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By Joe Marconi in Joe's BlogGot 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.
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By Joe Marconi
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By tyrguy
Hey all,
Retired 5+ years ago and spend half my time down here in Florida. Haven't been on the forum in a few years. When I am up home in Ohio the tire dealer that bought my business and rents my building from me takes good care of all my vehicle service needs. My Mini needs a few things and I'd like to hook up with someone from this forum close to me down here.
Belt is squealing so probably needs a new belt, tensioner and idler pulley. Also need a new right side window motor.
Anybody close to Fort Myers Beach?
Mark Defer 330-603-5127
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By Joe Marconi
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By carmcapriotto
The Value Paradox: We all want top-notch service without the hefty price tag. However, quality comes at a cost. Andy Bizub explores this conundrum and how it mirrors the choices we make. Consumers often face a choice between the cheapest and the luxurious with little interest in the middle ground. This observation sparked a conversation about how the automotive industry can apply this pricing strategy to their businesses. Remember, it's not just about the price; it's about the value and experience you provide. Andy Bizub, Midwest Performance Cars, Chicago and Northbrook, IL. Andy’s previous episodes HERE.
Show Notes
Watch Full Video Episode Consumer choices in the airline industry (00:02:05) Discussion on consumer choices, pricing, and quality in the airline industry and its parallels to the automotive service industry. Charging fair prices (00:05:07) Exploration of the challenges and mindset of shop owners regarding charging fair prices and the impact of consumer behavior. Creating exceptional customer experiences (00:07:45) The importance of providing exceptional customer experiences and the impact on customer loyalty and satisfaction. Transition to becoming a high-end shop (00:12:21) The journey of transforming a failing shop into a high-quality, exceptional customer experience establishment. Retail examples and business strategies (00:14:08) Comparison of retail examples (Nordstrom, Target, and Walmart) and the importance of offering a superior customer experience. Consumer mindset and experiences (00:17:38) The impact of consumer mindset on the value of a bargain versus an extravagance, as observed in the airline industry. The year of the customer and the client experience officer (00:18:05) Discussion on the importance of prioritizing customer experience in businesses and the challenges of adapting to pre-COVID business operations. Managing labor rates and shop supplies fees (00:19:30) Exploring the impact of customer experience on labor rates, decision-making regarding shop supplies fees, and the comparison with dealership invoices. Pricing strategies and customer experience in the automotive industry (00:20:52) Examining the impact of pricing strategies on customer experience, including the frustration caused by hidden fees and the parallels with the airline industry. Adapting labor rates and dealership comparisons (00:22:23) Discussion on adjusting labor rates, the impact of dealership labor rates, and the importance of providing a better customer experience. Challenges of being in the middle in the automotive industry (00:26:06) Exploring the challenges of being in the middle of the pricing spectrum and the impact on talent acquisition and business sustainability. Building an effective team and book recommendation (00:28:08) Insights into building a motivated team, the significance of maintaining a clean and professional image, and a book recommendation for business and life lessons. Leadership, self-improvement, and the value of asking questions (00:32:24) Discussion on the importance of self-improvement, effective leadership, and the value of asking questions to enhance understanding and decision-making in business. Family Business Challenges (00:34:32) Discussion on the challenges of working in a family business and the expectations placed on family members. Navigating Family Business (00:35:03) The difficulties of navigating a family business and the expectations placed on younger generations. Thanks to our Partners, AAPEX and NAPA TRACS Set your sights on Las Vegas in 2024. Mark your calendar now … November 5th-7th, 2024. AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at http://AAPEXSHOW.COM/WEBINAR NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections
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By nptrb
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