Quantcast
Jump to content


Why technician pay incentive bonuses may backfire


Recommended Posts

I was speaking with a shop owner the other day about an issue he is having with technician comebacks. After a series of questions, the reason for the comebacks became clear.

 

At the start of the year he implemented a very aggressive growth strategy, putting a lot of emphasis on quotas, sales and labor production. The strategy also included increased bonuses for the service advisor and techs for hitting certain goals.

 

Now, at its core, this is not a bad strategy. However, the focus was on quotas,sales, profit and production. What was lacking was a process to ensure that quality was maintained, and basing sale decisions on what is in the best interest of the customer.

 

A focus on quotas instead of service quality, is a recipe for eventual failure. For example: Instead of setting a quota to sell 5 batteries this week and 10 sets of wiper blades, create a process that your technicians will test all batteries and inspect all wiper blades. This strategy will achieve the same results while maintaining a focus on quality and integrity.

 

The bottom line is we all need goals. But we also need to maintain quality. So, when setting your goals, include a quality control process to cut down on mistakes before the customer gets his car back. Put emphasis on customer service and integrity. Celebrate positive customer reviews. And lastly, base all service and repair recommendations on what is in the best interest of the customer.

  • Like 3
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Similar Topics

    • By spencersauto
      What's your houlr labor rate and where are you located? We're currently at $95 in Texas
    • By Joe Marconi
      One of the lessons from COVID is for repair shops to have a strong cash reserve.  Shop owners need to budget their money each week, and allocate money to different bank accounts, such as payroll, operating expenses, taxes, etc.
      Another account I would recommend is to have a Cash Reserve account, where money is allocating each week, and not touched unless their is a emergency, such as an economic downturn and or if an economic emergency occurs in your area or with your company. 
      While no one could have predicted the affects from COVID 19, I think we can all agree that being cash strong is a viable strategy.
      You should have anywhere from 3 to 6 months of covered expenses in a separate bank account.  I know, I know....it's a lot of money. Start slow and build each week. Anything set aside is better than nothing. 
      Of course, to have a reserve means that you need to have the profit to put away. Right?  Well, another reason to know your numbers, revisit your pricing and make sure your labor rate is enough to support your payroll, operating expenses and have enough left over to set aside money for the unexpected.
      Trust me, you'll be glad you did. 
       
    • By ASOG Podcast
      A pleasant surprise from Kim & Brian Walker of Shop Marketing Pros.
    • By carmcapriotto
      Bill Nalu is President of Interstate Auto Care in Madison Heights, Michigan and has been in business for 30 years. He collaborates with industry professionals, in building today’s “high-tech/old-fashioned” customer service system. Bill has been a big contributor to the podcast and he currently serves on several industries and educational advisory councils including AutoValue/Bumper to Bumper, Dorman Industries, and Cardone. Listen to Bill’s previous episodes HERE.
      Key Talking Points
      What are you grateful for? The world isn’t ending. Stop comparing yourself to the content coming at you.  When you make a decision to move forward, don’t turn around and second guess yourself Leadership comes through gratitude Hire compliments to yourself Suffering comes from judgment  “Air smells the best and freshest after a hard rain” Awareness- isn’t that you’re having a thought, but that you are aware you are having a thought. That is your consciousness.  Learn from other people’s second chances before you have to be the one to learn from your second chance. You must have balance.  Compassion- there’s more going on in people’s lives than you know about If you want respect, respect someone into respecting themselves Consumerism- willing to pay extra  Do you hire for work ethic attitude? Do you love what you do for a living Suffering comes from judgment- wean yourself off of the judgment that you have centered around you, judgment that comes toward you, and judgment that you place on yourself   The grass isn't always greener  Book “Who not How” LINK "Every Life Has a Story" Chick Fil A LINK  Connect with the show:
      Aftermarket Radio Network
      Subscribe on YouTube
      Visit us on the Web
      Follow on Facebook
      Become an Insider
      Buy me a coffee
      Important Books
      Check out today's partners:
           
      This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve.  AAPEX 2021 is in the record books and lived up to presenting leading-technical and business management training from some of the industry’s best and brightest. Now set your sights on Las Vegas in 2022. Mark your calendar now … November 1-3, 2022, AAPEX - Now more than ever.

      This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com/carm

      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Kevin Syed, Owner of Integrity 1st Automotive, 8 Locations, Dallas Fort Worth TX, grew up with an entrepreneurial father and was always encouraged to lead. Having successfully earned a Bachelor’s degree in Business Management from University at Buffalo, Kevin went on to become a franchisee with Getty Petroleum / British Petroleum service centers for the better part of a decade in New York City. After gaining the knowledge, experience, and funding required to produce his own operation, Kevin went on to operate his own independent shops in New York. Kevin sought to find a new place to call home with his wife and twin girls; he longed for the community values and environment of the South and so his family made the decision to move to Texas. Integrity 1st Automotive was then born in Texas and Kevin has scaled his business to multiple locations across the Dallas Fort-Worth Metroplex. When he’s not working, Kevin enjoys local car rallies (e.g. Lamborghini Club Dallas), traveling, and hunting. Listen to Kevin's other Episodes HERE
      Carl Hutchinson, Owner, Complete Automotive, 2 locations, Springfield, MO has been in the car industry since 1982, but has worked on vehicles long before that time. He has a passion for engineering, for understanding how vehicles operate, and how to repair a customer’s concern. Earlier in his career, Carl started working at a GM Dealership, then went to work at independent repair facilities as a technician and eventually became a service advisor. Carl’s experience in the automotive industry led him to his current position as co-owner with Maureen Hutchinson of Complete Automotive in Springfield MO., where he works every day to provide high-quality, valuable service to all customers. Carl is an Alumni with Ozarks Technical Community College, Springfield MO Campus. He currently sits on the Automotive Advisory Board with Ozark Technical Community College, a member of South East Rotary, and a member of the Springfield Midwest Auto Care Alliance chapter. Carl has his Master ASE Certification, L1 and Service Advisor certification and is an AMI Graduate. Listen to Carl’s previous episodes HERE Kenny Wedow, Owner, Fine Tuned Auto, 2 Locations, Broomfield and Erie CO  knows cars. A natural talent even at the young age of 17, he pursued it auto repair in shop classes in school then slipped right into the work field. Working for dealerships such as Saturn, and Nissan, as well as other independent shops, has afforded Wedow with extensive and well-rounded education. More importantly, before Wedow branched off to open the doors of Fine Tuned Auto in 2013, he already learned the importance of patient diligence. Many dealerships and independent auto shops can default to make generalizations about the problems with your car, sometimes not always seeing the things that really might put you in danger on the road. The patience Wedow has to pull everything apart if need be to find the root answers makes him unique in his field. It is a quality that got him promoted to foreman at a Nissan dealership when he was only twenty-three. It wasn’t that the six technicians under him weren’t experienced, in fact, some of them had worked considerably longer than Wedow. However, his attention to detail and follow-through put him above and beyond. Listen to Kenny's other episodes HERE
      Key Talking Points
      Building Trust- Focus on relationships, not transactions. Reviews, book of business, referrals etc. People always like to try something new, wow them. Make customers feel better- don’t fake it. Location Location Location- be selective. Walk-ins at an easy location will increase with oil changes etc. First chance to gain customers for life.  First impression marketing- Kenny uses poker chips with his information to attract new customers. Signage, uniforms, customer waiting area etc elevate the professionalism. The image plays a huge role in sales, female-friendly bathroom/lobby, cleanliness, smell in the waiting lobby, convenience etc. Be mindful of female customers, educate and simplify.  Direct mail, google ads, geofencing- who is your clientele? What advertisement is right for your area? Once you have multiple growing businesses- what is your year after year retention?  Why do people choose certain careers/trades? What is the reason? Look at different industries and see what they provide.  Focus on the relationship, not the transaction   Be involved in the community Connect with the show:
      Aftermarket Radio Network
      Subscribe on YouTube
      Visit us on the Web
      Follow on Facebook
      Become an Insider
      Buy me a coffee
      Important Books
      Check out today's partners:

      This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com

      Are you seeing auto shops in your area get hundreds of 5-star Google reviews and are you feeling left behind because your shop only has a few?
      Hey look, Broadly is your answer to getting more online reviews. With more reviews, your business will rank higher in search results — and that means more customers coming into your shop every day. Broadly helps you automatically request reviews so that your customers can promote your business with just one click. When you immediately ask for a review after service, when the experience is still fresh in their mind, you’re more likely to get a 5-star positive review. Plus, asking for feedback makes your customer feel valued and more connected to your business. Isn’t that what you want a connected customer? See how Broadly can help grow your auto shop.  Visit www.getbroadly.com/chat to learn more.
      Click to go to the Podcast on Remarkable Results Radio


  • Similar Tagged Content

    • By DUFRESNES
      Our Service writer is paid 8% on all sales.  When he is off for 2 days, we have another hourly person that service writes.   My question is we pay the SW that was off for 2 days 8% on all sales, but take them as vacation days.  The person filling in (he does a great job) pay him the difference if he was service writing and would be commission.    Looking to see if somebody has a better solution.  If the regular SW is on vacation, I can figure the sales from his last day till he comes back.  That is not a problem
       
    • By Joe Marconi
      No matter what the year has been, this is the half way point for the year and time to review your business plan for 2016. This is also the time when you review all your 2016 goals, both personal and business. Assess where you are and make the adjustments needed to achieve those goals. Dont worry about the last six months if it did not live up to your expectations. Make the needed course corrections to maintain your focus and make sure you align those corrections to what you need to achieve your objectives. Lastly, remain positive, know the numbers of your company and create strategies that are in line with your goals.
    • By Joe Marconi
      Source: Why technician pay incentive bonuses may backfire
    • By Joe Marconi
      Source: You have goals…but what about your employee’s goals?
    • By Joe Marconi
      As a shop owner, you have both business goals and personal goals. Goals are critical to your success. Setting goals is like planning out a trip. Each step is carefully outlined and mapped out. You know where you want to ultimately end up, and you know how you will get there. But what about your employees? Don’t they have goals?
       
      Employees may not have sat down and wrote out a detailed plan, but let me assure you, they have goals too. Employees care about their future, their kid’s future and also have wants and desires.
       
      My advice is to find out what those goals are, and here’s why. When employees know that you care about their well-being as a person, they will begin to align their goals with your goals. They see the bigger picture; that in order to achieve what they want out of life, they must help you achieve what you want also.
       
      But the key here is to make sure you as the shop owner make the first move. Sit down with employees, ask them about their future desires and dreams. Then begin to build your business around not just what you want, but what everyone wants. This also means that you must become profitable enough to be able to continue to compensate your employees at a level that they feel secure in their position.
       
      But, it’s never all about the numbers and the dollars. As shop owner, you are also a mentor. And the most important employee-related job you have is understanding your employees and helping them achieve their wants and desires.
       
      Motivational Speaker Zig Ziglar once said, “You can get anything in life you want, if you will just help other people get what they want”
  • Our Sponsors



×
×
  • Create New...