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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.
The Off-Road to Success: Darrin Barney's Journey in 4x4s and Business Coaching [E087] - The Auto Repair Marketing PodcastBy carmcapriotto
Get to know Darrin Barney, the family man, Jeep Enthusiast, multi-business owner, and friend to many. Take away some helpful tips, but a ton of inspiration from the owner of Barney Brothers Off Road and Repair and Elite Worldwide.
Thank you to RepairPal for sponsoring The Auto Repair Marketing Podcast. Learn more about RepairPal at https://repairpal.com/shops
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Lagniappe (Books, Links, Other Podcasts, etc)
Barney Brothers Off Road and Repair
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By Joe Marconi
It's time to find the hidden costs of 'busyness' in auto repair shops. It's not just about the work you do; it's about the work you're actually getting paid for. Measuring technician productivity is crucial - because if you're not measuring it, you can't manage it. It's a wake-up call for shops everywhere to stop leaving money on the table. Bill Haas, Haas Performance Consulting, Bill’s previous episodes HERE. Murray Voth, RPM Training. Listen to Murray’s previous episodes HERE Maylan Newton, ESI- Educational Seminars Institute. Maylan’s previous Episodes HERE Show Notes: The Importance of Shop Productivity (00:01:41) Discussion on the significance of measuring productivity and ensuring work is paid for. Challenges in Understanding Business Numbers (00:05:39) Discussion on the lack of understanding of business numbers and pricing strategies in the automotive industry. Implementing Time Clock Management (00:09:12) The importance of implementing time clock management and its impact on shop productivity. Setting Expectations and Accountability (00:11:14) The need for setting expectations and holding employees accountable for their performance. Challenges in Coaching and Accountability (00:12:25) The difficulty in coaching individuals who resist change and accountability in their business practices. Labor Rates and Coaching (00:18:40) Discussion on the impact of labor rates and the value of coaching in the automotive industry. Comparing Labor Rates (00:20:17) Debate on the practice of comparing labor rates and the importance of charging enough to pay employees. Technician Interviews and Billing (00:21:50) Perspective on technician interviews and billing practices, including misconceptions and lack of understanding. Business Education and Financial Planning (00:26:01) Importance of business education, financial planning, and understanding where the money goes in an automotive shop. Year-End Spending and Tax Strategies (00:27:16) Discussion on year-end spending, tax strategies, and the significance of paying fair taxes. The value of pricing (00:35:42) Discussion on the importance of presenting value over price in a competitive marketplace. The market for different pricing strategies (00:39:18) Highlighting the existence of markets for both top-tier pricing and lowest cost options, with a comparison to the tool market. The challenge of selling value (00:40:10) Debating the myth of offering better value and emphasizing the importance of growth and selling maintenance services. Defining fair pricing and value (00:40:40) Challenging the concept of fair pricing and discussing the perception of value in the eye of the beholder. Improving customer communication and value presentation (00:41:07) Emphasizing the importance of showcasing the quality of services, such as brake jobs, and the value they provide to customers. Challenges in selling diagnostic services (00:43:00) Discussion on the difficulties in selling diagnostic services and the need to shift from focusing on hours to tangible products and value. Efficiency in customer interactions and value communication (00:46:12) Emphasizing the need for efficient information gathering and value communication to customers during the intake process. The need to change industry mindset (00:52:07) Encouraging a shift in mindset within the automotive repair industry to drive change and success. The shop's transformation (00:54:08) Discussion on the positive changes and experiences after implementing changes in the shop. Clientele shift (00:55:00) The impact of changes on the clientele and the feedback received from customers. The value of preaching (00:56:06) Exploring the significance of preaching and the positive outcomes it brings in terms of leadership and company growth. Reward and challenges (00:57:00) Acknowledging the challenges and rewards of making significant changes in the business.
Thanks to our Partner, NAPA TRACS 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/ -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 (X): https://twitter.com/RResultsBiz -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 Changing The Industry
Is The Future of Car Diagnostics In Deep Learning With AI?