compensation for service managers

[jordana]

I,m a new addition to our dealships management team I was promoted from lead tech
to the service manager of a shop with 6 techs
can anyone tell me were to find industry
standards for managers salary program and possibly what this postion as an average would pay?

Thank-You


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[sallen1]

Congratulations on your new position!

I believe you can get an 'average' of manager compensation amounts based on geographic variables from NADA or perhaps your dealer is a member of a 20-group and they'll know. There is a catch to using these figures: they do not account for experience, but you will get that over time.

You may also ask if your dealership CPA compiles this information, ours does. They break it down by sales volume, geography, number of employees and years in position. It's a guide we use inorder to gauge our compensation amounts with the market place.

Since you will be the responsible person for the performance of your service department, your compensation formula should be based on what you can produce and improve. This also takes time because you have been moved from 'one-of-the-guys' to the 'manager' and I hope your shop respects the new responsibilities you have.

Wishing you success in your new job

scott allen, west covina, CA

[Michael White]

Congratulations!!! I did the same thing in 1984. Compensation is radically different all over the country. Find out what the previous service manager got. If they will not tell you, then wait a day and ask the business amanger to get a complete breakdown of all expenses related to your compartmentWhen you look at the section related to management, you should be able to figure out what he/she was paid.
Now take a serious note about your position. Do not under estimate the problems and job tasks related to your new job.You must have a perfect relationship with your owner/gm to constantly use them as a resource. There is so much more to being a service manager than just helping the guys fix cars and problems. The business management, warranty management, hazmat, forecasting, and customer relations, not to mention the management of your buddies. Make sure you totally understand what your owner/gm wants from you and seek his advise daily/weekly. Many relationships like this go in the toilet rather fast because most owners/gm's totally under estimate the job a great service manager does and how much time it takes. You need to find a mentor or 2. Get to know the business manager ASAP and find out their impressions on what needs to be done and ask their help , and kiss their butts on teaching you the financial aspects. Without a mentor(s) who is truly looking out for you, you have entered a risky job, but if you are self motivated, and do not mind the long hours of thankless work, you can make it. Seek the help from your factory DSM. He/she can be very helpful to you. Seek out your factory schools on business management, time management, and customer relation skills. Learn what your personal limits are, and watch the relationship with your family.Jobs come and go, but family is what it is all about.
Good luck to you

Mike White

[RMARTIN]

Congratulations to the new service manager..may you be well rewarded for your performance! I have a question (?) Does anyone have any words of advise for an experienced, educated Professional Service Consultant looking to make the jump to Service Manager? Any advise would be welcome.
Thank you, rmartin

[sallen1]

A note to RMARTIN on 'pondering the jump'...

It's been a long time since our shops have had an advisor become the manager. It happened in the 60's and ever since, the manager was first the shop foreman (and a prior technician). Not to say we've had a lot of managers, it just seems as if the ones who want the job come from a technical background. I feel that the advisor is in a better position to be manager and here's why.

First of all, the service manager's task is to lead the department. He/She is more responsible for customers than any one person in the shop and who knows customers better than the salesperson on the drive. If there is need for technical leadership, that's what a good shop foreman is for. Also, the manager needs to interface with all the other departments and that's where interpersonal skills are needed most. The manager is also VERY responsible for selling on the drive and sometimes a person with a technical background would not understand all those issues.

This is not to say that a shop foremen do not make a great service managers, they do: I have two of the best and they were prior technicians. It's just harder to find technical people with great people skills.

I would seriously concider a professional, experienced service advisor for manager.

My advise to make the jump: Make yourself known as a good leader. Listen and learn from what your people tell you and do things right. This is the key to success.

[This message has been edited by sallen1 (edited 05-24-99).]

[mbowers]

A couple of suggestions. First, go the WD&S homepage and download the questionnaire for Internet managers. It's a generic form and is suitable for any dealership position.

You might also ask your boss to fill out a copy for you so that you can compare notes and create a current job description.

If you are a WD&S subscriber, you may very well have a manual called "Pay Plans for Service and Parts" staff somewhere in the building. That will give you some guidance on how service managers in various shops are paid.

Also, that was a great suggestion about checking the financial statement to get a rough idea what your predecessor was earning.

[RMARTIN]

Thank you for your advice. I will put it to good use and keep my eyes open for opportunities! rmartin

[STANPETITO]

THE INFO ON PAYING SERVICE MANAGERS ARTICLE THAT APPEARED IN THE JUNE 1999 VOLUME 19, NUMBER 5 SENT A SHIVER DOWN MY SPINE.
THE RECOMMENDATION TO PAY SERVICE ADVISORS A BASE SALARY AND COMISSION PLACES THAT EMPLOYEE IN A NON-EXEMPT STATUS FOR OVERTIME WAGES. AND REFERRING TO THE TRENDS NOTED ON THE PREVIOUS PAGE THE AVERAGE PERSON IS WORKING 60 HOURS PER WEEK. THIS HOLDS TRUE FOR MOST ADVISOR AND MANAGEMENT POSITIONS IN DEALERSHIPS.
TO QUALIFY ADVISORS AS A NON EXEMPT EMPLOYEE IN MOST STATES IS NOT POSSIBLE.TRUST ME SEVERAL HUNDRED HOURS OF RESEARCH AND THOUSANDS OF DOLLARS PROVED THIS TO BE TRUE. THEN THE NIGHTMARE OF CALCULATING THE SALARY AND COMISSION BEGINS TO DETERMINE OVERTIME OWED. A STRAIGHT COMISSION ADVISOR IS EXEMPT IN ALL CASES, I WOULD SUGGEST A PAY PLAN BASED ON PARTS AND LABOR SOLD PER REPAIR ORDER. THOUGH YOU MAY NOT HAVE EXPERIENCED ANY PROBLEM WITH THIS AS WE DID NOT FOR 15 YEARS. IT ONLY TAKES ONE TO GET THE NUTLOG ROLLING.

[mbowers]

As long as the advisors earn more than half of their income from commission they will be exempt from the overtime provisions of the Fair Labor Standards Act.

A very common pay plan for service advisors will pay $300 to $350 per week salary plus a commission of 4% to 4.5% of sales.