513: 129 Cars
Note: This American Life is produced for the ear and designed to be heard. If you are able, we strongly encourage you to listen to the audio, which includes emotion and emphasis that's not on the page. Transcripts are generated using a combination of speech recognition software and human transcribers, and may contain errors. Please check the corresponding audio before quoting in print.
Prologue
Ira Glass
Freddie is the general manager of a car dealership these days, but he used to be a car salesman. And he was a good one, partly because he's got what he calls the gift for the gab. His go-to move in lots of situations is to finish his sentence and then laugh, even when the sentence is bad news. Like, here he is assessing his chances of making his sales goal for the month.
Freddie Hoyt
I'll give it a 50/50 right now because it's early.
[LAUGHTER]
Ira Glass
Or this is him talking about a month when the car dealership did not make its sales goal.
Freddie Hoyt
And I'm strictly commission, so I make nothing.
[LAUGHTER]
Ira Glass
So when Freddie is not laughing, you know it's bad. In mid-October, Freddie did not laugh much at his weekly meetings with the guys who sell cars for him.
Freddie Hoyt
All right. Good morning. All right. In the beginning of the month, I went through the room and I told everybody where they had to be. Jason, you have 16 cars out. You need 10 more for the month for 26. I want to see you there.
Bob Lundy, you have six out. You need nine more. Scotty, you're at 10 right now. You need to be at 18.
Ira Glass
Last month, they didn't make their sales goal. That was September. The first week of school is always bad for car sales in the suburbs. They were supposed to sell 127 cars and trucks. They sold 82. So they have to make October.
And when I say have to make, this is not some sort of abstract, feel-good, "compete with the dealership down the block just for fun" kind of competition. They're part of Chrysler. And if they sell 129 cars and trucks by the end of October, Chrysler will pay them a bonus that's pretty much the difference between the dealership being in the black or being in the red for the month, somewhere between $65,000 and $85,000, depending on which models they sell. Different cars earn different amounts. If they sell 128 cars, fall just one car short, they get nothing.
Marc Brodlieb
That's the worksheet that Chrysler sends us to show us what money we can earn by how many cars we sell.
Ira Glass
And there's a new one every month?
Marc Brodlieb
Every month.
Ira Glass
In the middle of the month, the owner of this dealership, a sweet-faced guy named Marc Brodlieb, and Freddie, show me the document where Chrysler set their October sales goal.
Freddie Hoyt
No. No. This changes every month.
Marc Brodlieb
At their whim.
Freddie Hoyt
At their whim.
Marc Brodlieb
And that's another frustration. We have no idea what the number's going to be and really how they compute it. We've had numbers as high as 159. And we fight and we go crazy. It's cockamamie, if anyone knows what that means.
Ira Glass
Because basically they shift around the ground rules on you.
Marc Brodlieb
Every month.
Ira Glass
What makes this tricky is that there are four other Jeep dealerships within 10 miles of Marc and Freddie, and Marc says that most customers will shop price at two or three of them. So to stay competitive, Marc and Freddie do what pretty much everybody else does. They set lower prices, knock hundreds of dollars off the price of the cars, sometimes sell them for less than they pay Chrysler for them, with the hope that they're going to hit their sales goal and get the bonus to make up the difference.
Marc Brodlieb
But there's no guarantee we will hit this number. So the pressure is huge because we have already given away the money to the consumer, using that to sell the car.
Freddie Hoyt
So I need a big day today. I need a big day, no bull. I really need a big day today.
Ira Glass
So with 12 days left to go in the month, numbers wobbly, Freddie laid it on thick during his weekly meeting with the sales team. He told them he sees them over the dealership's security cams.
Freddie Hoyt
I look through the video. I watch you guys in there. All on your computers, going to different websites, chilling. Dude, get on higher gear. This is no joke. I've got to be at that number, or I'm telling you, I'm not going to be a nice guy. So put your nose right to the ground and come out shooting today, everybody.
I want balloons in all the departments. I want the radios down on. Put the convertible tops down all over the place. I want tons of balloons in the showroom. I just don't want one balloon to a car. Balloon the whole freaking place so it looks like a circus.
Make it seem like we're having a monster sale and it's a party, because we've got to be at the big number by the 31st, midnight, period, no ands, ifs, and buts.
Ira Glass
So everybody grabs balloons. Grown men inflate and tie and decorate. It's a truism in their business, balloons sell cars. And then nobody shows up for an hour, two hours, three hours-- four hours. Saturday should be one of their busiest days, and it's empty.
Brian Reed
Hey, Freddie. How's it going today so far?
Freddie Hoyt
Shit. Really bad. Really slow. Really, really slow.
Ira Glass
Early afternoon, Freddie told one of our producers, Brian Reed, that it was way slower than usual. I don't know if you can catch this, but try to notice the song that is playing over the radio in the background as they talk.
Brian Reed
What do you think it is? What's going on?
Freddie Hoyt
Not a clue. With all the advertisings out there and everything else, we should be swamped. I'm stressing. Oh, I'm stressing.
[LAUGHTER]
[MUSIC - "DON'T WORRY BE HAPPY" BY BOBBY MCFERRIN]
Ira Glass
Marc, who owns this dealership, and Freddie, who runs it, both know that most people do not trust car dealers. Most people think that they're ripping us off, throwing on extra charges, milking us for every dime. And they say, if you and I only knew the reality, we would see that, in fact, the dealer is not making a killing off us. In fact, the dealer is often squeaking by with a very thin profit margin. They say it is all very different from what people think. And to prove their point, they let us watch.
A bunch of us from our radio show, we recorded them as they headed towards the end of the month, trying to make their goal, trying to sell 129 cars, which, you know, you would think that would be very straightforward, very businesslike. After all, new cars and trucks, they're 15% of all retail sales. But if what we saw was typical, what that means is that hundreds of billions of dollars in economic activity and nearly 2 million jobs exist thanks only to millions of messy seat-of-the-pants deals, many of which barely come together, as salesmen sweat out their end-of-the-month quotas. It is way more chaotic than we expected.
And we saw things, it's true, we think will surprise a lot of car buyers. From WBEZ Chicago, it's This American Life. Today, one car dealership tries to sell 129 cars. We get to know the resolute men and women who try to pull that off.
Quick note, this show is a rerun. Everything you'll hear in this hour all happened in October a couple years back. Stay with us.
Act One: Act One
Ira Glass
So I wish I could pretend that we got interested in this subject at our radio show because we realized what an important part of the economy car sales are. And I wish I could pretend that we did a huge survey to find the most typical dealership out there. But in fact, we got interested in this topic and this particular dealership-- Town & Country Jeep Chrysler Dodge Ram is what it's called, in Levittown, New York, on Long Island-- when one of our coworkers here at the radio show, Robyn Semien, bought a used car there.
Here's how that happened. A friend of hers who knows all about cars told her that the only vehicle that she should even consider for her young family is the Honda Pilot. So she went looking online. She saw one listed on cars.com. It was at Town & Country.
And she called. And she had no intention at all of going to look at the car. But a salesman convinced her, oh, you know what? You should come out today, right today. Talked her into it, which meant an hour-long ride on a train from Brooklyn with her husband and her four-year-old.
And then once she got there, they upsold her to a newer, more expensive vehicle, a Jeep Liberty, which she drove off the lot 24 hours later. Robyn told me this story in the car in question on our first ride out to the dealership.
Robyn Semien
Yeah. I mean, the Honda Pilot, I think, is across the board, less problems, lasts longer, better gas mileage.
[LAUGHTER]
I know. I know. I know. I know, but I love this car.
Ira Glass
You got that? These people are such good salesmen, not only did she pay more, not only did they put her into a Jeep, which meant that, since they are a Jeep dealer, they could sell her a warranty, which they also did for a few thousand dollars, she came out of this loving her car and loving them. How did they do this?
Act Two: Act Two
Ira Glass
Well, before we go any further, I think I should give you a quick primer on the basic setup and cast of characters at this dealership. New cars are sold at Town & Country-- and we're going to be spending most of our time with new cars today-- by seven men and one woman, who, by the way, constantly make fun of each other in this raunchy way that we cannot play you over the radio. Just know that that's happening.
Plus, there are two guys in the finance department. And then, overseeing all of them, there are the general manager, Freddie, who you already met, and then, out on the showroom floor all day, every day, are two managers who you're going to be hearing from a lot over the course of this hour. These are Mike Perez and Sal Lanzilotta.
Of the two, Sal is the more complicated figure. Balding, with a gray goatee, he's got this vibe that is halfway between Ben Kingsley in Gandhi and the laconic hitman Mike from Breaking Bad. When Sal gets up to speak at the weekly sales meetings-- the meeting, by the way, is in the middle of the showroom-- he paces around a red convertible as he talks, reminding everybody of the basic tenets of car sales.
Sal Lanzilotta
Customer says they're not ready to buy a car. They're all not ready to buy a car. Let's go over it again. They're in a car dealership.
They got in their car, drove through hell to get here, looked for a parking spot for 10 minutes, parked, got out of the car, and walked into a car dealer. Not because the coffee's good. We went over this. Because the coffee here is not good. They came here because we sell cars, and they want to buy one.
Ira Glass
Nothing's changed in a hundred years of selling cars, he tells them at one meeting. The customer wants to pay as little as possible. We want to make as much as we can.
Sal Lanzilotta
You guys know the job, right? You've all done it before.
Freddie Hoyt
Be aggressive.
Sal Lanzilotta
Be aggressive. ABC, Bob. What's ABC?
Bob Tantillo
Always Be Closing.
Marc Brodlieb
Always be closing.
Ira Glass
OK. So these guys, the managers, Sal and Mike, sit near the front door of the showroom at this elevated platform that everybody calls the podium or the desk, and they oversee all the terms of all the deals.
And if you've ever bought a car, maybe you've wondered what really happens when the salesman leaves you and they go back and they talk to their manager, they talk to the boss. What do they do? Well, what they do is, we were told, they load their lips. Here's Freddie.
Freddie Hoyt
We tell them what to say to the customer. And we load their lips, send it back to the customer, and see where we can commit.
Ira Glass
So for instance, when one of the salesmen wants to get a woman to bring her husband in today to test drive the car that she's chosen, they huddle at the desk, a bunch of them, and Freddie starts to improv some lines for the salesman to say.
Freddie Hoyt
Listen, if you can take this car by Monday, what happens-- if I can. I'm not sure if I can do it. I have money for the weekend that I'm giving away from Chrysler. As long as you purchase it by tomorrow and pick it up by Monday, you win.
Ira Glass
He's totally making this up. There's no weekend money like this.
Freddie Hoyt
I've got extra money over the weekend through Chrysler. I want to use it. I want to give it to you. Get your husband in here.
Ira Glass
And with that, the salesman heads off.
Freddie Hoyt
That's loading the lips. You've just seen it. Loading your lips.
Ira Glass
But before the managers can load their lips, they have to figure out what price they're going to ask for and the terms of the deal and all that. And this works differently, I think, than the way that most of us imagine is happening when we buy a car. We assume that the managers and the salesmen are a unified team, and it's us versus them.
But in fact, managers and salespeople are often at odds with each other, and they spin information and they lie to each other. Here's Peter Possas, a very experienced salesman, who, at the time of this recording, was three cars shy of the 18 that he was supposed to sell in October. And what he's doing here is he's asking a couple what they want their monthly payments to be on a new car.
Peter Possas
What if I can get you the same payment you're at now? $199 for 39 months, something like that?
Ira Glass
OK, hear that? $199 a month. Then Peter marches over to talk to the managers at the desk. And listen to the number that he tells Sal that the customer wants.
Peter Possas
She wants it to be about $150 a month.
Ira Glass
$150. Not $199. As soon as Sal is out of earshot, Peter turns to the reporter who's trailing him, Sean Cole.
Peter Possas
You see what I did?
Sean Cole
So talk me through it.
Peter Possas
You heard-- well, you saw what-- she told me she wants to be at $199 a month.
Sean Cole
Right.
Peter Possas
But I'm telling him $150 because I've got to work him, too, at the same time I'm working her.
Sean Cole
Oh, so you're going lower with him.
Peter Possas
Yeah.
Sean Cole
I see.
Ira Glass
Why do this? Well, later, when the negotiations get tough, the manager, Sal, may ask Peter to squeeze the customers for a lower number on their trade-in, or maybe a higher price for the car, something that might be hard to talk the customer into. But Peter now has wiggle room. He knows he can push the couple up to $199 a month in payments because they already said yes to it. He can make up the difference there.
In fact, as the deal proceeds, it runs into a problem. The desk, the couple, and the salesman cannot come to an agreement about how much the dealership should pay the couple for their trade-in. Sal says it is worth one price. The customers say that another Jeep dealer offered them a lot more than that for the trade-in. But of course, that may be a lie. There's a saying in the business-- buyers are liars. Or maybe the other dealership is lying to the customers. Maybe the other dealership told them an unrealistically high price that they never intend to pay. That happens, too. Everyone is playing everyone.
Sal, at the desk, tells Peter, the salesman, that the customer cannot be getting that trade-in price from the competitor. It can't be true.
Sal Lanzilotta
Stop believing what the customer's telling you. That car does $16,500 at the auction. There's no way they're paying him $20,000 grand on a car that they could sell at auction for $16,500.
Peter Possas
Then I guess he's a better negotiator than me.
Sal Lanzilotta
I think he's just a better liar, and you're buying it.
Peter Possas
Yeah.
Sal Lanzilotta
That's the difference.
Ira Glass
So to summarize, the managers and the salespeople are playing each other. The customer is playing them both. Each dealership is playing the other dealerships. And the manufacturer is playing all the dealerships, with its quotas and its incentives. Chrysler sold 140,083 cars and trucks in October. This is what it took to sell one of them.
Act Three: Act Three
Ira Glass
Like I said earlier, several of us came and recorded at this dealership and each of us chose different salespeople to follow. Robyn Semien chose Bobby Tantillo. A warning to listeners, somebody uses a word in an offensive way in her story. We're going to leave that in because we're trying to document what really happened.
Robyn Semien
Robert Tantillo-- Bobby T around the dealership-- is in last place. He doesn't like talking about it.
Robyn Semien
How many cars have you sold?
Bob Tantillo
I can't keep track.
Robyn Semien
I know someone here is keeping track.
Bob Tantillo
Well, then you'd have to ask them.
Robyn Semien
I didn't have to ask them. Freddie makes it clear in that weekly speech he gives every Saturday. Remember that meeting? He goes over everyone's individual sales, gives them new goals. Bob's there that morning, too. Freddie is keeping track.
Freddie Hoyt
Bob T, you're at three. Thanks for stopping by.
Robyn Semien
Bob doesn't flinch. He sits poker-faced in a chair. A couple of guys look down or stare at their hands.
Freddie Hoyt
I want 15, Bob. 12 more.
Robyn Semien
Bobby T's new here. Before this, he was in the wholesale food business for three decades, became a car salesman a few years ago after he retired. Bob says last month, he had the most sales for a couple weeks. But last month was last month. Freddie needs this month.
Bob says the issue is, there's just so much about selling cars that's out of his control. He says his biggest problem this month is a lack of leads. One way salesmen get leads is from the internet. Town & Country lists all the cars it has online.
When people see one they like, they usually call before they come in to make sure the car is really there. But those calls go to guys in the back, in the internet department. Then when the customers show up at the store, they meet whoever they talk to on the phone, and one of the bosses at the desk hands them over to a real salesperson, like Bob. Except that Bob says he's never been handed one of those leads.
Bob Tantillo
They're going to give it to a guy that they know is-- that's been here. And they feed him the deal. That's pretty much how it works.
Robyn Semien
You have to really be tight with the desk.
Bob Tantillo
Yeah.
Robyn Semien
Bob's not tight with the desk. But Freddie, in an attempt to help out, gives Bob exactly what he wants-- his first internet lead. He tells Bob, go on back, get Dan. Dan works in the internet office, so these words-- "go get Dan"-- that's the signal for taking over an internet lead.
Freddie raises his eyebrows at Bob and nods his head slowly like, you got that? Bob misunderstands the cue. He gets Dan from the internet office, who comes up to the desk to greet the customers and hand them off to Bob, who has suddenly disappeared. No one knows where he went, so Freddie gives the customers to another salesman. A bewildered Freddie calls over to Dan.
Freddie Hoyt
And I sent Bob T over there to get you or whatever and then come back. Where'd he go?
Dan
He buzzed. So I said, you busy? Come on. He kept going to the office.
Freddie Hoyt
He's like retarded. He's retarded.
Dan
He came over to me.
Freddie Hoyt
I know. I told him, go get Dan. Come right back.
Robyn Semien
Bob walks up minutes later.
Freddie Hoyt
The whole idea was to get Dan and come back and then take over the sale. That's what Dan does.
Bob Tantillo
I thought you wanted me to get him. That's what I thought.
Freddie Hoyt
Well, that's what Dan does. He comes in. He gets the sale, and then he gives it to the salesman. So instead, now Manny got it.
Bob Tantillo
I'm sorry. I was talking to Chris about the [INAUDIBLE].
Freddie Hoyt
Yeah, exactly. Three cars out. I would.
Robyn Semien
It's hard to watch someone with a lot of experience berate someone with much less experience for not knowing better. There's a line from the movie Glengarry Glen Ross. "You never open your mouth till you know what the shot is." When you don't know the shot, it's not like you don't want to know the shot. Bob doesn't know the shot. But he's trying.
Bob Tantillo
He didn't say, there's a customer here. Take care of the customer. He said, go get Dan. So I went and got Dan. I was supposed to know what he's thinking.
It's hard. You get bullied. You get pushed around. But you let it go, move on. It's a tough job, and it's not for everybody. I told you that.
You've got to be thick-skinned. You've got to be able to take a lot, absorb a lot. He said, well, now we gave it to the other guy. OK. What do you want me to say?
Act Four: Act Four
Ira Glass
So there actually is a place at Town & Country where they keep score of who has sold what. It's in Freddie's office, the general manager's office. It's a whiteboard with each person's sales for the month to date on it. Every car or truck that they've sold is represented by a little magnetic rectangle that's roughly the size of a 9-volt battery. Everybody calls these chips. And the different colors of the chips stand for different models of cars and trucks.
And throughout the day, salesmen come and they hover around the whiteboard, seeing where everybody stands. And generally, everybody is shooting for at least 15 sales a month. At 15 sales, your commission for the next month jumps from 20% to 30%.
There's also a bonus of $600 when you hit 10 cars, $250 if you sell seven cars in the first two weeks of the month. There's money you get directly from Chrysler, and that could be anywhere between $50 and $250 per car. Mid-level salesmen here and Town & Country make around $60,000 a year. Top performers are closer to $100,000. Most of that is commissions and bonuses.
The number one salesman at Town & Country is always the same. Some months, he has twice as many sales as whoever's in second place.
Peter Possas
I've been doing this 28 years. This guy is one of the best I've ever seen.
Ira Glass
That's salesman Peter Possas standing at the board. It's the middle of the month.
Peter Possas
He's got 1, 2, 3, 4, 5, 6, 7, 8-- 15, two pending. 17 cars. Unbelievable. This guy's a born salesperson.
Ira Glass
All the veteran sales guys at Town & Country say these things about this guy. He also happens to be the youngest salesman of dealership. He's 28. Jason Mascia. Reporter Sean Cole followed him around.
Sean Cole
Jason stands out from everybody else on the sales floor in pretty much every way. He's taller than everybody else and way more focused on his appearance-- always a full suit and tie, double Windsor knot, gelled hair. He's handsome. And he isn't just the best seller at Town & Country. He's one of the best sellers of Jeeps, Chryslers, Dodges, and Rams in America.
Jason Mascia
So I'm going to go on my login here. And then, boom.
Sean Cole
He showed me this internal Chrysler company website that ranks all the salespeople.
Jason Mascia
I'm talking thousands of people. You see this national number? There is 29,000 salespeople in the whole entire country.
Sean Cole
And you're--
Jason Mascia
I'm 108.
Sean Cole
108 out of 29,000.
Sean Cole
You have a shocked look on your face.
Jason Mascia
Yeah, because I look at it and I say, that's freaking crazy. You know what I'm saying? You would think a guy that's in this business for 15 to 20 years should be doing that stuff.
Sean Cole
Jason's barely been in this business for four years. When I met him in the last weekend of October, he had already outsold everybody for the month, including a guy who's been doing this since Jason was a toddler. But he says he's not competing with the others. He's competing with himself.
Jason Mascia
I'm trying to excel. I have my own goals that nobody would even know about. You know what I mean? So I'm like my own little celebrity in my own little body.
Sean Cole
As we're sitting there talking, he pulls out a piece of paper and starts writing down everything he's saying as he says it. He always does this. I have 10 pages of notes from this interview-- his notes.
So most of the salespeople at Town & Country are shooting for 15 to 20 sales in a month. That's considered a solid performance. And Jason is not satisfied with a solid performance.
Jason Mascia
There's a number that I really want to hit.
Sean Cole
He writes down that number and circles it and then moves on.
Jason Mascia
And I would love to just achieve-- I have achieved 30 cars several times.
Sean Cole
Writes down 30, underlined "several." That is, 30 cars a month.
Jason Mascia
All right? So I've done that enough to say I could do it. Now I'm trickling--
Sean Cole
Writes down 30, plus sign.
Jason Mascia
--30-plus.
Sean Cole
For October, hoping to finish the month in the mid-30s somewhere. But Jason's own personal Olympic goal?
Sean Cole
Say what this number is that you wrote down.
Jason Mascia
This is 40. 40's a big number. You know what I mean? If you could hit 40 cars, that's more than a car per day. That's sick. That's crazy, especially when you're selling cars. You know what I mean? It's not like I'm selling suits.
Sean Cole
What took me a while to understand is how Jason sells so many cars, or what he's doing differently than everybody else. And we asked pretty much everybody else this question, but their answers were kind of generic. He's a good-looking kid, good personality, got the gift of the gab. Even Jason sort of defaults to truisms when you ask him what his secret is. Says he treats every customer like he would want to be treated.
But as much as you can figure out anybody in less than a week, I think Jason's success is due to three basic attributes, three characteristics he has that have propelled him to the top. So I'll go through those now.
Number one, constructive delusion. Now, Jason knows that a certain percentage of customers, depending on the month, will walk away from him without buying a car. Of course that happens. And yet, paradoxically, he enters every negotiation full in the knowledge that it will not happen. As we're sitting there, he drew a picture of a very lopsided hourglass with a line across the skinny part.
Jason Mascia
You know, are you looking at it half empty or half full? You know what I mean? Are you optimistic or are you-- what's the other word?
Sean Cole
Pessimistic.
Jason Mascia
Pessimistic.
Sean Cole
To Jason, the glass is not half empty, and it is not half full.
Jason Mascia
Me, I'm always at 100.
Sean Cole
It is 100% full.
Jason Mascia
Yeah, it's full. And you're like, what the hell?
Sean Cole
No, it's not. There's only half of the water there. No, no, no.
Jason Mascia
No, it's full to me.
Sean Cole
But for someone who barely possesses the word pessimistic in his vocabulary, that's not always how he seems on the sales floor. More than any of the other sellers, Jason's anxious.
Jason Mascia
I'm going crazy right now. I'm biting my nails. Biting my nails off because I'm stressed.
Sean Cole
Biting his nails, hovering around the manager's desk. It's like the dealership making its quota is personal to him.
Jason-- and this is number two on our list of attributes. Jason doesn't just want to sell cars. Jason needs to sell cars. Case in point, I watched him work this one deal, a lease on a Jeep Liberty. He played it totally cool at first. But when the haggling started, it was like someone had clamped a set of jumper cables to his ankle.
Jason Mascia
And between 375 and 329 is 46 times 39 is another 1,700. But you've got to put the value point on it. You now have a sunroof.
Sean Cole
The guy insists for an hour that he can't leave a deposit without talking to his wife. And then he leaves a deposit. Jason wins.
Jason Mascia
Anthony, I really like you. I really do.
Sean Cole
He runs outside to chat with another customer that he's already closed.
Jason Mascia
We're getting there.
Sean Cole
And at this point, he's completely dosed up on adrenaline, jabbering like a speed freak.
Jason Mascia
I just-- I just-- I just-- I just closed one-- I just closed one that I didn't think I was going to close.
Speaker 1
Really?
Jason Mascia
Yeah. The guy was on the fence. He's like, my wife, my wife, my wife, my wife, my wife. I threw something at him and he was like-- and you know those intense moments, where you're like, fuck, is he going to do it? And we did it. So exciting. It doesn't matter how many cars you do. It's like the first deal of your life.
Sean Cole
Two hours later, he's already crashed. It's like that deal never happened.
Jason Mascia
I'm struggling right now to get these deals out, man. I'm really strapped. I feel like I told you. I'm back on that feeling-- I'm back on that grind again. I feel like I need another 10 cars.
Sean Cole
The high is fleeting.
Jason Mascia
Yeah, the high's gone. I'm ready for the next dose.
Sean Cole
You're ready for the next one.
Jason Mascia
Yeah.
Sean Cole
So that's two. And then the third and final attribute that I think has led Jason to being the top seller of Town & Country, ABC. Always Be Calling your girlfriend to say, baby, I just have a couple more things to take care of and then I'll be home.
Gena
We got into an argument about it last night.
Sean Cole
Oh, no.
Gena
Yeah.
Sean Cole
This is Jason's girlfriend, Gena. She stopped by to say hi to him at the shop one of the days we were there. The night before that, he had come home too late and screwed up their dinner plans. Gena says they're always running into a store five minutes before it closes. She's imposed a no-work-talk-over-dinner rule, but Jason always has just one last thing to tell her about something that happened at work.
And they've only been together a year, so they can both still laugh about it, at least with me. But of course, working long hours can threaten everything else in your life, and the entire business of selling cars is built on working long hours, working weekends, when more customers come in, coming in on your day off, when the store needs to meet its quota. And the damage that can do is all around Jason.
The sales guy in the cubicle next to him, Peter Possas, told me managing a sales team at a dealership in Florida is what led to his divorce.
Peter Possas
Yeah, of course it did. I was never home. I missed all functions and stuff because I married my job.
Sean Cole
Manny, who sits next to Peter, is separated from his wife partly due to the business. Theresa in finance said her job caused her divorce. Sal, one of the managers you heard from before, says the job was a factor in both of his divorces.
Still, Jason and Gena wouldn't even be together if it weren't for the job. They met at the dealership when she was buying from another salesperson. And now here they are, both driving the exact same kind of car.
Jason Mascia
It's funny. We both got white Jeeps. We love them. She has a '12 I got a '14. And we just have a good time. And they're great trucks. They got everything you need, all the luxury, the right size, and they last forever.
Sean Cole
It's like you're trying to sell me now.
Jason Mascia
Yeah. And if you've ever been-- yeah, you're going to go out and buy a car before the end of the night. You're going to be like, Ira, you know what? I'll be back at the office in about two hours. I'm picking up my new Jeep. I mean, this product is like on fire.
Act Five: Act Five
Ira Glass
In the second half of October at Town & Country, sales stay slow. And going into the last two days of the month, they still have so many cars to sell that when Freddie sees me arrive in the morning on the next to last day of the month, knowing what it is that I'm about to ask him, he starts laughing.
Freddie Hoyt
[LAUGHTER]
Oh, boy. Here we go. We're behind 16 cars for the month so far. And that's not good. That means I need 16 cars between today and tomorrow.
Ira Glass
Here's how hard that number is. Freddie tells me that he only expects 15 or 16 customers to show up in the store each day, which means that to get to his number, he's going to have to sell a car to every other person who walks in the door.
And what my fellow radio producers and I witness over the next two days-- OK, some deals do go through, but it's almost a catalog of all the ways that a car deal can fall apart. There were the obvious ways. A young woman doesn't get approved for her car loan. A father and son promise to come back tomorrow to sign the papers and take the car. They never come back.
But there turn out to be all sorts of other ways that a car deal can implode that we had never imagined or conceived. For instance, Bob T.
Announcer
Bob, please see Rich in Finance. Bob.
Ira Glass
You remember Bob T, the salesman with the lowest sales of anybody this month. A deal of his starts to unravel after the paperwork is signed, after the deposit is paid.
Basically, what happens is he told a couple that their new car is $2,000 cheaper than it actually is. They found out the truth while talking to Rich, the finance manager, and kind of hit the roof.
Customer
Why am I thinking I'm getting screwed here?
Ira Glass
Bob T was also surprised. He himself thought it was $2,000 cheaper. The finance manager, Rich, tells Bob T that Bob T should have, first, better understood which rebates the couple's qualified for. That's where the mistake was. And second, he should have explained it to the couple.
Rich
You left the middle out. You left the meat of the sandwich out.
Bob Tantillo
That wasn't told to me. It was that we were going to give him the same discount. That's what I understood. I'm only going by the numbers that were given to me, and I gave him the numbers, and he signed it. It started with $28,960.
Ira Glass
Rich manages to save this deal, but barely.
Then around 7:00 at night on the next-to-last day of the month, one of the salesmen, Scott Froehlich, gets some weird news about one of his sales. He tells one of our producers, Jonathan Menjivar, that some customers that he had just sold a car to were now coming back to the dealership, but not to pick up their new car and take it home. No, no, no.
Scott Froehlich
They have to pick out another car because the other car was sold and nobody marked it.
Jonathan Menjivar
It was sold?
Scott Froehlich
Yep.
Ira Glass
That's right. They accidentally sold the same car twice to two different customers.
Here's how it happened. Scott had sold a red Jeep Grand Cherokee to this customer, this guy who came in with his dad. They left a deposit. But another salesman, Mike Lester-- everybody calls him Mike L-- had already sold that same car the day before. The customer hadn't picked up the car yet. And the little magnetic chip that they use to keep track of the sales, the one for this car, nobody had put it on the whiteboard in Freddie's office, the board that keeps track of who sold what. Scott is not happy.
Scott Froehlich
I want a drink. You're welcome to come over for a fucking drink.
Ira Glass
Or maybe this does a better job capturing his mood.
Scott Froehlich
God, I want to shoot myself right now.
Ira Glass
An hour later, the customer is back on the lot with his dad, and Scott walks up to him. And maybe this is the time to tell you that Scott moonlights as a mortician, which means he's used to handling all kinds of situations with customers. And so even though he did absolutely nothing wrong, here's what he says.
Scott Froehlich
I fucked up and I sold a sold car.
[LAUGHTER]
I'll admit it.
Customer
Broke my heart, Fredo. Broke my heart.
Ira Glass
Hope you got the customer's Godfather reference there.
Scott tells him that if the other sale falls through, the car is his. But the other deal does not fall through, so Scott and the guy go wandering around the lot in the dark, looking for another Grand Cherokee-- red. The guy is set on red. And they find one.
Scott Froehlich
What is this one?
Ira Glass
Yes, it is another red Grand Cherokee. Scott writes down the stock number, runs to the desk to check it out, and it has also been sold. Scott's only hope is that that deal will fall apart and he can sell the car to this customer, who he sends home. Fingers crossed.
The night, however, is still not over. Then around quarter to 8:00 that night, something happens at the desk that really, really ticks off the manager, Sal.
Sal Lanzilotta
The amount of stupidity that just happened far exceeds anything I have ever experienced in the car business.
Ira Glass
OK, here's the short version. Stephen Brown, a computer engineer from New Jersey, has come in to finalize a deal on a new Dodge Challenger coupe. Sal greets him.
Sal Lanzilotta
How you doing?
Stephen Brown
I'm all right.
Ira Glass
Stephen is Lori's customer, the one woman on the sales team. But Lori is out sick. Stephen tells Sal that she texted him that somebody else was going to be taking care of the deal.
Sal Lanzilotta
She didn't tell you who?
Stephen Brown
No. She just texted a message about--
Sal Lanzilotta
All right, Give me a few minutes. If you want, you can grab a seat in the waiting area over there.
Ira Glass
Stephen sits down. Sal gets Lori on the phone.
Sal Lanzilotta
I have a customer of yours here says someone else is supposed take care of him. Who's supposed to take care of him? All right, good. Mike Lester's gone for the night. So now what do I do? Well, he's gone, too.
Ira Glass
Sal pages Scotty, but he's not around. Peter's around, but he's working another deal. Then, you know how in every shop of every kind everywhere there is that one team-playing, late-staying, extra go-gettery kid you can turn to who will always help clean up whatever weirdo mess just erupted one hour before closing? Yeah. In this case, that would happen to be--
Sal Lanzilotta
Jason, what are you doing right now?
Ira Glass
Jason comes over to the podium. Sean Cole, who is trailing Jason, picks up the story from here.
Sean Cole
So Jason comes over to the desk, and Sal explains what's going on.
Sal Lanzilotta
Here's the rundown. You ready? This is Lori's customer. The customer came in to see Lori. Lori's not here today, so she set it up with Mike Lester. Mike Lester went home. Mike Perez knew about the deal. Mike Perez went home. TK's a finance manager on the deal. He's off today. So now I'm supposed to piece this together.
Jason Mascia
What are we doing?
Sal Lanzilotta
I'm not quite clear.
Jason Mascia
Is the thing billed out?
Sal Lanzilotta
I'm not quite clear.
Jason Mascia
OK. So what am I doing right now?
Sal Lanzilotta
It's not quite clear.
Jason Mascia
He's not quite clear.
Sal Lanzilotta
I know the call was ready last-- how you doing, sir?
Jason Mascia
Good. I'm Jason.
Sean Cole
Now, this isn't a situation where Stephen just needs to sign some papers and pick up the keys to his new car. There are still a lot of steps to march through.
Jason Mascia
(WHISPERING) I have other things to do.
Sean Cole
He finds the folder and learns that Stephen and Lori never got to a final final offer for his trade-in. In order to do that, the car has to go up on the lift for a full inspection in the service department, which is inexplicably closed on this, the second-to-last day of the month, when they need absolutely every sale they can get.
Sal Lanzilotta
They didn't call me to see if they could leave. We're going to lose this deal.
Sean Cole
With no inspection, there's no trade-in. And with no trade-in, there's no deal. Somebody finally does a cursory inspection on the car, without the lift, in the dark.
All the while, Stephen is getting more and more anxious that no one seems to know what's going on. Jason tries to get him in with the finance guy to work out the terms of the deal, but the finance guy's busy. Jason explains this to Sal, which sets Sal off again.
Sal Lanzilotta
He needs to sit with that customer. This is a--
Jason Mascia
No, don't worry. Don't get excited. Don't get excited.
Sal Lanzilotta
Dude, I'm about ready to walk the fuck out.
Jason Mascia
No, don't get--
Sal Lanzilotta
Like, no bullshit.
Jason Mascia
No, don't get excited.
Sal Lanzilotta
OK? I've never been in a store this fucked up in my life.
Jason Mascia
Don't get excited. I don't want you to get excited. I want you to just remain calm.
Sean Cole
This is actually the third time Stephen's made the trek out here from New Jersey. It's a two-hour drive he does not want to make again.
Stephen Brown
I love the car, but if they don't get--
[LAUGHTER]
They're going to have to get it done.
Sean Cole
They cannot lose this deal. They're still 10 cars short of their monthly goal. When Stephen does sit down with the finance manager, he can't get the interest rate he wanted, 3.3%. They finally resolve that, but then he doesn't have insurance for the new vehicle, or he hasn't called Geico to transfer the policy from his old car, and he takes care of that, too.
But then, as he's transferring his stuff from the trunk of his old car into the new one, the billing office notices a glitch. Something's wrong with the new insurance card from Geico. Stephen's address isn't on it. And the date on it says October 31, even though it's October 30. That means Stephen won't be able to legally drive the car until the following day.
Jason Mascia
Tiffany, good aft-- good evening. This is Jason. I'm a sales representative at Town & Country Jeep.
Sean Cole
Jason gets on the phone with Geico, thinking maybe it'll be an easy fix. It won't be. We all stand around and watch him work this thing.
Jason Mascia
I'm sitting with a client of yours, and he's purchasing a vehicle, picking it up tonight. I have the ID card.
Sean Cole
It's quarter past 10:00 at this point.
Jason Mascia
But it's not like he's opening up a new policy. So what are we doing here?
Sean Cole
Then it's 10:26.
Jason Mascia
Well, we've got to try to make an exception, if you can. Please talk to your supervisor one more time, if you can.
Sean Cole
Finally, Tiffany comes through.
Jason Mascia
Oh, my god, you're the best.
Sean Cole
Geico says it'll email a new insurance card. Jason keeps Tiffany, the operator, on the line until everything is squared away with the billing office.
Jason Mascia
How long you been working for Geico? You sound like you really got a lot of enthusiasm for what you do.
Tiffany
(LAUGHING) Thank you.
Sean Cole
Billing gives the all clear. We all follow Stephen out to the parking lot. It's about 11 o'clock at this point. Jason giddily watches him tear out of the parking lot and hang a right.
Jason Mascia
Jersey's that way! He went east. Jersey's west. Oh, my goodness.
Ira Glass
Well, coming up, car talk continues. That feels really weird to say. But it's true. That's in a minute from Chicago Public Radio when our program continues.
Act Six: Act Six
Ira Glass
It's This American Life. I'm Ira Glass. Today's program is a rerun. We did all the reporting for today's show a few years ago during a month, October 2013, when car sales were strong, up over 10% what they were a year before around the country. That's 1.2 million new vehicles sold that month. But that doesn't mean that every dealership in every town had an easy time of it.
And today on our program, we watch one dealership, just one, on Long Island-- Town & Country Jeep Chrysler Dodge Ram is what it's called-- as they try to make their sales goal of 129 cars for the month. If they sell 129 cars, Chrysler is going to pay them a big bonus, and they need that money to be in the black for the month. If they just sell 128, bupkis.
Ira Glass
So it's 9:15 in the morning on the 31st. How many cars do you got to get?
Freddie Hoyt
Nine.
Ira Glass
That's Freddie, the general manager here.
Freddie Hoyt
Nine more.
Ira Glass
And what do you have to say about that?
Freddie Hoyt
God help us.
[LAUGHTER]
God help us. I don't know. It's going to be-- it's going to be hard.
Ira Glass
On a good month, he would start the last day with just two or three cars to sell. Nine. That's crazy. And it's Halloween, which means that lots of potential customers are going to be out with their kids today.
Everybody is so tense that it's not even 10:00 in the morning and a customer walks out without buying a car.
Customer
No, we're done. Sorry, but we're done. I came in to make a deal, and that's not what I was expecting.
Manny Rosales
Thank you. Have a good night.
Ira Glass
And one of the managers, Sal, has this edgy little conversation with the salesman who let him walk out.
Sal Lanzilotta
What happened to that guy you were working?
Manny Rosales
He left.
Sal Lanzilotta
You've got to stop doing that, bro.
Manny Rosales
How do I stop doing that? You don't help. You got a meeting--
Sal Lanzilotta
You didn't even come up here. How am I supposed to help? Where's my crystal ball, in the shop? Do it again, you're following him.
Manny Rosales
Let's do it. Let's do it right now.
Sal Lanzilotta
Go ahead. Pack up. Go.
Ira Glass
He doesn't go.
Sal Lanzilotta
Un-fucking-real.
Ira Glass
The morning's still young when I find Freddie in his office selling a car to himself-- a loaner car for the maintenance department to lend out to customers who are getting their cars repaired. He's allowed to count that in his sales total.
Freddie Hoyt
So now we only need eight more. See, it's starting to come together already.
Ira Glass
By mid-afternoon, he'll buy a second loaner car for the dealership. Back in February, Freddie bought a Durango for his wife to make the number that month, replacing a car that he had just bought a year before for her for the same reason.
Act Seven: Act Seven
Freddie Hoyt
Joe? What's the story with your cars?
Ira Glass
Freddie is calling Joe Monti, one of the guys who runs the used car side of the business at Town & Country. Joe has got his own goal to hit for the month that is separate from the new car goal. 70 used cars. That's the number Freddie set for him.
Freddie Hoyt
Is any of them going out yet or what? What are we doing?
Joe Monti
They're all going out, boss.
Freddie Hoyt
OK, but how come none was even delivered yet? I'm still sitting at six.
Joe Monti
Yuri's delivered the Chevy Trailblazer.
Freddie Hoyt
Hold on. What?
Ira Glass
While we were at Town & Country, we asked everybody what it would mean for him or her personally if the team did not make its sales goal. And it was actually this guy, Joe Monti, over in used cars, who gave us the best picture of that. Sarah Koenig hung out with him for a while.
Sarah Koenig
Joe's particularly stressed out this month. Half the time I'm with him, it feels like he's fighting, even with customers.
Joe Monti
Nobody's giving you a runaround, Jessica, OK? Yelling and screaming and being rude and threatening is not going to get you anywhere. The car-- the car-- the car is a great car.
Sarah Koenig
Next fight, he calls a woman in the back office who he thinks ratted to Freddie about a deal she didn't like.
Joe Monti
Theresa? Well, can you pick up the phone? Nails could get done later. Why did you run-- why did you run to Freddie? Why did you run to Freddie and tell Freddie about a Chrysler 300? Whose conversation? Why were you talking to Eddie? First of all, if a manager writes off on a deal and signs it-- she hung up the phone.
Sarah Koenig
I'm sort of surprised anyone would have the balls to fight with Joe. He's a big man-- 350 pounds. Large and in charge. The day I meet him, he's wearing a gray tracksuit,
but what I quickly find out is that he's wearing a tracksuit because it's his day off. He's supposed to be at his son Mike's football game against Malvern. He hasn't been able to catch an away game all season, and he took this one Sunday off to do it. It was important to him.
For so many years, he wasn't around enough for his kids. He's working all the time. Joe knows Mike will be looking for him in the stands right about now. And he's not going to be there because he's here at the car lot.
Joe Monti
We're a little shorthanded, so I've got to be here, which is not a problem. Listen, if I'm making money, I'm making money. Just it's a catch-22. You're missing a game, but that's the car business.
[LAUGHTER]
That's the car business. I'll make it up to him later.
Sarah Koenig
Yesterday, Joe was late to his mother-in-law's surprise 70th birthday party. And last week, he was late for his own mother's 60th. The used car side of Town & Country is supposed to sell 70 cars by the end of the month. That's Joe's version of the 129 on the new side.
When I first met Joe, used was at 35. At stake is Joe's big year-end bonus. Joe wouldn't tell me the amount of the bonus, but he made it clear it's very, very nice. Down-payment-on-a-house nice.
Since he fell so behind the last couple months, this month, October, is make or break for Joe. He's got to get to at least 70 cars if he wants any hope of reaching that bonus by the end of the year. And it's not looking good. 20 years in the business, Joe's never seen a stretch this slow for this long.
Joe blames it mostly on Hurricane Sandy. A year ago, tens of thousands of people lost their cars all at once. And they got new ones all at once. So now, a year later, tens of thousands of people are out of the used car market who normally would be buying and selling right now.
Joe Monti
We had two weekends in a row we sold one car.
Sarah Koenig
Oh, my god.
Joe Monti
For two Saturdays and two Sundays, and we sold one car.
Sarah Koenig
In the whole weekend?
Joe Monti
The whole weekend. The whole two weekends, we sold one car. There was days we didn't see a customer.
Sarah Koenig
Joe goes outside to do an appraisal on a Nissan Quest. This also gives him a chance to have a cigarette, one of about 40 Parliaments he'll smoke today. His wife and kids get on him about the smoking. He's got six kids. Six kids-- two are grown, four of them still at home.
Joe's the only breadwinner in the family-- always has been-- so it's all on him. Even in the best of times, Joe's a worrier, like his grandmother. He's 42 years old, but he looks older. In the past year, he's gained about 80 pounds.
In the parking lot, Joe throws away a half-smoked cigarette and then looks over the Nissan Quest. Tires are so-so. Needs some detailing. It's got a cracked taillight and a bad CARFAX report, meaning it's been in an accident. $2,000 is fair for this car, Joe says. It's what these are going for at auction.
He tells me the customers are going to want at least $2,500, but there's no way he can do that. $2,500 is just too much. He heads back inside.
Joe Monti
$2,500, that's everything.
Sarah Koenig
Instantly caves.
Joe Monti
That's what I will do.
Sarah Koenig
He needs the deal. They shake on it.
Joe was about 22 when he started in the car business. He had a baby at 18-- his son, Joseph-- and then four more kids-- Dean, Chris, Michael, and Adriana, plus his stepson, Louis.
Joe himself was one of five kids. His mom raised them by herself, no dad around, no money. He moved around a lot. With his own kids, he's the uptight parent, the one who doesn't laugh enough, the one who hammers them about consequences. He wants his kids to fear his wrath but also to know he loves them. Sometimes, it's tricky for him to balance that or even to talk about it.
Joe Monti
I have a good relationship with my children. I didn't have a father. So it's hard to do something when you don't know how to do it. Sometimes you don't know how to do-- I'm like a manly man.
So I love them very much, but I don't know how to sometimes show it to them. I kiss them. I hug them. But you know what I'm saying? Something that I have to adapt to. But that's it. They're good. They're good kids.
Sarah Koenig
Joe wants his kids to have more stability than he had growing up and a better standard of living. For 16 years, they all lived in a big house in Smithtown in a fairly wealthy neighborhood. And Joe says there was pressure there. Some other kids at school had fancy clothes and extravagant vacations, blow-out sweet 16 parties. He didn't want his kids to feel less-than, so he made sure, within reason, that they had what the other kids had.
But three years ago, he left Town & Country for another job at a Toyota dealer, and it didn't go well at all. He lost-- well, he says he lost everything. But in any case, it was a lot of money. They sold their big house in Smithtown and moved to a smaller house in Levittown, about five minutes from the dealership. And in a lot of ways, Joe's glad about that. It's made them closer as a family, he says.
But he's also trying to work his way back up. He'd like to be able to buy them all a bigger house, give everyone a little more room. That's why he's so worried about this bad stretch of business and about getting that bonus.
Toward the end of the day, his son Mike calls. Joe's already spoken to the coach about how the football game went.
Joe Monti
Two sacks and two tackles. That's great.
Mike Monti
OK. Wait, Dad.
Joe Monti
What?
Mike Monti
Do you think [INAUDIBLE] to your job so you can give us some money so we can go get something to eat?
Joe Monti
Yeah. All right. I'll be home in probably, hopefully, like 20 minutes, and I'll give you money to go out to eat.
Mike Monti
OK. [INAUDIBLE].
Joe Monti
All right. Bye.
Every one of them. And it's hard to say no. You try your best. When you're doing well, it's no big deal, and you can take care of them. And then there's just doing well to where you're making it by.
What is it? Today's October. What's going to happen in a couple of months when my son's get ready to leave for college? Am I going to have the money?
Act Eight: Act Eight
Ira Glass
It's mid-afternoon on the new car side of Town & Country. So what do you do all day on the last day of the month when you need to sell everything you possibly can? Well, instead of waiting for customers to come into the store, you call up any lead you have and try to close deals right over the phone if you can.
One of the salespeople, Lori, does this with a previous customer. Jason also sells to a guy he knows over the phone. Peter gets a lead from a cop upstate that he sold a Durango truck to. The lead is a friend of the cop's, also a cop, who wants the same deal his friend got. Peter gets him on the phone and says he'll give him the deal for two reasons.
Peter Possas
One of them, you were referred. And the other one is you're an officer of the law, and we respect that over here, big time, just so you know.
Ira Glass
Of course, this leaves out the third and main reason for the great deal that he's getting-- they need eight more sales by 9 o'clock. And the cop ends up buying his Durango for $2,214 less than the dealership paid for it. Even after finance charges and holdback and all the other ways they make money, they still lost on this one.
Ditto this guy, Richard Massana. He was going to get an oil change this morning and stepped in on a whim and they showed him numbers way lower than any other dealer that he'd been to. Richard called up his wife to let her know, hey, surprise, we're getting a new truck. On his test drive, he still seemed amazed at what was happening.
Richard Massana
Who would have thought Halloween, buying a truck? I never thought it would happen.
Ira Glass
His payment will be $425 a month. The salesman says later that it should have been $525, but it's the end of the month. Turns out, yes, it is true that you do get a better deal at the end of the month at Town & Country-- at least any month that they're struggling to make their goal.
When you actually look at the numbers, the cars that they sell on the last two days, the average deal actually loses money versus the deals that they make at the beginning of the month, where they made about $900 per car. OK, for car people, I'm now going to say these words. I am factoring in everything they made on financing and warranties and extras and holdback and the 1% they get from Chrysler on every car when I make that statement.
I am not factoring in any money that they would get if they hit their number and get their bonus from Chrysler. That would add about $500 per car, which still does not give them a huge profit per car. It used to be a lot higher. But today, because people research prices on the internet, profit margins on new cars are lower than what they used to be, not just here at this dealership, but everywhere in the car business.
The owner of Town & Country told me that he used to make $500 more per car, and each salesman made more per car. Now they all have to make it up in volume. So it's more of a grind, a harder job with tighter deals and less reward.
And if you're wondering, car dealerships make less profit than other businesses. A recent study by an outfit called Sageworks found that car dealers end up with less than $0.03 on every dollar they make as profit, which is less profit than furniture stores, office supply stores, restaurants. Lower than pretty much everything but grocery stores. When car dealers say that they are not making a killing, on average, it's true.
At some point during this last day of the month, one of the deals that they had been counting on falls through. Mike Lester's sale of a red Grand Cherokee. But turns out that's no problem for the dealership because Scott has a customer who wants that exact same truck. You remember that deal the day before, where two salesmen sold the same car to two different customers. The mortician? It's that salesman and that customer, and the salesman, Scott, is very, very happy. And the only bad news about all of this is what it does to Mike Lester's sales total for the month.
Mike Lester
That drops me down to 14.
Ira Glass
14 sucks because, like I said earlier, 15 is the magic number. 15 is where the serious bonuses and commissions kick in. Most of the guys count on getting those.
Mike Lester
It could add up to big money.
Ira Glass
But then, Scott, whose customer is now going to get the red Grand Cherokee, Scott realizes what this means for Mike and says to Mike--
Scott Froehlich
Wait, is that your 15th car?
Mike Lester
Yeah.
Scott Froehlich
You take the chip. Give him the chip. Switch it around.
Mike Lester
OK.
Scott Froehlich
And split it with me.
Mike Lester
OK.
Ira Glass
Now Mike will get the credit for the sale. He's at 15 again.
Mike Lester
OK, yeah. Love you, Scott.
Ira Glass
Scott kisses Mike on the cheek. Producer Brian Reed witnesses all this.
Brian Reed
So you're at 15 now?
Mike Lester
Yes.
Brian Reed
Did he owe you one, or?
Mike Lester
No, but we always help each other out, especially on the last day of the month.
Brian Reed
How do you feel?
Mike Lester
Excited.
[LAUGHTER]
Act Nine: Act Nine
Ira Glass
So amidst anxious salesmen and salesmen literally running to the desk or to finance, there is one salesman who is a model of calm. Even his cubicle is different from everybody else's. There's no swag. There's no pictures of family. There are no good luck charms. It's bare. The salesman, his name is Manny Rosales, says he doesn't like the distractions. One of our producers, Brian, who you just heard, got to know him.
Brian Reed
Manny is 58, born in Peru. He has gray hair and glasses. One morning at the showroom, he gestured cryptically for me to come over to his desk, as if he had a secret to tell me. Turn that off, he said, pointing to my tape recorder.
I explained that I was a radio reporter and I needed to record whatever he was going to tell me for it to be useful, but he wasn't having it. He seemed unimpressed by our little radio story. He said my colleagues and I were like fishermen who had no idea what we were angling for. We had no focus. We were just casting blindly.
Manny, I soon learned, is a man of many metaphors. I put down my recorder. The thing you need to be paying attention to, he said, is the negotiation. The salesman is the tiger, and the customer is the deer.
The tiger has to eat, and you can't eat if you don't kill that deer. He moved his right hand up and then clamped his fingers around his own neck. You have to go for the neck, he said. But if you try to kill him too early, the deer will wake up and run away.
As the day went on, I kept trying to get Manny to let me record him, but he wouldn't. Instead, he'd come up to me while I was interviewing someone else, point to his head very deliberately, presumably to his brain, give me a knowing look, and then walk away. At one point, we found ourselves facing each other at his desk. He asked me if I had read the greatest book ever written about car sales. I don't think so, I told him. What is it? The Art of War, he said, by Sun Tzu.
Sun Tzu, as you maybe know, was a military general and strategist in ancient China. The Art of War is his magnum opus, where he lays out his tactics for how to succeed in conflict. And though Sun Tzu was writing about actual war, the book has become well known in business and sales circles. It's kind of like The Seven Habits of Highly Effective People, if that had been written in the fifth century BC on individual strips of bamboo.
So I went to the bookstore and bought a copy and then headed back to Town & Country.
Brian Reed
Manny, how are you, sir? Can I show you the homework I've been doing?
Manny Rosales
Please.
Brian Reed
I handed him my copy of The Art of War, which I'd marked up with notes about its relevance to car sales. I could see why Manny felt that it spoke to his profession. Lines like, "draw them in with the prospect of gain," "take them by confusion" seemed especially on point.
Manny Rosales
How far are you?
Brian Reed
I finished it.
Manny Rosales
You finished it? OK. I want to ask you a question. What have you learned?
Brian Reed
What have I learned? Well, I'm here to learn some more.
And I was in. For two days, Manny took me under his wing with my recorder running and became my sales sensei.
Manny's kind of an unusual car salesman because he has no affection for cars at all. If a customer asks him how much horsepower a car has or how quickly it can go from 0 to 60, usually he has to look up the answer or go ask a coworker. He has no interest in that stuff. So instead, Manny developed a way to sell the customer using a different approach.
Manny Rosales
The psychology. How you penetrate his brain.
Film Narrator
Sun Tzu says all warfare is deception.
Brian Reed
To help me understand this-- how to penetrate the brain of one's opponent-- Manny showed me a couple of movies on YouTube. One was a re-enactment of the Second Punic War in the third century BC, Hannibal's campaign against the Romans. Manny wanted me to pay attention to one battle in particular from that war, the Battle of Cannae.
Film Narrator
One of the bloodiest ever fought.
Brian Reed
At Cannae, Hannibal's troops were vastly outnumbered. He had about 40,000 men versus Rome's army, which had roughly 85,000.
Hannibal
The Romans will have the confidence that comes only with greater numbers. We'll present them with the unexpected and watch them fall apart.
Manny Rosales
See, that is the secret. Present the unexpected.
Hannibal
Our forces will be arranged like this.
Brian Reed
The details of Hannibal's strategy are a bit complicated to go into here. Manny had to draw me a diagram to help me get it. But let's just say it involves an unusual troop formation that made the Romans think they were gaining ground when really they were at Hannibal's whim.
Hannibal
At this point, the Romans will think they have won. Let them taste victory.
Brian Reed
We're watching this, remember, on a laptop on the showroom floor. Customers are milling about, checking out the new cars, as Hannibal's mercenaries and cavalry encircle the Romans and trap them for good.
[BATTLE SOUNDS]
Manny Rosales
And now the killing has started.
[BATTLE SOUNDS CONTINUE]
Brian Reed
So how does Manny use this to sell Dodge Chargers? Well, just like Hannibal would, he presents the customer with the unexpected.
What they expect is for the salesman to be pushy and try to coerce them into buying a car at a certain price. So Manny does the opposite. He acts as if he doesn't even want to sell the car. He agrees with the customer, uses a similar tone, repeats words the customer says. If someone comes in and says he's just there to browse, not to buy, that's totally fine, Manny will say, and he'll back off.
Manny Rosales
The idea is to make them believe that he's doing everything from his point of view. So he's thinking he's playing his game.
Brian Reed
But he's really not?
Manny Rosales
Absolutely not.
Brian Reed
What game is he playing in reality?
Manny Rosales
My game. Simple. Simple.
Brian Reed
Manny gave me an example of this that he'd executed a few days earlier with a customer named Julio, who was looking for a Jeep Grand Cherokee. Julio runs warehouses for a living and negotiates for his company, so Manny knew he'd be a formidable opponent. Julio told me later that he'd already visited seven other Jeep dealerships by the time he got to Town & Country and was calling and texting with another three.
When he sat down across from Manny, Julio made the first offer, $36,000. The Jeep was listed at $45,000, so Julio's offer was absurdly low. Julio knew it was unrealistic. He expected Manny to say no way, that he could never give it to him for that price.
But then listen to what Manny did instead.
Manny Rosales
I said, all right. If I can sell it to you for $36,000, are you ready to do it right now? Show me the money. Where's the credit card?
Brian Reed
Where's the credit card. Manny says this was the key move, the unexpected move.
Manny Rosales
Because they never thought I would say yes. Suddenly, they don't know what to do or what to say. They get confused. He cannot back up because that's what he said to me. If you give me $36,000, I'll buy the car.
[BATTLE SOUNDS]
Hannibal
At this point, the Romans will think they have won. Let them taste victory.
Brian Reed
So he pulled his credit card out?
Manny Rosales
Absolutely. He gave it to me. And I said, all right, let me take the offer to my manager, even though I knew that we cannot do it.
Brian Reed
After days of negotiation, Manny ended up scoring this deal. Julio paid $40,000 for the Jeep, which was low. The dealership lost money on the car. But after it was all over, Julio told me that this move, when Manny pretended to take his low offer seriously, he said, without that, he would have walked out of Town & Country immediately, which would have meant no sale, nothing towards the monthly quota.
Act Ten: Act Ten
Ira Glass
By 4:00 PM, the hustling in the showroom is paying off. Chips are going up on the board in Freddie's office. Even one of the guys in the back rooms is pitching in-- a finance guy, Terrance Kelly, TK. He's reaching for the phone.
Terrance Kelly
So basically, the numbers are down. They need all the deals. So they made me call my niece in Las Vegas, believe it or not. She's been trying to buy a car anyway.
[PHONE RINGING]
Katie
Hello?
Terrance Kelly
Hi, Katie.
Katie
Hey.
Terrance Kelly
How are you? I have you on the speakerphone.
Katie
OK.
Ira Glass
TK's got 34 nieces and nephews. Katie is his goddaughter, though, so he keeps a special eye out for her. At the time that this was recorded, the rest of the family didn't know that she was pregnant, though he did. Even though he did not know, until he picked up the receiver and started filling out the forms for the car sale, her fiance's last name.
Terrance Kelly
OK. Charles Parker? You're getting married to somebody with the last name of Parker? Oh, Barker. Oh. Is he related to Bob at all?
What does he do, by the way? I never asked you. Ooh. HVAC company? Nice. I like that. Well, as long as he's happy. You're in the right area for air conditioning, I guess.
Ira Glass
The dealership is selling the car to Katie below cost at a $900 loss. And TK is going to end up spending $1,200 of his own money to ship the car out to her in Las Vegas. And this? This is the sale that puts him over the top. This is the 129th sale of the month.
Just a few minutes before 5 o'clock, right after this happens, I stop by Freddie the general manager's office. Nobody is running into high fives. There's not even a staff announcement on the PA saying they made it.
Ira Glass
I've got to say, it's weirdly anticlimactic.
Freddie Hoyt
There's no hurrah. There's no balloons falling from the ceiling. We did our job. Everybody earned their paycheck. That's the bottom line.
Ira Glass
And then the clock starts ticking tomorrow morning on next month?
Freddie Hoyt
We're all a bunch of losers tomorrow morning. You start all over again. That's how it goes. Oh, the wife. Oh, my god. Don't get married.
We're fighting because I told-- she says to me, what time are you getting home? I said, what time do I usually get home at the end of the month? Whenever I get home. What, do you want a time card? What, am I in punching in?
I said, when I get home, I get home, and I hung up on her. So now she's pissed and she's texting. "OK, so why do you have to bite my head off?" I told her she should've married a plumber. 9:00 to 5:00, OK? Weekends off, OK?
Ira Glass
He texts her back. This fight actually continues for the next few hours over text message. Then, at 6:57, two hours before closing, one of the managers, Mike Perez, and Jason start huddling the desk, a little freaked out.
Mike walks to Freddie's office to explain the problem to Freddie. Their count is wrong. They're not at 129 because there's an extra chip on the board.
Mike Perez
There was a chip up here that was supposed to be pulled off.
Freddie Hoyt
What do you mean? We're down one?
Mike Perez
Yeah. This was up there. It should have been off of there because the customer switched cars. But someone put the new chip up but didn't take the old chip off.
Freddie Hoyt
So I'm still at 128?
Ira Glass
Freddie does know that, at this moment, there is another deal being negotiated that could possibly get them back up to 129. Peter is the salesman for that one. But the deal is stuck over the price of the customer's trade-in, what they should pay for it.
Freddie Hoyt
Go make that deal right now. Whatever it is, just make the fucking deal.
Ira Glass
But that deal is not too easy to settle. And while they're waiting, more bad news. You remember that red Grand Cherokee that Scott and Mike Lester each had sold to different people and then Mike Lester's guy dropped out and Scott got the deal, and there was the kiss? Now Scott's guy also drops out. He doesn't want to buy tonight because he wants his mom to see the car tomorrow.
Freddie overhears Scott saying this to one of the managers.
Freddie Hoyt
What, you have a problem? What's the matter with it? What's the matter with it, Scotty?
Scott Froehlich
The guy wants to show his mom tomorrow the car. Originally--
Freddie Hoyt
What do you mean? This isn't a deal?
Scott Froehlich
I thought it was, but--
Freddie Hoyt
Are you fucking kidding me? You have insurance on this car and everything?
Scott Froehlich
I don't even-- he didn't even send it into the bank because we don't have his prior employer.
Freddie Hoyt
What are we doing? I thought these all went into the bank today! I asked you, all the cars have insurance and went into the bank? You've got to be fucking kidding me!
Ira Glass
Scott's deal is dead. They're at 127 with just two hours left before closing.
Freddie Hoyt
I'm fucked. I just lost Scott's. I'm fucked.
Ira Glass
So now they scramble to figure out, OK, there was Mike Lester's customer for that red Grand Cherokee. Could they possibly give him better terms that would bring him back to the table? Freddie orders one of the managers, Mike Perez, to make that happen.
Freddie Hoyt
Just do it. It's going to be too late. You're going to wait a half hour longer. It's getting later and later. I'd rather have a sure thing than not. Just fucking do it. How much does that lose?
Ira Glass
Yeah. The only question is, how much does the deal lose, not whether it loses. So Mike Perez calls Richie in finance. Richie tells him he's in luck. The guy actually called back saying that he would agree to the terms but-- OK, here's the catch-- he just wants 24 hours to think about this. Mike Perez asks, OK, if we sweeten the terms, can we get him to decide right now? Rich doesn't think so.
Rich
It's not going to change anything tonight. For me to pull down my pants, you don't need to.
Mike Perez
But Freddie's telling me to. Literally, he's telling me to, so I need to just--
Rich
Bro, whatever you need to do. But I'm telling you, if I told him it was free and the same, you're going to get the same answer anyway-- 24 hours.
Ira Glass
All is lost.
And then, in just six minutes, they turn it around. Rich offers a better deal to that guy on the red Grand Cherokee after all and yes, he takes it. And Peter's deal that was stuck over the price of the trade-in gets unstuck when the managers suck it up and pay $1,500 more for the trade-in than they think it's worth. Back to 129.
Everybody seems a little stunned by what just happened when it's done. Freddie and Sal look out at the showroom from the desk like old sailors on the deck of a 19th century ship that just got thrashed around by a hurricane and also a murderous white whale.
Freddie Hoyt
Do you believe this shit, Sal? I feel like back in fucking Infiniti days.
Sal Lanzilotta
Oh, my god.
Freddie Hoyt
This is ridiculous, this month.
Sal Lanzilotta
Oh, my god.
Freddie Hoyt
This is just--
Sal Lanzilotta
The month wasn't bad enough. We've got to suffer a little more the last day of the month.
Freddie Hoyt
Un-fucking-believable. Fuck me.
Ira Glass
Freddie's phone, of course, doesn't stop with the text messages through all this.
Freddie Hoyt
[SIGHS] God damn. The wife, who else? I don't know what she's even fighting for.
Ira Glass
They get their bonus from Chrysler, $68,000. And because of it, the dealership ends up in the black, not the red, for the month. Jason finishes the month at 29 cars, almost twice anyone else, as usual. Manny has 10; Mike L, 15; Scott, 18.
The used car side, Joe Monti's side, did not meet its goal. They were hoping for 70. They got 57, meaning Joe Monti probably will not be getting his year-end bonus this year.
And Bob T, the salesman at the bottom of the board with the least sales this month, well, the night isn't over for Bob T.
Bob Tantillo
Where'd you put the key? Where'd you put the car? I've got the key. Where's the car?
Ira Glass
Not long after they reached 129, a couple walks in wanting to buy a Dodge Dart for their 19-year-old son. Bob T rushes them through the test drive, has the husband sit at his computer and use his phone to quickly call the insurance company and then runs-- literally runs-- to get their new car prepped and inspected in the garage.
Speaker 1
Bob, is this one going tonight?
Bob Tantillo
He says to bring it right over to service.
Speaker 1
Yeah, but is it going, or is it a paper delivery?
Bob Tantillo
I don't know if it's going.
Speaker 2
Find out.
Bob Tantillo
It should go.
Speaker 1
Who the fuck wants to take a car home at 10 o'clock at night? You still got the receipt for them? Bring them back!
Bob Tantillo
These guys could say what they want. This old timer, nobody works as fast as me here. You notice that? Huh? Yes or no?
Ira Glass
And with that, Bob T lands Town & Country's last sale of the month, number 130, one car past the goal of 129. Or anyway, that's what they thought that night. The next morning, when everybody comes in, they look at Chrysler's official count on the computer. And according to Chrysler, no, their count was wrong. One of their sales should not have been counted in October, which means that they did not have 130 cars like they thought. They had only 129, exactly 129. Which means, yes, it was Bob T and his very last sale of the month that took them across the finish line. Bob T saved the day.
Special thanks to Marc Brodlieb and the entire staff at Town & Country Jeep Chrysler Dodge Ram in Levittown for letting us hang out for days and barely ever suggesting during that time that one of us might help them reach their goal for the month by buying a new Grand Cherokee. We sent a photographer who does celebrity photographs-- his name is Jeff Minton-- out to Levittown to photograph the sales staff at Town & Country. You can see the results at our website, thisamericanlife.org.
Today's program was produced by Robyn Semien and myself with Alex Blumberg, Ben Calhoun, Sarah Koenig, Miki Meek, Jonathan Menjivar, Brian Reed, Alissa Shipp, and Nancy Updike. Our senior producer for this episode was Julie Snyder. Production help from BA Parker and Diane Wu. Matt Tierney is our technical director.
This American Life is delivered to public radio stations by PRX, the Public Radio Exchange. Thanks, as always, to our program's co-founder, Mr. Torey Malatia. On a vacation this month in Rome, he stood in line for three hours-- three hours-- at the Colosseum then gave up, went back to his hotel.
Hannibal
At this point, the Romans will think they have won. Let them taste victory.
Ira Glass
Don't worry. He'll be back. I'm Ira Glass. We will also be back next week with more stories of This American Life.