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Old 2007-04-19
Someone who knows
Anonymous Coward
 
Posts: n/a
Default Why you are really fucked - the REAL TRUTH

A lot of meaningless shit on this site. You can say all you want about how the company sucks, you work long hours, etc and most of it is true.

but.........here is why you are really fucked

Add up what you would make (if you are on commission) without FLIP. FLIP is going to die. Detroit is raising the prices of their cars. One of the major reasons ERAC is buying National/Alamo is to try to further leverage their relationships with Detroit to demand lower prices but Detroit isn't going to bite. Why sell cars to rental car companies for $100 profit, maybe even a loss...just cut production and sell cars profitably. The rental companies have to buy from you and Detroit is starting to realize this - as the industry has grown rental companies need Detroit just as bad as Detroit needs them. Once ERAC has to concentrate solely on making OP things are going to fall apart. Too much giving in to Insurance Companies on rate to battle competition. It will kill them. ERAC has been competing solely on price for a long time - they talk about customer service but you yourself know how great it really it. Airports, local markets all the same - ERAC is the "lowest cost" because it doesn't have value added services (loyalty programs, express check-in, speciality vehicles). ERAC will keep it's marketshare but profit will plunge. Don't worry - the company will still make money ("corp overhead" can be whatever they ened) but you the assistant manager, branch managers, ARM's, will be screwed.

Look at your pay plan. It is based on the prior 12 month performance. How much of that estimated pay from the last year is from flip. What will flip be the next 12 months. You will never make what you are promised. Good luck bringing OP up 50 only to see Flip fall 100! You will always lose. Per unit analysis profit is after everyone has been paid. The AM gets 2-4%, BM gets 4-7%, ARM gets 4%, admin people get .03-.05%. That still leaves over 75% going to big management.

Look at how much of your pay is based on the used car market - something you can't control no matter how good you are. This is going to bite you all in the ass. If you don't think flip is going to change ask yourself where the compact cars are. You are being forced to rent pricier cars at compact rates. You can't afford to carry luxury vehicles anymore. The Mercedes dealerships are getting killed - "don't worry about making OP these managers were told, you'll make big flip" - but it never materalizes. Get out now while you can. ERAC is a decent company in the training and sales experience it gives you and makes you very marketable to other companies. You can get paid what you are worth and get paid off what you can control. Why have your pay determined by FLIP or the lack thereof?
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