Porsche cars are selling like hotcakes. That is why the general perception is that Porsche salesman makes a lot of money.
Have you ever wondered how much money do they make?
If so, today I will answer this question for you. Once you go through the answer below, you can also determine whether this is a lucrative career or not.
How much do Porsche salesmen make?
Porsche salesman often makes between $ 90,000 per year to $ 110,000 per year.
That is, however, the usual range.
Also, there are two components in the amount of money which Porsche salesman makes. The 1st one is the retainer. Unfortunately, not all dealerships provide retainers.
The 2nd one is commission. The commission can vary from one model to another. I will go into the details of both these earning models below.
Not all dealerships provide retailers. The ones which do offer a retainer make around $ 20,000 per year. So it does not amount much. However, you can make up a significant amount of commission in this job.
The dealerships which do not provide retainers offer $500 per week to their salesman. These are cut from their commissions. Providing this $500 per week aims to provide a predictable cash flow to their salesman.
Now that you are aware of the retainer, it is time to look at the commissions on offer.
Porsche dealerships offer tiered commissions.
The usual tier structure is:
• If you sell up to 13 cars in a month, you will make 15% of the total gross profit.
• If you sell between 13 cards to 17 cars per month, you can make up to 20% of gross profits.
• If you sell 18+ cars in a month, you can make up to 25% of gross profits.
For example, if a Porsche car will cost you $ 100,000, the profit is usually around 9% to 10%.
You give a discount of 5%; the profit comes up to $ 4000.
In the lowest tier, you will make $600 in commission.
Usually, in a month, if you are an established dealership, you can sell up to 10 cars.
It means that you will make $ 6000 in a month in commissions. That comes out to $ 72,000.
However, there are Porsche models which are above $ 100,000 as well.
That is why you can easily make up to $ 110,000 in any year.
A lot depends on the type of models that you are selling. So I will today highlight which models have the highest commission and which one has the lowest commission.
Which models offer the lowest commission?
Boxter and Cayenne are the models which do not offer a lot of gross profit. That is why, if you sell them, you are not likely to make that much in commission.
Nevertheless, if a customer has come to buy only a particular model, you do not have much choice.
Which models offer the highest commission?
Some models which offer the highest commission are GT2, GT3, 911 Turbo.
The volume of these models might be on the lower side. However, since you make a lot of commission, it is worth putting a lot of effort into selling these models.
On what factors does your earning as a Porsche salesman depend?
So, there can be many variations in the earning of a Porsche salesman.
Have you ever wondered what factors the earnings depend on?
I will highlight a few factors below. If you focus on these factors as a Porsche salesman, you are sure to make a lot of money.
1. Sales Skills:
As with any sales job, your sales skills will determine the amount of money you can make.
The better your sales skills, the better will be your earnings.
Essentially, you need to know the features of most of the Porsche models, like the back of your hand. Not only that, you will know the pain points of your target customers as well. Once you know the pain points, it is easier for you to make them buy as well.
When you consistently improve your sales skills, you can make more money.
2. Time in store:
In most cases, the customers which you will receive are walk-in. That is why the time you spend in the store will determine the number of sales you make.
If, as a Porsche salesman, you want to make a lot of money, you have to spend most hours in stores.
Ideally, you should be in the car dealership right when it opens, and you should be the last person to leave. Unfortunately, when you do so, you’re likely to catch most of the walk-ins.
Many times, it comes down to luck. It is not necessary that if you attend ten customers, at least 2 of them will convert. Many times, none of them might convert. However, in the longer run, you can manage your average conversion rate. That is why; there is always a luck component involved.
You must keep in mind that the final conversion you get relies a lot on luck in any sales job.
Porsche are high-end cars. That is why, when the economy is doing well, much more the number of people are likely to buy them.
Many individuals buying Porsche have their net worth in shares, bonds, and so on. If the value of these assets is on the lower side, it is very difficult for anyone to buy such a high-end card.
Also, the interest rate cycle has an impact on the sales of Porsche. The lower the interest rates, the more will be the Porsche sales.
As you can see, there are ways in which your earning will depend on the economy. Therefore, you have to keep this factor in mind before starting your job as a Porsche salesman.
5. Dealership location:
The dealership location also determines how much you make as a Porsche salesman. For example, if it is in an affluent neighborhood of a large city, there will be more walk-ins. In that case, you’re likely to make more sales as well.
As you can see, the dealership location plays an essential role in your earnings.
Many dealerships allow you to buy leads. If you have a trusted source of leads, you can increase the number of sales which you make.
Not only that, if your dealership does not allow buying leads, you can opt for commission sharing as well. In that case, you can pay a part of your commission to someone who is referring you or a converting customer.
With the help of this method, you can increase your earnings by 20% to 30%.
As you can see, the amount of money you make as a Porsche salesman depends on all these factors.
Generally speaking, you can make between $ 90,000 and $ 110,000 per annum. However, with the help of the parameters above, you can undoubtedly improve your annual earnings as well.