PARTS MGR PAY PLAN

[Pancho_Villa_0259]

cantfind12! That was uplifting. How much do you charge an hour, because I have problems... I agree with your response 100%. No offense to the rest of ya'll...

[cantfind12]

Not a cent Mr. Villa but I do value your response. It seems that the the term conspicuous consumption was devalued since its inception and unfortunately falls on deaf ears in today's times. The pride of a job well done is only compensated by a material return and not with a feeling of self satisfaction. Psychology argues whether or not there is merit to intrinsic vs. extrinsic motivators but the constant barrage of how do WE DO BETTER can be consistently translated into HOW DO I DO BETTER. A wise person coined the phrase WE ALL DO BETTER WHEN WE ALL DO BETTER. I'm not sure everyone pauses long enough to truely understand the meaning.

[partsman103]

a base salary, commission on parts net, commission on service dept net, and either a demo or a demo allowance is how my pay plan was set up. (I opted for the demo allowance b/c in the long run it would be cheaper on my dept exp.)

Just be sure to do a yearly evaluation of the managers pay and performance.

[sp7128]

1) percent of the total parts gross
plus
2) percent of the total parts net/net

1 )gross dollars = ????????
X percent %
------------
= pay 1


add pay 1 into expenses then:

2) net profit dollars = ????????
X percent %
----------------
= pay 2

pay 1 + pay 2 = total monthly pay


3) incentive if the net to gross percent is a number you have set as a goal ,,,,(25%)

net / gross = %

[zsmith]

sp7128-A quick review of the pay plan you proposed would pay me $34,000 annually for a store doing $200,000 gross monthly.

Hmmm.....I'll pass!

[sp7128]

ZS........how would did you calculate? ....the percentages have to be calculated and adjusted for your dept/store, but 5% gross and 10% net would be a great starting point....YES 5% and 10% !!!!..so your "pay 1" for the year would be (200k x 12mths) *5% = 120k ....yes 120k.........

[Gran Sasso]

Are you heavy into wholesale, or just mainly a (feed the service dept) type store?

My current pay plan is base plus bonuses when service gross profit hits a certain number. The incentive is to help the service department sell jobs. Of course I am expected to keep parts gross profit at a decent level. But on jobs that are high dollar, I do what I can to make some money, but keep it sellable for the service writers.

We do almost no wholesale, so we rely almost completely on the service department to get it done. I am trying to reach out to independents and a few body shops, but with two HUGE wholesale players in the market...its almost not worth the effort.

[zsmith]

sorry, my mistake. I thought you meant 1% of gross and 2% of net!

[cantfind12]

Mr. Villa

I hope you have noticed the regressive conditioning that has taken place. Although everyone philisophically applaudes work ethic and talks anecdotally about its worth we still have a predisposed and reinforced rebound that overshadows our personal gratification. MONEY. It is unfortunate that no matter what creative idealogy is thrown out to motivate people in our business it always comes back to the same incentive. In my experience I have worked around people who have not made a dime more for doing a good job but were rewarded in other ways and found that to be the motivating factor. Maybe Oprah should jump into the car business on her next mission.

[ZOOM1]

cantfind12-I agree 100% that work ethic is one of the most important factors,and a problem we all face today,and that there are other motivating factors besides money that are important and need to be recognized and addressed.However, we do need to be realistic.What is the primary reason we all work for a living?-to EARN a living.Money is not the answer to everything,and just the satisfaction of a job well done and knowing you have put 100 % + into it is important,We need to be realistic-unfortunately, the society we live in requires us to put a major focus on $$.Our financial obligations have a way of controlling our lives to a certain extent,and even a strong work ethic is sometimes based on financial motivation("if I work hard,I will be rewarded for it"). I can't say I necessarily agree with it, but it is a fact of life.Personally,when I go home at night I feel better knowing I have given 100% to my efforts,but feeling good about yourself doesn't pay the bills.