DealersEdge Professional Forums

IM THINKING OF CHANGING PAY PLANS FOR MY WHOLESALE PARTS ADVISERS.MY GOAL IS TO INCREASE THEIR DESIRE TO TAKE THE EXTRA STEP THAT MAY BE NEEDED TO KEEP OUR CUSTOMERS HAPPY AND ALSO SELL A NEW CUSTOMER ON OUR DEPARTMENT WHEN THEY FIRST CALL.THEIR PAY PLANS ARE 75% SALARY AND 25% COMMISION.MY THOUGHTS ARE TO GO TO AT LEAST A 50-50 SPLIT OR MORE.I HAVE A OUTSIDE SALESMAN WHO BEEN WITH US FOR 5 MONTHS AND IS DOING A SUPERB JOB,BUT OUR PARTS ADVISERS DONT SEEM SO INTENSE ABOUT THIS.MAYBE BECAUSE THE INCREASE REALLY DOESNT EFFECT THEIR PAY.THEIR DESIRE TO TAKE THAT EXTRA STEP WITH A NEW CUSTOMER IS NOT THERE.IM LOOKING FOR POSTIVE OR NEGATIVE FEEDBACK AND ANY SUCCESS STORIES ON PAY PLANS.THANKS

Hi Jake,
Your posting is rather complex as to the size of your wholesale operation. I have paid my parts team as just that, a group and on total sales rather than on each individuals own sales as I feel it takes the correct overall mix to be effective. However, I am finding that for long term continuing growth this may not be the best approach. I am realizing a more individual competitive environment may be the way to go with a 40% sal and 60% comm. to better motivate employees. My department has grown from 70k/month to now averaging 505k/ month in app 10yrs. Wholesale is about 60 to 65%. Fellow employees do not realize strength and weaknesses only faults and flaws among each other. The current employment market hasn't much room for adjustments so motivation and education becomes more of a neccesity than ever before.

"TOYOTA EVERYDAY"