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Reply to "Target GP Margins"

I know everyone is just ball-parking it here but these questions are really hard to get dependable answers for. Most sales reps do not know what the dealership markup is prior to establishing sales cost so a 20% markup might actually be 40% from cost. The other is the compensation package. If there is compensation based on clicks or a click incentive, GP becomes less important. My payplan changed this year from being GP based to being revenue based. Consequently, I just sold a 22 unit deal with no GP in it at all but the monthly, quarterly, and potential annual bonuses (as well as Ricoh points) makes the income on the deal worth it. My point is, one person's 20% may be totally different from another person's 20%.

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