Borneo motor cut sales staff comm

[StreetFight3r]

one month can take back 6k to 8k for car sales. not bad. the toyota brand alrdy sells for itself

 

SINGAPORE - In what may be another sign that the motor trade is bracing for a tailspin, Toyota agent Borneo Motors is planning to cut commissions paid to its sales staff - the first time it is doing so.

According to sales executives who spoke on condition of anonymity, the Inchcape company is proposing to cut commissions by $100 to $350 per car. At the same time, it is looking to raise sales targets.

"Easily, our monthly income will fall by $2,000," said one salesman, noting that sales staff's income averaged between $6,000 and $8,000 a month.

Another said the cut was supposed to have been taken effect last month, but "it did not".

The Straits Times understands this is because of the union, which has asked the Ministry of Manpower (MOM) to intervene.

An MOM spokesman said the ministry has "received a request from the Singapore Manual & Mercantile Workers' Union to conciliate a dispute involving its sales consultant members and Borneo Motors (Singapore) Pte Ltd over a proposed cut in commission and an increase in sales quota".

"The conciliation process is ongoing," the spokesman added. "Both union and Borneo Motors' management are engaging actively in the conciliation process. Progress has been made on some issues but more work needs to be done on remaining issues where parties' positions differ."

Borneo Motors' managing director Jasmmine Wong said: "We are in the midst of discussions which we have every two years. We have up to the end of the year to reach a conclusion. Nothing has been decided."

Ms Wong - part of a new management team which replaced several veterans laid off two years ago - pointed out that the sales staff wanted "higher commissions and lower targets".

She said this was not feasible in a market which is expected to shrink over the next two years on account of smaller certificate of entitlement quotas.

On Monday (May 6), Nissan agent Tan Chong Motor decided to close its Bukit Timah showroom because of a shrinking number of walk-in customers.

"My priority is to keep jobs," Ms Wong said.

She added that the company had also put in a system which generates leads for its sales staff, as well as a car delivery division to relieve sales staff from non-sales duties.

But a sales veteran said: "If the company is losing money, then we understand. But that is not the situation, and in any case, it is unfair to target sales staff alone."

Borneo remains one of UK-listed Inchcape's top profit generators. Last year, it attained Toyota's Triple Crown award for industry-leading sales in passenger vehicle, commercial vehicle and taxi sales.

According to two previous managing directors, Borneo has not had a sales commission cut before.

[Mkl22]

else how to feed all the high paying ang mo that inchape placed in singapore.

[Mann123]

For Toyota SE,  hitting their sales target depends on how serious walk-in customer they got and not how much effort they put to convince the buyer. 

 

 

[Lava]

we are one of the world most expensive city but our salary is not one of the highest.

[Tvios]

somehow i find their sales people quite snobbish. like customers owe them a favour when viewing their cars.

[awhtc]

I bought cars from BM twice, and their SEs were quite friendly to me.

 

What happens at BM could be a prelude to what is going to happen at other ADs.

 

It is a good move to share the burden of lower profit rather than fire the sales staff immediately.  Those who do not like the new system can then have more time to look for other job opportunities.  Those who remain need to work harder to clinch sales.  However, I agree that the pinch should be felt at company level rather than only directed at the sales staff.

[Mockngbrd]

6-8k not that much considering there will be times prob 2-3k jiak sai. Considering their sales ppl are the ones bringing in the $$$$$ to the company, I'm not sure this is a good move.

Edited May 8, 2019 by Mockngbrd

[Ct3833]

we are one of the world most expensive city but our salary is not one of the highest.

Not true lah. Dont believe go check out ministers salaries.

[Ct3833]

6-8k not that much considering there will be times prob 2-3k jiak sai. Considering their sales ppl are the ones bringing in the $$$$$ to the company, I'm not sure this is a good move.

This is certainly a good move from the highly paid CEO and CFO of a public listed company point of view. First they cut snr mgmt, now they cut sales commission and still force them to do more sales, if not happy, thank you very much , there will be people happy to take up your role and work doubly hard. I have been in a corporate life all the whole, so trust me, this is how it works.

[Watwheels]

Car lite mah. Ppl will eventually see the bigger pic and blame the gahmen. The car population quota keep shrinking. So what they get what triple crown on sales? The total number of cars allowed to be sold per year is a fixed number and there are so many car dealers in our small market. By the time they get their share, you know, how much will they be getting? Competition will get even fiercer, ADs might even go for loss just to get sales figures so back end some ppl will suffer. As for the union they wayang wan, which side are they playing? Act as if trying to help. They at most delay a bit of the inevitable.

 

For this line of work if can get out early better do so. Dont wait until too late.

Edited May 8, 2019 by Watwheels

[andrewyewkc]

With the number of COEs being reduced, the job of selling a car would be more difficult. Also increasing sales target at such a time is also untimely. This looks like a more profitable and convenient way to auto-retrench staff during harder times. Very unethical.

[Volvobrick]

Welcome to capitalism... Good times eat abalone, bad time eat grass.

 

This are profit oriented businesses, not charity.  Maybe the sales people can move to used cars which should thrive given the large numbers which are 1-4 years old.

 

 

With the number of COEs being reduced, the job of selling a car would be more difficult. Also increasing sales target at such a time is also untimely. This looks like a more profitable and convenient way to auto-retrench staff during harder times. Very unethical.

 

[Tvios]

if BM can be affected, imagine the situation of PI. think many of them will not make it thru the low COE period. Those who got warranties from PI better get those insured

[makeanewcall]

wasn't there another article last year or the year before talking about how borneo is restructuring with people leaving or getting fired.

 

no wonder altis sell at 100k, cause need to pay the salesman 6k to 8k!

[Daniu82]

Just let most people buy online cos most of them should have done their research. Just leave some SEs at showrooms for test drive and serve those customers who dunno anything about the car they want to buy. 

[makeanewcall]

if BM can be affected, imagine the situation of PI. think many of them will not make it thru the low COE period. Those who got warranties from PI better get those insured

 

most PIs run on a way leaner structure to maximize profits which explain why so many PIs run road. 

 

unless you are mega PI like vincar/venture car who earn the bread from selling luxury cars where the margin of play is way higher. 

[andrewyewkc]

Welcome to capitalism... Good times eat abalone, bad time eat grass.

 

This are profit oriented businesses, not charity.  Maybe the sales people can move to used cars which should thrive given the large numbers which are 1-4 years old.

I think this will further lower the level of professionalism in their SEs. Buying Toyota cars would almost be like buying a refrigerator.

[Budgetice]

wasn't there another article last year or the year before talking about how borneo is restructuring with people leaving or getting fired.

 

no wonder altis sell at 100k, cause need to pay the salesman 6k to 8k!

Not per car leh