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Dealership Pay Plans - who has a complicated one?

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Alex Snyder

Alex Snyder

President Skroob
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May 1, 2006
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Alex
#1
Figured we could talk about pay plans without divulging money. Hopefully we will have some nuggets in this thread to help people come up with good ones.

Here are a few items I've personally worked with or heard of:

-----------------------------

Sales Manager
Straight-up percentage of sales gross differentiated by inventory types
Percentage of gross generated by sales team
Number of deals penciled
Number of deals penciled vs average write-back drops
Dealership CSI average
Total F&I profit or F&I PVR profit
Percentage of market leadership (based on volume from RDR's)
CRM Utilization:

  • number of calls made by team
  • number of appointments confirmed
  • number of customers entered
  • number of emails attained vs customers entered

Sales Person
Straight-up percentage of individually attained gross
Stairstep percentages based on number of units sold
Qualifiers based on number of used cars sold, CSI ranking, total gross made, or F&I income generated
Rolling 90 day average stairstep program based on type of unit sold or CSI ranking
CRM utilization based on a number of different things:

  • number of phone calls made
  • number of customers entered
  • number of appointments made
  • number of eBrochures sent against number of customers entered
  • number of email addresses collected vs. number of customers entered

Internet
Percentage of Total Gross for company/department
Bonuses based on unit volume of company/department
Response Time bonus
Number of specials created per location/per website
Number of blog articles produced
Pay scale based on website visits to leads = total conversion ratio
Number of custom videos created

BDC
Number of sales/service appointments made
Number of appointments that showed
Number of calls made per hour/day/week/month
Number of service appointments recaptured
Number of lost customers reactivated/sold
Number of lease turn-ins purchased

Inventory (photos & comments)
Number of photos taken
Number of comments added
Percentage of total photos/comments to total inventory
Inventory monitoring (depends on technology available):

  • Average number of feeds sent to third-parties
  • Average of days pricing was not changed online
  • Flux in pricing for vehicles aged 30-45 days, 46-60 days, 61+ days, etc
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This is far from everything as I'm hoping people will have some other stuff to add. I'll try to update this top list of "Payplan items" as things are brought-up, but please feel free to discuss how these items can work together to create solid payplans.

I'm missing some roles as well.
 
#2
looks like you got alot of it Alex.

Where I'm at now it's much easier than before with a gross % stair step depending on units sold. A $1000 bonus comes at 12 units, but the % of front end stair steps all the way from 7 up to 15 units.

When I was at Toyota it was a 90 day average which got confusing and the bonus % stair stepped. I didn't know I didn't like the 90 average until I started where I'm at now :D
 
#5
IMO - Directors and Managers should get a % of department NET, not the gross. A manager looking out for the department, and costs associated with that department, is someone who has his/her eyes open to all "business" in that department.

Plus, Gross is easy....net profit is the key.
 
#6
jdavidson said:
Mike, you should be happy that you don't have to also do F&I a few days a week but rest assured that you are not alone! The frustrating part for me is that the salespeople get mad that I don't help re-arrange the lot because I'm "Playing on my computer!" Makes me wanna put a rear nekkid choke on someone til they mess their britches. (Feel better after my rant though!)
Click to expand...

Thats great I get the same grief here. I do photos, video walkarounds, manage leads, sell cars, social media, window stickers, etc.....

Than I get the looks and comments when they decide to move the lot, and I am trying to catch up on my follow up emails and such.

Gotta love it!

As for our pay plan...

We get a flat rate on every car sold, then we have volume bonuses on unit number11, 16, 21, and so on . Actually pretty simple, my pay plan on the other hand... well lets just say its not pretty :(
 
#8
I worked for one guy who just decided what he wanted the total on the car to be.. No rhyme or reason. And it was always about 200 and never more than 300 even if you sold a 2 year old used elantra for 15,000. He just could not part with over 300
 
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