body shop pay plans

[dbrown]

I AM INTERESTED IN HOW OTHERS PAY AND MOTIVATE THEIR BODY SHOP TECHS,OURS HAVE BEEN LOOKING FOR MORE MONEY BUT THE DPT HAS BEEN LOSING MONEY. FLAT RATE HAS WORKED WELL IN THE MECH SHOP BUT THEY CAN ALSO UPSELL, I NEED TO PROVIDE A PAY PLAN TO MOVE THE WORK THROUGH THE SHOP FASTER. ANY AND ALL SUGGESTIONS WOULD BE APPRECIATED.

[Doug]

Flat rate should make the body shop guys very happy and motivated. Traditionally, they have no problem beating flat rate by a considerable amount. Are you sure pay plan changes would be the answer?

Organization is everything in a body shop. Can you tell us more about your operation ?

Doug

[AL H]

From my experience in managing the body shop a few years ago I never saw the flat rate pay as a problem. The real keys to success and profits in the body shop had to do with writing estimates that were fair and equitable and proper scheduling and dispatching of the work to the technicians. It is also very important to make sure that the suppliers that you get parts and paint and materials from are giving you the best price available. I would also look at what percentage of your shop rate you are giving to the technicians, obviously if you are giving them to much you have nothing left after you pay the expenses. I have also seen some situations with insurance companies that really lock the shop into rates that are so low you can't retain a profit margin, if this is the case you have to decide if thier business is really neccesary to your operation or if you can find replacement business if you decide to cut the insurance company loose. Good Luck. Al H