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The Monetary Value of Actions for Car Salespeople

Updated on January 10, 2015

True or false: Every action a salesperson takes they get paid for? Before you answers let’s look at a few examples of action:

• A salesperson waits on 4 customers and from circumstances beyond the salespersons control (bad credit, no credit, too much negative equity, no money down etc.) no sales were made.

• A salesperson makes 10 phone calls all result in no appointments.

• A salesperson sends out 20 emails with no traceable results.

• A salesperson sends out 20 pieces of mail with no traceable results.

• A salesperson passes out 5 business cards to 5 different people with no traceable results.

Out of those 50+ actions not one sale was made so the logical answer to the above question is a resounding “False!” Fifty or so different actions were taken, but not one sale was made. For some salespeople that can get rather discouraging and even depressing. However, that might equate to one day of work right (for some salespeople that could be a week’s worth of work)? Let’s assume that was just one day of work but the salesperson duplicated that day for 23 days of the month.

To use a round number of 50 actions a day based on the above examples, by the end of the month the total number of actions would be about 1,100 with a mix of floor traffic, phone calls, emails, snail mail, passing out cards, etc. By going by averages, if the salesperson ended up selling and delivering 10 units with a gross paycheck of $3,500 you could say that each action equated to a monetary amount of $3.18 per action ($3,500/1,100 = $3.18).

Here’s another way to look at this perspective: If a salesperson waited on 50 people for the month, delivered 10 units and made $3,500 then each customer they talked to represented a monetary amount of $70 per customer ($3,500/50 = $70).

The phone works the same way: Make 100 phone calls that result in just one sale (I’m being extremely conservative here if you haven’t already guessed) that amounted to $350. That would represent $3.50 per phone call ($350/100 = $3.50).

How about email: Send out 5,000 emails that resulted in 1 sale of $350. That equates to only .07 per email (not the best ROI based on those numbers), but with technology how long does it take to send out 5,000 emails?

I could go on, but I think you can see where this is going. Each action taken carries with it a monetary equivalent in terms of a dollar amount. The trick is to figure out what the monetary value is for each action and then scale that action. A warm body in front of you on the lot is ALWAYS going to be the biggest payoff whether you make a sale or not. The phone will typically be your second biggest ROI, because phone calls turn into appointments and appointments turn into sales. Emails, letters, and other actions can be a little harder to measure but suffice to say if you’re tracking and measuring all your activities you’ll be able to come up with ratios.

So the next time someone pulls up on the lot and you sit there trying to size up the opportunity (pre judge their purchasing capabilities), why not look at like they are there to hand you a fist full of cash. I’m mean if someone drove up on the lot waving a $100 bill, how many salespeople would turn and walk away?

Or, if I told you that I was going to pay you $5.00 (that’s a more realistic value on the phone) for every time you picked up the phone and made a phone call, how many phone calls would you make? Even at .05 for an email, how many emails would you send out a day?

Customers buy on perception of the deal. Salespeople need to change their perception of what their actions represent to them in terms of $$$, because each action taken with some salesmanship with produce a monetary equivalent. Go get you some!


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