The other day we were reading a fascinating article on new vehicle sales tactics in the Globe and Mail. Almost as if its a novelty, and only 1 or 2 manufacturers are deploying the tactics.
If you have been in the auto business ate the retail level (dealers) for a few decades, the tactics of meeting monthly sales objectives are not new. Its been going on for decades...
What has changed is the appreciable bonuses that are now attached to meeting monthly sales targets.
Lets take a look at a few points in no particular order.
- Meeting new vehicle sales objectives is an intrinsic part of the auto business, it will continue to be so for the foreseable future.
- All manufacturers have one form or another of a bonus system attached to meeting monthly and yearly sales objectives; with a variety of imaginative names.
- Agreed...some manufacturers have a variety of creative and imaginative tactics.
- From the dealer perspective reporting a vehicle sold to the manufacturer generates a sale/delivery, and starts the warranty.
- Reporting a vehicle sold does not require a sales contract, although it requires a customer name and address.
- Nothing stops a dealer from increasing their demo or courtesy vehicle fleet.
- Yes...on the dealer side there is a level of creativity as to when and why a vehicle is reported sold.
- On a specific month the last sold vehicle to meet an objective can trigger an appreciable bonus for the dealer.
- The last few days of the month usually involve a flurry of calls from the factory representative to various dealers seeking additional sales.
- You can just imagine...yes let your imagination run as to the tenor of these conversations between the factory representative and dealers.
- When mainstream media attempts to look into this aspect of the business they are trying to look "Behind Closed Doors" and always meet total discretion on the part of everyone.
- The various sites that advise CMS (Citizen Main Street) about the various promotions and programs are never privy to the bonuses attached to sales objectives.
- We all know that CMS waits towards month end to finalise purchase decisions...perhaps CMS has an intrinsic understanding on the possibility of having a better deal towards month end.
Its not new, been going on for decades in one form or another, and it will continue. Its an intrinsic par of the business.
In the auto business all the stakeholders play the game to WIN.