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Old 01-19-2012, 12:41 PM   #1
JoeRocket
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Default Service Advisor Pay Plans

Paying them on Labor only? Whole ticket? Or just certain items like CSI, ELR or Hours/RO?
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Old 01-19-2012, 02:07 PM   #2
Moparguy
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Service advisors are paid to sell labor not parts. Our service advisors are paid a percentage of total department labor generated less policy adjustments. Each advisor has a specific percentage based on their skill and their time on the job. They are not paid a percentage of parts sales. We also pay weekly advisor spiffs for cash that is paid each Monday.
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Old 01-19-2012, 02:48 PM   #3
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Originally Posted by Moparguy View Post
Service advisors are paid to sell labor not parts. Our service advisors are paid a percentage of total department labor generated less policy adjustments. Each advisor has a specific percentage based on their skill and their time on the job. They are not paid a percentage of parts sales.
Soooo.....who goes to bat for the Parts department when ext-war or insurance companies try to send their own stuff? How do you keep the advisors from dumping parts to pad labor (as an example: requesting aftermarket chinese junk vs. factory parts which kills Mopar Loyalty %, gross and return allowance, etc)? How is the Parts Department represented? Is a Parts Advisor included via conference call when the Service Advisor calls the customer/ext-war/ins.? Or do the Service Advisors also fight for Parts Department out of the goodness of their hearts? Or is Parts just S.O.L.?



EDIT - After rereading my questions, it might sound like I'm picking on you but they are legitimate questions that I have so please don't read anything into them. My guys are paid like yours and they f*** us every chance they can to increase labor sales. I'm just wondering how it works everywhere else.

Thanks for taking the time.
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Old 01-19-2012, 03:37 PM   #4
ohiobuckeyes
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Service Advisors at my store at paid a base salary which is 40% of there total annual pay. Then 60% commission based on the Total Hours Turned (Customer Pay, Warranty and Internal.) Also paid $2.00 for every Chrysler Oil Change Contract they sell.

So it works out to around 33,000 year.
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Old 01-20-2012, 12:26 PM   #5
XDCX
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Originally Posted by JoeRocket View Post
Soooo.....who goes to bat for the Parts department when ext-war or insurance companies try to send their own stuff? How do you keep the advisors from dumping parts to pad labor (as an example: requesting aftermarket chinese junk vs. factory parts which kills Mopar Loyalty %, gross and return allowance, etc)? How is the Parts Department represented? Is a Parts Advisor included via conference call when the Service Advisor calls the customer/ext-war/ins.? Or do the Service Advisors also fight for Parts Department out of the goodness of their hearts? Or is Parts just S.O.L.?
I'm on Joe's side in this debate.

My belief is pay plans invoke behavior and if the Service Advisers aren't paid for selling parts then they won't - often to the detriment of the store and the customer.

It's like the old 70% Rule Chrysler used to have when determining whether a major component should be repaired of replaced. You can bet it the Service Adviser is not being paid on parts he/she will always recommend a repair even though that may not be in the customer's best interest.

I also think it's tricky when dealing with how you pay the Service Advisers for writing up warranty repairs. If you pay them nothing you can end up with CSI issues and if you pay them too much you can run the risk of having them up-selling warranty repairs.

Quote:
Originally Posted by JoeRocket View Post
EDIT - After rereading my questions, it might sound like I'm picking on you but they are legitimate questions that I have so please don't read anything into them. My guys are paid like yours and they f*** us every chance they can to increase labor sales. I'm just wondering how it works everywhere else.

Thanks for taking the time.
I like your style and I think I've commented in the past you remind me a lot of our old member Ralph - he could always be counted on to express his opinion in a colorful fashion.
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Old 01-20-2012, 02:09 PM   #6
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I'm on Joe's side in this debate.
To be fair to Moparguy, I think I remember him stating he is a Fixed Ops Director. Just as *90% or more of GMs come from Sales, *90% of FixOpDirs come from Service. It's only human nature to not consider things you don't have experience with.

If this is indeed the case, then I totally understand his position. If he came from Parts, well....














* Disclaimer - Yes, I know I pulled that percentage out of my @ss and I can't back it up with statistics. That number is based on my personal experience, but I can't help but imagine that I'm not too far off on the national level.
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Old 01-20-2012, 07:24 PM   #7
CarguyCO
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I'm not a service guy....but I'm still stuck on this part:

Quote:
So it works out to around 33,000 year.
I would no way in heck take the amount of chit they get from customers all day long...and salesman....and their bosses.....etc...for 33k per year...I wouldn't do it for 33k for 1/2 a year....

But hey..that's just me....
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Old 01-21-2012, 11:33 AM   #8
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Originally Posted by JoeRocket View Post
To be fair to Moparguy, I think I remember him stating he is a Fixed Ops Director. Just as *90% or more of GMs come from Sales, *90% of FixOpDirs come from Service. It's only human nature to not consider things you don't have experience with.

If this is indeed the case, then I totally understand his position. If he came from Parts, well....
If you're referring to me, I've never worked retail service or parts.

I started off selling cars while I was in college and then started with Chrysler in the Service and Parts division as a District Manager. My later jobs with Chrysler included Customer Relations, Sales and Service Contracts.

Concerning your figures, I'd bet they're pretty close to being accurate. In my experience the overwhelming number of GMs and Dealers come from the sales side of the house.
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Old 01-21-2012, 11:36 AM   #9
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Originally Posted by CarguyCO View Post
I'm not a service guy....but I'm still stuck on this part:



I would no way in heck take the amount of chit they get from customers all day long...and salesman....and their bosses.....etc...for 33k per year...I wouldn't do it for 33k for 1/2 a year....

But hey..that's just me....
I think $33K would be a little light for a metro market that has a higher cost of living but I bet it's fairly representative of the rural markets.

And like you, I agree that a Service Advisor has to put up with a lot of crap and deal with a fair amount of pressure. It's definitely not a job I'd want to do everyday.
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Old 01-23-2012, 08:09 AM   #10
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If you're referring to me
No sir. I wasn't.
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Old 01-23-2012, 08:38 AM   #11
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No sir. I wasn't.
Then who were you referring to?
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Old 01-23-2012, 11:23 AM   #12
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Then who were you referring to?
Moparguy, if I was correct about his background.
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Old 01-23-2012, 12:18 PM   #13
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Moparguy, if I was correct about his background.
Ahh, now I understand.

Concerning Moparguy, he's the Dealer Principal. (Click on his User Name and then select "View Public Profile" - it's one of the few fields the forum doesn't ghost.)

That said, I don't know how Moparguy got his start in the business but I've heard that 90% or more of the Dealer Principals come from sales....
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Old 01-23-2012, 12:27 PM   #14
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That said, I don't know how Moparguy got his start in the business but I've heard that 90% or more of the Dealer Principals come from sales....
I got a Fixed Ops vibe from him, so maybe he's part of the 10%.

#occupydealershipforum
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Old 01-23-2012, 02:56 PM   #15
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#occupydealershipforum
Oh no, the Fixed Operations guys are banding together and they're organizing a hostile takeover of the Sales Department.

Or maybe it's a hostile takeover of DealershipForum.
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