Back Counter pay plans

[gmparts4u]

Does anyone have a good idea for a pay plan specifically for the Service/Body Shop counters? I am looking for something that helps to motivate my back counter employees to treat the Service/Body Shop Departments as VALUED customers, instead of just another P.I.T.A. (pain in the.). Currently I pay a base salary and a percentage of the total departmental gross profit. The negatives are: my Front Counter crew reaps the benefits of a GREAT month in the Service Department (without any additional efforts on their part); I've found special orders being placed instead of buying a part from another dealer which delays the repair of the vehicle, and often ties up a stall... all in the name of higher gross profit. Ive looked at Bonus for C.S.I. top box scores? Bonus for shop productivity? They all have merit, but can anyone offer any proven results?

[TomB]

I have always used this plan with my clients:
An hourly salary plus a commision based on flat rate hours on closed repair orders. This accomplishes several things. 1) They focus more on immediate productivity. 2) The paractice of techs shooting the bull at the back counter usually gets stopped it's costing your counterguys money. 3)I've even seen counter guys bring the parts to the techs-
REVOLUTIONARY!!!
Remember, your counter people should not be determining you selling price or your cost. This is a a mnagement function. The main duty of the back counter person is to get the right parts to the techs ASAP. This payplan encourages that activity.


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

[This message has been edited by TomB (edited 01-10-2002).]

[flyerfan]

I use a 40-40-20 pay plan.

I decide how much I want to pay them and then work backwards.

40% a base salary
40% commission based on total labor hours produced by the Service Department.
20% on total parts gross profit.

I have been paying off of labor hours for a couple of years now and it really promotes the back counterpersons to make sure the techs are working. I have seen some of the some results that TomB jas seen, but also adding in a % of parts gross profit they look out after the parts departments intrests also.