Quick Tech Pay Model

[nge]

Just wondering how you all pay your quick service tech? In recent years we have paid ours hourly though a time clock and not based on actual hours worked or commission. I have actually had some problems come up with this as far as employee urgency goes. My guy was taking too long to service etc and not really into the job because after all he was getting paid hourly. Just trying to find the best blend of pay structure hopefully somehow including a commission based pay and a guaranteed rate. My only problem here is since he is quick service he will only get smaller tickets so commission may not be competitive. Also I have considered giving an "upsale" incentitve. So if the customer comes in for an oil change and through the checklist he finds a CV Axle for example and recommends and sells it he gets x% but my B tech would do the actual install and quick service tech would continue the other items on his board. Just looking for some ideas.

[vbtoytech]

Motivating the lowest paid techs to do the fastest services without making mistakes is certainly an obstacle. I have seen a quick lube bonus of $1 per car, in addition to hourly pay, increase speed in the quick lane. Also, spiffs on filters, wipers, etc can motivate a more thorough inspection, even if the spiff is a small amount - 50 cents to a dollar per item - all items that your hourly tech can install.

 

As far as your example on a percentage on up-sell for other work...At my shop we don't have a quick service tech. A thorough check-over by an experienced tech doesn't take long and is a gold mine for up-sell. The car is already in the shop - isn't that the hardest part?

 

Not saying there isn't a place for quick service - low mileage, known no-buyers, and customers who think you are a drive thru are great candidates. These are not our target market.

[HarrytheCarGeek]

Hardest thing for me was overcoming my greed. After losing so many valuable people, I became practical and set an expected return on my money.

 

After that, the second hardest thing was making sure they were kept busy enough to make me the expected return on my money.

 

Rate hour $10 for oil change tech, x 1.7 for tax and benefits = $17 cost loaded hour. = $136 cost day (8 hours x $17) = Target revenue $408 day ($106 x 3 )

 

If 16 cars per day 16/8 = 30 Mins each. or cost of $8.50 per car, expected revenue $25.50

 

So you can pay base of $400 to tech, cost of $680 loaded, expected revenue of $2,040. Then you can commission 3%-10% for anything in sales above in excess or $2,040. e.g. Tech revenue for the week $3500 - $2040 = $1,460 x 10% = $140, so Base of 400 plus commission of $140 for the week =$540.

 

It's important to keep on top of paying your commissions right on time, and also docking them when comebacks come in if it's the tech's fault. Bookkeeping this is the difficult part if your computer system does not do it for you.