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Lexus VP: Not focused on U.S. sales volume or higher incentives despite falling sales

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Old 04-18-09, 07:26 AM
  #31  
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Originally Posted by kalvano
You do sound like what you don't want to sound like.


I never said we won't negotiate, I said if a deal doesn't make sense, we won't do it. By "make sense", I mean make a reasonable profit. That's our prerogative to refuse a deal. Also, I don't care how much you are spending, I'll treat you with respect and be up-front, but if you act like you expect your *** kissed, I'll kick it to the curb. I don't need to sell a car that badly.


One last point, the salesman has no control over the numbers, those come from the manager, so way to go there. That was a very mature thing to do, and shows a good reason why that dealership was apparently uninterested in your business.
It's good to hear another point of view on this...
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Old 04-18-09, 10:43 AM
  #32  
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Originally Posted by kalvano
Bull****. Unless you bought RX from December 2008 to now, no way you got $2500 under invoice.
I got the 07 RX350 with Premium + Nav in Jan 07 from Tustin Lexus for $2500 under invoice.

I bought the G37 Sedan 6MT in March 09 from Tustin Infiniti for $2000 under invoice thanks to manufacturer to dealer incentives.

I live in Southern CA which has the lowest car prices in the nation AFAIK.
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Old 04-18-09, 09:40 PM
  #33  
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Originally Posted by madmax2k1
I got the 07 RX350 with Premium + Nav in Jan 07 from Tustin Lexus for $2500 under invoice.

I bought the G37 Sedan 6MT in March 09 from Tustin Infiniti for $2000 under invoice thanks to manufacturer to dealer incentives.

I live in Southern CA which has the lowest car prices in the nation AFAIK.


You didn't get it $2500 under invoice, there isn't even that much room under invoice. There is maybe, maybe $1100 in holdback on that car. Maybe.

I'm sure you were told it was $2500 under invoice, but unless they had some dealer cash to work with, I'm going to say nope.

And "under invoice" doesn't really count when you have manufacturer rebates. Those have to be given to you.
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Old 04-19-09, 01:30 PM
  #34  
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Originally Posted by kalvano
I never said we won't negotiate, I said if a deal doesn't make sense, we won't do it. By "make sense", I mean make a reasonable profit. That's our prerogative to refuse a deal. Also, I don't care how much you are spending, I'll treat you with respect and be up-front, but if you act like you expect your *** kissed, I'll kick it to the curb. I don't need to sell a car that badly.
i understand you have to make a profit or find some way to make a deal make sense (maybe some money from financing or an extended warranty, or whatever), but i've had 1 ok and 2 TERRIBLE sales experiences with lexus dealerships.

i don't have a problem with someone telling me numbers, their position, etc., but i do have a problem with LIES or B.S., or in one case, jaw-dropping racism. about the latter, a salesperson while on a test drive of a GS told me he wouldn't live in the county the dealership's in because there's too many asian people but the other salespeople send them to him because he knows how to "deal" with them. i think he told me this because i'm not asian and he thought it would impress me.

about the b.s., when we were buying out rx300 we were getting to the fine print on the deal and my wife politely told the salesperson she didn't want the dealership logo on the vehicle. with a straight face he then told her "that will be $100 extra". that would be, uh, a mistake, to say something that stupid to my wife. i interjected "you've got to be kidding" and he added, awkwardly, "ok, we'll waive that".

back to my GS purchase i contacted a dealer much further away over the internet, and got a call promptly, and, after having been told by other dealers "take something off the lot or order it and pay list price" this dealer made ONE phonecall to find out what was in the queue at the dock and found what i wanted and said he could get it and we agreed quickly on a price! he did EXACTLY what he said he would do, he made a fair profit, and we were both happy. how hard is it, really?
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Old 04-20-09, 07:48 PM
  #35  
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I cant believe they tried to charge you $100 for not having a dealership logo. I would have told the guy I would blow the entire deal if they didnt remove it. I knew they would have done it for you, but I would have made a stink on principle and told the guy I want him to lower the price of the car $100 for me because he was an *** to my wife or I was going to walk out. I would make him eat those words even if he had to pull 100 dollars out of his pocket to save the deal. God I hate car sales people
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Old 04-20-09, 08:20 PM
  #36  
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Originally Posted by kalvano
You do sound like what you don't want to sound like.


I never said we won't negotiate, I said if a deal doesn't make sense, we won't do it. By "make sense", I mean make a reasonable profit. That's our prerogative to refuse a deal. Also, I don't care how much you are spending, I'll treat you with respect and be up-front,


One last point, the salesman has no control over the numbers, those come from the manager, so way to go there. That was a very mature thing to do, and shows a good reason why that dealership was apparently uninterested in your business.
From what I understand Toyota wants the buyer to buy a car off the lot at all costs. This helps with days on the lot and moves inventory. As for the dealer Toyota will give the dealer more Lexus models if they sell the Lexus models they have as fast as possible. If I am correct, Toyota will not look at the profit margin in determining whether the dealer gets another model.

If I were a salesman I would more concerned on sales volume than I would on sales profit. Toyota wants to see their Lexus dealers have sales growth...not only just the profit.

but if you act like you expect your *** kissed, I'll kick it to the curb. I don't need to sell a car that badly.
I would lose the attitude and kiss everyone's *** as they walk in the door....corporations and most smart businesses want to see sales growth....as well as profit. A Lexus dealer should be no exception.

Last edited by pagemaster; 04-20-09 at 08:24 PM.
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Old 04-20-09, 08:50 PM
  #37  
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Currently Im shopping around for a car.......I have primarily visited Lexus and BMW dealers. IMO its hit or miss with the individual dealer rather than the brand itself.

The biggest problem with Lexus is they have ZERO vehicles that I would buy currently in their lineup. NONE of them make me say "Damn I gotta have that." (A 2 door GS coupe would be sweet)

The other problem is SELECTION and OPTION choices. I can;t even get a RWD GS350 in NYC. Black leather and black wood = NO,NO.

I went to BMW on Saturday.......Custom built 335i coupe (RWD in NYC is possible Lexus) with exact color combo and choices of my desire not allocation (as per Lexus), and all for INVOICE PRICING.

Lexus better get their act together, or other players like Audi and IMO Hyundai will steal their customers.
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Old 04-20-09, 10:04 PM
  #38  
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Originally Posted by bitkahuna
i understand you have to make a profit or find some way to make a deal make sense (maybe some money from financing or an extended warranty, or whatever), but i've had 1 ok and 2 TERRIBLE sales experiences with lexus dealerships.

i don't have a problem with someone telling me numbers, their position, etc., but i do have a problem with LIES or B.S., or in one case, jaw-dropping racism. about the latter, a salesperson while on a test drive of a GS told me he wouldn't live in the county the dealership's in because there's too many asian people but the other salespeople send them to him because he knows how to "deal" with them. i think he told me this because i'm not asian and he thought it would impress me.

about the b.s., when we were buying out rx300 we were getting to the fine print on the deal and my wife politely told the salesperson she didn't want the dealership logo on the vehicle. with a straight face he then told her "that will be $100 extra". that would be, uh, a mistake, to say something that stupid to my wife. i interjected "you've got to be kidding" and he added, awkwardly, "ok, we'll waive that".

back to my GS purchase i contacted a dealer much further away over the internet, and got a call promptly, and, after having been told by other dealers "take something off the lot or order it and pay list price" this dealer made ONE phonecall to find out what was in the queue at the dock and found what i wanted and said he could get it and we agreed quickly on a price! he did EXACTLY what he said he would do, he made a fair profit, and we were both happy. how hard is it, really?

It's not hard. That's the maddening thing. I expect most of my clients to pay somewhere close to list price, but I also generally spend at least 90 minutes demoing the car, showing them service, showing them all the things that make a Lexus a Lexus. I don't feel I have the right to ask for a $40K, $50K, or $85K car purchase at list price without justifying it.

Do I always get it? Nope. But you never know unless you ask.

As for customers, I treat everyone like I would want my wife treated if she went shopping. Unless they are disrespectful towards me, then we are pretty much done with things.

I also do what I say I will do, follow-up with my customers more than once a decade, see them in service, and I do little stuff all the time...go to their house to program Homelink stuff, get them gift cards to parts and companies we do business with, I've even gone out to houses to re-deliver cars if they didn't fully understand the first time.

Stuff like that isn't hard, it doesn't ruin my day to do it. In fact, I enjoy it. And I think that, in the end, that's the kind of service that lets people justify the fact that we usually make a pretty good amount on them.

It's the hardest easy job you can ever do, sales, and I go batshiat crazy when I run into idiot salespeople.
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Old 04-20-09, 10:10 PM
  #39  
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Originally Posted by pagemaster
From what I understand Toyota wants the buyer to buy a car off the lot at all costs. This helps with days on the lot and moves inventory. As for the dealer Toyota will give the dealer more Lexus models if they sell the Lexus models they have as fast as possible. If I am correct, Toyota will not look at the profit margin in determining whether the dealer gets another model.

If I were a salesman I would more concerned on sales volume than I would on sales profit. Toyota wants to see their Lexus dealers have sales growth...not only just the profit.

Toyota doesn't pay my mortgage, profit on a car does.

Volume sales works at 700 car a month stores, not at most luxury dealerships.

But thanks for the advice.




Originally Posted by pagemaster
I would lose the attitude and kiss everyone's *** as they walk in the door....corporations and most smart businesses want to see sales growth....as well as profit. A Lexus dealer should be no exception.
"The attitude"?

I don't kiss anyone's ***. I treat everybody with respect and friendliness, and I follow through on what I say I will do. If I don't get treated with respect back, then that person is not someone I am interested in as a customer.

Just because I am there to help doesn't mean I am there to take abuse. It doesn't seem from your high-horse posts as if you have ever held a sales job before, much less worked in a grinding business such as auto sales. Until you do, I suggest you keep your suggestions to yourself.

Last edited by bitkahuna; 04-21-09 at 07:29 AM.
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Old 04-20-09, 10:37 PM
  #40  
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Originally Posted by kalvano
You do sound like what you don't want to sound like.


, but if you act like you expect your *** kissed, I'll kick it to the curb. I don't need to sell a car that badly.

Funny how the salesman thinks he is the one in control. You guys act like we can't drive 10 miles away and pick up the exact same car in the same 2 hour window. The salesman I dealt with had the same attitude as you and because of that another salesman at another dealership got to take home his commission on a brand new 2007 GS350. I told the guy at the first dealership to give me the price I wanted because I am going to get this car for the price I wanted..... and I did 25 minutes later at the next dealership. The consumer is in control. Remember that and I think you will sell more cars. Nobody says bend to the point of breaking, but because you think or were told that the cars you are selling are special doesnt mean that the reins are in your hands.

In the end you are going to do what has been working for you at your dealership. I am just telling you what turned me the hell off about the first Lexus dealership I dealt with, and why I went to a different place to purchase my new 50k Lexus. I know when I left it stung a little . The sales man would have made a decent chunk of change from selling a car like mine

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Old 04-20-09, 10:40 PM
  #41  
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Originally Posted by I8ABMR
Funny how the salesman thinks he is the one in control.
I got news for you, any good salesperson is.
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Old 04-20-09, 11:03 PM
  #42  
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with internet sales, research, and stiff competition I beg to differ. I usually deal with internet sales generally to avoid guys who think they are in " control ". A salesman in control????.... LMAO.. you guys are there to answer questions like , "how do I open the trunk" , and" do you have a brochure". LOL

the ultimate decision is in the hands of the consumer, therefore you have no real control.



Look at all of the control of the dealerships and their slick sales people have .....the consumer and market have control. You are just along for the ride right now unfortunately
Attached Thumbnails Lexus VP: Not focused on U.S. sales volume or higher incentives despite falling sales-sheernesscars.jpg  

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Old 04-20-09, 11:42 PM
  #43  
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these images will make most car dealers cringe.
Attached Thumbnails Lexus VP: Not focused on U.S. sales volume or higher incentives despite falling sales-corbycars.jpg  
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Old 04-20-09, 11:43 PM
  #44  
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I found these images on a Ferrari forum. You might want to pucker up when you have customers come in. LMAO. Good luck brother. I wish you the best during these hard times. By the wya what kind of cars do you sell???
Attached Thumbnails Lexus VP: Not focused on U.S. sales volume or higher incentives despite falling sales-ukcars.jpg  
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Old 04-21-09, 12:10 AM
  #45  
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Originally Posted by kalvano
I got news for you, any good salesperson is.
Control has nothing to do with how good of a salesperson one is. A good salesperson in the Toyota/Lexus family creates a relationship between customer and dealership. This is what what makes a salesperson good. The dealership then profits off of the new car sales, the service provided, the snacks they buy in the waiting room, the trade in of the exsisting vehicle and then a new car sale all over again, its one big cycle a salesperson is after..... a good salesman doesn't just stop there....a good salesperson gains referals from exsisting customers which starts the whole Toyota/Lexus dealer and customer cycle all over again.

A good salesperson moves inventroy...period. He/she takes care of the customer at all costs which in turn makes the customer want to buy the vehicle.

If I had five people walk in to buy a ES350 for $500 over invoice and I sold it to each one of them...these five sales are more important than one big $3000 over invoice sale. Why? Because of the dealership/customer relationship...if I take care of the 5 people who walked in for the ES350...then they maybe be back for service, trade ins and a new car...etc etc..

Salesperson brings business to the business...

I live 5km away from a standalone Toyota and Lexus dealer in my area....I refuse to go to this dealer because of the service and attitude they provide. I go out of my way to visit Ken Shaw Lexus/Toyota to service my vehicles..I don't mind the 30km drive because they take care of all my needs.....and are not afraid to bend over backwards to do it.

Control has nothnig to do with it.

Last edited by pagemaster; 04-21-09 at 12:18 AM.
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