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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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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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