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How many pay labor or parts commissions to techs?


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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.

 

 

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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.

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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
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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.

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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

 

 

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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.

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  • Have you checked out Joe's Latest Blog?

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      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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