 Demo
Cost Analysis
Demo
Agreement
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DEMO FAST FACTS:
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70%
of all lost dollars paid out by insurance companies is
directly attributable to sales DEMONstrators! |
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A
Virginia court ruled that an employee who was driving on
personal time and got into an accident was entitled to
Worker’s Comp benefits! They ruled he was working because part of the reasoning
behind issuing a demo is to show the car, even off-hours. Therefore, since he was driving the demo, the court ruled he
was on the job! |
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On
average, demos cost dealers MORE than $500 per month per car! |
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A
dealer plate is not just a piece of metal.
It represents ALL DEALERSHIP ASSETS when it is on the
road. Do you
trust every person you have given a demo to with your entire
store?!
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To address
the DEMONstrator issue at your store, you have three fundamental
options.
1.
Control: This
means you have chosen to keep demonstrators but want to do whatever
you can to minimize loss.
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Demo
Agreement: This is a contractual agreement between the company
and an employee who is issued a demo.
It can contain any and all guidelines you feel are
appropriate. Strict
management follow-up on such contracts is critical to
enforcement.
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MVR
Check: A Motor Vehicle Driving Record check needs to be
performed on all incoming employees and annually on all
existing employees. Your
insurance representative should be able to do these two
functions for you. |
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Pre-placement
Drug Testing: A program should be established with the aid of
your attorney or worker’s compensation carrier. |
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Pre-placement
Physicals: Your workers’ compensation carrier should be able
to assist you in establishing a relationship with a local
doctor.
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2.
Reduction:
This means you are now committed to reducing the number of
dealership demonstrators on the road.
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Grandfathering:
This method simply means new people coming on board do not get
demos. |
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Cash
Stipend: Instead of providing a vehicle you provide cash
replacement. I strongly recommend you complete the DEMONSTRATOR COST
ANALYSIS before considering this since what you are actually
paying for demos is typically significantly more than you
think! |
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Voluntary
Option: This is
presented to the staff such as “We are now offering
_____________ as an option to getting a demo”.
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3.
Elimination:
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Same
options as discussed in Reduction section only mandatory
changes take place. |
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You
may consider leasing a vehicle for the employee, however it
will be registered, maintained, and insured on a personal
basis. |
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I
have not met a dealer yet, who after going through the pains
to get rid of demos, has ever regretted the decision!
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Questions?
Click here
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