PSD pay

[flyboy]

Yet another job change, this time as Parts and Service Director. The owner wants me to write my own pay plan <yipee!>

I would be interested to see what others in this same position are paid off of. I envision a small base, commission on both depts gross profit as well as net. The owner does not have a track record of dumping his boat payment etc into these depts, nor does he raise the rent. We have discussed that already. So, I am not too uncomfortable being paid off of net, actually I am used to it and prefer it, I know that is where I can really increase the figures. Both depts are suffering from a lack of mgt for quite some time and I have already had a significant impact on the gross. And just a bit of expense controll has caused the bottom line to increase as well.

Any input as to how those who are working in this position might be getting paid, or wish they were getting paid, would be appreciated.

------------------
Mark McConachie
Portland, Or

[robc]

I could pull up a couple more pay plans from our manuals, but my general sense is dealerships start with a target salary and work backwards from there. Since salary varies so much from place to place this can take a wide swing in percentages.

Here's an example for a Chrysler store:
Base pay is $350 per week
Commission is 4% of gross of service, parts and body shop.
Looking at the dealership's current performance this would pay the PSD just over $90,000 per year, so they aren't a very big store.

But the main point is that for PSD in this market the dealership knew they had to pay in the $90K plus range. Here NJ I can't imagine taking a PSD job for an average shop for less than $100K+.

If we looked at the NADA "average shop" with total back end sales of $3.67 million and net of 6.2% ($227K), then we could back into the numbers to get to $100K.

Lets say $500 weekly salary
1% of gross sales
16% of net

That gives us $26,000 salary, $36,700 on gross and $36,320 on net.

I just look to work the deal on where you see the biggest upside. If it is net then weigh more of your pay on it.


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

[65CENTS]

THEMS US DOLLARS

ANYBODY CARE TO TALK ABOUT CANADIAN 65 CENT DOLLARS?

I'M INTERESTED IN THE SALARY RANGE FOR TORONTO AREA PARTS AND SERVICE MANAGERS

[vicar]

Flyboy:

As a PSD, I worked the pay plan with the DP too. Came down to 2% GP P & S, 5% of Net and a performance bonuses; from Service; CSI, Shop pro-efficiency,Warranty receivables. From parts; true turn and obsolescence.

[gravlguts]

65cents, feel free to e-mail me to discuss this as i too am in the t.o. area

[mstorring]

gravlguts and 65cents,
Please email me as well as I am in Calgary looking over 3 different stores P&S&Body departments. I am struggling with pay plans as well. If you have anything for the Canadian market, I would love to discuss.
Thanks
Mark

[markstorring]

mark.storring@dilawri-group.ca