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Discussion Starter · #1 ·
I have a mate who has just started a new job as a motor bike salesman.
He thinks he is being screwed by the boss as his sales commission seems to be less than he calculates. He feels that he is not being paid his 10% sales commission on the gst component of the bike he sells.
Is this common practise in the trade. His workplace agreement simply
says 10% commission on sales.
I would have thought he would get his 10% commission on the profit
to the dealer on the bike when on roads etc were subtracted.
 

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I have a mate who has just started a new job as a motor bike salesman.
He thinks he is being screwed by the boss as his sales commission seems to be less than he calculates. He feels that he is not being paid his 10% sales commission on the gst component of the bike he sells.
Is this common practise in the trade. His workplace agreement simply
says 10% commission on sales.
I would have thought he would get his 10% commission on the profit
to the dealer on the bike when on roads etc were subtracted.
If the item being sold is $100 + 10% GST, a total of $110, the commission would be on the sale price of $100 that the dealer gets.

The $10 GST goes to the government, not the seller. The government would not give you a commission on that tax being collected.

However you mention 10% of the profit. That would be a different figure altogether, but would still be before GST is added.
 

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Discussion Starter · #3 ·
Thanx for the response.
Maybe he should re-negotiate his workplace agreement and seek 15%
After all, the sale of the bike is dependant on his skills as a salesman.
If he cant get the buyer up to the sale price of the bike which includes the GST component, then the bike isn't sold. Then after a period of time, the dealership reduces the sale price of the bike, and everyone loses
money...all because of the GST component...great tax isn't it....
But that's another story....
 

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Thanx for the response.
Maybe he should re-negotiate his workplace agreement and seek 15%
11% would get him what he wants.
A request for a 50% increase might leave him open to being replaced. Not knowing the owners mark up.

But that sales process sounds odd, having to get the price up to something. Don't they have a fixed price, and an allowed discount they can give to bring the price down.
 

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Discussion Starter · #5 · (Edited)
When I said "up" I meant if a potential buyer offered say $14K for a bike which was on the lot for say $16K (including GST) the salesmen then have to get the buyer up to $16K. Any offers of say $15500 would be bounced off the Dealer Principal. This is where the skill of the salesman kicks in.
...which is why he's being paid....
No, he wouldn't be replaced as he's the best in the business I have ever seen. But I agree, there is room for negotiation.
11% would still leave him short... 12.5% and he's almost there.
Overall, it all comes back to trust between employer and employee..
and that, we all know, applies in every walk of life.
In this particular place of employment, there has been quite a lot
of turmoil including staff turnover etc....long story...
I appreciate your interest..many thanx...
 

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Discussion Starter · #6 ·
Interested also to know if the GST component on used motor vehicles/motor cycles is added to the total price or only the profit sought on the item.
(EG say a trade in needs tyres or some form of repair effecting the profit margin...
No one seems to know this one.....been googling for days....
Anyone from the motor industry out there.....
 

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From an accounting point of view, GST is ignored when calculating profits.

Any GST paid is reclaimed from the government, and any GST collected is handed over to the government.

The net figure, before GST is the only relevant figure.
 

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Discussion Starter · #8 ·
Sorry but that doesn't help. Im interested in how/ when and why the GST is added. Perhaps I should contact a car dealer...might not get very far...
 
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