Furniture vs. Car Sales: What’s the Difference?

Your job as a furniture salesperson is to sell different types of furniture to customers to ensure the success of your store. The responsibilities and duties of this job may require you to speak with customers to understand their furniture preferences, make customized suggestions, and negotiate payment plans and offers to earn their business.

Salespeople sometimes take orders, enter fabric changes, or schedule home delivery of furniture. Depending on the store, you might also have to assist with arranging displays, counting inventory, or helping other employees. The average furniture salesperson earns a commission and a lower base salary. To succeed in this role, you must have excellent sales and customer service skills.

Customers are assisted in selecting and purchasing vehicles that suit their needs by car salespeople. Any car dealership needs car salesmen to handle all aspects of the sale of vehicles, from welcoming customers to closing the deal.

A car salesperson explains car features and warranty programs gives test drives and completes paperwork for sale. In addition to scheduling car deliveries and maintenance checks, some salespeople must attend meetings, adhere to business and sales goals, and create marketing materials.

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What is the typical commission on furniture sales?

The commission plans vary from furniture store to furniture store. The stores that do a commission draw on you are places I have worked. Therefore, you are technically not making any salary or wage but a direct commission. As a result, you will receive anywhere from $400 to $600 per week. Some furniture stores pay commission every other week, and many pay once a month. Imagine you make a 6% commission. Accordingly, if you receive a paycheck of $400/week, you will receive $1600/month in commissions from the company.

People Shopping in Furniture Store, Woman Shop Assistant Helping Man to Choose Office Furniture Cartoon Style Vector Illustration

The $1600 in monthly sales corresponds to about $26,000 in retail sales (delivered) at 6% commission (again, my simple math may be off). You would need to sell and pay over $26,000 in sales within the same month to earn your 6% commission. From the big chain stores, the average price of a sofa ranges from $500 to 800 dollars. In one month, for example, you sold 45,000, but only 30,000 of them were delivered. So instead of making 30,000, you only drive 26,000 (your commission threshold). This gives you a commission of 6% on 4,000 pieces sold. Many companies operate this way.

What is the typical commission in car sales?

Understanding how dealerships make money selling cars will help you determine how much commission a car salesman gets. There is a predetermined cost associated with every vehicle, no matter whether it is new or used. It includes the cost of transportation and pre-delivery inspection (PDI) for new cars and the cost of reconditioning and detailing for used vehicles. Gross profit is the amount a salesperson makes when they sell a car for more than its cost.

Most car buyers aren’t aware of another expense that is taken out of gross profit: the “package” fee. By putting the salesperson’s pack fee in a fund, the dealership is guaranteed to make at least some money regardless of what the car sells for. Both management and ownership are guaranteed to make a profit. In most cases, the commission is calculated by subtracting the cost and pack fee from the selling price.

A car salesman makes how much commission per vehicle? Commissions at dealerships typically range from 20%-40% of gross profit, depending on the commission structure. For instance:

  • Each vehicle that is sold by a salesperson can earn around 25% of the gross revenue.
  • Salespersons who sell eight to ten cars per month are paid a 30% commission.
  • In the range of 11 to 14 cars per month, the commission earned is 35%.
  • The commission rate for car sales associates is 40% if they sell more than 15 cars.

If a salesperson sells seven cars per month with an average gross profit of $1,200, they will earn just $2,100 a month. When they sell ten cars, they make $3,600 in a month – for each car, not just the eighth, ninth and tenth unit. An impressive 20-car sale would mean a $9,600 commission check for the salesperson. You earn incrementally more as you sell more.

How much Furniture Salesman Makes?

There are two types of salesmen who must sell furniture to consumers before it can be used in their homes and businesses. Manufacturers and distributors are the first kinds of salesmen who sell to retailers. The different type works for retailers and sells directly to consumers. The compensation varies depending on the type of furniture salesman. Most salesmen earn a base salary plus a commission and a bonus.

Household and Institutional Furniture Manufacturers

Furniture manufacturers sell their products to retailers, such as hotels and universities, which sell to consumers and institutions. Beds, sofas, kitchen cabinets, and dining tables are among the products that are sold to retailers. For a retailer to mark up their products and make a profit, manufacturers sell their products in bulk and at wholesale prices.

According to May 2019 data from the Bureau of Labor Statistics (BLS), sales representatives in this industry earned a median hourly wage of $12.77. Supervisors earned a median salary of $22.64. Overall, this industry earned a median hourly wage of $14.58 per hour or $38,360 per year.

Office Furniture Manufacturing

A company specializing in office furniture specializes in building pieces that can withstand heavy use. Steel and aluminum are typically stronger materials and tend to be more durable than home goods. Work desks, conference room tables, and filing cabinets are all part of office furniture. These items are usually found in office supplies or furniture stores.

According to the salary compilation website Payscale, manufacturers’ sales reps made an average of $66,468 per year in 2020. The inclusion of bonuses and commissions results in an income of $93,000 for the highest earners.

Furniture Stores

Shoppers who need furniture for their homes or businesses purchase it from furniture stores. These stores sell individual pieces or whole suites of furniture. BLS reports that retail sales workers typically earned about $15.24 per hour or $25,440 annually in 2019 but did not keep track of the typical furniture sales salary.

Organizational skills and a lot of experience are needed to advance to supervisory positions. First-line supervisors earn a median salary of $19.40 an hour, or $40,350 per year, based on BLS 2019 data. In a sales management role, employees are responsible for local, regional, or national transactions.

How much do car salespeople make?

Ali Reda, a salesman with Les Stanford Chevrolet Cadillac in Dearborn, Michigan, sold 1,582 cars in one year. A mid-six-figure salary would be the stuff salespeople dream about. Career Explorer estimates that entry-level car salesmen earn about $28,000 annually. Car salespeople at the midlevel earn about $35,000 a year, while car sellers at the senior level make about $46,000 a year. There are only a few car salesmen who earn more than $65,000 annually, but for those who excel, the sky is the limit.

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The average gross profit for new and used vehicles isn’t much different—about $2,400 for used and $1,900 for new cars. In the U.S., used cars outsell new cars by 2 to 1. Used car salesmen have a greater chance of earning higher commission checks based solely on volume.

There are fewer opportunities to sell a luxury car when there is more gross profit potential. So, what is the commission a car salesman receives when they sell fewer luxurious cars but with more gross profit potential? It tends to be very similar.

Several income sources

Several income sources contribute to a salesperson’s total compensation, including:

1. Sales commissions

The commission component of a salesperson’s paycheck is by far the biggest for those who sell between 10 and 15 cars each month. An annual commission of around $60,000 can be earned by a salesman selling a mass-market brand in a thriving city. Approximately it is the same amount as a luxury-brand salesperson selling six to eight cars per month at a higher gross profit.

2. Bonuses

Some pay structures include achievement bonuses in addition to commissions or salaries. When a salesperson sells ten vehicles in a month, regardless of gross profit per vehicle, they may receive $500 as a bonus or $1,000 as a bonus if 14 cars are sold. Depending on the commission structure at each dealership, this type of component is expected.

3. Spiffs

When a salesperson shows you a car that doesn’t quite meet your needs, but they seem incredibly excited about it, it’s likely that the vehicle has a special incentive to sell it. As a way of encouraging salespeople to get specific models sold first, the dealer sets a spiff on certain models—cars that have been on the lot for too long, or overstock on particular models, for example. On top of the commission on the unit, there can be a spiff of $50 to $500.

Spiffs, or incentives, can also be used to create a buzz on the sales floor and promote the sale of multiple cars in a day or to sell the first car of the day. It all comes down to how the manager comes up with it. If they are keen to take advantage when spiffs are available, salespeople can increase their annual earnings by $10,000.

4. Demonstrator vehicle

Demonstrators are usually accounted for on sales checks because a salesperson does not pay for them out of pocket. Dealer plates cover the insurance, so all salespeople have to do in return is purchase fuel and keep the vehicle clean. A demonstrator can result in a taxable benefit of $4,000 to $6,000 over the course of a year.

5. Work/life balance

It would be best if you balance your professional and personal lives, but it can be not easy. Here are the following tips for improving your work-life balance.

All other aspects of our lives are often put on hold by work. We may be tempted to put aside our own well-being in order to succeed professionally. To improve not only our physical health but also our mental and emotional well-being, we should strike a healthy work-life balance.

6. Work-life balance and its important

A person with a work-life balance prioritizes the demands of their career and their personal lives equally. There are many factors that contribute to a poor work-life balance, including:

  • Increased responsibilities at work
  • Working longer hours
  • Increased responsibilities at home
  • Having children

Plan a schedule that allows you to strike a balance between work and personal time. Managing your work and personal lives effectively is less about dividing your time evenly between work and personal life and more about finding a balance that allows you to accomplish things professionally while having enough time to relax and enjoy your personal life. It is possible that some days will require you to work longer hours in order to have more time to enjoy other activities later in the week.

Keeping a work-life balance is a challenge, so here are some tips for balancing work and family.

7. Realize there is no such thing as a ‘perfect’ work-life balance

“Work-life balance” probably conjures up the idea of a productive workday, followed by leaving early to spend the other half with family or friends. Although this may sound ideal, it’s not always achievable.

Make sure your schedule is realistic rather than perfect. Some days you may have more time to focus on work, while other days you may be able to enjoy your hobbies or spend time with friends and family. Achieving balance takes time, not a single day.

Founder of a career mentoring group, Heather Monahan, says it’s crucial to continually evaluate where you are and where your goals and priorities lie.

8. Find a job that you adore

Even though work is an expected norm in society, your career shouldn’t limit you. There is no way to be happy if you hate what you do. It doesn’t have to be your dream job, but it should have enough excitement that you don’t dread waking up in the morning.

Monahan recommended finding a job that you would do for free if you were passionate about it. It could be that you work in a toxic environment, for a toxic person, or do something you don’t genuinely enjoy. If this is true, it is time to look for a new job.”

9. Prioritize your health

You should be concerned with your physical, mental, and emotional health. You don’t have to drop your evening spin class or leave work early if you think therapy would benefit you if you experience anxiety or depression. Overworking yourself could cause more time off if you do not get better in the long run.

You don’t need to engage in extreme or radical activities to prioritize your health. Exercise and meditation are both great ways to prioritize your health.

10. Set goals and priorities

Time-management techniques, analyzing the tasks on your list, and eliminating those with little to no value will help you reach your goals.

It would be best if you blocked off your most critical work-related activities at the times when you are most productive at work. It is a bad idea to check your email and phone every few minutes, as these are major distractions that keep you from focusing on the task at hand. By organizing your day, you can increase your productivity at work, creating more free time for relaxation.