So this won’t affect me because the company gives me any car I want since I’m an exec. But my CFO brought this up to me for my sales team.
To start off: I treat my guys well. I’m not interested in saving a few bucks for the company to make it worse for my team. It’s just not how I manage my group. So here’s the details:
1) no more company cars
2) employee must buy their own car (anything they want to buy but must be reasonably nice enough to drive a customer).
3) 450/month plus 0.17 per mile
That seems low to me. Can someone help me break this down? My guys are all over the US and drive about 30k/year. The company doesn’t help with anything else. Tires/oil/insurance is all on the employee. My CFO swears the guys will “make a killing”. I doubt that. He’s a penny pincher.
Any help would be appreciated.
Edit: I Must clarify a few things I justness learned:
1.) they expect a minimum car of 20,000
2.) no one wants to drive 30k miles per year in a 4 cylinder and the company has a certain expectation that a “Ford Focus is below the expectation”. Also my guys drive in snow so that doesn’t work. It’s not being a jerk or wanting a fancy car, but if you’ve never been a traveling sales guy you don’t realize just how important a car can be. It needs to be safe, reliable, and have pickup power for the interstate and such.
3) after 100,000 miles you must replace the car.
4) insurance (over 2500/year on average. Don’t forget this isn’t standard insurance. It’s higher because the high miles we drive and liability if you hit someone etc. you need to be covered.)
Edit 2: most people are saying “my car payment is 450. This pays it. Good deal”. Please there is more to consider. Insurance alone is about 2500-3000/year for these guys. So if your note is 450 you’re already losing on that end. Thanks.
Edit 3: so I had my buddy run the numbers. A 20,000 car is a net loss of almost 200$ month long term, and even higher for more expensive cars. He ran them at 4%, 4.5 and 5% interest (which almost no one here calculated). No one included the cost of maintence (oil changes, fluid swaps etc). Most people just said “I have a 20k car and my car payment is 400$ so you make money win!” I’m really glad he ran these numbers. The excel sheet is amazing. It allows you to change everything from gas price, miles per gallon, oil change costs, tire cost etc. point being, please when these decisions come up, account for EVERYTHING. Few people here even mentioned “hey what about a flat tire!”
Be smart with your finances boys!
Also, people telling me to pay my guys less, not give them a car, remove benefits etc. that’s not how it works in a professional setting. If you want good guys you pay them well. Anyone who thinks the customer is the most important thing in the world is crazy. Happy employees work harder, produce better, stay longer and a whole slew of other options. I manage my team as “people first”. When your goals align with the company goals both your employees and your company make money. Many Thanks for all the help!
Submitted October 02, 2018 at 04:28PM by jetflyer89 https://ift.tt/2xT1Jix
