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Got your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
By Changing The Industry
Is The Future of Car Diagnostics In Deep Learning With AI?
Re-Defining Value in Auto Repair: Why Pricing Right is a Win-Win-Win for All [E136] - Chris Cotton Weekly BlitzBy carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
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In this episode of the "Weekly Blitz" podcast, host Coach Chris Cotton discusses the concept of value in the auto repair business. He emphasizes that value goes beyond price, encompassing quality service, skilled labor, genuine parts, and transparency. Cotton debunks the myth that being the cheapest shop guarantees success, instead advocating for a balance between price, quality, and value. He also highlights the link between staff compensation and value, stating that a well-compensated team is more motivated and productive, enhancing the overall customer experience.
The concept of value and self-esteem [00:01:02] Discusses the importance of shop owners valuing themselves and their businesses in order to show value to customers and potential employees.
Defining value from a customer's perspective [00:02:14] Explains how customers perceive value as the total package of quality service, skilled labor, genuine parts, transparency, and other benefits.
The balance of price, quality, and value [00:03:20] Highlights the importance of striking the right balance between price and quality to provide real value to customers, debunking the myth that the cheapest prices are always the best.
Connect with Chris:
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #autoops #onlinebooking #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix
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By Joe Marconi
'Car Coach' Lauren Fix discusses the topic of synthetic fuel, explaining Porsche's investment in e-fuel as an alternative to electric conversion. Lauren shares her thoughts on EVs and the government's role in mandating their use. She believes in the freedom of choice when it comes to the type of vehicle one wants to drive, be it electric, hybrid, diesel, or gas.
Lauren Fix, Car Coach Reports, Total Car Score Podcast, is an automotive expert and analyst based in Buffalo, NY. She has written three books on automobiles. She has appeared on CNN, Fox News, Newsmax TV, CNBC, and USA Radio’s Daybreak USA show. Lauren’s previous episodes HERE
Watch Full Video Fuel for the Future (00:03:39) Discussion on the development of synthetic fuel by Porsche and its potential impact on the automotive industry. OEMs and Synthetic Fuel (00:08:27) Exploration of the interest and excitement among major automakers like GM, and Ford in the potential of synthetic fuel as an alternative to traditional gasoline. Electric Vehicle Range Limitations (00:09:55) Discussion on the limited range of electric vehicles and its impact on certain professions like landscaping and plumbing. Electric Vehicle Mandates and State Opposition (00:11:25) Exploration of the opposition to electric vehicle mandates, particularly in states outside of California, and the potential blockage of such mandates by Congress. Financial Implications for Car Manufacturers (00:15:04) Insights into the financial challenges faced by car manufacturers in complying with electric vehicle mandates and the potential fines for non-compliance. The transition to electric vehicles (00:16:51) Discussion on the transition from traditional vehicles to electric vehicles and the possibility of putting an ICE engine in an EV platform. Politics and government influence on the automotive industry (00:18:10) Exploration of the political factors influencing the push for windmills, solar panels, and electric cars, and the impact on the availability and affordability of alternative fuels. The impact of UAW strike on car production (00:22:36) Concerns about the potential UAW strike and its potential impact on car production, leading to a shortage of vehicles and affecting the used car market. Challenges with EPA's automobile emissions guidelines (00:27:02) Critique of the EPA's automobile emissions guidelines and the concerns about mandating electric cars. Slow growth of electric cars in the US (00:30:09) Exploration of the low adoption rate of electric cars in the US and the potential for slow growth in the market. Thanks to our Partner, Dorman Products.
Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
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Click to go to the Podcast on Remarkable Results Radio
By Joe Marconi