Quantcast
Jump to content


What and how do you pay your Service Writer?


MINI4U

Recommended Posts

We are in the process of getting a new service writer and wondering what other shops pay.

 

I looked up the average pay and median was $42k up to max $69K. We are a small shop with 2 techs and don't want to start out too high.

 

Link to comment
Share on other sites

That is interesting. When we were interviewing one of the dealer service writers said it was 100% commission. We had done previously salary of $3735. per month with a bonus calculated when we went over 50k in sales for the month.

Link to comment
Share on other sites

You have to be careful with commission. This is one of the reasons why we all are in business at independent shops. Customers are getting sick of getting taken advantage of at the dealerships. I have these conversations with new customers daily. You don't want to put excessive pressure on your service writers. Your service writers are the face and voice of your business. Keep them happy. I do agree with not over-paying them. We do salary plus commission with a majority of their pay coming from salary.

  • Like 1
Link to comment
Share on other sites

Our last guy was not as good at sales as I feel he could have been so he ended up making about 50k. The guy we want to hire says he currently makes a little more than that but is payed hourly with some kind of bonus system which made me wonder what other shops do.

Edited by MINI4U
Link to comment
Share on other sites

Our last guy was not as good at sales as I feel he could have been so he ended up making about 50k. The guy we want to hire says he currently makes a little more than that but is payed hourly with some kind of bonus system which made me wonder what other shops do.

 

Salary is around $50k, then the commission is matrixed by percentage of gross profit. The higher the profit each week the higher percentage they make. They must hit above 60% gross profit though before commission will start.

Link to comment
Share on other sites

50K salary for the CSA? Is he/she working 40 hours/5 days a week? If working 40 hours/5 days a week that breaks down to $24/hour before commission. We aren't able to afford quite that high of a salary/pay rate for our CSA. Our CSÁ's start out at $12/hour + 5% commission on parts and labor sold over the base sale. It typically comes out at around $16/hour at our current volume.

Link to comment
Share on other sites

So do you have an office person or does he do that as well as service write? We have a front office person so our writer wrote up estimates, ordered parts and answered the phone when the front office person was busy on the other line or cashing out a customer.

Link to comment
Share on other sites

Service advisors even at the dealers around here make $12-$15 an hour. I have a few friends who work as SAs at dealerships. $50k seems crazy to me for a 2 tech shop. If your advisor is going to make $50k, what are your techs making, $75-100k?

Link to comment
Share on other sites

I currently pay my SA hourly. The plan is to move her to 100% commission once she has enough experience and training. Commission will be based on hours sold.

 

KMS mentioned being careful as to not wanting your employees to over sell just to increase their paychecks. I think you can probably offset a lot of this by having strict recommendation intervals (ie, filters every 15 or 30, trans every 30, etc.). Hopefully you trust your employees not to over sell, but it's still something to monitor.

 

I've chosen to base their pay off of hours produced so I can easily calculate GP on labor and parts. If both the SA and the tech's pay is tied to labor hours, I can calculate my effective labor rate, then figure out the percentage that is GP.

Link to comment
Share on other sites

I know you techs out there hate to hear this but a SA worth his/her weight should actually make more or close to a tech. Remember a SA is the face of the shop. They are the people who greet customers, manage the front end, estimate and sell service, etc. Essentially they are and can be the manager of the businesses.

  • Like 1
Link to comment
Share on other sites

I know you techs out there hate to hear this but a SA worth his/her weight should actually make more or close to a tech. Remember a SA is the face of the shop. They are the people who greet customers, manage the front end, estimate and sell service, etc. Essentially they are and can be the manager of the businesses.

Much agreed!

Link to comment
Share on other sites

Selling without standards is stealing. Therefore, that should not be an issue. A combination of hourly or salary, sales goals, gross profit goal, and month end bonus works well. Salary or hourly should not be so high they are satisfied. Your pay for advisor should be about 10% of sales.

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?

         0 comments
      Auto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
      As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
      But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
      Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
      Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
      Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
      The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.
  • Similar Topics

    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By carmcapriotto
      AAPEX 2023 Shop Owner of the Year (00:00:01) Roy Foster's background, including his family's business legacy and involvement in industry organizations. AAPEX 2023 Technician of the Year (00:00:57) Michael Miller's experience and certifications, as well as his friendship with previous Technician of the Year, Matt. AAPEX 2023 Service Advisor of the Year (00:04:37) Greg Damon discusses his shop's involvement in the community, including an exhibit at a kids' discovery museum, and the focus on training and changing the perception of the industry. The importance of apprenticeship programs (00:12:00) Discussion about the success of the NAPA apprentice program and the commitment to investing in young people, including the Roy's sons being apprentices and the need for more young people in the automotive industry. The importance of continuous learning (00:17:25) Discussion on the importance of staying humble, continuously learning, and seeking knowledge from others in the industry. The value of training and networking (00:18:22) Emphasizing the need for shop owners to invest in their employees' training, provide resources, and encourage networking within the industry. Quality control, communication, and value in automotive repair (00:20:17) Exploration of the importance of effective communication between service writers and technicians, quality control measures, and providing value to customers through clear diagnosis and explanation of services. The mentoring program (00:24:49) Discussion about the benefits of having a mentoring program in the shop, with a mentor guiding and teaching a new technician. Increasing sales volume through mentoring (00:25:54) Exploring how having a mentoring program can increase sales volume and profitability for shop owners. Changing the perception of the industry (00:28:02) Highlighting the need to change the perception of the automotive industry as a high-tech, clean environment with opportunities for growth and advancement. The recognition of the industry's high-tech profession (00:32:41) The professionalism and high-tech nature of the automotive industry. The importance of teamwork in the automotive industry (00:33:01) The importance of having a great team of technicians and owners to succeed in the industry.
      Thanks to our Partner, NAPA Auto Care Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: 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    
      Click to go to the Podcast on Remarkable Results Radio
    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By Hands On
      I keep getting a request now and then to go to someones house. I am starting to wonder, is it because they think it would be cheaper, or is it like in that show billions, where the guy has so much money, he can afford to pay chef ryan to come to his house to cook dinner.
       
      How much would it take to get each of you to come to my house to work on my car? Honest answers, and you have to give an amount.
    • By carmcapriotto
      Meg Lewis, BJ’s Automotive Diagnostic Center, Belfast, ME, NAPA Auto Care Technician of the Year 2022.  Carm and Meg discuss the shop's transition to a four-day workweek to promote work-life balance, the challenges of finding and retaining skilled technicians. Meg shares her experience as a female technician. They also discuss the need to change the perception of the automotive industry and attract more women. The episode concludes with a discussion on succession planning and the shop's community involvement
      The decision to move to a four-day workweek (00:03:14) Meg discusses the idea of transitioning to a four-day workweek and the process of deciding which day to take off. The role of a diagnostician as a technology specialist (00:07:55) Carm suggests renaming the role of a diagnostician to a technology specialist, highlighting the importance of technology in automotive diagnostics. The collaboration between a technology specialist and a mechanical specialist (00:08:48) Carm and Meg discuss the complementary roles of a technology specialist and a mechanical specialist in automotive repair and the importance of their collaboration. Challenges with staffing during COVID-19 (00:10:02) The impact of COVID-19 on staffing, including layoffs, struggles to find new technicians, and the use of apprenticeship programs. The decision to pursue automotive technology (00:17:36) Meg discusses her early interest in working with cars and her decision to pursue automotive technology in high school and college. The importance of attracting more women to the automotive industry (00:18:09) Carm suggests changing the perception of the industry and highlights the unique traits that women can bring to the workplace. Overcoming physical challenges as a female technician (00:19:31) Meg talks about how she adapts and finds creative solutions to overcome physical challenges in her work as a female technician. Importance of communication in internal succession (00:27:14) The significance of regular and effective communication between the owner and the successor in a business's internal succession process.   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:
      -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: 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
       


      Click to go to the Podcast on Remarkable Results Radio


  • Our Sponsors

×
×
  • Create New...