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So 8% is on all top line sales, correct? So if the shop generates 1M in sales, the service writer makes a gross 80k? How does the vacation fit in there? How is that and other time off paid? Depends on your sales, but 8% seems a little high.

Why not lower the % and pay a salary plus a % of sales for days worked or the week. 

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Please tell me that you take into account profit margins for parts and for labor when paying your service writer 8% of gross sales?  

If you do not, your service writer could very well be making more money than you. 

 

 

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27 minutes ago, DUFRESNES said:

I believe in taking care of my employees.   I was gone most of last month and they took care of business.  They have to make at least on dealer parts ranges from 35 -54%.  Parts houses from from 45-65%  My ase master techs make flat 35-38% flat hour, Lube techs 15-20 hourly with 5% commission.   I have always wanted a beautiful building with lots of parking.  We have a remodelled old 2 bay shop.  We have no lunch room, but the employees have been with me a long time.   We have a running bonus from 50 - 500 per month per employee.  We all work together.  Not to say that it can change at any time as you must know.  We make well  over 1 million in sales and our net profit shows well  in our small building.  What part of the country is your shop.  If you have any questions, private message me. 

Taking care of your employees is the most underrated asset in this business.  Most guys will follow you anywhere, if you've treated them right.

 

We discuss all big decisions and changes.  Because when everyone is on board... it's just a free flowing process to get things in and out. 

 

That being said, the business should be making enough to expand and grow as well as having well paid employees.  A delicate balance that takes some time to figure out and coordination from everyone to keep going.

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  • 2 years later...

We approached this problem a little differently. Our shop sits within 1.5 miles of 12 different new car dealerships. They all pay between 8 and 10 percent of sales. They also have some customer satisfaction goals that they need to meet. We pay hourly with overtime and then a percent of sales. Right now both of our service writers are paid $20 per hour. They need to hit $15000 in sales per week to start the incentive. They get 1.25% at $15000 and it increases .25% at every increase of $2500 in sales and tops out at 2.5%. For holiday pay or vacation pay they just get their hourly pay. With this system the writers help each other out through the whole process .

 

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  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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