Missed Sales at Tesla Dealers

[jerry505]

In Las Vegas for a car event, I drove two enthusiasts by the Tesla dealer. This was nothing planned. We were on the way to another place, I drove them by Tesla.

I had hopes of a test drive creating a sale. Two salesmen were standing around, but neither one could take my friends on a test drive - even a short jaunt around the block. One salesman walked off to check and returned to announce no test drive could be arranged. An appointment would be necessary and the earliest would be the next day. Very big turnoff - my two potential customers left disappointed,

This would never happen at a regular dealership. Two very wealthy people there wanting to drive a new $100,000 car - something would have happened. I fear Tesla misses many sales this way.

I suggest Tesla starts offering commissions on sales. I believe they missed a sale that day, or very possibly.

They also missed a sale last year by not doing a "dealer courtesy trade" that my BMW and Porsche dealer does. What's up with that?

 

[Tiger]

Tesla is practically sold out so paying commissions on sales would be madness! Same reason you have to book for a test drive.

Tesla finishes dead last in auto dealership ranking, stores found to be horrible at selling cars but…

Why Sales Commissions Don't Work (in the Long Run)

 

[SSedan]

Walk in test drives encourages time wasted on joy rides.
If someone really is ready to make the switch to electric they are going to be willing to schedule a test drive.

 

[Ormond]

"Museum Curators"! Hah!

I suggest a huge purple inflatable Space X rocket and a giant American flag That will move some units!

 

[kavyboy]

I think you have to be spinning things pretty hard to turn pissed-off potential buyers walking away in a huff into a positive thing.

 

[Ormond]

Folks aren't accustomed to making an appointment for a test drive. Some people need to be converted to electric.

 

[SSedan]

If someone can not be bothered to schedule a drive how are they going to feel about having to schedule an electrician, wait 30minutes for charging on road trips etc.

I can sort of see buying an ICE spur of the moment, an EV no

 

[Ormond]

I can sort of see buying an ICE spur of the moment, an EV no

You may not buy one on the spur of the moment, but it might convince you that electric is a viable option worthy of consideration.

 

[kavyboy]

I can sort of see buying an ICE spur of the moment, an EV no

I didn't know my wife had set up the test drive already. I thought we walked in and just got a test drive as a spur-of-the-moment kind of thing. I surprised her (and I think the sales rep) when we got back to the showroom and I said "Let's buy one." It was totally impulsive and out of character on my part, but one of the best decisions I've ever made.
I'm not really arguing a point, I guess. Just more of a story for a slow Saturday morning.

 

[xyeahtony]

Well your expectations were wrong in the first place. Tesla does not have dealers. There are gallery/showrooms and service centers. As a tesla owner you should have been more aware of the tesla sales model.

The tesla showrooms are to educate people about cars, not to push sales. Most people like to get educated and learn about cars, which you can't do going to a traditional dealership and having a purchase shoved down your throat.

And when you're buying a $80k+ car, it helps if that decision wasn't spontaneous.

Walk-in test drives are not common due to the fact too many people have no intention of buying the car and just wanna go on a free joyride. Nevermind Las Vegas is probably FULL of tourists and casual walk-ins where everyone and their mom probably wants to test drive a tesla.

 

[Az_Rael]

I suggest Tesla starts offering commissions on sales

Tesla already does commissions on sales. I believe there was an Electrek article mentioning it recently.

 

[Super_Popular]

The commissions are very low and all sales staff are supposed to sell 4 cars a week, every week! LOL

When I heard that I understand why there is such a heavy turn over at the Portland store.

 

[P3D+]

Now you realize the reason you passed 3 empty Chevy Bolt dealerships with instant test drives to reach a Tesla gallery. There are good reasons for the demand.

 

[commasign]

Tesla has a lot going on right now. Once things settle down, there will be walk-in test drives and more inventory cars available.

 

[Super_Popular]

Tesla has a lot going on right now. Once things settle down, there will be walk-in test drives and more inventory cars available.

Things better not settle down, with the Y and a possible truck and the semi it's only going to get worse.....in a good way (I hope)

 

[xyeahtony]

Tesla already does commissions on sales. I believe there was an Electrek article mentioning it recently.

On Model 3 Performance models only, from what i gathered.

 

[TexasEV]

They also missed a sale last year by not doing a "dealer courtesy trade" that my BMW and Porsche dealer does. What's up with that?

“Dealer courtesy trades” are nothing but a sales tax avoidance scam. If someone didn’t buy a Tesla because Tesla doesn’t play that game, the potential buyer must not have really wanted the car. Tesla doesn’t need such customers.

 

[Az_Rael]

On Model 3 Performance models only, from what i gathered.

There have been Glass Door job posts for Tesla sales people that mentioned a commission structure from before the Model 3. Electrek mentions the new 3 commissions are an "update" to the existing plan.

A source familiar with the matter told Electrek that as part of Tesla’s latest update to its commission plan, the automaker plans to start giving out $300 commission for each sale of new Model 3 Performance version

 

[xyeahtony]

There have been Glass Door job posts for Tesla sales people that mentioned a commission structure from before the Model 3. Electrek mentions the new 3 commissions are an "update" to the existing plan.

A source familiar with the matter told Electrek that as part of Tesla’s latest update to its commission plan, the automaker plans to start giving out $300 commission for each sale of new Model 3 Performance version

Is it traditional commission like in a dealership though or bonuses for meeting quotas?

 

[jerry505]

Well your expectations were wrong in the first place. Tesla does not have dealers. There are gallery/showrooms and service centers. As a tesla owner you should have been more aware of the tesla sales model.

The tesla showrooms are to educate people about cars, not to push sales. Most people like to get educated and learn about cars, which you can't do going to a traditional dealership and having a purchase shoved down your throat.

And when you're buying a $80k+ car, it helps if that decision wasn't spontaneous.

Walk-in test drives are not common due to the fact too many people have no intention of buying the car and just wanna go on a free joyride. Nevermind Las Vegas is probably FULL of tourists and casual walk-ins where everyone and their mom probably wants to test drive a tesla.

At the time of my purchase in 2015, I had no intentions of buying a Tesla until I felt the acceleration. My P85D purchase was the first time I purchased from a test drive. When I bought BMW's and Porsches in the past I knew what I wanted when I went into the dealership. The people with me were performance car people, like me. And, same as me, somebody required some coaxing to test drive a Tesla. I did not want a four door sedan. I think many enthusiasts driving new Corvettes and other hot cars still do not realize the acceleration of a Tesla. The sales floor was empty of customers - not one. I told the two sales people that I was a P85D L owner, and my friends were high performance enthusiasts - one in his 50s, with many expensive cars and multiple homes. Had I been a salesman, I would have at least given them a ride around the block - something. To turn them away sure gave them a bad taste for Tesla, I believe. They were happy to leave the place and I don't think either one is going to go out of his way to enter a Tesla showroom again.

PS: I know Tesla does not have franchise dealers.