To the Editor:
I was puzzled when I read the June 14 article "Dealers rethink how they pay salespeople" as I remembered another recent story discussing pricing strategy: one-price, negotiate or some hybrid version. The two writers should have had lunch!
You really cannot talk about salesperson compensation without dealing with how the sales price is derived.
At CarMax when I was there -- I worked my way up from sales consultant to general manager at a large store -- the prices were absolutely fixed.
We were proud of that and freely made sure customers were aware of how it worked. That assured them that the sales consultants were trying to meet their needs, not steer them toward cars with the highest gross profit.
When people in the traditional car business finally embrace that approach, they will find that figuring out exciting, interesting and rewarding compensation plans/contests is much easier. And the salesperson (and management team) that sells the most cars makes the most money. Everybody wins.