Paying off the NET

[LamboThom]

Do any of your pay your advisors or counter people off the net?

IF so, do you pay off the whole net or just the variable net?

Do they get net and gross %?

Any pros and cons?

[tjsmith]

My advisors get paid off hours they sell, & my parts counter get % of gross profit...& I know that all dealerships & situations are different, but at my store, the counter people really have no control over expenses(to a degree), that is why I use gross & not net.

[This message has been edited by tjsmith (edited 06-08-2007).]

[scotstrong]

Tread very carefully if you try to go down this path. I have seen a dealer lose several well-qualified, long-term employees over just such a situation.

Very difficult to hold people financially accountable over things that they have no
DIRECT control over. This also puts people in the situation of often choosing between taking proper care of a customer or protecting their paycheck. High customer satisfaction has a definite price tag attached to it. Don't put your people in the position of having to choose.

Scot Strong

[Old Irish]

Good advice, Scott.

[Art_Mopar]

I learned first hand not to pay Advisors (Parts or Service) off of net. I found that some very poor decisions where made by Advisors who tried to save a few pennies and let many dollars walk out the door.