A Ferrari is similar to a dream that is being sold. Who wouldn’t want a flashy red V8 Italian stallion parked in their garage, after all? But what does it take to sell a Ferrari, and more importantly, how much money does one stand to make doing so given that Ferrari makes close to $100,000 on each car they sell? This fascinating query is addressed by Owen Jones.
These people are really good at networking and keeping in touch with their clientele, I should state at the outset. I’ll add that my top Bentley sales representatives made more money than I did when I was the general manager. I think it ought to be that way. The distinction is that they will never be promised that much. They can no longer make money if they cease working hard. It’s a recurring issue. They must attend important events in our region – anything to do with opulent furniture, vehicles, attire, getaways, hotels, etc. – you have to be there. You must be informed about EVERY aspect of luxury. Salespeople who recognized this always made the most money. Each car gave them a commission that might have ranged from $400 to several thousand dollars. The individual with the largest “Rolodex” always took the deposit first when news of a super-rare, special edition car was announced, and that was the key. Your reputation as a person who can deliver on such “promise” cars among your clientele can help you gain popularity in certain circles. People who are extremely wealthy frequently boast about “their car guy/gal,” who can acquire anything.
The short version is that these salespeople didn’t just stumble into this line of work. It required commitment, effort, and a very deep knowledge base. Every dollar they make is well deserved because they work hard to earn it. I’ve picked up automobiles from beach houses, transported cars several miles away, and even picked up a customer’s “other car” and delivered it to his wife while she was on vacation. I even drove six hours round trip to deliver a key to someone who had forgotten theirs. Simply doing what is necessary will ensure that your customers continue to be happy with you. Usually, it’s more labor-intensive than expensive. Since they have plenty of money already, service is what they value most. the things that money cannot purchase.
The bottom truth is that top salespeople in the high end auto industry can make $250,000. Every single year. Due to the limited supply of new cars, there are typically just one or two like these at a dealership. Much more money may be made on the used-car market.
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What do Ferrari salespeople earn?
I’ve been asked this question a lot in the past, and the truth is that a Ferrari salesperson normally doesn’t make any more money than a salesperson selling regular automobiles. Ferraris and other high-end supercars are the reason for this; in most situations, they practically sell themselves. These automobiles frequently have lengthy waiting lists, or in the case of limited production versions, you must first have purchased lower-end models in order to be eligible to buy one.
Therefore, in actuality, you don’t have to be a great salesman to persuade someone to part with their hard-earned money. The purchasers will chase the sales crew if the dealership is placed correctly, not the other way around. You don’t trust me? Simply call your local Ferrari dealer and ask to purchase the newest model to see what kind of answer you receive.
In the neighborhood Ford, Vauxhall, or Skoda dealerships, where sales targets are high and competition is fierce, you can find the real superstar salespeople. Because they must, these dealerships will pay top dollar for top-performing salespeople.
This is not to argue that a salesperson for a Ferrari doesn’t need to be knowledgeable or skillful. It’s far from being a job for everyone because a salesman must be extremely well-presented, customer-focused, professional, and frequently operate to a higher standard than when selling a lesser brand. Simply said, clients are more ready to buy and the cars are simpler to sell.
Another thing to keep in mind is that the business models of garages and franchises that sell exotic vehicles are designed to generate income from their parts and servicing divisions rather than from selling automobiles. These other profits may be driven by car sales, but the margins from car sales are typically far lower than those produced by the service departments, and they simply don’t sell as many automobiles as a typical dealer. Meaning it’s frequently not practical or essential to pay a salesman a fortune.
So why would a salesman bother if you don’t make any more money than you would selling regular cars? Well, for some salesmen, just getting to say they work for Ferrari and are always surrounded by fast cars is worth it. Other benefits like driving supercars, seeing factories, and attending upscale automobile debuts in far-off places are frequently enjoyable as well. For premium clothes and handmade shoes so you look the part on the showroom floor, you can also receive a budget or financial assistance.
This is the revenue generated by each vehicle sold by Ferrari.
According to a German study done by Dr. Ferdinand Dudenhoffer, a director of Automobile-Center Automotive Research situated in Duisburg, Germany, Ferrari, an Italian luxury sports car founded by Enzo Ferrari in 1939, produces an average of $80,000 every vehicle sold.
With that kind of money, you could purchase a Tesla Model X for $79,500 or a Mercedes-Benz C-Class for $73,500.
The price of a single Ferrari can range from roughly $200,000 to over $300,000.
In contrast, Porsche makes an estimated $17,250 profit for every car, according to Bloomberg, and BMW, Audi, and Mercedes each make an average of about $10,500 per car, according to Motor Authority. Porsche’s cars sell for between $50,000 and $150,000, with modified and auctioned models fetching even higher prices.
In 2017, Ferrari sold roughly 8,400 vehicles, and its market value is currently over $22.6 billion. The sports car manufacturer shipped 8,398 vehicles in 2017 compared to 8,014 in 2016 (an increase of 5%); the low supply helps to maintain the high car prices. Ferrari’s net profit for the first quarter of this year was $178 million, a 19% rise (Porsche produced 246,000 vehicles last year, for instance, which is a 4 percent increase from 2016).
Ferrari unveiled the brand-new Portofino model in February. Ferrari’s California T is being replaced with the convertible, V8 GT sports vehicle, which retails for $215,000. Marchionne revealed to Bloomberg TV in April that Ferrari is testing a brand-new electric vehicle. The company’s first-ever SUV will be powered by the gasoline-battery hybrid technology.
How much does a new vehicle dealer for Ferrari or Lambo make?
How much does the manufacturer allow the dealer to keep if they sell a new car for PS200k (or PS160k ex VAT), which is made up of, say, PS180k base price plus PS20k of options?
14%, including regular bonuses, dealer standards targets, etc. Trading on the rest is dangerous, so I would probably only experiment with the front end margin, which is assured to be between 7 and 10%.
Unlike Ferrari or Lamborghini, Audi has a standard dealer profit margin of 13%, which explains why you can often get 7-8% off but not much more.
I consider you to be doing well if you can secure a 7-8% discount on a 13% margin. After the costs of flashy showrooms, well-dressed employees who don’t grunt, etc., at 13% gross, I’d estimate that they are down to 3 or 4% net at best.
Depending on the dividends that the directors have taken to reduce it to net. In addition, you must have the money to pay the banks their initial 3-4% interest rate.
You sound envious, yet nearly all Lambo, Ferrari, and McLaren dealers are employees of publicly traded businesses, allowing you to share in these dividends.
I work for a group of car dealers that sells these vehicles. Lambo is correct about 3%, too. You may argue that it doesn’t matter because the owner may enjoy the cars, provide jobs for people, etc., or receive more money from the bank, but if I were in their shoes and could manage a successful business doing something I loved, it would be more valuable in my opinion.
The sub-3% statistic applies to the whole company! The workshop portion of a well-run corporation should cover all overhead costs, leaving the sales department’s revenues as the cream.
Please believe me when I say that we don’t make nearly as much money as you may imagine. I really hope we did…
Every (St)ealer has APS10k profit in every vehicle to give a customer a discount if they don’t want to “simply walk away.”
Do Ferrari’s car sales generate a profit?
Ferrari is still by far the most successful automaker out of all the brands. From 21.4 percent in 2020 to 25.5 percent in 2017, it saw a rise in operating margin. According to the data, the corporation will make a staggering $106,078 for each device sold in 2021. With $6,693 in revenue per vehicle, Tesla came in a very far second.
Felipe Munoz, the article’s author, works with JATO Dynamics as an automotive industry specialist.
Where does Ferrari get its highest revenue?
This statistic shows the annual net revenue by business line for the Italian sports car manufacturer Ferrari from 2013 to 2018. The automotive and replacement parts business segment accounted for the majority of Ferrari’s annual revenue. As of 2018, the net profit from shipping cars and selling spare parts was approximately 2.5 billion euros, while the net profit from selling engines was 284 million euros.
How much money does a Ferrari engineer make?
$90,075. A mechanical engineer at Ferrari is thought to earn an annual salary of $90,075 in total. In our proprietary Total Pay Estimate model, which is based on wages gathered from our customers, this value indicates the median, which is the middle of the ranges. The annual basic salary is anticipated to be $90,075
How much does it cost to sell a Ferrari?
The typical commission amounts to roughly 25% of the vehicle sale’s gross profit. An average new car costs between $200 and $. How much does a salesperson for Lambo make? How much does a new vehicle salesperson make? Each dealer makes a different amount of profit.
The commission ranges from 11 to 14 automobiles per month. Each dealer makes a different amount of profit. How much does a new vehicle salesperson make? The bottom truth is that top salespeople in the high end auto industry can make $250,000. The typical commission amounts to roughly 25% of the vehicle sale’s gross profit.
4 How much does the top car salesperson earn? The majority of dealers pay their salesmen a commission rate of 25%, calculated as gross profit less an apacka fee. What do salespeople for Maserati make? How much commission do car salespeople get for each vehicle? Sell 6 automobiles and earn 20%.