by: Jeff Slokum
The upkeep of your vehicle can be quite an expense - from initial purchase to insurance to maintenance. And sometimes we get the sinking feeling that every time we need a car repair, we’re going to get taken for a ride. (pardon the pun!) Actually there are some ways to make sure you don’t get a raw deal when dealing with a local body shop.
After you get recommendations for honest mechanics, call around to check out the prices for certain jobs. It’s always smart to get a second opinion.
How about some preventative medicine? Keep your gas tank filled. This will help you avoid the gas line freezing up in cold weather. Also, driving on “fumes” allows little pieces of dirt at the bottom of your gas tank to run through the fuel lines with the last drops of gas. This debris clogs up the fuel filter and can cause carburetor damage as well.
Sometimes a problem with your car’s electrical system results from a simple blown fuse. Check to see if you have any blown fuses before investing in a tow truck!
Keep track of how much oil your car uses. A sudden change in oil consumption means you need to see a technician.
Save your brakes by having your brake fluid changed every 30,000 miles.
Check your tire pressure once a month. This simple maintenance check can add up savings at the gas pump!
Stop and go traffic causes excess wear and tear on your vehicle. Go ahead and give your car a nice twenty minute ride at 55 mph on the highway every couple weeks if you “major” in short trips.
There are other ways to save money on car expenses. Let’s look at the insurance payments.
If you’ve budgeted for possible out-of-pocket expenses in case of a car accident, you might want to consider increasing your insurance deductible to $500. This will lower the cost of your insurance.
Talk to your insurance agent. If your car is as old as the hills, you might want to drop collision coverage to save money.
Car insurance companies offer a variety of discounts. Ask your agent if the company offers reductions for driver training courses, anti-lock brakes, car alarms, air bags, mature drivers, good students or maintaining a good driving record.
Before you purchase from a dealer, ask about the dealer's return policy, get it in writing and read it carefully. Dealers are not required by law to give used car buyers a three-day right to cancel.
Visit http://www.fueleconomy.gov to find cars that are fuel efficient.
Each 5 mph you drive over 60 mph is like paying an additional $0.10 per gallon for gas.
In most cases, using cruise control on the highway will save gas.
Replacing a clogged air filter can improve your car's gas mileage by as much as 10 percent. This isn’t going to cost you an arm or leg either.
Do your homework when buying a car from an auction. Many vehicles that have been damaged by floods and hurricanes are going on the market. These won’t last long – leaving you with a flood of bills. Be a little concerned if the carpet looks too new, and check carefully for signs of rust.
Carfax.com shares info on inspecting a used car to make sure you get the best deal.
If you use your car for business, keep track of miles traveled so that you can use this for a tax deduction. Get more info at irs.gov.
When you consider all the ways you can save money on your current vehicle, you might be persuaded to put away the extra each month for a new car down the road!
Showing posts with label Sales. Show all posts
Showing posts with label Sales. Show all posts
Monday, June 4, 2007
Buying new vs. used cars.
by: Mantius Cazaubon
New vs used. Which car is right for you? Consider the following.
Owning a brand new car is exciting. But financially speaking, it makes more sense to buy a used car. As soon as you drive a new car off the lot, it loses a great portion of its value. This is because your car is no longer “new”.
New cars lose about 40% of their value within 3 years, then depreciation starts to slow down. Why not buy a used car and allow someone else to take that depreciation hit?
The previous owner will have absorbed the steepest part of the depreciation cycle. At that point the costs of owning and operating the car will be reduced. The money you save on depreciation will surely go a long way.
Another benefit of buying used is lower cost. By buying used you pay less. You will also save on financing costs, insurance premiums, registration and licensing fees. You don’t have to worry about paying sales tax.
As with everything else there are a few downsides to buying a used car. There are greater chances for costly unwarranted repairs. You may very soon have to do major maintenance on your car, including replacing tires, battery, brakes, muffler, and perhaps even the transmission.
A used car is usually less reliable. You don’t know exactly what you’re getting into and how the previous owner treated the car. However, every situation is different and some used models may actually be far more reliable than some new ones.
If you can pay cash, go the new car way. Enjoy the feeling of knowing you're the original owner of a new car in mint condition. Nothing can replace that feeling.
Otherwise do not hang your hat higher than you can reach. Practice financial prudence. Save your money and comfort yourself knowing that one day you will be able to afford that dream car. One day when money is no object.
New vs used. Which car is right for you? Consider the following.
Owning a brand new car is exciting. But financially speaking, it makes more sense to buy a used car. As soon as you drive a new car off the lot, it loses a great portion of its value. This is because your car is no longer “new”.
New cars lose about 40% of their value within 3 years, then depreciation starts to slow down. Why not buy a used car and allow someone else to take that depreciation hit?
The previous owner will have absorbed the steepest part of the depreciation cycle. At that point the costs of owning and operating the car will be reduced. The money you save on depreciation will surely go a long way.
Another benefit of buying used is lower cost. By buying used you pay less. You will also save on financing costs, insurance premiums, registration and licensing fees. You don’t have to worry about paying sales tax.
As with everything else there are a few downsides to buying a used car. There are greater chances for costly unwarranted repairs. You may very soon have to do major maintenance on your car, including replacing tires, battery, brakes, muffler, and perhaps even the transmission.
A used car is usually less reliable. You don’t know exactly what you’re getting into and how the previous owner treated the car. However, every situation is different and some used models may actually be far more reliable than some new ones.
If you can pay cash, go the new car way. Enjoy the feeling of knowing you're the original owner of a new car in mint condition. Nothing can replace that feeling.
Otherwise do not hang your hat higher than you can reach. Practice financial prudence. Save your money and comfort yourself knowing that one day you will be able to afford that dream car. One day when money is no object.
SUVs vs. Minivans: Making The Right Choice
by: Tom McKnight
Has your family started to cram into the old sedan like a pack of sardines? Have members of the neighborhood car pool begun to look suspiciously at your battered station wagon? Perhaps it’s time to retire the old family car and move up to a bigger vehicle. Often, the choice for a more spacious family vehicle is a toss-up between a sport utility vehicle (SUV) and a minivan. Both offer flexible passenger and cargo areas, comfortable seating for five to eight persons, and rear-seat entertainment systems. Although the SUV has a slightly higher risk for rollovers than minivans do, both are equipped with similar safety features, such as air bags and anti-lock brake systems. So, which one deserves to park in your family garage? To come up with the right choice, you need to look at how the vehicle’s styling, fuel economy, passenger and cargo space, towing capacity, and safety will suit your family’s needs and lifestyle.
Styling
More than a matter of need, a vehicle’s styling is a matter of personal preference. The SUV usually wins out over the minivan when it comes to appearance. With its rugged, sporty styling, an SUV oozes urban cool, unlike the minivan, which is perpetually associated with soccer moms and suburban neighborhood carpools. Most men would recoil at the thought of driving a minivan, so if your husband would be sharing driving duties, you might have to talk it out with him. Likewise, many teenagers wouldn’t be caught dead stepping out of a minivan, so if you’d be using the vehicle mainly to drop off and pick up your adolescent children from school, you’d have to consider their preferences, too.
Fuel economy
Minivans give better mileage than SUVs, which have a reputation for being gas guzzlers. If you want to squeeze more miles out of the gasoline tank, then a minivan would make a more economic choice than an SUV. Other ownership costs, such as maintenance and insurance, also tend to be higher for SUVs than minivans. Unless you’re willing to pay the price for being cool and stylish, the practical minivan is the way to go.
Passenger and cargo space
Sport utility vehicles and minivans have comparable passenger and cargo space, but the roomy interiors of a minivan can be a delight to young kids. Unlike SUVs, minivans also have a low step-in height, so they’re easier for kids to climb into. Minivans’ large picture windows afford young passengers a better view of the passing scenery, therefore keeping your impatient young ones amused for a good part of the ride.
Towing capacity
If you own a boat and like to take the entire brood for weekend sailing retreats, then an SUV would make an appropriate choice. SUVs have superior towing capacities, enabling them to pull practically anything between a trailer and a small boat. Otherwise, if you’re only schlepping groceries and your kid’s soccer team, then there’s no reason to overlook the minivan.
Safety
Although both have comparable safety features, SUVs have a higher rollover risk than minivans. SUV devotees counter this by pointing out that rollovers account for only three percent of all traffic accidents and claiming that SUVs offer excellent passenger protection in two-car collisions. It remains to be seen whether this supposed collision safety factor outweighs the risk of rollovers. If the threat of rollover accidents keeps you awake at night, then a minivan could give you a little peace of mind.
Has your family started to cram into the old sedan like a pack of sardines? Have members of the neighborhood car pool begun to look suspiciously at your battered station wagon? Perhaps it’s time to retire the old family car and move up to a bigger vehicle. Often, the choice for a more spacious family vehicle is a toss-up between a sport utility vehicle (SUV) and a minivan. Both offer flexible passenger and cargo areas, comfortable seating for five to eight persons, and rear-seat entertainment systems. Although the SUV has a slightly higher risk for rollovers than minivans do, both are equipped with similar safety features, such as air bags and anti-lock brake systems. So, which one deserves to park in your family garage? To come up with the right choice, you need to look at how the vehicle’s styling, fuel economy, passenger and cargo space, towing capacity, and safety will suit your family’s needs and lifestyle.
Styling
More than a matter of need, a vehicle’s styling is a matter of personal preference. The SUV usually wins out over the minivan when it comes to appearance. With its rugged, sporty styling, an SUV oozes urban cool, unlike the minivan, which is perpetually associated with soccer moms and suburban neighborhood carpools. Most men would recoil at the thought of driving a minivan, so if your husband would be sharing driving duties, you might have to talk it out with him. Likewise, many teenagers wouldn’t be caught dead stepping out of a minivan, so if you’d be using the vehicle mainly to drop off and pick up your adolescent children from school, you’d have to consider their preferences, too.
Fuel economy
Minivans give better mileage than SUVs, which have a reputation for being gas guzzlers. If you want to squeeze more miles out of the gasoline tank, then a minivan would make a more economic choice than an SUV. Other ownership costs, such as maintenance and insurance, also tend to be higher for SUVs than minivans. Unless you’re willing to pay the price for being cool and stylish, the practical minivan is the way to go.
Passenger and cargo space
Sport utility vehicles and minivans have comparable passenger and cargo space, but the roomy interiors of a minivan can be a delight to young kids. Unlike SUVs, minivans also have a low step-in height, so they’re easier for kids to climb into. Minivans’ large picture windows afford young passengers a better view of the passing scenery, therefore keeping your impatient young ones amused for a good part of the ride.
Towing capacity
If you own a boat and like to take the entire brood for weekend sailing retreats, then an SUV would make an appropriate choice. SUVs have superior towing capacities, enabling them to pull practically anything between a trailer and a small boat. Otherwise, if you’re only schlepping groceries and your kid’s soccer team, then there’s no reason to overlook the minivan.
Safety
Although both have comparable safety features, SUVs have a higher rollover risk than minivans. SUV devotees counter this by pointing out that rollovers account for only three percent of all traffic accidents and claiming that SUVs offer excellent passenger protection in two-car collisions. It remains to be seen whether this supposed collision safety factor outweighs the risk of rollovers. If the threat of rollover accidents keeps you awake at night, then a minivan could give you a little peace of mind.
So you want to be a custom bike builder? Start with a motorcycle kit!
by: Michael Holmes
The step from reading about building motorcycle kits and watching bike builds on television to the real thing is a little more difficult than it looks…
So you want to be a custom bike builder? Well friend, before you rush out and buy that motorcycle kit, the one that will set you on the road to riches and fame, stop and think about the level of expertise and artistry the top builders have attained. More importantly think about how long it has taken them to attain it! Let’s look at a few key issues…
Education
You’d be surprised how well educated a lot of today’s top bike builders are. Several of them have degrees (some more than one!) ranging from mechanical engineering to business and marketing management. Billy Lane, the founder of Chopper Inc, has several patents relating to motorcycle technology in his name for example. What about someone a little more “old school” like Dave Perewitz? Dave has accumulated close to forty years of mechanical, metalworking and painting experience. Not theoretical, but genuine hands on, early morning late night kind of experience. Could you put that kind of time in? Matt Hotch is still only young, but has gained an incredible amount of practical experience customizing first bicycles, then VW’s before moving on to custom bike building.
Facilities
These guys are building choppers and custom bikes that are state of the art. They don’t get thrown together in the yard; the motorcycle shops have all the tools and equipment required to produce almost anything out of metal, not just bikes. Just as important are the other services these builders use; the local chrome platers, machinists, painters and so on. These guys have just as important a part to play in the construction of these one off bikes as the designer builders themselves.
Desire
All the top custom bike builders live for one thing; building the best bikes they can. They literally live eat even dream about custom bikes (and looking at some of the more way out creations you can totally believe this from the designs they produce!) They are constantly striving to build bikes better. Its not about money for the top guys, I am convinced of that.
So where does that leave Average Joes like you and me? Actually, I don’t think we are too badly off; in fact if you want to build a custom bike, it has probably never been easier. Here’s my take on it….
Education
There is an unbelievable amount of information for the guys who want to start down the road to custom bike building. Videos, books websites, all of them help to flatten the learning curve for a novice. Most of the material out there relates to motorcycle kits, and for the beginner, building a motorcycle kit is definitely the best way to go if you want to get real hands on experience. After that there are motorcycle maintenance courses, which again will allow you to get up to speed as fast as possible in your quest to become the next Arlen Ness!
Facilities
To put together a shop like the ones you see on television costs thousands of dollars. But you don’t need all that stuff if you start with a motorcycle kit. Motorcycle kits can be put together with some pretty basic tools, providing they are of good quality. Two things that are an absolute must in my opinion though are a torque wrench and a basic lift. With these two tools, you can tighten the motorcycle kits fittings correctly, and not break your back while you are doing it!
Desire
Well this is one area where you can match the pros, no question. If you really want to be a custom bike builder, start doing it for fun and put your motorcycle kit together.
We can’t all be Billy Lane, Eddie Trotta or Russell Mitchell, but we can have a lot of fun trying.
The step from reading about building motorcycle kits and watching bike builds on television to the real thing is a little more difficult than it looks…
So you want to be a custom bike builder? Well friend, before you rush out and buy that motorcycle kit, the one that will set you on the road to riches and fame, stop and think about the level of expertise and artistry the top builders have attained. More importantly think about how long it has taken them to attain it! Let’s look at a few key issues…
Education
You’d be surprised how well educated a lot of today’s top bike builders are. Several of them have degrees (some more than one!) ranging from mechanical engineering to business and marketing management. Billy Lane, the founder of Chopper Inc, has several patents relating to motorcycle technology in his name for example. What about someone a little more “old school” like Dave Perewitz? Dave has accumulated close to forty years of mechanical, metalworking and painting experience. Not theoretical, but genuine hands on, early morning late night kind of experience. Could you put that kind of time in? Matt Hotch is still only young, but has gained an incredible amount of practical experience customizing first bicycles, then VW’s before moving on to custom bike building.
Facilities
These guys are building choppers and custom bikes that are state of the art. They don’t get thrown together in the yard; the motorcycle shops have all the tools and equipment required to produce almost anything out of metal, not just bikes. Just as important are the other services these builders use; the local chrome platers, machinists, painters and so on. These guys have just as important a part to play in the construction of these one off bikes as the designer builders themselves.
Desire
All the top custom bike builders live for one thing; building the best bikes they can. They literally live eat even dream about custom bikes (and looking at some of the more way out creations you can totally believe this from the designs they produce!) They are constantly striving to build bikes better. Its not about money for the top guys, I am convinced of that.
So where does that leave Average Joes like you and me? Actually, I don’t think we are too badly off; in fact if you want to build a custom bike, it has probably never been easier. Here’s my take on it….
Education
There is an unbelievable amount of information for the guys who want to start down the road to custom bike building. Videos, books websites, all of them help to flatten the learning curve for a novice. Most of the material out there relates to motorcycle kits, and for the beginner, building a motorcycle kit is definitely the best way to go if you want to get real hands on experience. After that there are motorcycle maintenance courses, which again will allow you to get up to speed as fast as possible in your quest to become the next Arlen Ness!
Facilities
To put together a shop like the ones you see on television costs thousands of dollars. But you don’t need all that stuff if you start with a motorcycle kit. Motorcycle kits can be put together with some pretty basic tools, providing they are of good quality. Two things that are an absolute must in my opinion though are a torque wrench and a basic lift. With these two tools, you can tighten the motorcycle kits fittings correctly, and not break your back while you are doing it!
Desire
Well this is one area where you can match the pros, no question. If you really want to be a custom bike builder, start doing it for fun and put your motorcycle kit together.
We can’t all be Billy Lane, Eddie Trotta or Russell Mitchell, but we can have a lot of fun trying.
More than 3 Million Units Sold for 2005 Jeep Grand Cherokee in North America
by: Jenny McLane
"The first Jeep Grand Cherokee created the luxury sport-utility market," said Jeff Bell, Vice President-Jeep about the best-selling SUV from Jeep. "Since then, many very strong competitors have intensified the full-size SUV market. Yet, none have matched Grand Cherokee's combination of legendary Jeep 4x4 capability, on-road refinement, technological innovations and safety features."
These are the words of Jeep's Vice President as it hits more than 3 million in sales since its debut in 1992. From then on, there is no turning back; Jeep Grand Cherokee lived up to its name with a level of comfort, ride and handling previously missing in most sport-utility vehicle, and was the pioneer for introducing a driver's side air bag to an SUV.
Jeep Grand Cherokee sales in March 2005 were 18,828 units, pushing sales to 3,013,296 units since it was in the market in 1992. The 2005 Jeep Grand Cherokee is the best among the pack. Its best features are three new full-time four-wheel drive systems, two new transfer cases, all-new independent and front suspension, rack and pinion steering, and an all-new five-speed transmission.
The 2005 Grand Cherokee was the first Jeep vehicle available with the 5.7-liter HEMI(R) V-8 and the Multi-Displacement System. MDS imperceptibly deactivates four cylinders when the V-8 is not at work.
Its exterior is marked with the Jeep brand's signature seven-slot grille, round headlamps and trapezoidal wheel openings. Chrome, gated automatic shifter and a two-tone instrument panel with an easy-to-read instrument cluster and well-crafted seats accent the new interior
Safety features include Electronic Stability Program, SmartBeam(TM) headlamps that automatically and quickly adjust high-beam brightness and intensity, All-Speed Traction Control System, advanced multi-stage air bags with an Occupant Classification System and Anti-lock Brakes System.
At Parts train, we offer great selection of aftermarket auto parts, accessories, tools, and maintenance supplies for your Jeep Grand Cherokee. Visit our online auto parts stores at
http://www.partstrain.com/ShopByVehicle/Jeep for a huge selection of Jeep parts for all models including the Jeep Cherokee, Liberty, Wrangler, Grand Cherokee, Wagoneer, and more. Our online store stocks thousands of Jeep parts for do-it-yourselfers and professional installers. Find OEM Jeep auto parts, remanufactured parts, new aftermarket parts, used parts, Jeep performance parts, and more. If you are in need of excellent quality Jeep parts fast and easy, drop us, a line and our friendly customer service staff will be glad to give you our best services.
"The first Jeep Grand Cherokee created the luxury sport-utility market," said Jeff Bell, Vice President-Jeep about the best-selling SUV from Jeep. "Since then, many very strong competitors have intensified the full-size SUV market. Yet, none have matched Grand Cherokee's combination of legendary Jeep 4x4 capability, on-road refinement, technological innovations and safety features."
These are the words of Jeep's Vice President as it hits more than 3 million in sales since its debut in 1992. From then on, there is no turning back; Jeep Grand Cherokee lived up to its name with a level of comfort, ride and handling previously missing in most sport-utility vehicle, and was the pioneer for introducing a driver's side air bag to an SUV.
Jeep Grand Cherokee sales in March 2005 were 18,828 units, pushing sales to 3,013,296 units since it was in the market in 1992. The 2005 Jeep Grand Cherokee is the best among the pack. Its best features are three new full-time four-wheel drive systems, two new transfer cases, all-new independent and front suspension, rack and pinion steering, and an all-new five-speed transmission.
The 2005 Grand Cherokee was the first Jeep vehicle available with the 5.7-liter HEMI(R) V-8 and the Multi-Displacement System. MDS imperceptibly deactivates four cylinders when the V-8 is not at work.
Its exterior is marked with the Jeep brand's signature seven-slot grille, round headlamps and trapezoidal wheel openings. Chrome, gated automatic shifter and a two-tone instrument panel with an easy-to-read instrument cluster and well-crafted seats accent the new interior
Safety features include Electronic Stability Program, SmartBeam(TM) headlamps that automatically and quickly adjust high-beam brightness and intensity, All-Speed Traction Control System, advanced multi-stage air bags with an Occupant Classification System and Anti-lock Brakes System.
At Parts train, we offer great selection of aftermarket auto parts, accessories, tools, and maintenance supplies for your Jeep Grand Cherokee. Visit our online auto parts stores at
http://www.partstrain.com/ShopByVehicle/Jeep for a huge selection of Jeep parts for all models including the Jeep Cherokee, Liberty, Wrangler, Grand Cherokee, Wagoneer, and more. Our online store stocks thousands of Jeep parts for do-it-yourselfers and professional installers. Find OEM Jeep auto parts, remanufactured parts, new aftermarket parts, used parts, Jeep performance parts, and more. If you are in need of excellent quality Jeep parts fast and easy, drop us, a line and our friendly customer service staff will be glad to give you our best services.
Do You Want to Increase Your Car’s Resale Value?
by: Sarah McBride
If you are planning to resell your car in the future and buy a new and more advanced model, then you have to exert more effort in keeping it in good shape and excellent driving condition. Even if it’s already old, you can sell it at high price if it looks and performs like new. Anyway, let’s go straight to the question: how do you improve its resale value?
The truth is, you have a lot of options in preserving its good shape and condition, but there’s one store that can completely answer your question, Auto Parts Deal. Here, a great variety of replacement and aftermarket auto parts is available for your car’s proper maintenance and upgrading. Yes, there are thousands of other online auto parts stores that provide various kinds of aftermarket products, but there are few, which meet your needs and wants and help you save at the same time. This online store definitely does both.
Aside from regular check up like most of us do to safeguard our health, you need to replace some of your car’s parts and mechanical components even if they are still working to upgrade its performance and style. If you have an old Ford F-150 truck for example, which you frequently use to haul and transport heavy cargoes, you have to continuously upgrade its performance parts so it can always perform highly challenging tasks. Ford truck parts are known to be exceptionally tough but it doesn’t mean they don’t require much attention and care.
Among the auto parts that require your utmost care are the car wheels and tires. These parts are closest to the road and their quality affects significantly your vehicle’s ride quality and handling. Replace your worn out tires and wheels with top quality replacement wheels offered at Auto Parts Deal. Here you can find the most dependable line of replacement Ford wheels, Nissan wheels, Jeep wheels and Chevrolet wheels.
For your added safety, this one-stop auto parts store also offers durable and high quality auto parts like Chevrolet bumpers, Mazda mirrors, Toyota tail lights, BMW headlights, and Dodge fog lights. All these parts are helpful in keeping you away from accidents, which of course excuses no one and no vehicle. It’s always better to be on guard and prepared for any road accidents that might happen. Also, check out the store’s top quality safety Ford truck parts, GMC truck parts, Dodge truck parts and Toyota truck parts.
Simple things like accessorizing your vehicle can go along way. This can help you sell your car with a worthy price tag in the future. But more than this, it makes your ride more comfortable, more fashionable, more convenient and safer, which in effect reduces a lot of stress in driving. So be wise, get replacement parts only from a dependable dealer like Auto Parts Deal.
If you are planning to resell your car in the future and buy a new and more advanced model, then you have to exert more effort in keeping it in good shape and excellent driving condition. Even if it’s already old, you can sell it at high price if it looks and performs like new. Anyway, let’s go straight to the question: how do you improve its resale value?
The truth is, you have a lot of options in preserving its good shape and condition, but there’s one store that can completely answer your question, Auto Parts Deal. Here, a great variety of replacement and aftermarket auto parts is available for your car’s proper maintenance and upgrading. Yes, there are thousands of other online auto parts stores that provide various kinds of aftermarket products, but there are few, which meet your needs and wants and help you save at the same time. This online store definitely does both.
Aside from regular check up like most of us do to safeguard our health, you need to replace some of your car’s parts and mechanical components even if they are still working to upgrade its performance and style. If you have an old Ford F-150 truck for example, which you frequently use to haul and transport heavy cargoes, you have to continuously upgrade its performance parts so it can always perform highly challenging tasks. Ford truck parts are known to be exceptionally tough but it doesn’t mean they don’t require much attention and care.
Among the auto parts that require your utmost care are the car wheels and tires. These parts are closest to the road and their quality affects significantly your vehicle’s ride quality and handling. Replace your worn out tires and wheels with top quality replacement wheels offered at Auto Parts Deal. Here you can find the most dependable line of replacement Ford wheels, Nissan wheels, Jeep wheels and Chevrolet wheels.
For your added safety, this one-stop auto parts store also offers durable and high quality auto parts like Chevrolet bumpers, Mazda mirrors, Toyota tail lights, BMW headlights, and Dodge fog lights. All these parts are helpful in keeping you away from accidents, which of course excuses no one and no vehicle. It’s always better to be on guard and prepared for any road accidents that might happen. Also, check out the store’s top quality safety Ford truck parts, GMC truck parts, Dodge truck parts and Toyota truck parts.
Simple things like accessorizing your vehicle can go along way. This can help you sell your car with a worthy price tag in the future. But more than this, it makes your ride more comfortable, more fashionable, more convenient and safer, which in effect reduces a lot of stress in driving. So be wise, get replacement parts only from a dependable dealer like Auto Parts Deal.
Sunday, June 3, 2007
Sales Commission - What Return Should You Expect On Your Sales Compensation Investment?
by: Alan Rigg
This article answers the following questions:
* How do most companies look at return on investment (ROI) for their sales compensation expense?
* What portion of sales compensation expense do companies allocate to managing existing accounts versus pursuing new accounts?
* Do most companies expect their salespeople to generate new, additional gross profit each year that is equal to or greater than their compensation?
One conclusion I have reached after working with many different kinds of companies is that there is little commonality in how they establish the desired return on investment (ROI) from their sales compensation investments. Every company's circumstances are different; as a result, what might constitute an acceptable ROI for one company will not be considered acceptable by another company.
Here are some questions to consider as you determine the desired sales compensation ROI for your company, and how that ROI should be split between existing accounts and new accounts:
* What is the value of each sales dollar produced? Is the value different if a sales dollar is produced by an existing account versus a new account?
* How does the time and effort required to maintain (and grow) existing customers compare to the time and effort required to bring on new accounts?
* Do accounts operate pretty much on "autopilot" once they have been brought on board, or must your salespeople continue to invest significant effort (in terms of internal prospecting, opportunity qualification, proposal generation, relationship management, etc.) to maintain sales volume and profitability?
* Once an account has been brought on board, can ANY salesperson manage the relationship, or is there something special about the relationship that exists between the current salesperson and the account?
I have seen cases where management held the opinion that ANYONE could manage and maintain the volumes of business that were being produced by major accounts. They questioned why they should continue paying high compensation to the salespeople who were managing those accounts.
In some cases management chose to reduce commission rates, which caused the salespeople who had been managing the accounts to leave the company. In other cases management simply switched account assignments and assigned less "expensive" (in terms of compensation) salespeople to the major accounts. Far too often the outcome from either approach was a slow decay in revenue that eventually added up to millions of dollars in lost sales.
Why did this decay in revenue occur? Close inspection identified two key reasons:
* The replaced salespeople had enjoyed truly special relationships with key players in the accounts. The key players' loyalty was to the salespeople, not the salespeople's employers. When the salespeople left, the key players saw little reason to continue to favor the salespeople's (previous) employers with their business.
* The replaced salespeople were extremely responsive and provided extraordinary levels of service. In some cases these salespeople were unusually successful in navigating their employers' informal networks. This enabled them to solve problems and do favors for their customers with a timeliness that other salespeople could not match.
If you determine that some of your salespeople DO have enough bandwidth to bring on new accounts, here are questions to consider as you set their "new business" goals:
* What level of market penetration has your company achieved to date?
* How much additional market penetration can your company reasonably expect to accomplish within a specified time frame?
* How many potential prospects exist in each sales territory?
* How do these potential prospects compare to your existing customers in terms of revenue potential?
* How many new prospects will a salesperson need to close to make any appreciable difference in their numbers?
Here are some final questions for you to consider:
* What percentage return are you currently receiving on your sales compensation investments?
* Do your salespeople produce multiples of their compensation in terms of profits back to your company?
* Is it really reasonable to expect your sales compensation ROI to grow every year?
In conclusion, the questions asked in this article can help you determine the desired return on your sales compensation investment, plus develop targets for ROI from existing accounts and new accounts. Don't let the fact that some salespeople earn high compensation cause you to set your ROI goals too aggressively. Instead, focus on the question, "How much return do we receive on the sales compensation we pay?" A solid return on your investment means you are completely justified in making that investment!
This article answers the following questions:
* How do most companies look at return on investment (ROI) for their sales compensation expense?
* What portion of sales compensation expense do companies allocate to managing existing accounts versus pursuing new accounts?
* Do most companies expect their salespeople to generate new, additional gross profit each year that is equal to or greater than their compensation?
One conclusion I have reached after working with many different kinds of companies is that there is little commonality in how they establish the desired return on investment (ROI) from their sales compensation investments. Every company's circumstances are different; as a result, what might constitute an acceptable ROI for one company will not be considered acceptable by another company.
Here are some questions to consider as you determine the desired sales compensation ROI for your company, and how that ROI should be split between existing accounts and new accounts:
* What is the value of each sales dollar produced? Is the value different if a sales dollar is produced by an existing account versus a new account?
* How does the time and effort required to maintain (and grow) existing customers compare to the time and effort required to bring on new accounts?
* Do accounts operate pretty much on "autopilot" once they have been brought on board, or must your salespeople continue to invest significant effort (in terms of internal prospecting, opportunity qualification, proposal generation, relationship management, etc.) to maintain sales volume and profitability?
* Once an account has been brought on board, can ANY salesperson manage the relationship, or is there something special about the relationship that exists between the current salesperson and the account?
I have seen cases where management held the opinion that ANYONE could manage and maintain the volumes of business that were being produced by major accounts. They questioned why they should continue paying high compensation to the salespeople who were managing those accounts.
In some cases management chose to reduce commission rates, which caused the salespeople who had been managing the accounts to leave the company. In other cases management simply switched account assignments and assigned less "expensive" (in terms of compensation) salespeople to the major accounts. Far too often the outcome from either approach was a slow decay in revenue that eventually added up to millions of dollars in lost sales.
Why did this decay in revenue occur? Close inspection identified two key reasons:
* The replaced salespeople had enjoyed truly special relationships with key players in the accounts. The key players' loyalty was to the salespeople, not the salespeople's employers. When the salespeople left, the key players saw little reason to continue to favor the salespeople's (previous) employers with their business.
* The replaced salespeople were extremely responsive and provided extraordinary levels of service. In some cases these salespeople were unusually successful in navigating their employers' informal networks. This enabled them to solve problems and do favors for their customers with a timeliness that other salespeople could not match.
If you determine that some of your salespeople DO have enough bandwidth to bring on new accounts, here are questions to consider as you set their "new business" goals:
* What level of market penetration has your company achieved to date?
* How much additional market penetration can your company reasonably expect to accomplish within a specified time frame?
* How many potential prospects exist in each sales territory?
* How do these potential prospects compare to your existing customers in terms of revenue potential?
* How many new prospects will a salesperson need to close to make any appreciable difference in their numbers?
Here are some final questions for you to consider:
* What percentage return are you currently receiving on your sales compensation investments?
* Do your salespeople produce multiples of their compensation in terms of profits back to your company?
* Is it really reasonable to expect your sales compensation ROI to grow every year?
In conclusion, the questions asked in this article can help you determine the desired return on your sales compensation investment, plus develop targets for ROI from existing accounts and new accounts. Don't let the fact that some salespeople earn high compensation cause you to set your ROI goals too aggressively. Instead, focus on the question, "How much return do we receive on the sales compensation we pay?" A solid return on your investment means you are completely justified in making that investment!
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