Advisor pay plans

[nreis]

ANYONE HAVE A GOOD ADVISOR PAY PLAN?

[robc]

By far the most common pay plan for advisors is some verison of the 40/40/20 program.

40% - base pay
40% - commission
20% - bonus (CSI, sales, etc.)

Figure what the advisor should make for average performance and then work the numbers back from there. For instance, here in metro NJ an advisor is in the $40-$50k range, so let's say $800 a week. And they book about $12-15,000 a week in labor sales.

So for this advisor an example might be:

Base pay - $320/week
Commission 2.5% of labor sold
Bonus - $100 for perfect survey, $50 for 98%+

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

[Mike Vogel]

Base Salary
$ Amount x Flat Rate Hours Sold
$ Amount x Total Shop Hours less Advisors Hours
CSI Bonus

Keeps the advisor focused on all customers,
Keeps the advisor watching the same thing as technicians - hours - as opposed to dollars

Does not skew up and down like when you pay them on parts sales where they can differ widely from month to month.

[Andrea]

I pay the advisors between 8-9 1/2 % of total labor, depending on CSI scores. If they are below group, it is 8%, at group 9%, above group 9 1/2 %. My advisors usually make about 75K a year. Pay plan helps to keep our CSI up.