sells Non OEM accessories as in the case of many Maruti dealers in Kerala. Some guys have tie-up with outside shops & get good commission as well (for tyres/ICE/even number plates).

There are no fixed incentive schemes in India as far as i know. It varies per month depending on the ageing stock/new launches/to be discontinued models etc.

2 managers i know in a Maruti dealership are convincing the customers to go for New Swift & selling off the allotments at a premium to other customers/friends. 1 GM was sacked from a dealership a couple of months back for this.
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Old 13th June 2011, 19:53   #24
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Default Re: Average income of Sales guys in Dealership

Team

I have seen a Assistant Manager Sales in a Maruti Dealership earning 1lac as incentive in one of the top month of sales.

His sales techniques:

1. Sit in showroom for 2-3 hrs in a day and catch one or two walkins.
2. Adjust sales girls in showroom and convert walkins into sales from him.
3. Referrals from the existing customers.
4. Sit near the sales manager's off, and take sales leads from him. Eg. Sales manager was a friend of mine, my friend wanted to buy a car, we went there and we finished discussion with the manager. At the time of paying money, the Manager cannot log the sale, so he gave the sale to person who was near to his cabin.

There are many more things these people do in making money.....one more is adjustment with accessories team and force customer to put new accessories.

The sales guy i am talking about bought an baleno when it was launched for his office commute. Everyday he use to come in Baleno and go. Once the sales guy wanted to change a job from automobile to IT and he approached me as i am in IT now. He asked what he will get in IT, i said you will get around 20-25k per month. He said " He is not interested in the IT job as he is getting more than IT"

So people who are surprised listening to the pay of sales guy....you dont have to...they are earning a huge amount.

I am aware about all these things because i worked for a maruti dealership for some months in some department.

regards
Deepak

Last edited by kdeepakk : 13th June 2011 at 20:05.
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Old 13th June 2011, 20:03   #25
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Default Re: Average income of Sales guys in Dealership

The figure quoted by the thread starter is a little high, but in cities like bangalore a decent sales performer can earn easily 30-40K a month. Even i had got to know from the sales guy who sold me the i-10, though he was a very simple guy, nice but goofed up a few times, he said this. This is with incentives and it can go up to 50K. They earn about 3-4K per car based on what all the user goes for( ext warranty, finance, insurance etc etc).
The amount surely varies based on car models, higher models means more margins. Its easy for fast moving models, but BTW those who are envying their position should know- you need to deal with ALL kinds of morons too!
Customers are not an easy lot, even educated people sometimes behave like goons and try to squeeze the last drop from the sales folks. Not that all sales folks are saints, but then most people bargain hard and play tricks too.
Its a tough job, demanding but yes if the models are hot sellers like i-10, figo and now the new verna, its a cake walk for a few months!
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Old 14th June 2011, 01:00   #26
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Default Re: Average income of Sales guys in Dealership

Many of the sales guys have a tie-up with used-car dealers who pay them commission. This adds to their extra income.

Looking at the monthly car-sales figure, no doubt sales guys (with average cleverness) earn around 30-40k a month
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Old 14th June 2011, 14:33   #27
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Default Re: Average income of Sales guys in Dealership

Ok so jobs in automobile dealerships are decent and the takehome is largely dependent on incentives, which in turn depend on how much you make the dealership.

That is about all one can gauge from the chain upto now, 1 figure gets countered by another and it is finally all a guess or hearsay.

Sites like Shine.com can get one a better idea of the pay if one enters a typical profile with details of qualification, designation and experience.

It is finally down to the passion one has for the job and about being at the right place and the right time. (Merc dealership when BMW / Audi are opening shop so that they may gun for you)

I do feel that most guys working at these dealership in the entry level positions are quite average in terms of language skills as well as knowledge about automobiles and so are not really likely to take home a huge packet. Possibly the vendors (car manufacturers) take in the better guys.
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Old 21st August 2012, 13:32   #28
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Default Re: Average income of Sales guys in Dealership

Are you people serious? Why the peasant like mindsets? The job of a sales person is the most important in any company. Those of you working in IT need to get off your high horses, how do you think your company gets the contracts that provide jobs for you to do? Most programmers are introverts who couldn't sell water to someone dying in the desert.. Not intended to be an insult but every personality type comes with it's pros & cons. There is no need to deride sales people and say they shouldn't be making money.

Also how can you afford to run a car if you make less than Rs.1 lakh/mo?
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Old 21st August 2012, 19:35   #29
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Default Re: Average income of Sales guys in Dealership

The dealer margin is around 15-20 K for a 1.2L hatch. With that he has to maintain his showroom, give discounts to customers and give salary to the sales rep & a lot more.

No way can a sales rep get 50-70K/ month. It is what the managers get. Well not even they. 70K is a lot of money. Not something dealsers can afford for every sales rep.
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Old 22nd August 2012, 00:16   #30
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Default Re: Average income of Sales guys in Dealership

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The dealer margin is around 15-20 K for a 1.2L hatch. With that he has to maintain his showroom, give discounts to customers and give salary to the sales rep & a lot more.

No way can a sales rep get 50-70K/ month. It is what the managers get. Well not even they. 70K is a lot of money. Not something dealsers can afford for every sales rep.
Hyundai, as an example, sold ~35,000 cars/mo in April 11 thru India. There are ~400 dealerships in the country. A dealership in one of the bigger cities would sell at least 300 cars/mo. With a sales force of as much as 20 people per showroom, assuming they were all of equal (in)competence levels the median will be 10 cars for every salesguy. Even so, at 10% commission (on the dealer's profit) the Rs.70,000 is easy.

Although I agree about the lack of sales skills in most of them. It is sad. But it is to be expected when a company hires a peasant "fresher" (post graduate degree holders & PhDs preferred of course) and the salesman doesn't realize the glory of his job designation/opportunity.

Last edited by Evil : 22nd August 2012 at 00:28.
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