Advisor pay

[phorn]

I have one advisor who handles all the internal ROs and two who handle all the CP and Warranty.

I like the idea of paying off the net also. I like the idea of the advisors making money when the shop does, and them not making as much if the shop is facing a loss.

I think I am going to give the 5x5 plan a look. From what I understand, it will help the dealer control personel expense, and also be lucrative enough to keep from having a high turnover rate on the drive.

[Venti]

If anyone can email the 5X5 to me for review, I'd appreciate it.

jr684@mchsi.com

Thanks in advance,
J.R.

[PucHed]

If I could get that email as well, or if someone could post an overview, I would appreciate it.

puckhead@tampabay.rr.com

[phorn]

I have ordered the 5x5 plan. I haven't received it yet, but I will let everyone know how it works. Thanks for all the responses.

[phorn]

Well, I have the 5x5 plan now and from first glance it looks like the real deal. The program allows the user to input averages of all the possible pay criteria (i.e. labor sales, hours sold, customer effective labor rate, menus sold, etc...), then asks for a yearly pay target. After that the user decides what type of spiffs are to be paid, like for CSI or hours per RO. These numbers are used to created a grid that determines the advisors per hour commission rate based on where their performance lands. Once those variables are entered, the program does the rest.

This is the point I am at right now, trying to figure out the best option. There is so much flexibility in the program that you could go from a 100% commission to a 100% salary plan, but the 5x5 recommends no more than 50% salary. The program also lets you see what the average, lowest and highest paid advisors would make.

Right now my advisors are not set up with any kind of base at all, so that is something I will implement to give them some stability. Also with the guidelines for pay as percentages of gross, I think it has swayed my superiors alittle from being stuck on the $4.50 commission per hour.

I believe with employees that if you have to close a door, you should always open a window. And the 5x5 plan seems to allow for that. Most advisors will not make as much in the banner months, but they will not lose as much in the slow periods either. Exceptional advisors can make more than they could on my old plan, but thats the beauty of the plan. When advisors get to the highest level the dealership will also be turning a greater profit. It's like buying a dollar for 90 cents.

I will be implementing it by the first of November, and will let you all know how it goes.