Performance Based Pay Plans for Service Advisors?

[mspecperformance]

Please share some of your pay plans. I an deciding on what pay plan works for me as i am looking to add people to my team. Thanks!

[KMS]

What can you afford? A great service advisor will cost. It is worth it to pay them a little more upfront, so they aren't pushy and pissing off your customers. The SA is the face and voice of your shop. He/She will either make your business prosper or drive it into the ground.

[5 Star Auto Spa]

We pay our CSA's $13/hr + 5% parts and labor over the base sale. Roughly comes out between $16 - $19/hr.......

[mspecperformance]

What can you afford? A great service advisor will cost. It is worth it to pay them a little more upfront, so they aren't pushy and pissing off your customers. The SA is the face and voice of your shop. He/She will either make your business prosper or drive it into the ground.

I would like my pay plan in close ratio without too much deviation from my overall profit. Basically a close to set % of profit. I an trying to see what everyone else does. I do not like the idea of straight salary. Either 100% commission or small guarantee + incentive.

[KMS]

I would like my pay plan in close ratio without too much deviation from my overall profit. Basically a close to set % of profit. I an trying to see what everyone else does. I do not like the idea of straight salary. Either 100% commission or small guarantee + incentive.

 

If you don't mind me asking what is your yearly total sales average? (Example: Total Sales - $1,000,000, pay SA 5% of total sales = $50k/yr)

[mspecperformance]

Trending toward 1mil a year. In the 80-100k range however ive seen an explosion in cars, calls, web appointment etc these past several weeks after focusing on marketing and online reputation for the past 6 months.

[mmotley]

My service advisor is paid based on how many hours sold with built in guarantee for any real slow weeks. I'm currently tweaking my email surveys, and those will work as a bonus or multiplier.

 

I was taught to keep incentive pay plans simple and easy to understand and track. If too complicated, they lose their effectiveness.

[mspecperformance]

What percntage of gross sales or gross profit do yr service advisors make? as i understand it works out to about 6-8% when all said and done for gross sales...

[bstewart]

What percntage of gross sales or gross profit do yr service advisors make? as i understand it works out to about 6-8% when all said and done for gross sales...

I've also seen 8% of sales should be a target for service advisor pay.

Knowing that a high quality SA can effectively sell and manage $3000 of work per day (about 16 hours labour plus associated parts), that equals a theoretical max of $750k per year per SA.

8% of 750k is $60k for a high quality SA.

[flacvabeach]

You have to figure loaded pay - pay plus benefits, taxes, uniforms etc. We shoot for 8% of sales, but we have a senior advisor and assistant at each shop. Their daily sales range from 3 to 7k per day. They are on a matrix base on sales and GP.

[mspecperformance]

facvabeach, would you be willing to share your SA matrix?

[cdhowell]

We pay our CSA's $13/hr + 5% parts and labor over the base sale. Roughly comes out between $16 - $19/hr.......

So Joe average comes in for a _____ @ $50. SA sells an additional $200 work for a $250 total RO.

He gets $13/hr plus 5% of $200. Is that correct?

Edited April 14, 2015 by cdhowell