Service Advisor Pay Plan

Greetings,

What is the current percentage or guideline a service writer should be paid on service and parts gross profit.

Thanks for any input.

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Permalink Reply by Jim Mahoney on August 6, 2012 at 8:19am

Dave,

Too many factors go into an advisor's pay plan to give a certain percentage. You need to look at the comp for the entire department before determining how much you can afford to pay an advisor. I always preferred to put an advisor on a 100% commission pay plan. This guarantees that your advisor comp to gross percent stays the same month after month.

Jim Mahoney

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Permalink Reply by Gregory Criss on August 24, 2012 at 4:35pm

Dave,

Jim Mahoney has a great point, in that, controlling personnel expense is a must. In most dealerships I visit, managers are still struggling how to get to their KPI in personnel. So don't just throw a number at it.

A great way to figure out what is a good percentage is to know the numbers of what the service advisor had been making for the past year or six months. Talk with dealers in your area to find out what other service advisors are making for that area, then make the judgement call. While 100% commission plans are the destination, your journey may be extended to get there. You may have an advisor that is outstanding. In some areas, a dealer may pay them above 6 figures for their outstanding performance. Yet in other areas and smaller dealerships, earnings of 30K may be prevolent. In most shops, I find varied skill levels, so setting one percentage level probably is not appropriate. There may not be enough difference in the pay vs. the skill level.

If you have any questions, please feel free to call me at 724.971.6372 to discuss further.

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Permalink Reply by Big Tom LaPointe on December 4, 2012 at 9:13pm

It's been a while since i've been involved in service, but in a gm luxury store we were paying advisers around 4% of total sales (100% commish), with bonuses for a CP average of 2.2 or higher, and (VERY IMPORTANT) CSI bonuses. These numbers will depend on your brand. if that helps give you a reference. i agree with the others that you have to determine what overall percentage comp should be and break it down from there.

remember, people will work their pay plan, and it seems easier in service for someone to take advantage of a customer than parts or sales - i saw an adviser sell a $300 service to the same client for multiple visits.