STAIR-STEP
DEALER CASH REBATES
AS PREVIOUSLY DISCUSSED
IN THE PRECEEDING SUB-CATEGORY
“DEALER CASH REBATES”
STAIR-STEP DEALER CASH REBATES
ARE THE EXACT SAME THING
EXCEPT THE AMOUNT OF REBATE
FLUCTUATES.
THE DEALERSHIP IS ASSIGNED
AN OBJECTIVE FROM THE VEHICLE MANUFACTURER.
THIS OBJECTIVE IS BASED ON PREVIOUS
SALES RECORDS
TO MAKE IT FAIR TO
EACH DEALERSHIP
AND KEEP THE
COMPETITIVENESS
IN THE MARKETPLACE.
IT IS SET-UP AS A PERCENTAGE OF COMPLETION
OF THE SALES OJECTIVE
STAIR-STEP DEALER CASH EXAMPLE |
SALES OBJECTIVE IS 50 VEHICLES |
Percentage Completed |
Units # |
Rebate Amount |
1% – 24.99 % |
1-12 |
$250 non-retro |
25% – 49.99 % |
13-24 |
$500 non-retro |
50% – 74.99% |
25-36 |
$750 non-retro |
75% - 99.99% |
37-49 |
$1000 non-retro |
100% - 119.99% |
50-59 |
$1250 non-retro |
120% + UP |
60+up
|
$1500 RETRO
TO UNIT #1 |
HOW MUCH MONEY DOES THIS
TRANSLATE INTO FOR THE
DEALERSHIP
EXAMPLE #1 OF MONEY EARNED |
# OF UNITS SOLD WAS 41 |
Units |
Rebate |
Sub-Total |
1-11 |
$250 |
$2,750 non-retro |
12-24 |
$500 |
$6,500 non-retro |
25-36 |
$750 |
$8,250 non-retro |
37-41 |
$1000 |
$5000 non-retro |
41 SALES = A GRAND TOTAL $22,500 |
EXAMPLE #2 OF MONEY EARNED |
# OF UNITS SOLD WAS 63 |
Units |
Rebate |
Sub-Total |
1-11 |
$250 |
$1500 RETRO TO #1 |
12-24 |
$500 |
$1500 RETRO TO #1 |
25-36 |
$750 |
$1500 RETRO TO #1 |
37-49 |
$1000 |
$1500 RETRO TO #1 |
50-59 |
$1250 |
$1500 RETRO TO #1 |
60+up |
$1500
RETRO TO UNIT #1 |
$1500 RETRO TO #1 |
63 UNITS X $1500 EACH = $94,500 |
THESE KIND OF DEALERSHIP
INCENTIVES REALLY DOES CREATE
AGGRESSIVE DEALERS TRYING TO
HIT THEIR HIGHEST OBJECTIVE
NOTICE THE DIFFERENCE IN THE
AMOUNT OF MONEY THE DEALERSHIP
RECEIVES $94,500 INSTEAD OF $22,500
FOR JUST 22 ADDITIONAL SALES
THE DEALERSHIP RECEIVES AN
ADDITIONAL $72,000
THAT EQUALS $3272.72 FOR
EACH OF THE 22 VEHICLES.
IF YOU ARE LUCKY ENOUGH TO
BE THE 59TH OR 60TH SALES
THEN THE PRICE YOU CAN
NEGOTIATE WILL BE TRUELY
UNBELIEVEABLE.
THE DEALER MUST HIS OBJECTIVE AND
HE MAY GIVE YOU THOUSAND DOLLARS
TO MAKE YOU BUY ON THE SPOT.
THIS IS NOT UNUSUAL.
OF COURSE, THIS ONLY HAPPENS
WHEN TIME IS RUNNING OUT FOR
THE DEALERSHIP.
THE LAST DAY OF THE PROGRAM
PERIOD IS USUALLY THE LAST DAY
OF THE MONTH.
AGAIN, HOW DO YOU FIND OUT ABOUT
STAIR-STEP DEALER CASH REBATES,
JUST ASK!
ASK EXPLAINED IN THE PRECEEDING
SUB-CATEGORY “DEALER CASH REBATES”
