DealersEdge Professional Forums

i would like to know what the average pay plan is , our is 375 a week salary and 2.5 percent on warranty and cust pay , also how often should writers pay plan be looked at as far as raises .

Advisor pay plans is one of those most fluid in the dealership depending on where you live. For instance, here in the metro area of NJ you'd really struggle to find an acceptable advisor under $45-50k, whereas in other areas that might buy you a service manager. So that is where you have to start, what does that position pay in your area and what your sales can support.

Let's start with the 2.5% - that is on the low side of most commissions. 5% seems to be the max, with 3.5% being about average.

The 2.5% isn't a total negative being low if the $375 salary is making up for it. Let me show the math in that thought.

175 hours/week x $70/hour = $12,250 sales
$12,250 x 2.5% = $306.25 + $375 = $681.25
== OR ==
$12,250 sales x 3.5% = $428.75 + $250 = 678.75

So in this case the difference between the 2.5% and 3.5% commission is adjusted for in the salary. It also depends on how generous and obtainable any bonus items you may have are.

To answer your question, it seems a tad on the low side depending on your shop's work load. However, if the advisors are selling 800 hours a month then it seems right where it need to be to me.

Raises ... you raise your labor rates right? That should be presented to the advisors as a raise for them too. As for other raises ... it depends on if your shop is at capacity or ability or not, because most dealers/managers I speak to would tell the advisor to sell his way to a raise.




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** Rob, Editor Dealersedge/WD&S **
Help is only a message post away!
robc@dealersedge.com

dannw,

I also see that you don't pay anything on internals. Who writes them up? Even if you only give 1-1.5%, at least they will write them up. Otherwise I have seen that they will push PDIs and Used Cars to the side, and then you get your GM on you about turn around time. Or worse yet, your UC manager starts sending his cars out, saying that they are getting through service too slowly.

Just a thought.

HERE IS A PAY PLAN FROM NORTHERN NJ

$450.00 PER WEEK
4.5% ON CPL
2.0% 0N WARRANTY
2.0% ON ALL PARTS
NOTHING ON INTERNALS
WE HAVE 4 ADVISORS AND THEY RANGE FROM 49K TO 72K PER YEAR.
HOPE THIS HELPS