Individual parts commissions

[joe r]

Does anyone pay their parts advisors commission on just what they sell? Is is a base plus commission or totally commission?

What are any positive or negative things you have found with this type of plan?

Thanks,

Joe R

------------------

[daponik]

As the Parts Manager of a good-sized Nissan/Infiniti dealership, this has been a dilemna of mine for some time.

My problem has been trying to figure out how to do such a plan fairly for all of the Parts Advisors since they don't all have the opportunity to spend the same amount of time on the counter. Some spend more time at the Service counter, while others are at the front retail counter more often.

Anybody have any ideas?

[turbo59]

hello to all,


i am the asst. parts manager at a dodge dealer with 5 countermen and 2 support people..(ie..shipping and warehouse/floater). the 2 service countermen are paid a different commission percentage than the frt countermen and body shop guy. yes they get a base paid on the 15th and the 31st. the base pay is divided and the commission is paid off of individual gross. if a man if off for an excused absent, we average his sales and pay him for the missed days. it has increased the productivity from 2 guys ansering the phones to 4. everyone in the past was paid off dept gross profit.....this is for slackers! in my opinion. if the money is there, pay commission....there is no glass ceiling on salary!

from the desk of;
turbo59

[partstom]

I my experience departmental bonus works better.What I've seen in dealerships where you have individual commision you get people fighting for every phone call, then having too much to do and thing not getting done in time.Group commision fosters a more complete team, if you manage it correctly.

[partstom]

I my experience departmental bonus works better.What I've seen in dealerships where you have individual commision you get people fighting for every phone call, then having too much to do and thing not getting done in time.Group commision fosters a more complete team, if you manage it correctly.

[ROLFE]

CONSIDER PAYING YOUR SERVICE COUNTERMEN THIER BONUS BASED ON SHOP FLAT RATE HOURS. THIS WILL TIE THEM TO THE TECHNICIANS AND THE SERVICE ADVISORS IN A MAJOR WAY. SINCE YOU HAVE ESTABLISHED YOUR PRICING STRUCTURE YOU MUST MONITOR YOUR GROSS AND AQUISITION COSTS AS USUAL. YOU WILL SEE A KEEN INTEREST IN HELPING THE TECHNICIANS DEVELOP SINCE NO INCOME IS BEING GENERATED BY A TECHNICIAN WAITING AT THE COUNTER. JUST DO THE MATH TO CALCULATE AN HOURLY RATE THAT WILL MEET YOUR EXPENSE STRUCTURE. THIS PAY PLAN WILL ALSO ALLOW YOU TO PROVIDE THAT MYSTICAL UNLIMITED PAY PLAN SINCE THE BETTER THE SHOP SALES THE BETTER THE PARTS SALES, THE MORE INCOME EARNED.

[This message has been edited by ROLFE (edited 08-31-2001).]

[KA6J]

Hi Joe,
We are a Dodge/Lexus dealer doing about 500k in sales per month. Our dealer negotiated our union contract for 100% individual commission for the countermen two years ago. The only positive issue has been it certainly motivates the countermen to get to the phones and the techs, but that is where it stops. I had to set up a system of rotation for the front counter. All countermen now handle wholesale. The biggest problems are inventory maintenance and I am constantly playing the roll of a referee, deciding who gets the sale. The countermen are very reluctant to, and obviously so, to put up stock, count bins, etc. The customer who comes in for a small purchase and a bit of friendly advice usually gets less than what I would call good service. In their haste to make a sale and move on, mistakes are on the rise. The whole situation has become a management headache. I have always been an advocate of 'earn what you turn', but in the parts retail business, if it extremely hard to promote quality service on 100% commission. I would recommend a base plus or put in a group total program.

Jim