F&I Payplans
Looking at implementing new performance based payplans in the Finance Office and wanted some ideas from other auto pros. Everything I have seen is so complicated that you need a finance degree to calculate it and we need something simple that rewards our people for selling products. Any proven payplans out there?
Replies to This Discussion
-
Permalink Reply by Jack Higginbotham on
-
Unfortunately Mike, to have an effective performance based pay plan in F&I does require a bit more math than a typical Sales Managers plan. I have numerous examples I can share with you depending on what you are trying to accomplish. I am presently using a very simple plan which is producing excellent results. Send me a private message with your cell number and we can discuss the matter further.
Jack
-
Permalink Reply by Rebecca Chernek on
-
F&I Pay Plans are a complicated topic. Pay Plans should always be designed with the dealer in mind to gain the impact he/she wants to achieve. Some dealers want service contracts and gap and the rest of the products aren't too much of a concern. I am a fan of a grid pay plan. (but it depends on the store and what the dealer wants) I support three drivers, per vehicle performance, product penetration and 100% turnover! I am always available to speak if you have additional concerns. I am sure Jack will answer most of your concerns. Good Luck!
-
Permalink Reply by Brad Newsome on
-
I've seen a bunch of different Pay Plans that produced different results but were specific to what the dealer wanted to accomplish. One of the simplest and most productive ones I've seen was as follows:
$0 - $50,000 (x%)
$50,001 - $75,000 (>x%)
etc.
As far as products:
x number of Warranties = $xxx ($50 extra per after x Amount)
same with GAP, etc.
Also, they were given a percentage of the Front Gross which helps offset F&I pay and you can sqeeze the Sales Managers a bit plus giving F&I a % of the Front is good if you use F&I on T.O./Closes.
We held them to a Penitration Standard. If they missed the standard for a certain time period then they were doc'd $$ or written up or subject to transfer/termination.
Definitely a tough one......Good luck!
-
-
Make a pay plan that's not impossible. So many Dealers dangle an unobtainable carrot that only frustrates the producer. Take into consideration what the Dealer is packing to your aftermarket products? If you put too many financial restraints on income opportunites than you'll experience frequent turnover and sub par Producers. Make sure your penetration are within reach with step bonuses as they pass each objective.
Feel free to contact me.
© 2024 Created by DealerELITE.
Powered by
