Posted: 11/11/2015 11:19:06 AM EDT
|
I'm set up to transition from and inside sales to outside sales role in January. My current vehicle is a '95 Civic with a lot of body damage. Seems to me that might not be a good way to represent the customer taking clients to lunch, etc. Marketplace is industrial valves and automation. Also, due to the need to occasionally pick up/transport hot rush valves for customers, I was thinking a truck would be the way to go. I had a 2006 loaded out GMC Sierra Z71 Crew Cab that I sold last December. It had 208K on it, and to save on gas for my long commute I began driving the Civic (handed down by my FIL when he got a new car).
Company car allowance is $500/mo. I'd like to get something with a $350-$400 month payment so that looks like $15-$20K. I'm wondering if I'm better off getting a nicer used truck (C/K 1500, F150, etc) or a newer smaller truck like the Nissan Frontier. Those seem to be going pretty cheap. I figure I will probably put 25-35K miles per year on the truck, so I definitely want something dependable and I worry that with a used truck that I can afford, it's going to have 60-80K on it already. Then again, will the Nissan hold up? What about customer perception of a smaller truck like that, no leather, etc? One other thing is that I definitely want 4WD. I hunt and it's definitely something I need where we hunt (hilly, grassy hay fields). My head is spinning so I'd appreciate any advice some experienced sales guys can offer! |
|
In my opinion the best vehicle for a sales guy with a car allowance is a 4 door midsize sedan that gets 30+ MPG. They can be bought cheap, and the cost of ownership is really low. I drive over 20K a year and have the same shitty car allowance you do. A realistic car allowance either has a per mile over 12K or is more like $700/ month. If you need a truck for work they should give you an allowance that allows for a late model truck or a company vehicle.
I bought a new sonata hybrid for 19K and it gets 35MPG. Even at lower gas prices, its a big difference compared to a truck at 15-18 MPG. Dealer added leather and it has bluetooth, heated seats etc. Its the first foreign and the first non-V8 vehicle I have ever owned. You could even make the argument to buy a $10-15K daily driver and an $10K avalanche or tacoma down the road for a toy. |
As a sales rep for the WD-40 Company for 15 years, I was fortunate enough to have a new car provided to me every other year. It was our choice of a 4 door mid-sized model of the Big 3. I tried one from a different manufacturer each time. My favorite was the Ford Taurus. Having said all that, there is a HUGE difference between having a company car, and having a car allowance. When I had a car allowance, I had a Plymouth Sapporo (Mitsubishi made) and a Mazda 626. Both were 4 cylinder vehicles that were good on gas, and that had reasonable get up and go. 
By all means, get something that you are comfortable in, but stay away from having to subsidize your company every time you have to crank the vehicle up. If you are coming out of pocket every time you have to go see a customer, you'll soon find reasons not to go. And who could blame you?!? The company will!!! Depending on the size of your territory, fuel expenses can get out of hand in a hurry. For the most part, I covered parts of 4 states: N. GA, E. TN, W. NC, and W. SC. All my territory was in the Appalachians, or the foot hills, and I drove about 100k miles per year. That's a lot of gas. You didn't mention the size of your territory, or how many miles you expect to drive, but know this for a certainty, gas will NOT stay at $2/gal forever. It wasn't all that long ago that we were looking at $4/gal at the pump. Those days WILL return! 
In the 17 years that I worked as a sales rep, I can count on my left hand, and still have fingers left over, the number of times I took a client to lunch. If your company REQUIRES wining and dining, then they need to up the ante for a nicer vehicle. I don't know what size valves you sell, (I did a stint selling high pressure, compressed gas, valves to the welding industry, that were about the size of your fist) but I can tell you from lots and LOTS of first hand experience at all the companies that I worked for, that a trunk, back seat, and passenger seat, can carry a lot of freight! If you are to be in the bulk delivery service, then, once again, your company needs to up the ante on your car allowance. I'm betting, if you need to deliver with a truck, your company has a vehicle available to do so. If not, you can rent one for a few hours, and turn in the receipt. If this is a weekly occurrence, you need to train, your customers, your company, or yourself, better! 
Outside sales is a great life, but, if you are not 100% on the company's dime, you need to watch every penny, 24/7, because what comes out of your pocket, cuts directly into your take home $$$, and that can get ugly, quick! If it were me, I'd be driving the '95 Civic, as long as it's reliable, until I knew exactly what this job entailed, and even longer than that, if I could. You need to shoot for ending up putting part of that $500/month in your pocket, and not paying out of your pocket for the privilege of working an outside sales job for this company. Then, ASAP, get hooked up with one of your manufacturers, and start working for them in outside sales. Working for a manufacturer is head and shoulders above working for a distributor!!! (Can you say: better salary, company car, full expenses, and lots of other bennies!!!) 
BEST OF LUCK IN YOUR NEW POSITION!!!!!! 
|
|
OP, curious who you work for. Shoot me an IM with the info. I worked a similar job years back, mostly just automation and I had a regular cab truck. The bed was useful when I needed it but a complete waste when I didn't. If your territory is pretty small, you can always arrange for pickup of the valves by someone else at your company, it probably isn't the best use of your time to be the part hauler anyways. |
| See, now I'm getting all nervous about fuel economy. The truck will only get 15-20 mpg. Does something like an Accord or Camry project a decent image? I could get an almost new one of those for my budget and be more in the 30 mpg range. That's probably smarter financially since my gas hits my commission before I get to see it. Guess I'd just have to get another beater truck for hunting. Or are there any SUV's that would fit the bill that get in the 25-30 mpg range? CR-V? Too much of a woman's car? |
|
Quoted:
See, now I'm getting all nervous about fuel economy. The truck will only get 15-20 mpg. Does something like an Accord or Camry project a decent image? I could get an almost new one of those for my budget and be more in the 30 mpg range. That's probably smarter financially since my gas hits my commission before I get to see it. Guess I'd just have to get another beater truck for hunting. Or are there any SUV's that would fit the bill that get in the 25-30 mpg range? CR-V? Too much of a woman's car? Some of the top sales guys in the area are driving 10 year old or worse accords/camrys etc. One of our guys had a 20 year old chevy lumina that had 400K miles when it died. Don't worry about your car being your image. I'd focus more on dressing professionally EVEN at places where they all wear jeans and boots. I wear a dress shirt / khakis everyday but carry steel toe boots etc in the trunk. I call on the same folks you do. |
|
Quoted: Heard VW diesels can be bought cheap right now. I drove a VW Golf when I worked outside sales, good on gas and very comfortable for a car that size. Just keep whatever you get clean, the car is not what makes the sale. |
|
Quoted:
Some of the top sales guys in the area are driving 10 year old or worse accords/camrys etc. One of our guys had a 20 year old chevy lumina that had 400K miles when it died. Don't worry about your car being your image. I'd focus more on dressing professionally EVEN at places where they all wear jeans and boots. I wear a dress shirt / khakis everyday but carry steel toe boots etc in the trunk. I call on the same folks you do. Quoted:
Quoted:
See, now I'm getting all nervous about fuel economy. The truck will only get 15-20 mpg. Does something like an Accord or Camry project a decent image? I could get an almost new one of those for my budget and be more in the 30 mpg range. That's probably smarter financially since my gas hits my commission before I get to see it. Guess I'd just have to get another beater truck for hunting. Or are there any SUV's that would fit the bill that get in the 25-30 mpg range? CR-V? Too much of a woman's car? Some of the top sales guys in the area are driving 10 year old or worse accords/camrys etc. One of our guys had a 20 year old chevy lumina that had 400K miles when it died. Don't worry about your car being your image. I'd focus more on dressing professionally EVEN at places where they all wear jeans and boots. I wear a dress shirt / khakis everyday but carry steel toe boots etc in the trunk. I call on the same folks you do. I couldn't agree more!!! Put your $$$ into khakis, dress shirts, a few ties (uggg, I HATE a tie!  ) and a sport coat or two; your new uniform. Nothing flashy, just a half step above business casual. Your customers won't give a horse's hiney about what you drive. They will care most about your product and the price, with a close third being excellent customer service, split 60/40 between you and your company. Be professional, courteous, aggressive (in a positive fashion), don't be afraid to say: "I don't know, but I will find out" then follow up in a timely manner with the correct answer, learn how to write a GOOD business letter (VERY important), and above all, be relaxed and BE LIKABLE!!! I had a boss once tell me that his customers don't buy National Tape, they buy Jerry Tape. They don't mind paying a bit more for my tape because they like me, (Jerry)! They like the service I provide, and they trust and enjoy me as their sales rep. He was right, personality and professionalism are your biggest assets as a salesman. Being chosen to move to outside sales tells me you probably pretty much get this already.
As a pretty new salesman in my twenties, one summer evening at about 8:00 pm, I was arriving in a town after spending the day at my office in my home doing paperwork and making phone calls. As I was looking for the hotel, I saw a business that I had a generic lead for, with an old guy sweeping off the dock in blue jeans, and nobody else in sight. I had on bib overalls, but figured I could ask the old guy a few questions and, decide if it was worth my time to stop back by the next day. After chatting and cutting up with the old guy for about 20 minutes, about what the business did, I realizing that this was an excellent prospect. I asked him who I should talk to the next day, if I wanted to make a sale? He said he reckoned I ought to ask for Bill. I said, "now who is Bill, and what does he do?" He said, "Bill is me, and I own the company, so I reckon I'd be the guy you'd need to talk to." That shook me up a little bit, but I promised him I'd look more like a salesman in the morning, to give him some pricing, and discuss details, about 9:00 am, if he thought he would be free about then. He said that'd be fine. I showed up in khakis and a dress shirt the next morning, and it only took about 15 minutes to open the account and get the order. We chatted a bit more, and on my way out the door I thanked him for the order, and mentioned how It was probably the easiest sale I had ever made. He laughed and said he already knew he wanted to buy from me the night before, "cuz, any young kid dressed in overalls, willing to stop and talk to an old guy in jeans on the dock, at that time of night, in order to qualify an account, was the kind of guy he wanted to have as a salesman." LOL It just goes to show, you never know who you're talking to, and you never know what is going to make a positive impression on them! Don't get hung up on what kind of car you arrive in. The vast majority of your customers won't have a clue, nor care, what your mode of transportation is. You don't take your car in with you when you make a sales call. Like as not, if they do see what you're driving, they'll respect you more, if it shows you to be a sensible/frugal kind of guy. If you show up in a $50K truck, that gets 10 mpg coasting downhill with a tailwind, they're probably gonna figure you're making too much $$$, and that they'll be paying too much for whatever it is you have to sell! Truthfully though, it's more about relationships, professionalism, work ethic, and what kind of guy you are. 
Just MHO, YMMV!
|
|
Many companies require that you have a minimum of a certain vehicle to get their car allowance. Within so many years old, 4 doors, etc.
I work a straight commission gig and get no car allowance. I write off my vehicle on taxes at the end of the year. My accountant has me buying a full size truck and taking the deduction that comes with it. I do use my truck, regularly, to haul stuff for my customers. On top of everything else, I got tired of driving around Atlanta in a smaller vehicle. I spend too much time in my truck to not be comfortable and safe. The one non-truck sales vehicle that I had and really liked was a Subaru Forester. As I got older, it was just too small for my old ass. It got decent mileage, was sure-footed, and was reliable as hell. |
|
Quoted:
I've got an excellent 2012 GTI that you'd love driving and gets 30+ to the gallon. 300hp on tap and still sips. I'm about to step into a new car so I'd price you right if interested. This I also have one I will be selling. It's a 2011 Malibu. Under 60k miles. Once I find me a truck... |
|
The Hyundai and Kia crossovers are reportedly very reliable, with many of the newer ones having EXTREMELY long factory warranties.
I don't know how the gas mileage is, but you'd have to be doing better than with a truck. Additionally, you'd have lots of cargo room, and a sensible vehicle. They have good options, and lightly used, they're much more affordable than new. |
|
Toyota Tacoma.
Next question 
Seriously, I had a two door 4-banger manual and I could get 22-24mpg depending on wind direction and I loved that truck. Unfortunately it doesn't fit with a family of 6 so it had to go Plan on finding another as soon as the oldest starts driving
|
| I think you're paying WAY too much attention to status symbols. Get a Hyundai Santa Fe or any other foreign 4 door mid size. I've been in sales for 15+ years I can count on one hand how many times I've actually had customers in my car. Get a reliable car with 30+ mpg and thank me later. |
|
So a follow-up question to those recommending the sedan (and I get it, believe me. It really makes the most sense). Do you have a 3rd vehicle (older pickup or something) for hunting/fishing/Home Depot, etc? Is it feasible to pick up a late 90's truck for $3,000-$5,000 and just use it when needed? Seems like there would be some insurance/maintenance tradeoffs to consider there. For additional reference, my wife's car is a 2012 Honda Odyssey van, loaded to the hilt. It's what we drive to church, family trips, etc.
Bottom line question is should I buy a truck for sales that will also have 4WD to work for hunting/fishing/Home Depot, or do I get a more fuel efficient, less expensive car to drive for sales everyday (Accord, Camry, etc) and then a beater truck for weekend stuff. Thanks again! |
|
Quoted:
So a follow-up question to those recommending the sedan (and I get it, believe me. It really makes the most sense). Do you have a 3rd vehicle (older pickup or something) for hunting/fishing/Home Depot, etc? Is it feasible to pick up a late 90's truck for $3,000-$5,000 and just use it when needed? Seems like there would be some insurance/maintenance tradeoffs to consider there. For additional reference, my wife's car is a 2012 Honda Odyssey van, loaded to the hilt. It's what we drive to church, family trips, etc. Bottom line question is should I buy a truck for sales that will also have 4WD to work for hunting/fishing/Home Depot, or do I get a more fuel efficient, less expensive car to drive for sales everyday (Accord, Camry, etc) and then a beater truck for weekend stuff. Thanks again! I rent the HD lowes trucks for $20 or borrow a truck when need be. My grandfather hunted for decades in Buicks and Oldmosbiles. Just walked a bit more
I really want a toy truck but its something that will have to wait. I have noticed you can get bargains on things like ford sport tracs, avalaches, SUVs more often than a deal on a pickup. |
|
Alright guys, I'm getting close to decision time. At this point I have 2 written offers along with the option to stay in my current role:
1) Current role, inside sales, $65K base with opportunity for 10% end of year bonus based on annual sales. Pros: 4/10 work week, Laid back environment, 401K, Insurance plan. Cons: Under-utilization of my skills, 3hr round-trip daily commute. 2) Option #1, outside sales, $45K base with 31% commission. Current territory numbers (with no representation) provide annual commission income to make equal to current role. I really think I can grow it quite a bit, though. Pros: Opportunity to make much more money, Utilize skillset, career growth, Car Plan (they're offering me either a company-owned vehicle so, at least initially, I wouldn't have to buy a car or an allowance) Cons: Commission not guaranteed, No 401K, No plan health insurance (monthly stipend paid enough to cover individual; so family plan added cost would be out of pocket.) 3) Option #2, outside sales, $45K base with 15% commission. Current territory numbers (with active, recently-resigned representation) provide annual commission income to make equal to current role. Not sure how much growth potential in this territory. Pros: 401K, Insurance Plan, more familiar products and territory, Utilize skillset, career growth, Car Plan Cons: Less commission opportunity. The $20K base salary hit has me really nervous, especially for the first few months as I get my feet wet. Then again, the potential upside is real and huge. Of the two outside options, I know more about the brands and territory with Option #2, but the commission payout is only half. Also, the former rep was hired away by a competitor only recently, so that tells me (1) he was doing a decent job to be recruited by anther company and (2) this isn't un-plowed soil like with option #1. Honestly, my gut feeling is outside Option #1, but the lack of 401K, insurance, etc has me nervous. Then again, risk vs reward, right? Thanks again for any additional thoughts/recommendations. |