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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.

Posted
  Vegas14 said:
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.

Posted
  Joe said:
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?

Posted
  Vegas14 said:
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.

Posted

We like our Service Advisor to be right around 7% of total sales. We then pay them a bonus based on weekly gross profit margin. We are associated with ATI and they help us set up our comp plan.

  • 3 years later...

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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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