Replies to This Discussion

Permalink Reply by NANCY SIMMONS on June 17, 2010 at 11:51am

Interesting topic Joe, as there is a lot of buzz about this lately...Salesperson retention is key to customer retention, repeat business, and referral business. An honest, fair and motivating compensation plan is imperative to maintain good people, while focusing on gross.
In the dealership I currently work in, the F&I Manager is paid 15% of the net F&I income and 25% on aftersell products and service contracts.
The sales consultants are on a sliding % plan based on volume, 1-10 @ 25%, 11-15 @ 30%, 16+ @ 35%, 250.00 pack on new and 500.00 pack on used with additional monthly bonuses. Mini's are 100.00

Looking forward to hearing more examples.....

Permalink Reply by Joe Papa on June 17, 2010 at 11:58am

Thanks for responding Nancy. When you say 15% of net F&I inc did you mean finance reserve and then 25% on other products?

NANCY SIMMONS said:

Interesting topic Joe, as there is a lot of buzz about this lately...Salesperson retention is key to customer retention, repeat business, and referral business. An honest, fair and motivating compensation plan is imperative to maintain good people, while focusing on gross.
In the dealership I currently work in, the F&I Manager is paid 15% of the net F&I income and 25% on aftersell products and service contracts.
The sales consultants are on a sliding % plan based on volume, 1-10 @ 25%, 11-15 @ 30%, 16+ @ 35%, 250.00 pack on new and 500.00 pack on used with additional monthly bonuses. Mini's are 100.00

Looking forward to hearing more examples.....

Permalink Reply by Allen Geissler on June 17, 2010 at 3:28pm

Where I work, F&I is paid 15% of finance reserve, and, 20% of gross from products(less chargebacks). The sales payplan is set up based on gross. $0-$13000 = 25%, $13001-$17000 = 30% , $17001 and up pays 35%. It's retro so if they have $25000 in total sales gross it would pay 35% on all of it. The mini is $200.00. We are fortunate enough to have a sales floor with 7 pro's, so they usually make good $$.

Permalink Reply by Craig Lockerd on June 18, 2010 at 12:31pm

Compensatioin better be 20% of statement gross or less or a sales dept is going to be in trouble I would think, how that amount is divided up should be based on performance.

Joe Papa said:

Thanks for responding Nancy. When you say 15% of net F&I inc did you mean finance reserve and then 25% on other products?

NANCY SIMMONS said:

Interesting topic Joe, as there is a lot of buzz about this lately...Salesperson retention is key to customer retention, repeat business, and referral business. An honest, fair and motivating compensation plan is imperative to maintain good people, while focusing on gross.
In the dealership I currently work in, the F&I Manager is paid 15% of the net F&I income and 25% on aftersell products and service contracts.
The sales consultants are on a sliding % plan based on volume, 1-10 @ 25%, 11-15 @ 30%, 16+ @ 35%, 250.00 pack on new and 500.00 pack on used with additional monthly bonuses. Mini's are 100.00

Looking forward to hearing more examples.....