The next level up would be the sales manager, the finance managers who are responsible for the back end or the financing and the extras on the transaction. Once the transaction is finalized, meaning the consumers agreed to purchase the particular type of car, they are turned over, handed off or otherwise processed through middle- or upper-level management, who is responsible for the financing, selling addition products. Many times the selling of these finance products or aftermarket items saps money from the front-end of the transaction. This means that if there was a $1,000 profit on the sale of the vehicle from the salesman’s perspective, this profit might be funneled or focused into aftermarket items, warranties or financing. Under some circumstances, finance managers would “pack” products into this $1,000 profit margin for the salesman, then making it difficult for a salesman to realize their fair share of the profit on the automobile.
With regard to the back end, the middle- and upper-level management also have issues because they are unsure as to the nature and extent of the “packs” that the upper level management and ownership are putting on the car. This means that if they sell an aftermarket product, what happens if this company is owned, operated or controlled by the ownership? Moreover, what if there are unknown packs or costs put into the price of the vehicle which reduce the upper level management’s commissionable gross proceeds? In short, each employee in this chain, from the salesman to the ownership, has particular answers and methods by which they can reduce the profit of those beneath them.