Quantcast
Jump to content

How many pay labor or parts commissions to techs?


Recommended Posts

I just implemented Bolt On's digital inspections and they are great. I am thinking about ways to motivate and more thorough recommendations during the inspection process.

 

I wanted to know how many shops out there have ever paid a commission to techs for recommend work/parts?

 

I trust my techs will still only recommend needed repairs.

 

 

  • Like 1
Link to comment
Share on other sites



Are you referring to paying a tech just for recommending certain services or repairs? If that is the question, it's no. We do pay them for the multipoint, whether there is a charge to customer or not. And we pay our techs a performance based bonus.

 

Motivating techs is another thing. Work out a compensation plan based on production/efficiency. Get the service advisors involved too. One of the best motivation for a tech is when the advisor can sell the work the tech discovers. So, pay them something for the multipoint and help the advisors sell the work. That's a win for all.

Link to comment
Share on other sites

Hey Joe,

 

I was referring to paying them a commission for their recommended labor/parts. I noticed in Mitchell there is a drop down menu to add a technician to the part for instance and there is also an area within set up to set a commission rate for any parts associated with the assigned tech. I was curious as to how it would may work say for instance a commission rate of 0.5% or something small may help motivate more thorough inspections.

 

Either way it is just a thought. I have heard of adding incentives such as unique ways to make it competitive to see which tech can recommend more services or specific services and give gift cards, gifts, days off, or other "prizes". I currently have 1 tech that will perform inspections but really isn't that enthusiastic about them. It just got me thinking of ways of motivating these guys.

Link to comment
Share on other sites

For every inspection performed, a slip with your name goes in the hat at the end of the week/month. A drawing is held for a TV, gift card, $100 bill, etc. Or you could have it that with every BG service that is sold, your name goes in the hat... It might sound cheesy or you might not have enough guys for this to work very effectively, but it's an idea.

 

To answer your main question though, I only have 1 helper and he is paid strictly commission. Pay rate X labor hours produced.

Edited by mmotley
Link to comment
Share on other sites

For every inspection performed, a slip with your name goes in the hat at the end of the week/month. A drawing is held for a TV, gift card, $100 bill, etc. Or you could have it that with every BG service that is sold, your name goes in the hat... It might sound cheesy or you might not have enough guys for this to work very effectively, but it's an idea.

 

To answer your main question though, I only have 1 helper and he is paid strictly commission. Pay rate X labor hours produced.

 

My Question really is in regards to recommended labor/parts commission. Not the actual labor on the job. I understand motivation is not always monetary. I figured I'd ask if anyone out there does any of this.

Link to comment
Share on other sites

This is for parts and labor:  5% on tires, 10% on oil changes and batteries, 30% on alignments, 14% on everything else.  Every tech has a base guarantee that they will not be paid less than $XXX.  Various based upon experience and ability.

Does your sms handle the figures or is it hand calculated from reports?

 

Sent from my SCH-I605 using Tapatalk

 

 

Link to comment
Share on other sites

We pay our techs 3% of parts and labor for any recommendations that are made and sold by CSA over the base sale to try and encourage more thorough inspections. We pay our techs hourly here at our shop and not flat rate. I do think is has helped to encourage certain technicians to perform a more thorough inspection for the individuals that needed motivation.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Have you checked out Joe's Latest Blog?

         13 comments
      Most shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
      The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
      Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
      And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.  
      Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
  • Similar Topics

    • By Ruben Van Zenden
      Today, we simply cannot ignore social media, everyone is using it whether you are a fan or not. Personally, I think it has its negative and positive sides. 
      I have been looking at 100+ car repair shops and noticed that only a hand full are using social media marketing, for example, Facebook advertising. 
      Why are so few car repair shops making use of this, in my opinion, great opportunity to increase car count? 
    • By carmcapriotto
      Recorded Live at Vision 2023, Al Wright and Travis Troy discuss the benefits of joining MWACA's S.O.S. (Shop Owner's Support) Group. When we can support and learn from other shop owners, we continue Advancing the Aftermarket and raising the bar for the industry. Travis also gives us an overview of Vision's newest class for general service technicians.
      Al Wright, John’s Automotive, Cedar Rapids, IA. Al’s previous episodes HERE
      Travis Troy, Honest Wrenches, Akeny and Des Moines, IA. Listen to Travis’ other episodes HERE
      Show Notes
      Travis Troy- 21 team members attending Vision 2023 MWACA SOS Shop Owner’s Support- What is an S.O.S. Group? Think of it as your advisory board. Our S.O.S. Groups consist of no more than 10 shops that meet on a monthly basis. Meetings are similar to “twenty groups” without the intense financial focus or expensive monthly commitment. Groups meet monthly at a participating shop to discuss relevant issues, set and review goals, and evaluate the hosting shop.    Be vulnerable, and be transparent, not as a business owner but as a friend. We are not each other’s competition.  Learning from others, raising the bar for the Automotive industry  FTI- failure to implement, the number one failure for shop owners. Debrief after the SOS meeting with a list of items to work on and change.  Elevate before you grow. GSTA General Service Technician Academy - 2-day course. This program benefits the technician and the shop with increased efficiency, knowledge, and safety, as well as cost-savings by helping prevent beginning mistakes. Certifications will come from Tire Industry Association (TIA), Automotive Lift Institute (ALI), and Mobile Air Conditioning Society (MACS).  GTSA will cover- Tire Safety – hands-on mounting and dismounting, repair procedures and balancing, Tire pressure monitoring basics, Lift safety – Including Information access for proper lift placement, OSHA and shop safety training, Alignment basics, Intro to Air Conditioning, Electricity Fundamentals, Introduction to Digital Vehicle Inspections - a systematic approach to test drives, inspections, photos and videos and the benefits to the tech and to the shop of performing the DVI. Surviving a Health Scare [THA 316]
      Thanks to our Partners, AAPEX and NAPA TRACS. Set your sights on Las Vegas in 2023. Mark your calendar now … October 31 - Nov 2, 2023, AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at AAPEXSHOW.COM 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 NAPATRACS.com Connect with the Podcast: -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      
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      On Record with Tom Ham from the Automotive Management Network. Tom discusses a recent survey from his website about the stress level at work, reasons why someone would reject a technician application, health insurance and more! These results may surprise you!
      Tom Ham, Automotive Management Network. Tom’s previous episodes HERE.   Show Notes:  
      AMNSHOP.com laborratetracker.com - lowest labor rate so far is $50 and highest is $297 Management Help Polls: 130 types Why techs avoid working at some shops- low pay, dark/lack of lighting, dirty, disorganized Job applicants for possible reasons they might be rejected: 70% driver license issues, 68% frequent job changes, 66% negative comments about past employers, 64% know it all, 60% questionable attitude, 60% excessive demands. 59% inconsistent information, 58% late for interview, 55% listens poorly, 53% sloppy appearance, 53$ incomplete application, 51% lack of manners Pay portion of health insurance- 35% pay nothing, 19% pay full health insurance.  Stress level at your shop ranked 1 to 10, 10 is maximum stress level- 40% rank their stress level at 8+, 81% say their stress level is average or above average, only 19% say their stress level is ranked 4 or less. “What do we do here that is not as clear as it could be, a bit confusing?”  Service advisor responsibilities (are these regular tasks of your service advisor)- estimating, collect vehicle information, parts ordering and returns, labor claims, operation/management, quality control, assist technicians, pickup/deliver customer or parts (porter). None of these should be the service advisor responsibilities! Consider hiring an estimator/parts person Service Advisor Overload [THA 305] Service Advisor Overload: Part 2 [THA 312]
      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
      Connect with the Podcast:
      Aftermarket Radio Network
      Subscribe on YouTube
      Visit us on the Web
      Follow on Facebook
      Become an Insider
      Buy me a coffee
      Important Books
      Check out today's partner:
       


      Click to go to the Podcast on Remarkable Results Radio
    • By ASOG Podcast
      Auto Repair Shops Are Making Techs Pay For What?!?
    • By Joe Marconi
      For all the veteran shop owners who have been around the block a few times, and have experienced the roller-coasted rides of being an auto repair shop owner, what advice could you give those shop owners just starting out or planning to go into their own business? 



  • By nptrb, in Automotive Industry,

    By nptrb, in Automotive Industry,

    By nptrb, in Automotive Industry,

  • Our Sponsors



×
×
  • Create New...