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Old 02-24-2014, 04:38 PM   #1
Cookie
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Default Service Advisor Pay Scale?

I am a General Manager for a Ford Dealership in Northern Ca.
I joined this group with this subject in mind and I have discovered I enjoy reading the forum topics.
If you don't mind what is the pay scale out there for 5+ years automotive service advisors?
We currently pay a base salary plus over 50% of their wages in a percentage of the adjusted selling gross of the Parts and Service depts.
The adjusted selling gross line varies from month to month quite a bit. I am looking for a more stable approach as the business has changed over the years. We need these guys to have an incentive to produce yet they need stable wages at the same time.
Thanks!
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Old 02-25-2014, 11:07 AM   #2
XDCX
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Cookie - First post - Welcome to DealershipForum.

Concerning pay scale for a Service Advisor, in my experience there's a wide variation based on the size of the store and the market where the dealership is located. (There's also a variation based on franchise.)

For a small store in a rural market it wouldn't surprise me if the pay scale was still in the $2,000 - $2,200 per month range. For a larger store (especially a European New Car franchise) it wouldn't surprise me if the pay scale was $100K+ per year.

Establishing a pay plan also has a number of variables:
  • What percentage is paid on labor sales?
  • What percentage is paid on parts sales?
  • Is there a different rate for Warranty/Recall repairs?
  • Is there a different rate for Internal repairs?
  • Are there incentives based on Customer Satisfaction?
  • Are there incentives paid on hitting certain targets - hours/RO as an example
  • Is a portion of the pay plan fixed as a salary?
It's been awhile since we've had a good discussion regarding Service Advisor pay plans. Hopefully some of our other members will chime in with what's worked well for their stores.
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Old 02-25-2014, 11:21 AM   #3
79LilRedExpress
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We are just above X-man's estimate.
Plus randem bonus' on upsell items
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Old 02-25-2014, 02:25 PM   #4
Cookie
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Default Very unstable

The adjusted selling gross is unstable so their 8% of service and 4% of parts can go from $1,200 to over $4,500 in a given month.
The good old days are behind us I am afraid and the opportunities to sell needed work is deminishing. I am looking at moving them to more stable wages by going to an 80% salary and a smaller percentage of the gross.
The goal is the $50-55 K range. Domestic rural franchise.
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Old 02-26-2014, 10:58 AM   #5
XDCX
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Quote:
Originally Posted by Cookie View Post
The adjusted selling gross is unstable so their 8% of service and 4% of parts can go from $1,200 to over $4,500 in a given month.
The good old days are behind us I am afraid and the opportunities to sell needed work is deminishing. I am looking at moving them to more stable wages by going to an 80% salary and a smaller percentage of the gross.
The goal is the $50-55 K range. Domestic rural franchise.
Wow, that's quite a swing from one month to the next.

Personally, I'd be leery of having an employee who is essentially a salesperson be on a pay plan where 80% of their compensation is fixed as a salary. Maybe it would work if you had the right person but I have to think there's a real risk that most employees would "coast" and wouldn't work as hard to meet the department's goals.
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Old 02-26-2014, 11:11 AM   #6
birch3x
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Quote:
Originally Posted by Cookie View Post
The adjusted selling gross is unstable so their 8% of service and 4% of parts can go from $1,200 to over $4,500 in a given month.
The good old days are behind us I am afraid and the opportunities to sell needed work is deminishing. I am looking at moving them to more stable wages by going to an 80% salary and a smaller percentage of the gross.
The goal is the $50-55 K range. Domestic rural franchise.
Definitely a bonus based on customer pay figures. Internal and warranty numbers are easier to manipulate.
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Old 03-04-2014, 03:33 PM   #7
Cookie
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Default Need Help

Anybody else have an opinion. I agree that most salesman are motivated by the old commission, yet it does depend on the individual. There is another problem with paying off the adjusted selling gross line. The semi-fixed expenses are taken out of the selling gross leaving the adjusted selling gross. You may have two close months with semi-fixed expenses ranging by 20%. It is not fair to a service advisor to be penalized for a high expense month. They have no control of these expenses.
Salaries, commissions, advertising, training, policy adjustments, service loaner, tool and supplies, freight, equipment and vehicle maintenance, vacations.
There I have rattled off the average dealers semi-fixed expense line to illustrate my point.
Therefore the struggle is to maintain a decent pay from month to month without exposing these guys to a cost share and the high peaks and the low valleys.
We need these guys to be stable and happy.
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Old 03-05-2014, 07:24 AM   #8
steve_biegler
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You could try a "Budget Plan" kind of like some utility bills. Take last years average and make that the salary/base, then take any overage and put it in a kitty to cover the slow months but put a cap on the kitty so if it exceeds that amount they will get the excess right away as a bonus. Whatever is in the kitty at the end of the year they receive as a bonus. Far from perfect but a thought. If you really want to motive them send any bonus to their wife!
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