Commission sales or salary?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
Topic Author
member
Posts: 49
Joined: Sat Jul 05, 2014 2:01 pm

Commission sales or salary?

Post by member »

This question is for my boyfriend. He got laid off last year then couldn't find a job for almost 10 months. He needed the money so applied everywhere. He finally got this job as a car salesman 2 months ago. He is really good at it. He made 7k his first month then 11k last month. One company called him and offered a job for 65k salary plus benefits. He is not sure if he wants to go back to his old field. I want him to go back because the money is stable. Would you tell your wife/girlfriend or boyfriend/husband to take this salary job?
TRC
Posts: 1969
Joined: Sat Dec 20, 2008 4:38 pm

Re: Commission sales or salary?

Post by TRC »

Have him compare the two comp plans.
How many cars can he realistically expect to sell at both places and factor what the final earnings potential is. With the place that's offering him a good base, is the product as hot and easy to sell?
js2012
Posts: 118
Joined: Tue Dec 25, 2012 4:13 pm

Re: Commission sales or salary?

Post by js2012 »

If he's that good can he sell cars on the weekends and get the salary job? It won't be as much but he can still be getting some commission
User avatar
greg24
Posts: 4511
Joined: Tue Feb 20, 2007 9:34 am

Re: Commission sales or salary?

Post by greg24 »

Not nearly enough information, IMO. Does he like selling cars? He doesn't like his old field. It looks like he'll easily make more money as a car salesman, even with the ups and downs.
spectec
Posts: 1828
Joined: Mon Jul 14, 2014 8:00 am

Re: Commission sales or salary?

Post by spectec »

In sales, everybody is ultimately on commission.
If a salaried sales person doesn't sell enough to pay his/her way, they get fired.
Meanwhile, the top producers earn enough to pay their own salaries & benefits plus they subsidize the earnings of the washouts.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers
User avatar
SmileyFace
Posts: 9184
Joined: Wed Feb 19, 2014 9:11 am

Re: Commission sales or salary?

Post by SmileyFace »

I'd do more research on the Car Salesman side. I've heard you can't make the money you used to and things could get worse (with on-line quotes, more informed consumers only willing to pay slightly above cost, etc. the days of the big fat margins are going by the way-side). There has been a lot of turnover. Now - money is made more on volumes than individual deals from what I have heard. However- I'm no expert.

On the flip side - I truly believe in the long run you should go for the career where you are happy. If he LOVES selling cars he is more likely to be successful there than going back to a salaried $65K/year job where he isn't happy.
Topic Author
member
Posts: 49
Joined: Sat Jul 05, 2014 2:01 pm

Re: Commission sales or salary?

Post by member »

He likes selling cars. He can not do it part time. He sales certified pre-owned cars. The job is 100% commission. The new job will be in an office setting with salary.
Easy Rhino
Posts: 3278
Joined: Sun Aug 05, 2007 11:13 am
Location: San Diego

Re: Commission sales or salary?

Post by Easy Rhino »

Well gee, if he loves sales and dislikes his old field, then he should probably stick with sales.

Who knows, he may want to do sales in some other industry.
ccieemeritus
Posts: 714
Joined: Thu Mar 06, 2014 9:43 pm

Re: Commission sales or salary?

Post by ccieemeritus »

There are many careers where sales and negotiation experience are useful. Even in my IT job I need to negotiate with vendors periodically. If he likes selling cars and is making better money at it (with more risk) a 1-2 year stint there won't hurt him. It's also nice to show some loyalty to the place that hired him and not end up with a 2-month job on the resume.

+1 to go with what he likes.

He was unemployed, got a job, and is now successful at it. Be happy with that for a while.
poker27
Posts: 1149
Joined: Mon Apr 01, 2013 2:48 pm

Re: Commission sales or salary?

Post by poker27 »

Is the 65k job still sales?

I'm in sales, while I have a small base, 80% of my income is commission or bonuses. There is probably a real possibility of having a month of real or next to no income in something like car sales, but then you can also get huge paychecks like he did last month. As others have stated, if the 65k job is still sales, and he does not perform, it will not be pretty either.
ShiftF5
Posts: 751
Joined: Wed Jan 11, 2012 7:59 pm

Re: Commission sales or salary?

Post by ShiftF5 »

member wrote:He likes selling cars. He can not do it part time. He sales certified pre-owned cars. The job is 100% commission. The new job will be in an office setting with salary.
If he enjoys selling cars and has already produced $7,000 and $11,000 in monthly commissions, if that income is sustainable, I'd say keep selling cars and invest a good portion of the $$.

Congratulations to him. Make hay while the sun shines.
acejacksingh
Posts: 379
Joined: Thu Dec 04, 2014 10:15 am

Re: Commission sales or salary?

Post by acejacksingh »

Stable Job and Salary > Sales

Just IMO. I was good at sales but it didn't pay as much as salary so I took the salary gig and it was a great move personally.

Good Luck,
AceJ
ShiftF5
Posts: 751
Joined: Wed Jan 11, 2012 7:59 pm

Re: Commission sales or salary?

Post by ShiftF5 »

Office job on a salary vs. 100% commission sales position are typically 2 entirely different worlds.

The person in 1 better suited for the other knows or will soon know and start looking for a change.

It takes all kinds.
tim1999
Posts: 4205
Joined: Tue Dec 16, 2008 6:16 am

Re: Commission sales or salary?

Post by tim1999 »

If I were in his shoes, I'd stick with selling cars. To make that kind of money as someone new to the car business means one is pretty darn good at it. Many newbie salespeople do horribly and wash out.

Only downfall is that I imagine the benefits at the car dealership aren't as good. Still, he could always get promoted to a salaried management job at the dealership down the road.
MP173
Posts: 2609
Joined: Fri Dec 07, 2007 5:03 pm

Re: Commission sales or salary?

Post by MP173 »

Probably a pretty good sales gig for him. Used cars do not have the internet information that new cars have. Thus, it is easier to make margin.

When the economy turns south and car sales tank will be difficult. However, if he is smart he will live off of a portion of his income and bank the rest.

Stick with what he enjoys. You are his girlfriend and not his wife...when you are promoted then you might have a little more authority in the decision.

Ed
Myopic squirrel
Posts: 269
Joined: Wed Apr 24, 2013 11:02 am

Re: Commission sales or salary?

Post by Myopic squirrel »

IMO 100% commission sales (you eat what you kill) is the epitome of the "risk/reward" ratio - offering motivated individuals the opportunity to financially surpass salaried employees. The sales profession is not for the majority of people, since there is typically more rejection than success, which most people can't handle. That your boyfriend has demonstrated success so early, AND he enjoys it, IMO he should stay with it for a while. Without my knowing the commission structure of used v. new, his success can present him better opportunities in the future, possibly upgrading to a premium line (Porsche, MacLaren, MB, etc). And not only automotive. He obviously is successful communicating with his sales prospects, and selling is selling. There is always a need for successful salespeople, and successful sales people make excellent incomes.
Post Reply