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Stories from the Sales Frontlines

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Comments

  • duke23duke23 Posts: 488
    driver100 wrote:
    "We once were looking at refrigerators. I saw one that looked pretty good and the price was good. I said I wanted to look around a bit more, this was the first store we came to. He said, "There aren't too many left, I hope we are sold out by the time you come back". He might have meant he hoped he hadn't sold out when we came back. Might have been a guffaw moment. Anyway, his comment didn't impress me and we did not go back! "
    Yea verily, he dost speak too much . What a DA, I wouldn't return either. It is a buyers market and real deals should be expected. If your saleman is good and honest reward him/her and negotiate out all adm . Another couple of days of insanity and then we can start to rebuild. To congress, exactly what part of urgent did you not understand? Don't think you've got a free ride and that this was built into the cards.When the house is on fire you throw the bucket, don't debate who throws the bucket first.
  • oregonboyoregonboy Posts: 1,653
    Act in haste, repent at leisure.
  • snakeweaselsnakeweasel a Certified Edmunds Poster.Posts: 11,676
    I was referring to net profit, not gross. My original post was that a 3% profit from a single sale was not the same as a 3% annual return on an investment.

    Ah Return on Investment (ROI) has nothing to do with the amount of sales and is a different ball of wax. It is profit (usually net but can be looked at in many different ways) divided by whats invested to create that profit.

    The sign said "No shoes, no shirt, no service", it didn't say anything about no pants.

  • joel0622joel0622 Posts: 3,302
    Would future profits in service from selling a particular car and any future sales from friends and family of the original customer also be included in the ROI. If so I would guess the possibilities are endless and impossible to really figure.

    I have sold countless families over the years that send me referalls. Hell I am now selling the children of people I sold cars to in the 90's.
  • When do you expect the 2010 fusion to be on dealers lots?

    Not sure when the 2010 Fusion will appear on dealer lots, but if you want to see pictures of it check out;

    2010 Ford Fusion

    Have fun! Looks good, hope Ford is around long enough to make them


    I have sold Hondas, Nissans, and Toyotas for the last 11years ( ok the last 9 have been only Honda and Nissan). And I just got to drive an 08 Fusion SES that we have on our used car lot. I have no idea what I was expecting, but I was very presently surprised! This car was sweet! It i seriously something I would consider if I were lookinbg for a V6 sedan.

    Just my unsoliceted two cents worth...
  • driver100driver100 Burlington, ON 7 mo/Tampa FL 5 moPosts: 11,668
    RE: Getting Clubbed Over the Head Like A Baby Seal.
    Personally, I wouldn't concern myself too much with that term as it seems you are now doing.

    Sorry Oby if I offended you with the phrase. From now on we could call it GCOHLBS.
    OR
    What is the current phrase that is used that gets the same idea across?

    2012 535ix 2013 Audi A4 2013 Passat

  • driver100driver100 Burlington, ON 7 mo/Tampa FL 5 moPosts: 11,668
    08 Fusion SES that we have on our used car lot. I have no idea what I was expecting, but I was very presently surprised! This car was sweet! It i seriously something I would consider if I were lookinbg for a V6 sedan.

    I agree. I have a friend that has almost 55,000 miles on his Fusion and he likes it a lot. I have been a passenger and it seems to be a very nice comfortable car, and Ford seems to be pretty reliable these days. It would be difficult to go out and buy a car if you don't know whether they will be around to honor the warranty etc.

    2012 535ix 2013 Audi A4 2013 Passat

  • driver100driver100 Burlington, ON 7 mo/Tampa FL 5 moPosts: 11,668
    The correct terminology is "Return On Sales" or ROS. Its also known as "operating profit margin".

    Return on Revenue (ROR) is net income divided by revenue. So you have to deduct any operating expenses from that $50K profit to get ROR. So if you have $45K in operating expenses then your ROR is 1% (($50,000-$45,000)/$500,000).


    Thank you SW, that is a clear and concise definition. Since you are very good on financials.....if you had a dealership worth a million bucks, would you rather make a go of it at 3% gross profit per car or would you try to sell the business and try to live off the income from that money?
    (I doubt any one would pay you the million bucks today).

    I suppose the point is also, would you sell some cars at 3% gross and try to make it up with others that will gross more? Is there much point in selling a car at 3% gross profit - if it isn't a dog or you were desparate to convert a car into cash?

    2012 535ix 2013 Audi A4 2013 Passat

  • joel0622joel0622 Posts: 3,302
    It would be difficult to go out and buy a car if you don't know whether they will be around to honor the warranty

    Fords not going anywhere but up. The car biz runs in cycles and right now we are at the bottom of a cycle.
  • driver100driver100 Burlington, ON 7 mo/Tampa FL 5 moPosts: 11,668
    Fords not going anywhere but up. The car biz runs in cycles and right now we are at the bottom of a cycle

    I hope you are right. There is serious talk Chrysler won't be able to make it and GM is burning through money faster than they are making it. Possibly the best hope for the Big 3 is to start building or importing their foreign models - which do sell fairly well. Maybe Fords big problem is getting enough extra money for R&D.
    The Big 3 were in trouble before the recession...this won't be easy to get through.

    2012 535ix 2013 Audi A4 2013 Passat

  • dino001dino001 Tampa, FLPosts: 3,475
    And you know that how? There were a few good companies in previous cycle that did not make it (both American and worldwide). I don't see any reason why all would have to survive this time around. Not saying Ford will be one of those "out", but it certainly is not totally out of the question.

    And I dont' think the cycle has turned - if anything it will get worse before I will get better.

    2012 BMW 328i wagon, manual and sports package. No. sold in the US: 1. Probably.

  • joel0622joel0622 Posts: 3,302
    What do you expect me to say? We are doomed? I see on a daily basis what we are doing as a Company and I am not even considering jumping ship. I am just looking forward to the day 5 years or so from now when I sell back the $2 stock I bought for $10 or $12 a share :D

    Our problem right now is not product but perception. We are all intelligent people here and know that you belive half of what the media says.

    We make car loans every day to the same caliber of folks we were making them to a year ago. The big difference now is the rate. It is much higher now then it was then. Ford Credit is buying as strong now as they ever have. The difference between us and GMAC is Ford owns FMCC, GM sold off GMAC. We are a captive lender and they are a bank.

    If you want to fix the economy and end the war all in a 6 month period? Blow up the sattellites that transmit for CNN, MSNBC, FOX, and any of the other major news sources that tell us every day that we are all going to be living under a bridge by years end. If you tell people something enough they tend to start believing it.
  • oldfarmer50oldfarmer50 Posts: 6,213
    "...Hell I am now selling the children of people I sold cars to in the 90's..."

    Dang! Are car sales getting that slow? Well, I guess a sale is a sale. ;)

    2009 PT Cruiser, 2008 Eclipse, 1995 Mark VIII, 1988 GMC Van

  • Mr_ShiftrightMr_Shiftright CaliforniaPosts: 44,403
    Well look what would YOU do if it was a choice between the kid or the fishing boat?

    MODERATOR

  • When I said 3-5% profit, I mean just that. If a car is $20K (actual cost, not MSRP) I would offer between $20.6K and $21K for that car, depending upon my initial dealings with the dealer and the dealer's representative (the sales person).

    With regard to clubbing and baby seals, I am not a subscriber to this plan. It is a total waste of my time. I make my offer, and the dealer can either accept it as is, make a counter offer, or politely tell me to hit the bricks. I can deal with any reaction to my offer. If I were told at multiple dealers that my offer was insufficient, I would rethink this strategy. But the truth is that dealers accept thin deals on new cars for many reasons, including other areas of the dealer that make more profit such as service, parts, used cars, volume bonuses, etc. If they can't afford to do business on the occasional thin deal, they should not accept my offer. (I should note that my offers have always been accepted, and I do not waste time at dealers, so they have more time to sell more cars.)

    Whew - sorry about the long-windedness of this post. Just to clear things up, I am not a business owner. I truly appreciate people who are - many provide necessary goods and services to me and my family. At the end of the day, though, I need to buy a product at a cost that is affordable and realistic to me. My salary is what it is, and since that number is relatively low, I need to be conservative (I do not shop for cars I cannot afford, but why pay more than they are worth, either?)

    Thanks for reading - I appreciate the many points of view here :)
  • dtownfbdtownfb Posts: 2,915
    If you want to fix the economy and end the war all in a 6 month period? Blow up the sattellites that transmit for CNN, MSNBC, FOX, and any of the other major news sources that tell us every day that we are all going to be living under a bridge by years end. If you tell people something enough they tend to start believing it.

    Normally I would agree with you my friend but this situation is much deeper than media propaganda. Ford has the products, they just need customers. Maybe they can start a campaign to let folks know, they are lending money.

    Welcome back!
  • jipsterjipster Posts: 5,345
    I knew you'd be back joel.

    No one escapes the allure of "Satan's Den". :surprise:
  • Kirstie_HKirstie_H Posts: 10,810
    As far as I'm concerned, several stocks that have fallen simply represent a discount for me - meaning, if the whole of the economy weren't down, these stocks wouldn't be so far down. So I might pick up Ford at a bargain price. I hear they're having an end-of-season sale on stocks :)

    Welcome back, Joel! We really did miss you.

    Jip, I presume you are representing yourself as the Prince of Darkness here?

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  • driver100driver100 Burlington, ON 7 mo/Tampa FL 5 moPosts: 11,668
    I need to buy a product at a cost that is affordable and realistic to me.

    No need to apologize...you have a valid method for buying a car. Your method of buying is very similar to mine but I do allow for the dealer to make a little more profit....I don't have a huge number of dealerships to choose from and I don't have the time to visit a lot of them. I guess I am a little easier going in negotiations because I know what it is like to own a business and to know that you can sell a lot of product....at a loss, but you won't last too long.

    I also heard it is easier to sell a salesman something than it is other people. They know how selling works and they don't want to cause other sales people too much stress. Another rule is the best tippers are people who have depended on tips at sometime in their life.

    If I had a dealership, you would be welcome to come in and make your offer, but I might have to politely show you the door. ;)

    2012 535ix 2013 Audi A4 2013 Passat

  • driver100driver100 Burlington, ON 7 mo/Tampa FL 5 moPosts: 11,668
    this situation is much deeper than media propaganda.
    Agree. The media isn't helping and panic isn't helping. But, there are some real problems that have to be solved before people start spending again.

    Ford has the products, they just need customers.
    Ford has some excellent products but I don't know if the public is ready to believe it yet. And, even if the product is good, how do you address the "depreciation" issue? You can resell a Toy or Honda very easily and it depreciates a lot slower.

    I have had many good Fords and they have many fine cars, but I would really have to think about the depreciation factor.

    2012 535ix 2013 Audi A4 2013 Passat

This discussion has been closed.