S2 - Episode 16 - Technology Flashbacks & Car Sales Experience

This episode of the "Teach, Lead and Expire" father-son podcast features Jordan and his son discussing the evolution of technology, personal career paths, and the dynamics of car sales. The conversation highlights the changing landscape of work and technology across generations, emphasizing values, resilience, and intentional living for building a lasting legacy.

Here's a breakdown of the key points:

I. Technology Flashbacks and Adaptability

• Early Technology Experiences (Dr. Jordan Smith):

  • Recalls using chalkboards, then overhead projectors with plastic transparencies.

  • Describes the laborious process of mimeograph machines in the Marines, where retyping full documents for edits was common.

  • His pioneering role in adopting early computers in the Marine Corps (circa 1970s), leveraging his prior programming knowledge (Basic programming in 1972) to introduce word processing and printing.

  • His first personal computer in Okinawa (Japan) cost $1300 and used cassette tapes for storage, followed by "Trash 80s" with floppy disks (5.25" then 3.5"), and later CDs.

  • He learned to build computers from scratch to avoid proprietary hardware issues from brands like Dell, HP, Compaq, and Apple. This hands-on experience gave him an edge in understanding computer systems beyond just the graphical user interface (GUI), proving invaluable when he started teaching at age 50.

• Modern Technology (Jordan III):

  • Built his own high-performance gaming PC, featuring a 2TB hard drive, 64GB RAM, i7 processor, and a 3070 graphics card.

  • His computer building skills led to a tech support job at Apple, providing support for iOS devices, and later moving into workforce management.

II. Career Reflection and Sales Philosophy (Jordan III)

• Career Crossroads: Jordan III expresses feeling stagnant and "capped out" in his current role, despite his background surpassing his current responsibilities.

• Motivation for Change: He seeks higher financial compensation to support his family, fund home improvements, and enable his wife to maintain her independence as a hairstylist and be present for their children.

• Sales Philosophy: The "Matchmaker" Approach:

  • Views customer service as an integral part of sales.

  • Challenges traditional "brass tax" sales methods, emphasizing a focus on customer satisfaction over personal commission.

  • Believes in being a "matchmaker," connecting customers with products that truly meet their desires.

  • Prioritizes creating a memorable experience and making customers feel valued, understanding that genuine happiness leads to referrals.

III. Car Sales Compensation Models and Market Realities

• Dr. Jordan Smith's Car Sales Experience (1990s):

  • Worked with Toyota, Honda, Cadillac, and Acura.

  • Compensation structure: Typically a 25% commission on the profit margin (retail price minus dealer invoice).

  • "Pack" deduction: An additional amount ($800 in one example) was often deducted from the profit to cover dealership overhead and management overrides.

  • Draw system: Salespeople received an hourly wage (e.g., $8/hour) as a draw against their commissions, meaning they had to sell enough cars to cover their weekly pay.

• Jordan III's Car Sales Experiences:

  • Hourly + Commission: Worked for an electric vehicle company (now bankrupt) that paid a lucrative hourly wage (e.g., $24/hour) plus commission (5-15% based on volume) for vehicles under $20,000. He once sold 35 electric three-wheeled vehicles in a month, capitalizing on rebates and the influx of environmentally conscious buyers in Oregon.

  • Strictly Commission-Based: Another dealership offered no base pay; income was solely dependent on sales.

  • Draw System: Similar to his father's experience, where an advance was provided until sufficient sales commissions were earned.

• New vs. Used Car Profitability: Jordan III notes that salespeople typically earn more money selling used cars because dealerships are often "upside down" on new vehicle inventory, leading to less profit margin for new car sales. He emphasizes that current dealership business models are antiquated, forcing customers to pay premiums to cover overhead.

• Sales Tactics: Both agree that many customers focus solely on the "monthly payment" rather than the overall price or interest rate. Finance managers significantly boost dealership profits by selling "back-end" items like extended warranties and various add-on packages.