Why Our Sales Staff Isn't on Commission

August 13th, 2018

Many of us associate car buying with a high-pressure environment, confusing bartering and the anxiety of dealing with salespeople who are only concerned with hitting their commission targets for the month. In fact, many would prefer to do their research online and know the price listed is what they pay.


A commission-based approach can make car buying a stressful, arduous process, one that makes you wary and hesitant to purchase from a dealership.


Our customers are our top priority, and it’s our aim to find them the vehicle that best suits their needs. There are many reasons why we’ve opted for a 100% non-commission based model since 2012, when we first opened Royal Honda here in Yorkton.


We advocate that there is a built-in conflict of interest in commissioned sales staff. Not only are they required to sell specific models in order to make a higher commission, they’re likely trying to sell you add-ons and financing that make them the most profit. While many dealerships are moving away from commission-based salespeople, most still have incentives for employees to sell a certain number of cars rather than doing what’s best for the customer.


We’re unique in that we are the only non-commission based dealership in the region, and we have no intention of changing our model. Why? We believe that our salespeople are more transparent and honest when they are paid a fair salary. Not only is it the right thing to do, they are intrinsically motivated to help their customers and find them the best possible solution.


Sure, there are drawbacks to this approach. There are quieter months and higher salary costs because our sales don’t necessarily support the salaries. That said, long-term sales become more predictable, and our customers trust that we’re in this for them, not the other way around.


We understand that many customers are starting to research their options online and want to be confident that the prices listed on our website are correct and will always be honoured.


Shortsightedness only gets society so far, and adopting a non-commission, non-incentive based approach is beneficial for both parties. We’ll greet you by name whenever you come in, take the time to listen to your needs and always do our best to deliver.


Customers are increasingly savvy; they seek out companies with values similar to their own and don’t like being talked down to. While not the popular choice, car dealerships that are transparent and non-commission based are able to keep up with their customers and survive well into the future.