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  • Team approach

    Posted by Alan Ollie on January 2, 2012 at 6:26 am

    We have been exploring ways to improve shop output.

    So i asked the crew to give me ideas , The idea that was most liked

    was the team approach. This includes SA,Techs,Parts personal.

    If the shop bills out 140,150.160.170.180 hr @ 60% GP they get paid a

    small base and ___% bonus the percent rises as the time and GP rise.

    Pleae lend me your comments

    Jamie Crutcher replied 10 years, 5 months ago 2 Members · 1 Reply
  • 1 Reply
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  • Jamie Crutcher

    Member
    January 7, 2012 at 5:32 am

    I would love thoughts here too, have been wanting to do something

    similar. I know another shop in town that team pays all the techs,

    shop manager (non owner) is the tech brains to dig into the tough

    stuff, couple gs and couple heavier techs, everyone gets some $ per

    hour shop turns, it ends the reluctance to help a co-worker because

    he’s making you money too, also ends one guy standing around waiting

    for parts or approvals while another guy has four jobs sold and is a

    day behind, morale is apparently pretty good too, the down side is the

    shop is paying around 40% of labor sales back out, however it is way

    more productive than my flat rate which we know should be around 30%

    tops.

    As i have been crunching numbers the biggest complexity i found was

    say you have 5 techs and want to split 30% between them gs gets $3.5

    per shop hour, A techs get $6 or so…you get it all figured out then

    add or remove a tech, less techs need higher %, more techs need less.

    At least thats where it seems to get complicated for me.

    Another advantage i heard was a self policing environment, everyone

    makes everyone money, slackers will catch heat from peers and get

    evicted if not performing.

    Thoughts?