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Flash Sale + Social Proof


Flash Sale + Social Proof


Flash Sale + Social Proof

How to pay your Service Advisor


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I have a question in regards to how your service advisor should be paid. Our Service Advisor currently is being paid a flat weekly salary. I'm thinking of changing it to performance based in order to put a little more motivation into his sales. Any advise out there on how other shops are paying their Advisors and how is it working for you.

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Flash Sale + Social Proof


Flash Sale + Social Proof


Flash Sale + Social Proof

I have a question in regards to how your service advisor should be paid. Our Service Advisor currently is being paid a flat weekly salary. I'm thinking of changing it to performance based in order to put a little more motivation into his sales. Any advise out there on how other shops are paying their Advisors and how is it working for you.

 

I pay mine 9% of Gross Profit.

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Before I pay anyone (Service advisor, tech, foreman, etc) I establish goals. I factor in my breakeven, previous sales, return on investment and then set a bonus for a percentage after that figure is reached. I have found that to pay a percentage of sales without a benchmark goal takes away their incentive to do better.

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Before I pay anyone (Service advisor, tech, foreman, etc) I establish goals. I factor in my breakeven, previous sales, return on investment and then set a bonus for a percentage after that figure is reached. I have found that to pay a percentage of sales without a benchmark goal takes away their incentive to do better.

 

 

So do pay a base salary and then an additional bonus based on the above factors?

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I have a question in regards to how your service advisor should be paid. Our Service Advisor currently is being paid a flat weekly salary. I'm thinking of changing it to performance based in order to put a little more motivation into his sales. Any advise out there on how other shops are paying their Advisors and how is it working for you.

 

We use and recommend systems where both techs and advisors are paid about half hourly/salary and about half incentive of some type.

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  • 3 years later...

Question for all of you that pay your SW a commission of the mechanics sales, what do you do about oil changes. With the price of oil continuing to skyrocket, there isn't any profit in them, except when you upsell. I have been paying 8% on all sales + bonus, but when it isn't feasible anymore, it is hard to take back a commission. It doesn't make much sense for the shop to go backwards on these items.

We post a daily page with our monthly goals by the day and each mechanics labor sales, billed hours and % for production plus average work order for each. This is a team bonus program ranging from 50-500 per each person. 1/2 of it goes on their pay check and 1/2 for to their 401K (actual Sar Sep) I know what should be done, but can't seem to do it.

 

Great question. We got away from a bonus based on sales only, for that reason. Our goals are now based on gross profit dollars and each service writer needs to understand a bonus can only be awarded when the company makes money. In other words, a shop can have a $10,000 sales week with $2,000 in profit, but another week may yeild $4,000 from $10,000 in sales. So, your point about rising costs is well taken and I am glad you brought that up.

 

Calculate your cost of doing business (breakeven) and add a percentage on top of that to insure you make a return on investment, only after that can you begin to start paying a bonus to a service writer.

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