Recommended Pay Program

Recommended pay program considerations start with a manager. The Goal is set for sales that month. This goal  is the sales needed to pay parts, supplies, overhead, wages, taxes, everything. It is the months break-even figure.

This sales figure produces no profit for the company. The managers wages for this for the 44 hour week (5 and ½ days) is minimum wage ($6.55) X 40=$262.00 + 4 Overtime hours @$9.82=$38.28.

Adding the 2 together totals $300.28 before taxes. Then bonuses are paid on some percentage (5%-6%-7%) of every $1000 of sales over break-even. This program keeps everything indexed to sales performance and insures just as much good effort that you need toward the end of the month.

Most pay the manager too much, then after 2-3 months dismiss him because he doesn’t perform to the level of his pay. The answer is keep him indexed. Your entire sales cost should not exceed 5%. Monthly Bonus Sharing is another great way to pay employees.

Everybody gets a minimum wage program plus a share of the profit for the month. The profits are based on the amount of overage there is above expenses. Mechanics can be paid another way- with minimum wage 44 hour a week program plus $14-$15-$16 per hour for every book time hours they perform.

CONCEPT of your company is reflected in the process and treatment procedures you train your employees to use when handling your customers. Teach how to start with a clipboard, as you start with a customer using a checklist and discuss his observations of what he is suspecting is his problem.

A check sheet is best that a technician can add comments to during checkout. Walk to the vehicle with customer making notations of conversations and observations. Ask who has serviced the vehicle last and how long it has been.

Record the mileage and recent work done.

If a noise or something occurring while driving seems to be the problem – arrange for the authorized test drive technician to be briefed. Ask for permission to check other systems while examining the problem area.

May I offer you a free brake check and tire inspection while we have your vehicle on the lift?’ If the customer is leaving the vehicle get all appropriate info and permissions.

Total Vehicle Care is a great concept

This is a checkout procedure that makes the owner aware of the ‘real’ condition of his vehicle. The purpose is to prevent breakdowns and keep repair costs at a minimum. A simple repair to a faulty battery cable will prevent a stranded condition.

Fluid checks find parts that are leaking and overheating. Engage the customer in a feeling of security by teaching the concept to your employees and show them how to explain the safety in the full checkout procedure. Some shops present it as a 19 point safety check you get free with every Lube/Oil & Filter. The more you check – the more defects you will find.

Consider a $20-$30 used car checkout fee for those thinking of buying a car from a private party. You look the car over – check systems and fluids and give them an opinion of its overall condition. I know shops that do this and they find that word of mouth brings even more customers. Be the authority they trust in vehicles.

Article: Ray Hauenstein, All rights reserved

www.mastershopcoaching.com

Marshall Kelly (editor)