DealersEdge Professional Forums

I've posted this in the parts forum as well. I've just been made the P&S Dir at my dealership. I was the parts manager here, however my DP will be changing my pay plan and asked me to think about how it should work. I'm not really certain what I should & shouldn't be paid on. Does anyone have any thoughts?

PARTS AND SERVICE DIRECTORS ARE PAID ON SAID DEPT MINUS CONTROLLABLE EXPENSES IE:PERSONNEL AND SEMIFIXED EXPENSES AND DEPENDING WHAT MARKET YOU ARE IN A PAY PERCENTAGE OF THAT OR TO MAKE THINGS EASIER NET PROFIT OF SERVICE AND PARTS WITH FIXED EXPENSES ADDED BACK IN.

Your imagination is the only limiting factor in designing a pay plan....besides the overall dollar amounts, of course

I am a PSD and am paid a monthly salarly, a percentage of service gross profit, and a perecentage on service-parts-body shop net profit.

Cheers
DD

I am paid on the same type plan as Old Irish.

The net is the control on personnel, policy, etc.

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Tom Edwards