Sales Incentives in Action

Sales incentives are rewards offered for exceeding a predetermined sales goal. Traditionally, a car salesperson’s commission is based on a percentage of the difference between the dealer’s invoice cost and the amount the car is sold for, minus an amount to cover the dealer overhead.

This approach encourages the salesperson to hold firm on the retail price, and to push “after-sale products” like floor mats and side moldings. There may also be extra incentives to sell packages such as rustproofing. For selling slow-moving vehicles, the salesperson may get an extra incentive bonus over commission.

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