BMW Warranty Admin Pay Plan

[pamms]

Need samples of pay plans for BMW Warranty admins doing $140,000 labor and $170,000 parts per month. Thanks for the input.

[robc]

Are you more interested in what the job should pay or how you should pay them? Job pay is widely dependant on your local job market. If you're in the rural south, I'd say $12-$14/hour; if you're in major metro market like SF or NYC, I'd say $20-$25/hour. Here in NJ I'd say you're pushing the higher end of that. It is just so hard to say - this should pay $50K/year, because some might recoil about how expensive that is and others would think it is a whale of a deal.

Pay plans vary from straight hourly to nearly strait commission. DealersEdge recommends 75% base pay (either hourly or salary) and 25% incentives based on schedule balance, reject rates, etc. as a maximum for incentive basis.

One of the issues is the size of your shop. That is probably 40-50 claims a day, which is humming for a single warranty administrator. (Is this person assigning labor ops, submitting for payment and reconciling payment?) Not that it can't be done, but that's a pretty strong work load, coupled with the fact that BMW administrators don't grow on trees and you can't be without one for long. Even an outside processing company would probably want $100K a year to do that load.

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

[pamms]

Thanks. In major west market. Actually have 2 that flag and book and submit and reconcile statement. Each with 2 years experience and are only paying hourly. Want a salary plus bonus plan. Thanks again

[robc]

Yeah, then I'd consider the 75/25 split with a bonus on receiveables, for BMW of that size probably less than $20K in 30-60. I forget how your payment cycles post (weekly, monthly, daily?) so we may need to adjust that and if you are on the 30 day initial submission limit. With two years they should be crafting the art to have a squeeky clean schedule.

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