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Old 12-10-2011, 12:46 PM   #1
birch3x
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Default Parts Dept. Pay Plans

I'm looking at different ways to incentivize our Parts employes going into 2012. I'd like to come up with something to help icrease sales that's an attainable monthly goal that works for everyone. Anyone have a favorite one?
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Old 12-11-2011, 05:49 PM   #2
F500
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we've been paid a number of ways in the past but the one I cared for the most was paying parts advisors a salary, a set percentage of the gross and then a percentage of the advisors own monthly sales.

for example, normally about 1/2 of the monthly 'bonus' would be made up of what the department did and the other 1/2 would be based on what the individual did. as an added incentive, if an advisor sold over $200K a month, the individual sales percentage would be increased. if the individual had a really GOOD month, then they were compensated for it.
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Old 12-12-2011, 08:36 AM   #3
JoeRocket
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I pay a base salary (roughly half of total pay) + a % of total department gross. I also have small bonuses for certain goals (number of invoices processed, achieving a certain GP%/volume mix, percentage of returns, etc.)

I've tried several different methods ranging from straight salary (low productivity) to straight individual commission (horrible teamwork/morale) and everything in between. What I settled on has proven to be the best balance, in my experience.

Corporate thinks that I shouldn't have the salary % of total pay as high as I do, but they lose the argument and change the subject when I point to the results.


>shrug<
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Old 12-14-2011, 10:30 AM   #4
XDCX
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Great thread - I always think it's interesting to hear about pay plans and what works and what doesn't.

I don't know if this would ever be possible with a dealership pay plan but I always liked it when Chrysler's old VPA/MPA program gave the dealers a chance to earn a missed incentive with the "Quarterly Wrap." I can remember being in situations where our dealership already hit our monthly number but we were pushing hard to hit the "Quarterly Wrap" because we had missed our objective in the previous month.

Having both a month and a quarter objective prevented us from "coasting" once we hit our monthly objective.
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