Ford dealers encourage salespeople to sell compact cars with ‘volume bonuses’

2012 Ford Focus

Dealership salespeople are all about earning commissions on the vehicles they sell… of course, that’s how they earn a living. FoMoCo and its dealers are now rethinking plans to keep salespeople motivated to sell small cars such as the 2011 Fiesta and the upcoming 2012 Focus despite the small commissions salespeople earn on those vehicles.

Ford salespeople usually prefer to sell pickups and SUVs since they pay bigger commissions. However, Ford is counting on cars like the Fiesta and Focus to help gain market share and attract younger buyers.

While a typical margin on a pickup and SUV could be more than $1,700, profit margin on a compact car like the Fiesta is only about $300. That leaves salespeople with a commission of around $75.

“It used to be you could be an average salesperson and make a good living,” says Beau Boeckmann, vice president of Galpin Motors in Los Angeles. “Today you’ve got to be a really good salesman to make an average living.”

Galpin is now encouraging its sales people with sales contests based on customer satisfaction. Galpin is also offering its salespeople ‘volume bonuses,’ which are paid to those who sell a certain number of new vehicles.

Refresher: The 2012 Ford Focus is powered by 2.0L DOHC inline 4-clyinder unit with twin independent variable camshaft timing (Ti-VCT), direct gasoline injection and E85 flex fuel capability. The engine produces 160-hp and 146 lb-ft of torque. The 2012 Focus is offered in S, SE, SEL and Titanium trim-levels with prices starting at $16,270.

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– By: Omar Rana

Source: Automotive News