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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
Episode 151 - A Shop Owner's Guide to Consolidation and Exit Strategies
Attracting Fleet Clients - Effective Strategies for to Your Auto Repair Business [E102] - 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/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
In this podcast episode, Coach Chris Cotton from Auto Fix Auto Shop Coaching shares expertise on managing fleet clients for auto repair shops. He underscores the benefits of fleet clients for consistent work but warns against over-reliance, suggesting fleets should be no more than 20% of business. Cotton advises on finding suitable fleet clients through various methods and preparing for meetings with research and tailored service discussions. He emphasizes building trust, understanding client needs, and balancing fleet with retail customers to ensure a stable and growing business.
Finding and Managing Fleet Clients (00:00:07) Discussion on the importance of fleet clients and the need to maintain a balance with retail customers. Guidelines for Fleet Business Percentage (00:01:08) Advice on the percentage of business that should be dedicated to fleets and the potential risks of overreliance on fleet clients. Finding the Right Fleet Clients (00:02:13) Strategies for identifying fleet clients that align with the shop's capabilities and values, and the importance of networking. Negotiating with Fleet Clients (00:04:27) Tips for contract negotiation, avoiding underselling, and the potential issues with servicing used car lots. Marketing and Referrals for Fleet Clients (00:06:29) Discussion on leveraging fleet clients as marketers and the importance of referrals and employee programs. Strategies for Finding Fleet Clients (00:07:39) Insights on using local business research, networking events, referrals, online platforms, direct outreach, and partnerships to find fleet clients. Initial Meetings with Fleet Clients (00:10:55) Steps for preparation, presentation, customized solutions, building trust, listening, follow-up, flexibility, negotiation, and reliability assurance. Billing, Pricing, and Business Model (00:16:21) Advice on billing, pricing, and ensuring the business model fits the shop's needs and financial stability. Summary and Closing (00:18:19) Final thoughts on the importance of strategic decisions, effective management, and continuous learning for success in the auto repair business.
Connect with Chris:
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros
Click to go to the Podcast on Remarkable Results Radio
By Joe Marconi