Carmax Grows Profits by Taking $$$ From Sales Consultants?

#ACwJ #carmax

Carmax profits are up, and increasingly I believe it's because they're taking pay from their sales people.
This is a story I've been following for quite some time. Back before Covid, Carmax was starting their OMNI program - remote call center people who's job was to answer questions, prequalify buyers, and help streamline and move the process along smoothly.
It seems to be working, but the problem is to pay for the program, instead of being a Corporate expense to increase sales, they take 1/2 the sales people's commission. And that doesn't go directly to the call center people, but is taken to Corporate and filtered down.
There's been much discontent around the program. While some high performing individuals say that you work less and make about as much overall, specifically by being more efficient and not doing the unpaid work required previously, many sales people are noting substantial reductions in their checks while working more hours.
And those call-center people have, in just the past 3 years, been dealing with their own compensation challenges, with bonuses slashed and capped, and new standards put in place where even top-performers are now just 'marginal'.
The end result is that for the Carmax Corporation and investors, profits are up.... but it seems to built on the backs of the sales people.
And increasingly they realize they can go to a traditional dealership and make much more money. And that's a shame.

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Видео Carmax Grows Profits by Taking $$$ From Sales Consultants? канала All Cars with Jon