Pay Plan for new position

[Mark Rouleau]

Ok, I have just been promoted/ demoted again, and I am trying to work out a pay plan with the DP that will satisfy both of us.

I work for a single-point Dodge dealership in Rochester, NY. Average sales volume is approximately 50-60 new and 50-60 used per month.

Here's my current job descriptions:

1) Five Star Coordinator/ Facilitator. In addition to getting tortured by Chrysler factory reps, I also make sure processes/ procedures are in place, and that paperwork is filled out correctly.

In addition, I also work with DealerHQ, a web-based survey company that calls our floor ups, sales, and service, and provides us with information about "urgent" level problems. I then get with the appropriate manager, fill out a customer feedback report (required for 5-star) and map out a plan of action.

I also track & sign employees up for Chrysler Training.

2) as Internet Manager I handle all emails coming through our website. As we have dropped all 3rd party lead providers, this only amounts to 20-30 contacts per month by email.

3. IT: I am responsible to tech-support and troubleshooting our windows-based network of 8 computers. I handle software trouble and basic hardware problems. I do not handle any of the R&R network, although I do handle ERA emulators through windows. I also help salespeople use the credit reporting, kelly blue book, and carfax websites.

In addition I also handle many "miscellaneous" jobs such as typing and editing letters for various managers, photographing used vehicles for our website, helping check our advertising for AG-compliance, for example.

Because of my other duties, I am rarely able to handle floor traffic, and I am limited to occassional repeat customers and any internet based leads.

What kind of pay-plan should I suggest? Should I work out a salary or some kind of compensation based on performance goals?

I look forward to any suggestions and input.

Mark

[Cathy]

Hi,
My only advice and you won't like it is...if you have IT experience or internet experience go to work in an industry that appreciates your qualifications. The car business isn't it at this time. If your other duties are taking away from the gross profit that you bring into the store, you have just lost the only respect you are going to get. I sincerely hope this is not the case where you are. It surely is where I am. Sorry I can't be more helpful.
Cathy

[Cathy]

My husband who has been in this business for 30 years and is not as jaded as I am (could this be because he is a gross producer?) suggests salary with a percentage of dealership gross profit. The reason being that the functions you perform help with overall dealership operation and increase customer satisfaction. From a Dealer perspective, it seems impossible to monetarily gauge your contributions to the smooth operation of the dealership.

[Mark Rouleau]

Thanks for the words of encouragement.

I think that tomorrow I will suggest

1. a base salary for handling tech support and miscellaneous duties

2. a small % bonus based on gross profit

3. another bonus tied into meeting 5-star objectives (SSI, training, etc.)

We'll see how it goes tomorrow. Thank you for your input.

[Chris L.]

That all looks fine except the % of total dealership gross. While you certainly influence that

You should be paid on a salary to account for the administrative responsibilities and a tiered bonus tied to 5-star achievements.

The other part of your pay plan should include some sort of bonus or commission tied to Internet sales. In a store selling 120 cars per month as you described, you should be able to generate more than 30 leads per month without using any lead providers. We have a store about the same size that uses no lead providers and generates more than 100 leads per month and about 20 sales. You need to do a lot of work making sure your site is up to snuff from a lead generating standpoint (easy quick quote forms, etc.) and then marketing your URL extensively. (And if you're responsible for that too then some of that should be reflected in your salary and you should have a budget to spend on making it happen.) But a % of total dealership gross is (a) a bit unreasonable, (b) going to be so small as to not represent much of an incentive, and (c) going to fluctuate according to things you have little influence over, such as volume in the shop, interest rates, warranty labor rates, etc. You're better off, and it sounds more reasonable, with a commission plan in addition to the salary and 5-star bonus above.