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Tesla officially stopping anti-selling Model 3 + paying commissions

Discussion in 'Model 3' started by Tes La Ferrari, Jul 8, 2018.

  1. Tes La Ferrari

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    Tesla to stop ‘anti-selling’ Model 3 with Performance version hitting the market

    Just came across this - basically saying that Tesla will start comping their sales reps / OA's to sell the Model 3.

    It says it is paying them $300 on a performance model 3 sale. Makes me think:

    1. Anyone know how that compares to what they would make on an X or S ?

    2. I wonder if they'll start to throw in Free supercharging & lifetime internet connectivity on Performance Model 3's using a referral code now, as they will be priced similar or in some cases above a base S or X ?
     
  2. X Fan

    X Fan Supporting Member

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    $300 spread over entire team or $300 per person?
     
  3. boaterva

    boaterva Supporting Member

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    Believe the current free Supercharging program ends next week (July 15) and some people are saying ‘eek, no more free Supercharging!’!

    What we may see is a new program with referrals for all three cars. Who knows, let’s see if there is a new program and what’s in it!
     
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  4. Tes La Ferrari

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    I could be wrong but I'm guessing the regular non-model 3 performance cars would not be eligible for referral supercharging, as it is much easier to sell them at their price points, and the fact that there are so many unfulfilled orders already.

    I think a solid way to go would be to for Tesla offer free lifetime supercharging + internet connectivity on performance M3, and all MS & MX- good way to create some degree of value and differentiation for price point
     
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  5. boaterva

    boaterva Supporting Member

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    Perhaps... they have done that before. Supercharging ‘evaporated’ and came back in a new program a few weeks later, free data could do the same with the referral for some cars (S/X/P3D).
     
  6. FlatSix911

    FlatSix911 918 Hybrid

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    Tesla has now seen the light ... Tesla to stop ‘anti-selling’ Model 3 with Performance version hitting the market

    Ever since Tesla launched the Model 3 in 2017, CEO Elon Musk said that the automaker has been ‘anti-selling’ the new electric vehicle in favor of Tesla’s current Model S and Model X as it ramps up production. Now Electrek has learned that Tesla will finally start promoting the vehicle, or at least the performance version, by incentivizing its sales team to sell the vehicle and offering test drives. It’s now becoming clear that Tesla is moving away from this ‘anti-selling’ as it is finally starting to offer test drives in the Model 3 and it is even incentivizing its sales staff to sell the Performance version Model 3.

    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. Until now, Tesla’s Model 3 sales were handled by Tesla’s inside sale team and owner advisors in stores weren’t given extra compensation to sell the vehicle. It is still the case for the non-performance versions of the Model 3, but it is changing for the more expensive version of the new EV.

    Another interesting change is that the commission is going to the store’s entire team and not just the specific owner advisor who closed the Model 3 Performance sale. Along with this new incentive to sell the Model 3, Tesla is starting to offer test drives in a few stores in California and we learned that the automaker is starting to build its test fleet in North America for more opportunities to test drive the vehicle in the coming weeks.

    This gradual change toward not ‘anti-selling’ the Model 3 comes after Tesla confirmed that it still has about 420,000 Model 3 reservations after having delivered about 30,000 Model 3 vehicles to date. The automaker even said that it “expects that orders will grow faster than the production rate” now that buyers can test drive the Model 3.
     
  7. Tes La Ferrari

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    Perhaps they will be announcing something on the 15th!

    Anyone recall how close to the end of past supercharging deadlines they announced new referral programs or supercharging extensions ?
     
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  8. dsvick

    dsvick Active Member

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    I didn't think that had any commission plan...?
     
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  9. Skione65

    Skione65 Member

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    @Tes La Ferrari,

    Agreed. This would be an “Incredible” demand lever. It would be incentive and I’m sure Sell more P3Ds and cause those ‘on the fence’ to actually pull the trigger on the higher specced 3 creating more Profit/Revenue.

    Ski
     
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  10. MorrisonHiker

    MorrisonHiker S 90D 2018.42.2

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    Usually you find out about the new referral program after the previous referral program has ended.
     
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  11. Economite

    Economite Member

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    The fact that Model 3 commissions are pooled (rather than individual as with the S/X) and are only available on the P version isn't exactly likely to much change sales rep behavior much from what it was when the 3 had no commissions. Sales Reps will be highly incentivized to first try to upsell Model 3 shoppers to an S/X (which will get them an individual commission) and then incentivized to try to sell the Model 3P. If a shopper doesn't seem likely to bite on these more expensive cars, the reps are likely to try to shunt them to inside sales unless all M3 sales count towards some sort of individual quota/goal or the reps are supervised extremely closely/obnoxiously.
     
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  12. Tes La Ferrari

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    How much do the sales people / oa’s earn individually for each model s or x sale ?
     
  13. xav-

    xav- Active Member

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    If Tesla wants to sell the S and X why not simply slash the price a bit starting by eliminating commissions to sales guys and to YouTubers like Ben Sullins, and removing the so called « free supercharging » which would also improve the availability of superchargers and eliminate 30 kWh supercharging (which is the norm in the SCs around here)...

    Just throwing some ideas here and there...
     
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  14. Tes La Ferrari

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    I would prefer they just boost the S & X models to be a 100D base 120D and 120DL, and offer some additional colours that are s & x specific.

    Improve interior materials quality to Range Rover levels, boost MCU performance and include unlimited data and supercharging for all s& x for life - transferable to the new owner.

    Offer carbon fibre wheel option actual - not aesthetic - for better range & performance

    Drop the price of the ludicrous by 20%, and the others by 15%

    that would create sufficient separation between model s/x & 3 and would be a huge sales booster
     
  15. Tes La Ferrari

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    Oh... almost forgot. Tesla needs to offer a factory high quality heads up display in the s &x
     
  16. TesWhisperer

    TesWhisperer Member

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    The Model 3 is now prominently displayed when going to Tesla.com

    I think they reached a point in production and manufacturing that the margins on 3 no longer cannibalized s and x
     
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  17. ℬête Noire

    ℬête Noire Active Member

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    Maybe more importantly they want to make sure the pull in enough new sales to keep their manufacturing queue full until the end of year producing just the 3 variants they've opened for orders.
     
  18. Az_Rael

    Az_Rael Supporting Member

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    #18 Az_Rael, Jul 12, 2018
    Last edited: Jul 12, 2018
    It had been confirmed a few years ago by various Tesla sales folks that they do get a commisssion for a sale. It doesn’t work like a traditional dealership does, but more like CarMax - they get a set bonus for each sale made.

    “No commissions” is on of the common myths seen around here. Tesla is closer to a traditional car dealer than folks realize, I think. The sales person when I was looking at used S models tried to upsell me to a new one, and became very uninterested in helping me once I refused to buy new. Same experience I have had at many other car dealerships.
     
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  19. Tes La Ferrari

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    any idea how much this "bonus" is on the S/X, vs the $300/car on the 3 ?

    It is interesting to know just how much Tesla is pushing the 3 vs the S/X
     
  20. Az_Rael

    Az_Rael Supporting Member

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    No, I haven't heard any numbers on the commission amount. I think there were some Glass Door posts a while back that had more info.
     

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