FLAT RATE IN A SMALL MARKET

[aspergillis]

Curious how all the small GM shops (3-5 techs) are paying their top guys. I have one "A" tech who is payed on flat-rate. He is a good producer when it comes to R&R but I will say is average at diagnostic, especially with the newest vehicles under warranty. R&R seems to be slowing and diagnostics seems to be growing. He has noticed he has not been making rate as often and we believe it is due to an abundance of diagnostic. Has anyone abandoned flat rate and payed there best techs straight hourly? Did production suffer?

[zekensted]

We are a P-B dealership. 3 techs. One go to GM guy. Our "A" tech is paid a straight salary. Since we seem to have a high percentage of diag work, and not as much R&R or maintenance, we had to go the salary way. He keeps up with his training, shop tools, helps the other guys, but doesnt flag the hours I would like. Factor in the low service policy numbers since we have almost zero comebacks, and almost every car is done on time - then look at total shop costs, and suddenly that "low production" isnt so hard to handle. The key here is TOTAL shop costs.

[This message has been edited by zekensted (edited 11-30-2006).]

[oldsfan]

We had a very good tech that was paid a salary.He ultinately became unhappy and left. About a year later he wanted to come back with the same deal. We gave him a 40 hour guarantee at a rate that would meet his previous salary. The technician allmost allways surpasses the guarantee and is making himself and the store more money. I think that giving the opportunity to make more has really inspired this tech. Maybe it will help yours?