Who pays for the advisors?

[TheOne]

I have always put Service Advisors on a pay plan that pays a percentage of what they write parts and labor CP Warr and Int. I do not pay on sublet or shop supplies. I allow this to amount to no more than 60% of the pay plan/ The balance is a tier based hours per CP RO bonus calculated against the posted labor rate. Yes ALL CP RO's are included.

The pay plan is merely a calculation method for determining earnings. It is always paid entirely by the service department, and the expense must fall within NADA guide for the service department.

To think of it in basic terms, I pay them for the entire job of Service Advisor, but the calulation does reward them for their efforts regarding parts.

[LROE8]

Please define Parts Transfer.

[gmcgrew]

Parts transfer is an amount taken from parts and given to service for retail sales. It depends on what manufacturer you have if it is being done or not. Usually it is half the gross for all retail sales on service tickets.

[This message has been edited by gmcgrew (edited 04-08-2009).]

[arnien]

LROE8 is a Chrysler dealer, has no parts transfer.

[zsmith]

For what it's worth - I think service advisors SHOULD get commision on the parts they sell, but it should be expensed to the service dept. Parts advisors SHOULD get paid something for shop production, but it should be expensed to the parts department.

[KLINK]

I do it the same way as zsmith does.

[PB]

It only seems fair to me to pay the advisors on parts and labor. Who has to sell the repair? Who has to communicate between the customer, techncian, and parts advisor.

I have found when just paying off of labor hours or gross parts sales go down. Take instance body shops. How many parts are returned to the dealer because the fender was repaired.

Does a new car salesperson get paid when selling an accessory?

[Auto_Director4u]

I have always felt that in order to get the most from a Service Advisor, you must pay them for everything they touch. With that said, they must earn that respect by conducting themselves like Assistant Managers. If you develop a pay plan that makes sense for all, you will not only retain motivated Advisors but hold the highest gross profits possible. As far as, who should pay the Service Advisors? Their pay should be split down the middle from the Parts department and the Service department for all parts and services that go through the Service department. In order to be successful in Fixed Operations, the two departments must work together and be a team. The two departments should share the profits and when the profits are lower, for example; tire sales and installation, they should work together to minimize those losses. I will tell you that by using these methods, I have held some of the highest gross/net profits on the west coast.

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6SPEEDDUDE

[KA]

Sounds like we are all over place on this one based upon previous background ( get it ? ). I have done all 3 PM/SM/FOD. We are separate departments and should be treated as such , but remember we cannot exsist without the other .

[This message has been edited by KA (edited 04-09-2009).]

[westover6]

IMHO. it's Fixed OPS not Parts/Service. If the managers are paid as a team than everything else is irrelevant. Parts can't survive without Service and vise/versa.