Quantcast
Jump to content
    • You can post now and register later. Already registered? sign in now to post with your account.
    • ×   Pasted as rich text.   Paste as plain text instead

        Only 75 emoji are allowed.

      ×   Your link has been automatically embedded.   Display as a link instead

      ×   Your previous content has been restored.   Clear editor

      ×   You cannot paste images directly. Upload or insert images from URL.


      Once you submit your question, a new topic will be created for you in our forums. Our moderators may move your topic to a more suitable forum category if one exists. Members will see your topic and be able to respond to your question.

    • This will not be shown to other users.

Recommended Posts

I'm curious to hear about pay structures out there that are successful.  We pay all of our techs hourly, regardless of what is billed, and then offer a bonus program based on productivity each week.  Ie, they bill 60% of the time they were paid for, they get $xx additional dollars per hour, bill 70%, get $x, bill 80%, get $x etc etc.

Anyone have any pay structures that are working well for them that they would want to share?  I've debated flat rate, but not sure how other non-billable tasks would get handled - ie unloading tire deliveries, cleaning up the shop, shuttling customers, etc.  

Our current structure seems difficult for the techs to track, so I'm hoping to simplify as well as motivate them.  

Share this post


Link to post
Share on other sites


We allow visitors to read the first post of each topic. To read this post, please login or register for a membership. 

Share this post


Link to post
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 Joe Marconi
      For many of us, it's been a wild ride the past few months. We had to take care of everything, making tough decisions, dealing with banks and the SBA and running the shop from the trenches. But, with things looking better each day, it’s time that we get back into the role of building and operating the company. 
      For many, the COVID-19 crisis is far from over.  However, the sooner we begin to adjust and build for the future, the better off we will be.
      Shop Owners are among the hardest working people on the planet. We find ways to get through the most difficult situations. I have no doubt that the lesson’s learned from this crisis will make us stronger and more successful.
    • By hello5555
      I currently employ a mechanic and friend who has been with me for about 20 years. He was formerly a transmission rebuilder, but we have switched to mostly reman units and have no need for a rebuilder. His pay has remained the same despite his value declining. I am currently paying him roughly $100,000 a year. The problem i'm having is that his skill set is not near that pay level anymore. He does light diagnostic and basic managerial work, but I am not confident enough for him to run the shop for more than an hour. With the current state of the industry our numbers have gone down a bit over the last two years. While still being profitable, I can't help but think about the extra income that would be available by terminating this employee, I just dont know how to do it. Any advice on how to do this? I like him as a person and have known him a very long time, but I feel his is paid about twice as much as he is worth. Any help wouldbe greatly appreciated.
    • By flacvabeach
      Virginia's Governor in his 2020 budget proposal has included elimination of the state's vehicle safety inspection program.  In addition, a state legislator has introduced a bill doing the same.  I serve on the board of the Virginia Automotive Association, a group of over 200 independent shops who have banded together to lobby in the interests of our industry. VAA has ponied up a a $25000 increase in the lobbying budget to fight the move.   As a shop owner, I have mixed emotions on the subject, but if I were gambling I would bet that the program will go away.   On one hand, it's kind of nice that the state's motorists are forced to bring their cars to a shop once a year, giving us an opportunity to make them life-long customers. Also, it has created a cadre of technicians in the state who have been vetted and background checked by the state police.   On the other hand, there are a litany of negatives inluding  customer resentment, anger when their vehicle fails, uneven management by the state police who oversee the program due to limited resources.  Some shops are "by the book" while others are "sticker mills" who will pass anything.  Unfortunately, VAA and others have been unable to produce hard statistics that show that the program .makes a difference in highway safety.  The big studies I have found blame driver error for the majority of accidents.  What is ironic is that just this year VAA won a long battle to get the inspection fee raised from 16 to 20 dollars.   The legislature convenes in January to enact laws that will take effect in June.
      I would like to hear how other Virginia shop owners feel and I would like to hear from other states that have witnessed termination of these programs.
      Mark Anderton
       
    • By Joe Marconi
      Shop owners, you have a little less than two months before the end of the year.  And that means it's time to start thinkning about your Tax Planning for 2019. Don't procrastinate on this. Meet with accountant. Review the year, review profit.  Consider things such as major equipmenet purchases and other major investments you made in 2019.  Look at bottom line profit and determine if you set aside enough cash to pay your taxes come April 15, 2020.  
      One thing, Cash is King, So, before you purhase any major equipment before the end of the year, listen to your accoutant, not the Tool Sales-person.  In many cases, it's better to pay some tax and hold on to cash for a rainy day. 
      A little planning now will save you big time in 2020, and also help you sleep better! 
       
    • By nonstopgo68
      My shop manager any good?  Cant find anything bad on Web. No contracts and guaranteed.
       
      Thanks in advance.


  • Similar Tagged Content

    • By Ron Ipach
      CLICK HERE TO JOIN THE SUCCESSFUL SHOP OWNERS FACEBOOK GROUP
      [transcription]
      Could Auto Repair Flat Rate Be Dead?
      TECHNICIAN shortage today is real. Last study that I saw said, for every eight shops that’s looking for a technician, there’s only one tech available so I know many of you watching this are experiencing that same thing. And I’ll also say one thing that I found: most technicians, when I mention flat rate, their cheeks kind of pucker up. They hate it. Why? There’s risk. They’ve been burned before. So often in the technicians starved market, what’s a shop owner left to do but put technicians on hourly or even maybe salary? And what that leads to is, really what I’m going to call an “uninspired performance.” Why? They get comfortable, they’re able to pay their bills without exerting a ton of effort.
      So what’s a shop owner to do? The answer I’ve uncovered recently in my shop is to have a Win Number. For every single employee. See one of the truths I discovered in my 30 plus years of being a shop owner is that often we don’t get the most out of our employees because we never really sat down and told them what we expect. I know that’s been one of my mistakes.
      So one of the things that I’ve done recently is I’ve given each employee a weekly Win Number, and that’s why it’s so important. For example, I recently sat down with each of my technicians and shared with them their Win Number. What do I mean by win number? What I expect out of them in parts and labor production for each employee. The numbers are based on my desired technician cost as a percentage of sales. It’s worked so well with my technicians that I now sent it out and established that win number with both my CSR and my service advisor.
      I’ve got to tell you the results have been incredible. Not only are my sales and profits up through the roof lately, it’s led to believe it or not, happier employees. Why? They drive home at the end of the day or at the end of the week knowing that they hit their goals. Knowing that they’ve contributed to a successful week for the shop and that certainly led to a happier shop owner!
      So, let me leave you with a question. Does each and every one of your employees on your team clearly know what you expect of them?
      If your answer is not a resounding YES, it’s time to put a pencil to paper and figure out each team employee or each team members weekly and daily Win.
    • By Reggie
      How do you spit time when one of your flat rate team members is off for part or all of a day?
    • By Reggie
      We recently switched from hourly to flat rate for our techs. I am having a hard time figuring out what to pay an employee if they have taken vacation times. What rate do I pay them at?
  • AutoShopOwner Sponsors



×
×
  • Create New...