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PLEASE ANSWER THE FOLLOWING QUESTION…Why are some car sales companies

April 4, 2022

PLEASE ANSWER THE FOLLOWING QUESTION…Why are some car sales companies like CarMax paying their sales associates a salary when most of the industry pays their sales associates a straight commission? What might be some drawbacks of this plan?

AN EXAMPLE…

I believe they are doing this in order to create a sense of security for the employees along with loyalty among the company, So the associates can work more efficiently without worrying about their paycheck coming from a sale they perform, and instead get paid for the process of engaging with the customer to make the sale. However, there can be some drawbacks to this plan, the associates might not feel that motivated to sell the vehicle because they know that they are on a fixed salary, and there would be a decrease in performance possible due to this, and this may increase the tension of financial salary.

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