Missed Sales at Tesla Dealers

[Az_Rael]

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

I think it is a flat bonus for making a sale. So not a full up traditional commission setup. Closer to what CarMax does I would guess.

 

[Ormond]

When I was at the sales center this week to was amazed at the number of employees working. I'm guessing that it's because of the increased volume due to the Model 3. The showroom must have had 5 employees standing around. No wonder the cash burn is so high!

 

[hBomb]

I am currently cross-shopping a dual-motor 3 and various 2015 CPO S'es. I've been leaning towards the S, but had the day off on Thursday. I went to the Westmont,IL Tesla store to see if I could test drive a Model 3. There were 5 or 6 people standing around doing nothing in the showroom and the parking lot had several Model 3s in it, yet I was told that I'd have to make an appointment to come back another day. I also haven't heard back from my CPO contact, even though I emailed them 3 days ago asking for pictures of 3 listed cars. Maybe I'm too small a fish since I'm not shopping for a new P100D, but given what I've seen so far I suspect those folks are made to jump through hoops of indifference, too. They sure were excited to take my email address for the 15th time, though!

The cars are awesome and I still want one, but there's some Jobs-level Reality Distortion Field stuff going on.

 

[Ormond]

@hBomb when I was interested in a new Model S, they let me keep one overnight. You might ask. I had to request a Model 3 test drive online, and then the dealership called me. I was able to take it earlier in the day because of a cancellation.

You might try calling the corporate number to obtain photos. Good luck!

 

[xyeahtony]

Some people are still stuck in the traditional stealership ICE model of cars, and thats disappointing. Car purchases like these should not be whimsical. Make the appointment if you want a test drive, go home and think about it and do research. Then come back.

A lot of us bought teslas without having ever driven them before. We just wanted a car that used no gas, and had a free supercharging network for the life of our car.

There were 5 or 6 people standing around doing nothing in the showroom and the parking lot had several Model 3s in it, yet I was told that I'd have to make an appointment to come back another day.

Yeah its entirely possible that none of those cars were slated for customer delivery. "sorry sir that your model 3 has 29 miles on it, somebody wanted to try it out"

 

[Bet TSLA]

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?

I'm mystified as to how Tesla can have missed any sales, given that they are production constrained. Not only do I think they didn't "miss a sale" but they in fact sold to people who wanted the car more. This is a good thing.

 

[Uncle Paul]

Tesla often provides walk in test drives to interested people, however they need to have a vehicle available at the time. Maybe the cars were not charged or had a reason they were not being used for demo rides.

When the representative went back to check there were probably no vehicles there to give demo rides. Perhaps they were reserved for people with reservations.

Understand your zeal to try to get them an on the spot demo ride, but it was not to be.

 

[Joe F]

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.

All I’m hearing is an incredible sense of entitlement with this post. Very big turn-off indeed.

Fortunately, Tesla does not have “regular” dealerships. I’ve walked out of them with their “let me go run your offer by my manager.” After informing them I’m “dealing” with you, not your manager, and if you’re not empowered to negotiate a deal, I’m probably not going to be here when you return. Don’t waste my time.

 

[mburnet6]

Car purchases like these should not be whimsical. Make the appointment if you want a test drive, go home and think about it and do research.

This 100%! EVs require more planning than an ICE so buying one on a whim is a terrible plan.
Also, if you were an owner, why not just give them a ride in YOUR Tesla?

 

[jerry505]

We were all out of town so I was in a rental car. I've given dozens of rides in my Tesla to show the many advantages of EV's.

 

[jerry505]

All I’m hearing is an incredible sense of entitlement with this post. Very big turn-off indeed.

Fortunately, Tesla does not have “regular” dealerships. I’ve walked out of them with their “let me go run your offer by my manager.” After informing them I’m “dealing” with you, not your manager, and if you’re not empowered to negotiate a deal, I’m probably not going to be here when you return. Don’t waste my time.

I like Tesla owning their own stores, but there is such a thing as salesmanship. I think those two sales people should have been more aggressive to show these potential customers cars parked in the showroom, explain how the cars work, talk about MPGe, performance, open the falcon doors, be friendly, not just say hey, no test drives available and go back to your station (no other customers were there). Maybe I'm wrong and it's best just to say thanks and let them walk, but I don't think so. I would have engaged these potential buyers in the advantages of an EV, opened a door for them to sit in a car in the showroom. That's what other regular franchise dealers will do when their EV's hit their showrooms. This is just my opinion as a super enthusiast of Tesla and the switch to alternative energy. I have been a tireless spokesperson for Tesla in print and video and am still trying to address the legislature of my state to help Tesla. I have let many people drive my Model S and talked hour after hour on the phone answering questions about Tesla.

I just called up one of my friends that was in the Tesla store and asked him about this visit and he said, "They didn't engage us," as in a conversation.

 

[jerry505]

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.

“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.

The tax depends on the laws of the state.

 

[svp6]

Some people are still stuck in the traditional stealership ICE model of cars, and thats disappointing. Car purchases like these should not be whimsical. Make the appointment if you want a test drive, go home and think about it and do research. Then come back.
"

I guess it depends on one's willingness to make an appointment. To do that, you would presume one has to be interested enough to research the brand, call in, and stick to the time. A lazy person like myself (or if you prefer busy with other things) would be unlikely to have time for any of those.

The only reason I got a Tesla was because the fabulous sales person I met. The delivery center in Minneapolis is out of the way, and back in 2014 it look a little like your regular small repair shop - not too enticing. I went in as I had some time to spare while my BMW was being serviced. Test rides were even more difficult to get those days - they only had one demo car. Yet the sales person came immediately to talk to me, asked me if I need some information, and volunteered to arrange an impromptu test drive for me. I felt welcome, treated with respect, and the P85 was a beast even if my 650 BMW was no slouch. At the end, she asked me if I wanted to reserve one - but put no pressure.

Same day I went to Maserati Minneapolis - I was cross considering the Grand Turismo as the top contender to replace my 650. The sales person stopped by, but did not offer a ride. When I requested one, he said "you know, the exotic cars are very sensitive to mileage, so we usually do not give test rides". I guess he made his decision based on my jeans and T-shirt, and cheaper looking 3-series I had as a loaner from the BMW.

After these very different experiences, emotionally it was easy to decide which car - not to mention the night-and-day difference in performance. We are now waiting our third Tesla..... In the last 4 years, I gave rides to multiple people, convinced few of them to consider Tesla - which is I suspect what a lot of the early adopters did. Good ending for everybody.

So to wrap up this very lengthy post, expecting to get a test ride has nothing to do with entitlement. I suspect buying a car is whimsical for more than just myself.

Someone also mentioned Tesla did not lose any sales, because they sell everything they produce - a little overstated in my opinion. They have a wait line for Model 3, but not for S or X - there are not too many people who want to spend North of 100k on a car. The test ride and the sales person attitude surely made a difference for me.

 

[mburnet6]

We were all out of town so I was in a rental car. I've given dozens of rides in my Tesla to show the many advantages of EV's.

That makes more sense.

I think those two sales people should have been more aggressive to show these potential customers cars parked in the showroom, explain how the cars work, talk about MPGe, performance, open the falcon doors, be friendly, not just say hey, no test drives available and go back to your station (no other customers were there).

I partly agree with you here, but there is a fine line between being aggressive and educating potential customers. I personally have had very different experiences at the showrooms here in Atlanta so it comes down to the actual employees instead of the company. The problem isn’t unique to Telsa though. It’s the same way at a place like the Apple Store where you’re going to potentially make a very expensive purchase; sometimes you’ll get an employee that is passionate about the technology and an another time you’ll get one that’s there just to collect a paycheck.

 

[Joe F]

I like Tesla owning their own stores, but there is such a thing as salesmanship. I think those two sales people should have been more aggressive to show these potential customers cars parked in the showroom, explain how the cars work, talk about MPGe, performance, open the falcon doors, be friendly, not just say hey, no test drives available and go back to your station (no other customers were there). Maybe I'm wrong and it's best just to say thanks and let them walk, but I don't think so. I would have engaged these potential buyers in the advantages of an EV, opened a door for them to sit in a car in the showroom. That's what other regular franchise dealers will do when their EV's hit their showrooms. This is just my opinion as a super enthusiast of Tesla and the switch to alternative energy. I have been a tireless spokesperson for Tesla in print and video and am still trying to address the legislature of my state to help Tesla. I have let many people drive my Model S and talked hour after hour on the phone answering questions about Tesla.

I just called up one of my friends that was in the Tesla store and asked him about this visit and he said, "They didn't engage us," as in a conversation.

While I applaud you for extolling the virtues of Tesla ownership, something many here do as well, I feel that stating “these are wealthy men with multiple performance cars and multiple houses,” as if that’s supposed to impress someone and justify why a Tesla employee should provide a car out of thin air is a bit much. To me, it sounds as if you’re saying they’re somehow “entitled” to a test drive. My apologies if that wasn’t your intention...

You requested a test drive, they checked on availability and said none were available, and they advised making a reservation for the following day. Not sure what else you thought they could do at that point. Were any questions asked such that they would have engaged? I’ve always seen Tesla employees very enthusiastic, willing to answer any questions I or any others I’ve observed in a store or gallery, so find it difficult to believe given the circumstances stated.

 

[SpudLime]

Just to contribute to the conversation. A walk in test drive, a great salesman is what prompted my purchase in May. The wife and I were out in the Tysons Va area. We had a little extra time before traffic got horrendous in that area and the wife suggested we stop by the Tysons SC. She knows I have always loved the Tesla Cars, so she thought it would be fun. At the time we didnt know setting up a scheduled test drive was a thing. It was just spur of the moment. When we got in, at first they told us we needed a reservation. Cool, no big deal, we just sat in the Model S P100D and the Model X P100D they had in the showroom. That would have been more than enough to just go in and play before heading home. While I was playing with the falcon wing doors, (they accidentally didnt lock those in place like they normally are) and the SA walked up and said they had a spot to drive a P100D right then. So the wife and I said cool. So we took it out, and what I have always read and watched about the car solidified my lust for the Model S.

We got back, looked over some of the numbers and packages. No pressure and said thanks. Wife and I thought about it, but didnt get too serious into the discussion. A couple days later we got the follow up email. I replied back that it was a dream car, but wasnt sure if it could fit in the budget. The SA said I should take one for a few days to help make up my mind. So i picked up a P100D on sunday evening, drove it to work, played with all the options, saw how it fit in my garage. Took the kids and wife out for spins. Played with ludacris mode. Took many coworkers on test rides. Want to see 40 year old men giggle like a school girl? Take them out and launch the car. lol.

By tuesday rolled around the return the car, the wife knew i was sad to return the car. On my way out to head to work, but stopping at the SC to return the car first, she kissed me on the cheek and said "go ahead and order one", BUT NOT THE P100D, we cant afford that. I almost did a cart wheel...jumping jacks..and all kinds of other things that would have had my neighbors calling the police.

Point being to this long story. Do most folks understand that having a car available to test drive for walk in isnt always possible, yes. But are there missed sales opportunities? Most definitely.

TLDR: Went to test drive a Model S for fun, Wife approved the purchase out of nowhere!