Commission on a Sale?

Beemerboy

Beemerboy

Just One More Coat
I recently helped a good friend and customer sell his GMC truck...he didn't really want to mess with it so I took the job on for him...he said that he would pay me a commission once it was sold..OK...I really didn't give that much thought and it wasn't the soul purpose of trying to help him out.

Anyway I did the detail on the truck after work and finally finished in 4 days or so....took the pics listed it on Craigslist, and kept re-listing it every day so that it stayed at the top, printed up some signs with all the poop on the car, put it out by busy streets on the weekends, took about 12 calls on it...some test drives...kept the truck in freshly detailed condition every time someone wanted to look at it...bottom line is I sold the truck yesterday for about one grand less than what he wanted...with his permission of course.

Now for my question...what do you think this was worth?

The truck sold for 14K

I expect this guy to treat me fair I'm just wondering what you think?

Thanks!
 
I think 4% ($560.00) would be a fair number to cover the cost of detailing and your time for the ads, calls and test drives.
 
Dwayne said:
I think 4% ($560.00) would be a fair number to cover the cost of detailing and your time for the ads, calls and test drives.
Click to expand...

Hey Dwayne!

I have been paid on the detail already that was $200 and should have been more this was a lot of work...but thats water under the bridge...do you think that 4% is still a good figure for this without the detailing in it?
 
Having worked at a used car dealership for several years I can put in some input on this sale. Typically the salesman will get a percentage usually 25% of the profit. In your case it's more difficult because you don't know the profit involved. If there was no agreed upon comission it gets a little dicey. My guess would be anywhere between $500-750 plus your detail price. That is just my opinion. I feel that that price is fair for both parties. In this situation there is no right or wrong it is just a matter of opinion I guess.
 
9D4E420 said:
Having worked at a used car dealership for several years I can put in some input on this sale. Typically the salesman will get a percentage usually 25% of the profit. In your case it's more difficult because you don't know the profit involved. If there was no agreed upon comission it gets a little dicey. My guess would be anywhere between $500-750 plus your detail price. That is just my opinion. I feel that that price is fair for both parties. In this situation there is no right or wrong it is just a matter of opinion I guess.
Click to expand...

Thanks I had read that before about car commission..as for what this is worth if I get $500 for all that I did I will be happy with it...it wasn't a huge amount of work for me, but then I preformed the service for someone that didn't have a lot of choices and represented his truck very well.

Again I am not expecting that much from it and it will not bother me unless its like 100 bucks then I will say something
 
Beemerboy said:
I recently helped a good friend and customer sell his GMC truck...
Click to expand...

Beemerboy said:
Again I am not expecting that much from it and it will not bother me unless its like 100 bucks then I will say something
Click to expand...
And just what will you say to a good friend? :)
Keep in mind that most people have no idea as to what a fair sales commission is.
The percentage of profit works good when you can pinpoint the profit. That isn't going to happen in your case.
A 4% to 6% sales commission is quite common, but the sales person isn't normally responsible for the advertising. Most car sales programs include a bonus or spiff for a certain number of sales that is applied to the next months sales. An average salesman's net per sale is probably close to the $250 to $500 range at a typical used car lot. The salesman can't afford to spend much time with any deals that don't net him at least $500. If he sells 8 to 10 a month, that $4,000 to $5,000 has to cover self employment tax, any insurance coverage, (health, dental), a cushion for any vacation he takes since it isn't paid, clothing expenses, travel and entertainment expenses. Even a few lunches and deliveries can eat up a chunk of money.
It isn't as easy as it looks, that's one reason there is so much turnover in the field.
 
Charles thanks my comment would be at 100 bucks "is do you think that's fair for time and effort?" I'm looking for his reasoning at this point..and its just so he knows that I think its a bit low.

I know him well enough to say that only because he has used my services / detailing on many occasions and I've had his cars for a week at a time...he pays very well for the luxury of this with me..I should also define the good friend...I have known this guy threw a local dive bar for the last 8 years...he and I have had many conversations about business and other things..have been at many parties over the years together...and he has been an OK detail customer once maybe twice a year guy and his GF car about the same..usually when he is on vacation and not using the car for a week at a time...as for having him over for dinner and that no he is not that good a friend...so I should have clarified the friend level sorry my bad

I'm certainly not going to say much in this case..he was the one that offered me the commission nothing was agreed on and I did that on purpose, as I was really trying to help him and at the same time get some $$ for doing it...If I had the cash on hand I would have taken ownership at a reduced price and sold it myself for profit.

I only threw this out there to see what others thought about it and that was it...what it is, will be what it is regardless unless I think its just way low then anyone would say something!



CharlesW said:
And just what will you say to a good friend? :)
Keep in mind that most people have no idea as to what a fair sales commission is.
The percentage of profit works good when you can pinpoint the profit. That isn't going to happen in your case.
A 4% to 6% sales commission is quite common, but the sales person isn't normally responsible for the advertising. Most car sales programs include a bonus or spiff for a certain number of sales that is applied to the next months sales. An average salesman's net per sale is probably close to the $250 to $500 range at a typical used car lot. The salesman can't afford to spend much time with any deals that don't net him at least $500. If he sells 8 to 10 a month, that $4,000 to $5,000 has to cover self employment tax, any insurance coverage, (health, dental), a cushion for any vacation he takes since it isn't paid, clothing expenses, travel and entertainment expenses. Even a few lunches and deliveries can eat up a chunk of money.
It isn't as easy as it looks, that's one reason there is so much turnover in the field.
Click to expand...
 
Since you were paid for the detail I would think your above and beyond the call services would be worth $400-$450. They would be worth that to me anyway. Had you not done any of that he would still have a detailed vehicle sitting in his yard.
 
From time to time, I list vehicles for a friend of mine with a auto recycling yard on eBay... I get 10-20% plus listing fees. When he wants it detailed, it's an entirely diffrent thing.
 
it's a tough call after the fact.
you said that the truck sold for 14K which was a thousand less than what he was asking, but what was his bottom price. If he needed to get atleast 13,700 for it, then there really isn't that much "extra" to give.
I have sold things for people in the past, and we had a simple agreement, what was his bottom number and I kept what was over that. In one case i made less than 100 on others I made a few hundred, but both parties knew up front.

I'm sure the guy will do the right thing after you explain what you did to get the car sold.

Good luck
"J"
 
Thanks for the replies we hooked up on Saturday evening and I made $300 on the sale....I was OK with that for the most part, learning lesson in part...next time I do this I will approach this a bit different
 
Beemerboy said:
Thanks for the replies we hooked up on Saturday evening and I made $300 on the sale....I was OK with that for the most part, learning lesson in part...next time I do this I will approach this a bit different
Click to expand...
Great!
Glad it worked out for you.
Two important factors.
1. You aren't unhappy with the deal.
2. You learned something about doing business with friends.

Any business deal can become a touchy situation when the dollar specifics are not clear going in.
It's worse when it's a friend since it can become a personal issue rather than just a dollar & cents issue.
The "Pay me what you think it is worth" approach can cause a lot of hard feelings.
My approach with friends is a little oddball. I price them the same as I would for any customer and that isn't cheap. When they give me that dazed look, I tell them I don't cut my prices for anyone, but..... For a friend, I'll do it for free. :D
 
You must log in or register to reply here.
Back
Top