You will immediately notice that Tesla has a unique approach to selling when you do your research. It's not the traditional approach of going into a dealer and talking to multiple sales reps who are all chomping at your heels for business.
Tesla employs car salesmen. Tesla only sold cars online as of early 2019. In order to avoid pushy car salesmen at their locations, Sales Advisors are on hand to educate the public about Tesla cars and how they can be ordered online.
Experts claim that the change is ideal for the auto industry because customers no longer want to be pushed around by pushy salespeople during the purchase process. Others have questioned the company's financial situation and the reason for the change. Elon's bold move to change the company structure is exciting, no matter what your opinion.
Do Tesla Sales Advisors Get Commissioned?
Major changes were also made to their sales representatives as a result of the restructuring and online-only sales process. Tesla calls their sales reps "Sales advisors". Previously, Tesla Sales Advisors earned commissions for new vehicle sales. This commission no longer forms part of the compensation package.
According to Business Insider, Tesla Sales Advisors felt upset when the firm decided to stop paying out commissions. Time has passed and tensions have decreased.
How much do Tesla Sales Advisors make?
According to Indeed.com, the average Tesla sales advisor earns $43,882 per annum. Tesla employees are not permitted to share their salaries outside of their company. However many Tesla employees have posted anonymously about their earnings on sites such as Indeed.
How do bonuses work?
Tesla changed the bonus structure it offers to sales reps when the company began selling exclusively online. Used to be based solely on an individual's sales performance, they are now tied into the overall performance of the entire store.
Each location will now receive a bonus each month based upon a certain percentage they must achieve as a group, regardless of their individual performance.
Coming Compensation Changes
Tesla's decision to remove the commission from Sales Advisors was a major change.
Tesla Sales Advisors have been told that they can expect a salary hike of between 20% and 40% to compensate for this change. They will still give bonuses but they'll be in the form of stock options. Tesla stock will be available in different amounts for each quarter, depending on how well they achieve their goals.
It is necessary to change the sales structure to reflect the company's new focus on delivery quality, cost, and timing.
What do The Tesla Sales Advisors do?
Tesla places a high priority on the education of its customers. It's a whole new ballgame to learn about these cars with their advanced technology. With gas-run vehicles, you won't get as many questions. There will always be questions about a new model, but the switch to Tesla will raise many more.
You will be asking yourself, "How can I get the best price?" The first question you will ask is "How can I find the best price?"
If you're unsure of how the car works, then it is best to do some research or order one online. When you don't understand how the car works, it will make your visit to the store more enjoyable.
The top topics that salespeople discuss with customers include:
- How to charge Teslas and where?
- What is the potential of government incentives?
- Cost comparisons between electricity and gas
- Learn how to make the most of all the features of your car with these tutorials.
This will not be a typical test drive and basic facts. Tesla Sales Advisors spend hours explaining to prospective customers all the aspects of this highly advanced car.
Teslas are not typically accepted by other dealers. The training process is far more intensive than for other cars. It's not always a priority for them to train their sales reps on these models.
Tesla Sales advisors are only trained to sell Teslas. The traditional car salesperson will usually specialize in one or two brands, but be able to speak with most types. Tesla has a very specialized market and only sells its cars. This makes the experience different for both salespeople and customers.
New Locations are on the Horizon
Tesla has also announced new locations as a result of the changes to the compensation structure for sales. A focus on delivering more cars was one of the reasons for the change. In order to achieve its new goal, the company also wants to rethink how each location operates.
The new locations, which will be available seven days a week, will serve as a place for service, sales, and deliveries. It is expected that having everything in one place will help Sales Advisors, as they can brag about the convenience of new sites and the setup. These "Tesla Centers" as they will be known, are intended to provide a more personalized sales experience without the need to visit a traditional auto sales lot. To see the current locations, please click.
Home Solar Systems and Car Sales
Due to all the changes that are coming, they decided also to have Tesla Sales Advisors work side-by-side with Energy Advisors in selling their solar systems for homes. Tesla's major initiative is selling energy. From a marketing perspective, it makes sense to combine the car sales and their home solar solution.
The Sales Advisor can use this to present a united face across the organization in its efforts to provide energy-efficient solutions for consumers.
Tesla's Evolving Sales Structures
Tesla has made some changes to its sales process and sales structure. However, their latest plan of raising salaries and cutting commissions seems to be helping their salespeople earn more. It is not a conventional sales role but it does require a great deal of education and training in the solar energy industry.
Their Sales Advisors have a great name because they are truly there to help and educate the consumer on how Tesla works and their options. While the company has experienced some growing pains because of the changes, it may be on track to deliver exactly what people are looking for; a smooth sales process without any hassles with an advisor there to educate and not "sell."
