Entertaining an offer to take on a Chevrolet/Chrysler parts department.
Offered a salary plus commission based on one part gross, one part net. Dealership has approximately $80K over 12 mo. Offer shows projected gross and net values for commission.
Call me crazy, but if I get on board, how is it going to be possible to achieve those numbers if I have to start finding ways to unload the obsolescence while selling parts below cost?
Why/What would be the reasoning for this type of pay plan? Used to simply getting paid off gross.
I believe their obsolescence is causing them to lose when trying to rid old parts.
Smaller rural dealership in a desirable area.
Dealer looking to improve situation.
Any input greatly appreciated.
I know members will perceive any deception.
My current inventory has essentially zero obsolescence.
Commission based off of Gross/Net
Re: Commission based off of Gross/Net
One suggestion ... See if they would agree
Take complete physical inventory upon start of job.
Determine actual obsolescence by an agreed upon MNS / MNR. Non-RIM protected (and whatever Chrysler has) parts.
Agree that whatever it costs to rid the inventory of these parts does not count against you or your "net" calculation.
To protect the dealer you could agree to this over "X" number of months / years. With the stipulation that you simply don't throw away those parts to make them disappear.
Get creative, there are lots of ways to handle this. If the dealer is not willing to listen now - will he listen to other things later?
Take complete physical inventory upon start of job.
Determine actual obsolescence by an agreed upon MNS / MNR. Non-RIM protected (and whatever Chrysler has) parts.
Agree that whatever it costs to rid the inventory of these parts does not count against you or your "net" calculation.
To protect the dealer you could agree to this over "X" number of months / years. With the stipulation that you simply don't throw away those parts to make them disappear.
Get creative, there are lots of ways to handle this. If the dealer is not willing to listen now - will he listen to other things later?
Re: Commission based off of Gross/Net
NET means if you're doing too good, your expenses will increase accordingly.
Re: Commission based off of Gross/Net
You want a challenge? Chrysler parts are just as bad if not worse to locate. Every used car/truck or body shop Chrysler that comes in here has been a nightmare to locate parts. All backordered, no ETA. It's as if the Chrysler dealers cannot get any support from the factory. Personally I would not even fathom managing a Chrysler franchise,
Re: Commission based off of Gross/Net
Your Net commission % should be 2x the gross % with NO deductions for NEGITIVE Net. You should also get a % of the Service gross.
When negotiating your salary, any obsolescence deducted dated PRIOR to your start date will not be deducted from your commission.
Set up a separate source for the obs parts so you can track the write off's.
A good way to offset would be to ad a fixed dollar amount, say $100.00 to each and every used car to be put into a OBS reserve account, at month end scrap the dollar amount of parts you have in that account. Say your dealer does 50 used cars a month, that would be 5K in your reserve account. you then scrap the 5k in parts. I may take a while, but it will get there.
When negotiating your salary, any obsolescence deducted dated PRIOR to your start date will not be deducted from your commission.
Set up a separate source for the obs parts so you can track the write off's.
A good way to offset would be to ad a fixed dollar amount, say $100.00 to each and every used car to be put into a OBS reserve account, at month end scrap the dollar amount of parts you have in that account. Say your dealer does 50 used cars a month, that would be 5K in your reserve account. you then scrap the 5k in parts. I may take a while, but it will get there.