Stories from the Sales Frontlines

greanpea68

It's too bad, but maybe that means more allocation for your store.

There is 1100 Nissan stores in the USA. Now I don't know how many meet that criteria but I know our store does. Plus keep in mind they are only making 1500.

As for the part of needing special equipment I am not sure of that. I mean tools are tools right. The only thing I can think of for $200k is the store needing a face lift with the new Nissan look.

As for when we are going to get them we are being told June or July...

GP

greanpea68

How much spillover marketing and additional pull through traffic do you think the store will get by carrying them?

People coming to look at them will be pretty easy to handle because I believe they will all be sold before they hit the lots. :surprise:

All there will be to say is thanks for stopping in and you should have ordered it before hand . :P

All that we will be able to do is collect our commisions and deliver them :shades:

GP

madmanmoo

Well, we'll see I guess. Get your digital camera and post some pictures of that new beast online when you can. And of course, post your initial impression. I think those are going to be some sweet machine.

-Moo

isellhondas

Oh, I had forgotten about the Stealth story!

Yes, he WAS funny!

greanpea68

And of course, post your initial impression. I think those are going to be some sweet machine.

I will definately be posting when they come in...............

Just had a thought I wonder how many people will be going on GT-R prices paid forum stating they got it for a $1000 under invoice :surprise:

GP

greanpea68

"Tbaxxon".

He must have broken down on the way to sell one his condemned houses in Las Vegas.

GP

madmanmoo

I was just browsing through again from where we was posting. Unfortunately, a few of his posts had been deleted for being rude and inflammatory towards the salesguys. Gems that are deleted.

-Moo

greanpea68

a few of his posts had been deleted for being rude and inflammatory towards the salesguys

Those really were the best ones :P

GP

jipster

Don't know it someone has already mentioned this cure for hiccups, but has worked everytime for me. First time a co-worker told me about it I thought she was crazy... but it works.

Get a glass of water, filled about 2/3rds full. Bend over at the waist and drink the water from the opposite end of the glass. Drink water without breathing between sips... I assume as you usually do when drinking a glass of water. Stand upright... hiccups will be gone.

kiawah

You forgot to mention, you have to do that while standing on one leg........

jipster

Wow! How old is your doctor. They used that stuff to subdue violent mental patients in the 50's. There are better meds available now.

Actually it is still widely used today, mainly for adolescents and adults. Children are usually given something with fewer side affects, like Benadryl, when they are highly agitated or aggressive.

joel0622

I was sitting here reading a Ford magazine and it is talking about the great improvements we have made against the competition in the QC area.

Headline reads

Journalists say we've turned the corner on quality.

Ford was the best among U.S. based companies with 41 of 44 Ford, Lincoln, and Mercury braqnd vehicles rated average or better. This result reinforces Fords effort to bosst quality after glitches with new vehicle introduction early this decade.
Consumer Reports

It then goes on to say

What this means to you: You may want to think twice about certian Toyota models, according to Consumer Reports, but if you are a fan of the Blue Oval, you should be smiling.
Edmunds.com

dino001

I got that. He even had some points - generally depereciation is the highest cost of any vehicle so the longer we keep it the less the total cost. Snake even tried to debate him for a while.

Here is his Stealth thing:

just bought a 92 Stealth week end driver.with 156K on it for $3k It has new JDM engine (70K) rebuilt trans. New brakes, ABS ECU, tie rods, cv + boots , Timing belt all the hoses clutch, All withing the last $15k .Everything works. Its a play toy. I would put another $4K-5K into the car if it needed it next week. Now where am I going to drive a 225 HP Sport car that one does not see everyday and looking like new $7K. NOWHERE in any dealership. And Thats BEFORE I put the $4k I have allocated for future repairs in it! Yeah I could go out and buy a 2 year old

Wow! So you got a 15-y.o. junker and you brag about it? Now - that IS kind of funny.

dino001

They pretty much admitted to resign to 15% market share and I think it's actually OK. It's better to sell less but at profit. All they need now is thin their dealer network as it will not be sustainable at the new levels. Perhaps some brand axing may also be necessary. Then they can start growing again, but this time organically - through the product, not fire sales.

oldfarmer50

"...That is like saying oh this person is wearing ripped jeans and driving a 1992 Buick. We shouldn't wait on that person.

My jeans weren't ripped (much) and it was a 1991 Oldsmobile.

"...shouldn't be afraid of anything..."

When you see the ADM and the add-ons it does make you think that there is much less wiggle room in the price. Some may leave discouraged that they can't afford the car they wanted. Others may have come expecting to buy at a certain price and feel that these extras, no matter how many others order them, are not worth it. You may never even get the chance to throw these thing in as part of the deal because the customer gets discouraged and shops elsewhere. Some may even think these things are dishonest and leave in anger.

The educated customer who gets all his prices lined up and then shows up at the dealer to find the price is not what he thought even before negotiations start would be even more likely to be suspicious.

houdini1

ADM is for me a real deal killer. How dare they? They are obviously making a good profit at msrp, but they have the gall to just add additional profit to a car because they want to make even more?

This just shows you the mindset of the dealer. "Hey buddy, look out, I will skin you if I can!" My reply is, "Thanks for the warning, see you later!"

oldfarmer50

"...Btw, I just sold my first Porsche!..."

Congradulations! That must be a sweet commission.

oldfarmer50

"...Here in Tampa there is one large chain I just can't bring myself to like (Courtesy)..."

What about the Crown group in Tampa? They have, I think, 14 different brands in Pinellas county. Most dealers there have HUGE stores compared to upstate NY. I wanted to go window shopping but I felt intimidated. We went to the gun store and shot some machine guns instead.

oldfarmer50

"...UH oh! Be careful! if she comes to the door in a negligee be sure to get the check first!!..."

Was it Mack or Moo who drove 30 miles to jump some woman in a previous post?

oldfarmer50

"...Children are usually given something with fewer side affects, like Benadryl, when they are highly agitated or aggressive..."

Well, depending on the setting they would give them Haldol for the aggression and then Benadryl for the side effects of that med (such as muscular rigidity). Thorizine is like hitting someone in the head with a brick, It calms them down but there are better ways to do it.

Don't go car shopping after taking any of these. Just barely back on topic.

dino001

No need to get emotional about it. You are not entitled to any price, as they are not entitled either. It's all about reading the marketplace. If the car is trully hot and there is not enough of supply, you have situation of more bidders than sellers. In this case ADM is bringing the equilibrium back to what it should be at the first place. Think Shelby Mustang, GT-R, early PT Cruisers, Chargers/300Cs etc. If a buyer could snatch one and resell it to the highest bidder, why shoudn't dealer. Your (or mine) choice is just not to participate in that game, as the car is obviously not worth to us this much. There is no reason to get angry - you simply know you would not buy that Shelby as there are five other guys who are ready to pay more. As a citizen of former communist country, I can tell you - I'd almost always pay more than stand in a long line and be at mercy of sales staff who would then decide who gets the underpriced merchandise and who does not. Nothing brings that equilibrium better than higher price, as those who don't really want/need/can't afford will drop out.

This principle does not apply to "normal" vehicles, however. MSRP is usually a pretty good indicator of "market cap" price, so putting ADMs on Corollas, Jeeps, et al. simply means the business is either grossly misreading the market or is playing the game you and I don't want to play. In this case we walk awat, but not because some violation of sacred consumer right to pay no more than MSRP. It's just a decision of refusal to enter a game that we see unnecessary. however, not real reason to get angry or emotional. Just walk away and get to some place where they are more realistic or straightforward with their real expectations.

dino001

I live on the other side of the Bay. Came across Crown only once, when my pal was testing an Audi. Did not particularly care for their showroom as there was little separation between competing brands (you could easily wonder from Audi to MB store by opening one door). The sales lady's manners were also not really "upscale" style.

joel0622

You are correct. We are in the process of trimming points as we speak. Rumor on the street is that two of the Metro points here in Nashville will be gone in the coming years.

They are also returning to the "turn and earn" way of doing business. This means that our allocations will be based on what we sell. Sell a bunch and Ford will send you a bunch. This does two things

1. It helps the dealer by not having such a staggering floor plan expense. It was stupid in the past to have a 90+ day supply on the ground and to be paying floor plan interest.

2. It will eliminate prime allocations to the country dealer who would work as a clearing house. He just looks to see what is the most popular and orders that and then dealer trades them.

houdini1

Hey, I don't mind getting angry or emotional every now and then. Like when I think about politicians and taxes..... :mad:

dino001

I read somewhere that Detroit's sales model was mostly supply-driven, which meant they first manufactured whatever Unions let and ordered them and then tried to find a buyer for the product. The model worked when they had owned certain segments (like truck-based SUVs) and saw fleet sales as access to market share claims. As retail customer turned away from some products (Explorer, Ranger and Windstar come mostly in mind) they kept manufacturing them regardless, which of course had to end in billions lost.

I hope their union contracts and product lines allow for quick switches that react to demands shifts not only after model year changes, but "on the fly". That would be the way.

dino001

But anger usually doesn't help in business - whether it's selling or buying...

snakeweasel

Because people buy them.

Not everyone buys them, so why just offer them during the sale and not put them on every car so those that don't want them have to take them.

Some liberal person is complaining that it is offensive

I seem to remember that someone in I believe Washington state a few years ago complained about someone having a plate that read "John 316".

Some people need to get a life.

micosilver

We have a "Wall Of Shame" at our dealership - about 50% of the cars we get in dealer trades come with ADM stickers, which we collect and put up on the wall, we bring our customers to the wall to show them what awaits them at other dealers, if they decide to shop around. We don't mark up cars ever.
But one of our finance managers used to work ata Honda store nearby, and he said that ADM was the only way to get paid over there: about twice a month, someone will come in, and pay MSRP + ADM on a Civic, and those two deals will make your month.

chikoo

I had no problem with your post until you used the word "extortion".

Very good. You should be concerned.

I threw them in and told the customer I would simply remove the cargo tray that we install in Odysseys that they saw no value in.

oops..you just negated my applause

roadburner

if you are a fan of the Blue Oval, you should be smiling.

So, does that mean that you'll sell me a Bullitt Mustang on X-Plan?

snakeweasel

I think it is weak for someone to run out of a store because a ADM on a vehicle.

Last year I went into a dealership that had a 25% ADM on a car that everyone else was selling for somewhere between invoice and MSRP. Trust me I will never consider buying a car at that place.

snakeweasel

This January when your mortgage company sends you your tax document look at how much in interest and property taxes you paid. I bet you could by a pretty good car for all of that.

And I bet that your house doesn't appreciate that much.

Plus there is no guarantee that you will get more for your house than you paid for it.

mackabee

They are finally gone! I guess they had to run their course. Thank God I can finally get a good night's sleep.
Mackabee

snakeweasel

That would depend on where you bought. Around here houses have kept their value.

lrguy44

I went into a dealership that had a 25% ADM

But on a Hyundai that is only about $100 isn't it Snake? :shades:

mackabee

The hiccups are gone. The thorazine had the same effect as your cure but not as much fun. Woke up with a hangover too. You da MAN!

sterlingdog

Yes, but the mortgage interest and the property taxes are deductible. The interest on a car is not.

If you know what improvements sell a house and if you know interior design tricks, you can usually make money on a house. Example: A swimming pool adds nothing to the value but new kitchen counter tops and a tile shower do.

House appreciations depend on locale, locale, locale---which is the first rule of real estate. Though foreclosures are up and the market is down, our home sitting in the Golf Capital of the World is actually appreciating---though at a slower rate than usual.

Another trick is to purchase older homes in beautiful, established neighborhoods. When you renovate them, people fall in love and make an offer. You just have to be careful and not out price your renovations. Subcontract the work and do some of it yourself---and maintain a tight budget with good materials found on sale at only the best vendors. Trust me. I've done it enough times to know. At tax time, my CPA laughs and says, "Now what is your address this year?"

snakeweasel

Hey there the least expensive new car is a Chevy.

The newest Hyundai coming down the pike will top out well into the 30's

The one I was talking about is Suzuki.

jmonroe

Ah, but alas, they had SEEN the cargo tray...

I know you aren't going to believe this but I didn't realize just how good those car trays are.

When I bought my XG 350 (throw away) in 2005 it came with the cargo tray. When I bought Mrs. jmonroe her 06' Sonata LX, I knew it didn't have the cargo tray and didn't give it a second thought. Now I realize the value of that rubber tray...things put in the trunk stay put instead of sliding around. I always find things bunched up at the bumper end of the trunk every time I use her car.

The next time I buy a car if it doesn't already show one on the Monroney sticker they'll have to throw one in if they want to make the sale. If they call my bluff on this I'll see if they'll take invoice.

I just hope I don't let it slip how good those things are. If I do, I'll lose my membership here if they grind full MSRP out of me for one.

jmonroe

mackabee

My sentiments exactly. First rule of thumb is proof read any e-mail before sending. Saves a lot of heartaches.
Mack

dino001

I was specifically talking about my house I think I migt have lost my 10% downpayment plus fees I paid when buying it. No crying - just stating the fact. Since I also plan to stick around for a while and have fixed mtg, no worry. Besides, loss is a loss only when realized, not sooner...

But the best are all those people stating they "made" tens of thousands on their houses - of course conveniently forgetting all the interest, realtor fees, taxes and insurance they paid on the way.

I always say that those 30-year mortgages should be considered rentals until the house is at least about half-paid off - with added benefits and liabilities of ownership. Call it whatever you want, but it's not a real ownership the way it used to be understood just a few decades ago - or it still is understood everywhere else in the world. Everybody who has seen how banks assess creditworthiness abroad would understand what I mean. There an actual ability to pay the full loan off, not just making montly payments for next couple of years, is the most important factor in getting a long-term loan. But their "ownership" rate is admittedly lower and they practically don't have subprime loan industry - everybody approved would be our 680+ or so (except UK, where their loan practices were pretty much the same, but worse).

dino001

But if the dept is already No. 1 (how do you measure that anyway), why improve?

houdini1

And I bet that your house doesn't appreciate that much.

No one can predict the future but I just bought a new home last year and sold my old house and made a profit of over $200,000. over a 15 year period. Plus your mortgage interest and taxes are deductible.

Figure out how much you made/spent on cars that you have owned over the last 15 years. Remember you also pay taxes and interest on those too. I think you will be in for a shock.

roadburner

Trust me I will never consider buying a car at that place.

I don't know what irritated me more about Oxmoor Mazda in Louisville- the ridiculous $3K ADM on the Mazdaspeed3, or the requirement that you couldn't test drive one without a signed buyer's order.

mackabee

Hey colonoscopies are not bad at all. Wished I would have had mine sooner. Might not be going through what I'm going now.
Mackabee

snakeweasel

Yes, but the mortgage interest and the property taxes are deductible.

Even allowing for the tax deduction people are spending 10-12K even more per year in interest and property taxes.

If you know what improvements sell a house and if you know interior design tricks, you can usually make money on a house.

Still there are many things outside your control that will effect your price. My sister house lost 20% of its value overnight one time when the city she lived in announce plans to redirect the main east-west road through town to within 50 feet of her house.

FWIW a swimming pool will add value to a house but usually not by as much as it costs to put one in.

Though foreclosures are up and the market is down, our home sitting in the Golf Capital of the World is actually appreciating---though at a slower rate than usual.

Same here but we are just your your average everyday suburb.

We bought our house as new construction in a new sub division. We actually bought our house before anything was done in the sub division, no infrastructure nothing. We bought at pre-construction prices. When we finally closed on the house nearly two years later we had appreciated about 25%.

sterlingdog

You're going to pay renter's insurance at any rate, so you can't really count that one. I deduct the realtor's fees and interest paid before I figure my profit.

The bottom line remains: Even when a car or a house is fully paid, they still don't belong to you. If you fail to pay your taxes, you've lost them both.

mackabee

:confuse:

dino001

House is a primarily lifestyle choice and should be considered as such. Not an investment. It may turn into it if one is lucky and buys one at the right time at the right location. For the rest it is a forced savings vehicle, at best. After taking out all the expenses we are probably lucky if we get back and inflation rate. The problem is would rather fool themselves, cause the need that extra justification boost - and investment sounds so great and almost credible.

"Tax deductible" means roughly 1/4 discount on them, not the whole thing. Don't get me wrong - 1/4 is nice discount, but if you bought 200k house, sold it for 400k after 15 years, took standard 30-year mortgage (what was the rate 15 years ago? 7.5-8%?), say you refinanced it later for a better rate (but paid some nice fees), paid all the taxes, paid all the fees, paid insurance, made renovations that were necessary to just keep it up, etc., even if you consider 1/4 income tax discount - how much money did you REALLY make? If you rented instead and put the montly surplus into S&P 500 fund, would that be more by chance, even after recent blood bath in the market? I think there is a great chance it might - unless you did something else to reduce those liabilities that come with the house.

snakeweasel

Figure out how much you made/spent on cars that you have owned over the last 15 years. Remember you also pay taxes and interest on those too. I think you will be in for a shock.

First off while I cannot speak for you but we don't pay property taxes on cars here.

But take a 30K car and pay it off in 5 years at 6% interest you will pay $4,800 in interest in those 5 years. Do this every 5 years for 30 years and you will pay $28,800 in interest (or $960 a year in interest).

Buy a house for $200K at 6% and you will pay $11,900 in interest the very first year ($1,000 in interest the very first month). And that doesn't include any closing costs you will have which could be thousands.