- January 23, 2018 at 11:00 am #33270
I’m need help on how to set pay plan for a service manager? Or if there are info. where I can find it? Thank you in advance.
- January 29, 2018 at 10:43 am #33504
I’m actually interested in this as well. I am looking to open a shop that I will not be able to run daily so I will need to hire a Service/General Manager.
Auto Shop Instructor
Kings County Office of Education
Aviation Structural Mechanic 1st Class USN Reserves
- January 29, 2018 at 10:48 am #33507
This is something that depends on the size and volume of your shop. In general, all of your non-technician labor should not exceed 10% of sales. That being said, at both of our stores, we pay our managers a % of sales, along with bonuses for hitting 3 to 4 goals on a monthly basis.
- January 31, 2018 at 1:02 pm #33636
This is a great question and one that you’ll find there are as many different pay plans out there as there are shops. The first thing you need is a specific job description that clearly outlines his duties and responsibilities. That will help you figure out what he has control over. Then, when you’re thinking about his compensation, the simple question that you want to ask yourself is, “What do I want him to achieve in the areas that he can control?”
Simply put, you want to make your goals his goals. Things like gross profit, billed hours, hours per RO, net profit, and parts gross profit are just some of the ideas for a compensation plan.
If you’d like some help with this offline, shoot me an email to email@example.com and I’ll be happy to offer some individual guidance.
I hope this helps,
- February 2, 2018 at 9:06 am #33679
I like Rick’s response from above. We focus mainly on a % of GP $ they sell. Since they can influence production it doesn’t count toward their pay until the work is completed and RO closed. Also they have bonuses that change depending on what we are focusing on at the time.
- March 20, 2018 at 6:14 pm #34848
The pay plans that I create are based on sales and Gross Profit. This should be the carrot to dangle out in front of your service advisor. Typically I try to keep the pay plan between 7 & 10% of sales, depending on what type of advisor you have. 10% would be more towards the they are running the shop and you are mostly an absentee owner type of situation.
I am happy to help if you would like to see a sample pay plan or would like me to create one for you. Just email me: firstname.lastname@example.org
Chris Cotton utilizes the Profit First method of cash management. He is trained and certified by the Profit First Professionals organization to guide business owners and entrepreneurs in maximizing their profits.
Chris was the first and currently is the ONLY coach, nationwide, that utilizes Profit First in the Auto Repair Industry. What does this mean for you? In addition to Chris' coaching services, the Profit First method will guide you to greatly increase the profitability of your business.
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