by sallen1 » Wed Dec 31, 2008 11:40 am
Done this for years, only way to make the fixed department actually work together.
Pay off the fixed gross number. If you have an integrated body shop (not one in a separate facility/location) then include that manager. Why? Because the body shop generates service and parts gross too.
I do not suggest a pure commission based plan for managers. Much of what they do is people management, factory interface and other non-productive nonsense which is hard to evaluate in gross profit numbers (some employees are support anyway).
The numbers are always different.. but we pay a base salary plus commission off the total fixed gross then a bonus calculated from various goals: sales, CSI, expense control, etc. The last is the incentive for doing better.
And there is no reason not to have a 4/40 or 8/80 work week but you need management coverage at all times.
good luck and happy new year!
s