Is your dealership team addicted to current sales compensation?

On the latest edition of Straight to the Point, host Frank J. Lopes asks, are car dealership professionals addicted to higher compensation thanks to supply and demand? Are we all addicted to being paid more than we actually earn? 

Lopes says this is a stone-cold fact. Automotive retail professionals today are intoxicated by higher compensation and records profits. According to Lopes, salespeople who are used to earning $3,000 each month, are now earning closer to $10,000 despite doing the same volume. While Lopes will be the first to say that higher compensation is not necessarily a bad thing, it can cause some negative side effects given the current state of industry inventory.

Compensations have been driven higher due to supply and demand constraints, not because of performance. Lopes says this can lead to entitlement and complacency.

However, if leveraged correctly, this ‘addiction’ has the potential to propel automotive retail professionals to new heights. In Lopes’ opinion, dealership employees won’t want to go back to the way things were. This is a wake-up call.

Specifically for dealers and managers, it’s time to take your addiction and turn it into drive, motivation, and determination to generate even more profits. Improve your facilities, capabilities, and accessibilities for customers. Reinvest profits back into training for your employees and coaching for your managers. Now is the time to make sure that this higher level of income sticks around for the long haul.

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