luxury1

Anyone know what an average US Mercedes salesman makes???

RJC

What a broad question...

For sales people that have been employed by the dealer for at least few years in a good market ie Fl CA etc they can make from $50,000.00 all the way to $300,000.00+, the GM of our local dealership was making over $900,000.00 for many years here in S. Florida.

The salesman's pay greatly depends on his client base, traffic of the dealership, location and the amount of local and even national business the dealership gets from its own national advertising efforts etc. There was a guy in Sarasota making over $350,000.00 due to his list of celebrity and super high net worth clients.

Brian_I.

In any sales position it usually comes down to how much money you're bringing in to the company. I would imagine that to start off you'd get a small salary like maybe $3000/mo plus commission on the cars you sell. Once you've got a proven track record they would probably up the salary to make sure you stay with them.

Green E-300 DT

I believe that you're both way to high.

konigstiger

As much as you let him!

Brav

Most salesmen dont make hardly any salary from what I understand. MB may be different, but you either sell cars or you leave. probably make bonuses but not more salary until you are management. 900K for a GM is rediculous.

HELL ONA HARLEY

From reading these previous posts It obvious to me these sales people / GM are WAY over paid..... No wonder these damn cars cost so much

SAguirre

I have very good friends in the car business. When I bought my MB (not at their dealership) they gave me a bunch of insider information about every car my MB dealer had on their lot. I can assure you they did not make more than $1,000 of my purchase. I was way below invoice and they still added SAT radio, SAT Navigation, headlight rings, ski rack and a few other little things like winter mats. It was nice to see their face after reacting to mine when they showed me their numbers as the rock bottom and I knew what they were up to.

But anyway. The only base pay that a salesman makes is the number or hours they work times the minimum wage. That is required by law. Since there is a lot of turn over, the business is really "sink or swim." When I hear these figures of the sales people who earn all this cash it remind me of all those who worked 2 hours a week and made $500,000/year selling Amway . Sure it is possible, but not the norm.

The big problem with earning good money at dealerships is walk through traffic, advertising budget and inter salesman cannibalism. And the most important thing is that the GM can always take profit from one car you sold to mark down one that has been grew roots on the lot. The managers have total control of your commissions and the sales price. The only weapon a salesman has in connections and sheer sales volume. It is very hard to do!

I have sold cars in the summers years ago that I have had off and I have averaged about 5k/month but they were long hours, a lot of show and a lot of a$$ kissing. It was also hard to make good money since you needed to get the ball rolling with a customer months in advance. The best part of the job was the demo cars, but not much else. However, that was a great way to amass capital years back.

The average earnings of a MB salesman will be skewed by the outliers. For that matter how much does the average realtor earn in the US??

Steve

HELL ONA HARLEY

If a dealer was paid for what they know about the product there selling.... Well, the I think they would go hungry....

SAguirre

This could not be more true. Co-workers were always expecting me to explain everything to them. I told them to go read the F$cking Manual. When I had idle time, I read all the manuals of the cars we had. New or Used, that made me lots of money and embarrassed the co-workers sometimes.

I had a co-worker tell a customer that the Audi A4, A6 and A8 all referred to number of cylinders, this made a V8 E class faster than an Audi A6 4.2 because the Audi was a 6 cylinder.

I always say, if you think education is expensive, you should try ignorance! The sales man in the showroom when I bought my car does not know about nano-paint!

Steve

Brian_I.

Sometimes I want to go and work part time at the local dealership just so they'll have someone on the lot that actually knows a thing or two about the inventory.

jim256

A salesman typically will make 25% of the "profit" on the deal. That's computed by taking the net price of the car after the customer gets any discounts, less what's called a "pack" which represents the overhead of the dealership for the sales team (usually $300 or more), less the printed invoice (before the holdback which goes to the dealer). The salesman does not participate in the "dealer processing fee" or holdback. If there is a trade, the used car manager places an ACV (actual cash value) on the trade--that's what it's worth to the lot, usually loan value not wholesale (loan value is lower). So, since the bread and butter is the C and E Class, and the dealer margin is about 6% pre-holdback, the salesman on a cash deal at full MSRP (say $60k)would see $ 3600 less 300 times 25%-- $825. If it's a $35K C Class, then it's $450. How many are at full sticker? If you get a $500 over invoice deal, then there is no money to pay a traditional commission so there's usually a minimum commission of $100-$250 if the profit is too low, and there is usually a bonus for selling x units, maybe 12 a month, of about $100 per car over your quota. The answer to how much one makes is how many they sell. Some make $30K, and work hard, some make $100k and work no harder. Averages include a huge spread in my experience. Some leave the dealership quickly because they don't sell enough to pay their bills. The hours are fun, too: maybe 6 days a week, 9 am - 7 pm, maybe later. The longer the salesman is there (many years with many repeat clients), the more likely he can negotiate his own deal.

rusnakmb

I wont worry about what other gets paid. I will worry about myself first...

SAguirre

I think that you have misunderstood the purpose of this thread if you think that we are worried about how much Mercedes Benz sales personnel earn.

Steve

jameson75

I know that most salesmens don't rely on their base salary, being that its usually not too much. They get lots of money from incentives and rebates from the factory. In conjunction with their commission, some larger than others, depending on how bad they ream a customer. MB salesmen make pretty good money.

Barry45RPM

AHHhh, but are you better off financially, selling a "few" big dollar MB's a year, or a ton of Toyotas a year???

SAguirre

Well, for that matter, if you really want to big money you should sell high-end used cars. There is a lot more money to be made in this department, but the reputation is sometimes well deserved.

Steve

konigstiger

Hey Barry, getting back to city employees – between you and me do you think the majority of these guys make as much (salary, benefits, retirement, etc.) as a NYC sanitation engineer? Just wanted to throw a coal on the fire for rusnakmb!

Barry45RPM

In any 1 given year, an average MB salesman will make more than the "sanitation engineer" in salary commissions etc... however
#1 He has to WORK to make that money. No dealership will keep him on staff because he's got a killer employment contract, & all the other salesmen will walk off the job & insult customers who walk past them into the dealership to buy anyway.
#2 The City Employee only has to remain employed for 20 years to retire with full lifetime benefits/pay. He then starts another career at full pay w/ benefits because he is so young & retired with nothing to fill his time.

...so the salesman earns far less over his lifetime of work versus, the 20 years of employment the City "Worker" put in and got paid for for good attendance.. and now he is going to earn (for the 1st time in his life) a SECOND salary & retirement benefits in the next 20 years & retire at 60 for the 2nd time!!! (Then if he wants to, he'll work part time at Home Depot showing the MB salesman where the lawn sprinkler heads are in the store!)

Hows that?

RJC

LOL!

HELL ONA HARLEY

I think the biggest difference between the salesman and the "sanitation engineer" is at least to keep your job you have to know something about it.... This is obviously not so being a MB salesman / women.

konigstiger

Whatever… Well thought out, umm I guess. Home Depot has sprinkler heads IN the store? I don’t get it. What could they possibly be irrigating inside the store? Oh, you mean the not so swift guy that somehow made it through life is now showing the successful sales person where to buy sprinkler heads for their putting green. I can relate, since relocating to AZ in ’93 so far I’m on my third new home – each bigger than the one before and requiring more elaborate custom landscaping than the one before.

But rusnakmb didn’t bite, damn! That little character in his sig seems pretty angry.

konigstiger

Now, now Vince - play nice.

allenjdmb

..and you're forgetting a few important things. You're right, most sales people make no salary. A few can earn a "draw", that is, an advance toward their monthly earnings (but most quality stores have eliminated this). Most are out there with no guarantee, no insurance, and very little to compete with except price, because that's about all that most customers care about. In addition, if you think that guys are getting fat selling the big $$ models, think again. Many stores have "capped" these commissions, meaning that no matter what kind of gross profit the house makes, their maximum commission will be $500 or $1000. And in case you haven't thought it through, even at a volume metro store, you can only hope to sell 3-4 of those cars a month, and that's after most of them have been ordered and the few month wait for delivery--and the commission check-- is over. As for monies coming in from the factory to subsidize their commissions, dream on. The factory doesn't usually give a good flip about a quality salesperson. They think the product is good enough to sell itself. Perhaps a good salesperson may earn a trip, or a bonus "pull", or the use of a car, but the thought that their compensation is helped by the factory is ludicrous. It's just as ludicrous as the idea that someone's GM is making a $1M a year (if he was, there isn't a dealer principal in the world who wouldn't cut him loose and take the money himself.) I'm not saying they need a hug--most are ignorant, and out for nothing but the highest gross deal that someone will fall for--but even the best ones, and there are a few, don't make anywhere near that much money. Yes, you're right, you can make much more money selling used cars because the grosses are not limited. And the "packs" mentioned above are usually much worse at better quality stores, more like $500 per car instead of 3, and commission schdueles now start at 20%, not 25% (do you think those plasma TV's, Wall St Journals, and Starbucks coffees in the service lounges are furnished free?). Exactly how much to you think a dealer can pay a salesperson on 7.5% gross profit, which we all do our best to beat them out of?
Good news is, this system will be going away in our lifetime. Manufacturers are going to eventualy eliminate commissioned salespeople. MB, along with some other manufacturers, will be determining how many "sales consultants" a store needs, based on their unit deliveries, and these sales people will be paid good salaries, benefits, and have opportunities for bonuses. But a high percentage of this will be on their CSI scores (a concept that BMW NA is already using). Again, I'm not saying these people need halos. It's just that some of them are doing a very good job and not making a lot of money for 60+ hours or more a week, while some are doing an awful job and not getting cut loose, like they should. It shouldn't be too hard to find out who you should and shouldn't be doing business with. BTW, second generation car guy, now a lawyer in the industry, and still hold a dealer license in my state. Go ahead, hit me now. I understand.

HELL ONA HARLEY

So.... When you buy your cars are you paying sticker because you understand????