How Service Managers Can Stop Their Pay Plan From Changing (Service Drive Revolution)

Chris Collins, Jeremy O'Neal, and Christian explain how service managers can protect their pay plans and run profitable operations. They cover customer check-in tactics, staffing ratios, and break down a strong pay plan example: 9% of net gross plus $1,500 CSI bonus and $600 fixed pay on $200k monthly labor.
Chapters
Foreign.
Welcome, everybody, to Service Drive Revolution. We have an exciting show for you today. Jeremy, you know what we're going to talk about today?
I am waiting here wondering what we're going to talk about today.
He actually does already know. How do I stop from having my pay plan changed? That's what we're going to talk about. How do I stop from having my pay plan changed? We're also going to answer your questions. We have some really good questions from the audience. I almost feel, Jeremy, that that could be the show. Sometimes some of these questions go pretty deep.
Absolutely. And you know, we got something coming up towards the end of the year in Vegas. We got the SEMA show coming in Apex. We should do a live broadcast there with some of the listeners on set with us where we take their live questions. That would be awesome.
Maybe we should have a contest where we. Where we fly somebody out. We, first of all, are we. Did you get chosen as a speaker?
They don't announce that till June 15th, so.
Okay, well, I'm sure you will. I don't know that I will, but you will for sure. We should have a party out there, and maybe we should have a Service Drive Revolution contest where we fly in one of our listeners. Like we put everybody in a hat or something. I don't know. We have a contest for them sharing it on Social or something. Let's figure out a contest. We fly them out. So we put them up in a hotel, and then we have a little cigar tequila party. Invite people. Could be kind of fun. We're kind of known for that.
I'm down for that. For sure.
We'd drink the good stuff.
Let's do it. I think everybody's ready to have a good event like that. And I think.
Or do you think we'll be able to be within six feet of each other by then?
No, we'll have to be six feet apart. Yeah, I'm sure they're gonna have all these regulations we're gonna have to do, but, you know, at a private party, you can probably do whatever you want, so. So we'll see what happens. But we just got to make sure we. We do follow the rules of the broadcast while we're there, so we'll get it done.
Cool.
Yeah. I'm excited. Hey, Chris, guess what.
What?
You have inspired me, sir. Look, what I. For those of you that are listening, I'm holding in my hand a relic that is just priceless. It's my very first vinyl record that I bought.
It's called the Automotive Performance Opportunity. With Zig Ziglar?
Yep.
That's incredible.
And on the back, this is the company, the Automotive Performance Group. And Zig was a vice president. So there's his picture right there in the center there. So.
Wow, he looks young there. Have you listened to it?
No. It hasn't even been open. Like, the cellophanes torn in a couple places. But, dude, it's brand new. It's in great condition for our.
What is he talking about on there?
He says their philosophy is this. You can get everything you want in life if you help others get what they want in life.
Jeremy. Jeremy. Hey, buddy.
Oh, my gosh. Our hacker is back. How did you get in here? So.
So you want to hear something really funny? Jeremy is. He came to work today, right, Thinking that we were doing this on Zoom. And so, you know the jokes that we've said about not wearing pants.
I cannot wait to see this.
He's literally not wearing pants.
Oh, my gosh.
It's so nice he's got on. What are those shorts?
These are my Chicago Cubs shorts.
He's wearing his Chicago Cubs workout shorts because what Christian has been doing is he comes in and he does calls, coaching calls on Zoom or whatever he's doing. He'll have the polo shirt on, right? But then about 3:30, 4:00', clock, he drops the polo shirt and he's ready to work out. So he's really wearing his workout stuff all day because we have this little prison yard weight set outside on the deck.
I've seen that.
Yeah, he's doing that, but it's so funny. He wasn't ready today. He thought he was on Zoom. And I'm like, no, we're setting up the set, only Jeremy's on Zoom. And he was like, oh, man.
It's.
It's great, though, because I feel like the roles have reversed. Like, you're almost the Zoom hacker now, right? So how does that feel?
How did. I'm sorry, I could barely hear you say that one more time.
Do you feel a little bit mysterious? Because you are the. You're the Zoom hacker. It's really powerful. Knowledge is power.
I kind of feel like Max Hedger must have felt in the 80s, like, looking in on the world. Yeah, absolutely. It's a little. Little surreal. It's. It's nice to be here, but actually, I feel like I'm actually sitting at the table with you guys, which is normally reversed. You're. I kind of feel like I got fired because, like, you're in my seat. So is this like a covert Takeover.
Or I'll keep it warm for you.
That's awesome.
No, no, come on, Jeremy, tell everybody the truth. The truth is, is that.
Later this week, Jeremy is coming in and we're writing content for a course that we're creating together. And it made no sense for him to drive in that. That many days in a week when he, you know, he's seven hours away or whatever in the middle of nowhere, Inland Empire. So it didn't make sense for him to come in and out. So that's why he's on Zoom. But no other reason than that.
And here's what's happened. Do you guys know how many incoming phone calls we had yesterday at the shop? And we're a small shop, so this, the scale of this should.
I'm gonna guess a lot because it's been picking up everywhere.
Yeah. 203.
Holy cow, that's great.
I've never.
You need to hire some text, Jeremy.
Till 8 o'. Clock. It rang and rang and rang and rang.
So you need to hire some text.
I got the text going.
You're gonna need more with 203.
We can help manager yesterday. That's fun.
Your shop's gonna be making more than most dealerships here coming up.
Let's do it. Well, you know what, Chris? You know what I'm really excited about is we're developing a parts department here in the next week. Nice.
Why are you excited about that? You're gonna have to have a parts manager.
I can't blame everything on parts. I can't blame anything right now.
Are you gonna get a parts manager?
Yeah, absolutely. Just apply it. Freedom.
Autorepair.com Hilarious. Okay.
So things have been picking up for us. We're busier than we've ever been. Also.
It seems like, it seems like on the dealership side of things there, there's just clearly winners and losers. Just. It's as clear there's nobody in the middle.
Nope.
You were either a winner or a loser during this. And it all, like we were saying from the very beginning, it's all mindset, but that just is, is, you know, as obvious as. As could ever be. Like right now, dealerships are talking about still laying people off while the, you know, the ones that handled it right are busier than they were before. Because I was saying, I don't know if you remember, it's going to get pent up.
There's going to be pent up demand. Sales still isn't clicking. So if the average car on the road was 12 years old, it's going to be 13 years old here coming up because people aren't buying cars. Now, if.
Trump and his administration do something like cash for clunkers, then that'll turn things around. I think that's what we need. So hopefully something like that is in the plans, but they seem to be moving pretty slow.
You know what's funny is in the independent world, they're really trying to fight that. They're all afraid of cash for clunkers. And all the associations have this, like, grassroots lobbyists going to fight the cash for clunkers, Obviously the dealerships.
Oh, wow, I never thought of that. So the independents don't want cash for clunkers.
No. They would love people to just, you.
Know, never buy a new car. Right. Like Cuba. They want it to be Cuba, where you're restoring, like, 1984 Datsuns. No, bro, they, like, those cars are from the 50s. Yeah.
And they're putting four similar boat engines in them to keep them running. Right? Yeah.
That's what you got. That's what you want.
Right. But I mean, I'm not worried about it. It's like, yeah, if whatever we can do to help our. Our economy out, to help customers get into good vehicles. Dude, we haven't even seen the fallout of this Hertz filing bankruptcy. All these things are. We're still months away from seeing the fallout of the last two months. And regardless of what programs out there, there's gold out there. Like, if I was a dealership right now, I would contact every single person in my customer base and I would offer them a free consultation. And just with all the special financing offers that are out there, you know, no payments for 120 days, 0% financing. I would really, you know, if you offered 5,000 initial consultations and you had 1% of those customers hit, that's 50, right. So now you've got 50 initial consultations. That's a surefire way to sell five or 10 cars immediately. So the. The process is. I mean, the gold is out there. You just got to find a way to do it, and it's not going to fall in your lap.
So, Jeremy, I don't know what program they have. I don't understand one thing. Either one of you can explain this to me. How is real estate going up and how is the stock market up 30% since March?
How does this make any sense?
It defies logic.
It's either setting up for a very big crash again, or it's just, you know, that the money's available and the, The Value has been built on cheap credit, which is what led us to the housing, you know, debacle in 2006 and 2007. So, you know, my 15 year old son's like, dad, we got to buy stocks. Like we got to put our money in the market right now. And I'm like, well, hold on a second. He's all, but this stock is at this. And I say, hold on, pull up the max chart. Well, look, it's still $20 a share higher than where it was three years ago. There's still room for things to fall. So it's not a silver bullet. It's just, it's interesting to see. And Kris, you can relate to this. Every generation goes through these cycles, right? But this is an unpress and economic cycle that we're going to have to go through. And they're likening this to. And I don't know if you've seen these acronyms.
Covid is being likened and marked just like Christ. So you know how like in time, in history we talk BC before Christ and then ad so it's like before Christ or after Christ. Now they're saying we're going to relate to things as before COVID BC and then AC after Covid. So it's definitely a change. There's a lot going on. But I'll have some more conspiracies for you next week.
Sir, I don't. None of that. Yeah, none of that seems to. You're not really your usual conspiracy.
There was some truth there wasn't.
It was. I agreed with what you're saying. So oddly it wasn't.
It wasn't edgy enough. You know, speaking of conspiracies, I was going to tell you, Jeremy. So I got out last weekend a little bit. Right. So it was my first time.
And your parole officer let you out of the house.
Crazy. I had to keep the ankle bracelet on as usual, but it was neat. So I went out and I threw a boomerang and I've been living in fear ever since.
How would you rate that joke going over?
I just want to make sure you.
Didn'T throw it far enough that it's going to be a joke.
Like there's a delay, right?
There's two people that got it now.
That was a huge delay. Like and then the.
It was almost because my brain was still processing. Wait, I've been living in fear ever since. I get it.
So don't. So, but back to the. How is real estate going up? When clearly like the thing that, that I'm Hearing is that a lot of tenants on the commercial side have closed up their business. Taken. The signs are gone and they're not paying rent. A lot of law firms here in downtown LA have gone virtual, and so they've left their. Their offices. There's going to be a huge, huge deficit in retail commercial revenue because people are working remotely and they don't need the office space that they did.
There's also, I know here in California they passed a thing where you can't evict anybody until August, but there's a lot of evictions pending and coming because people haven't been paying rent. And then the Fed said that the fix to it is that we need to stop giving people unemployment because they're making more on unemployment than they were making when they had a job. So now people aren't even looking for jobs because they're making more than they were. And so it's kind of this perfect cocktail that I don't understand how you think that people are going to spend money on things that drive the stock market. Most people are going to be spending money on the lowest level of Maslow's hierarchy of needs, which is just food and shelter.
Yeah. And Chris, So for service advisors out there and service managers and dealership principals, what's interesting is this. What our economy is living off of right now is all the stimulus and all the savings. So right now, what you're seeing, what I believe you're seeing, especially now, you've got two distinct areas with.
What did we. Somebody just walk in? What happened?
Oh, that was my calendar. I'm sorry.
It was all me reminding you what, to go to lunch.
Oh, no, that's. I gotta shut down my shop management program. They just sent me a job. I gotta go.
It was a very polite sound, though. Was it?
Okay, finish your thought.
My thought is this. This is the ramp up before the cliff.
Yeah, that's what I think. So I'm not gonna buy anything. I'm just gonna hold on because I think that there'll be a lot of opportunity to buy coming out of this.
Also, like.
Yeah, all the stimulus and all that. I don't understand how they're just giving all that away like. They are. It's an interesting thing, but I think that financially things are gonna get harder. But it might. There might be a delay to it. Right. Kind of like Christians. Christians jokes. The economy is a lot like Christians jokes. There's a delay in the response and.
Then the hammer drops.
Yeah.
So we have to live in fear.
Let's let's go to God and let's ask God. God, did we have any questions?
God had many questions.
I think by many he means three.
By many God means four.
Oh, geez. We're gonna be here a while. Put on your seatbelts.
This first question comes from Joshua, my favorite book in the Bible.
Can you hear him, Jeremy?
Yes, I can. God is omnipotent. It's vibrating through every fiber of my being.
Okay, perfect. What's the question, God?
Chris, I am approximately nine months into my first job as a service advisor. He spelled it right. I came into this job with zero experience in the automotive industry. I really feel like I have found my true calling. And your books, videos, and podcasts have helped me increase my per ro sales by leaps and bounds. My question is, how can I get customers to stop and look at their vehicle with me during check in when they have been trained for years by other advisors I work with to just drop off their vehicles? I want to build rapport and trust with these people, but it's seemingly impossible to do that when I can't get them to slow down and walk around the vehicle with me. Please help a new advisor desperate to build the circle of trust.
Good question. Did you hear that, Jeremy? So I did.
Absolutely.
The customers are conditioned to just drop off their cars and run. He, or is it a he or she? Joshua wants to pet the dog. He wants, you know, spend a little time with them, but they're conditioned to run and gun. So I mean, the first thing there, Joshua, is you got to control the narrative. And so you. That narrative starts when they make an appointment. So you could call your customers if you have appointments specifically for you. I don't know how your service drive works, but if you have them specifically for you, you could call the day before and. Or text and just say, hey, I'm expecting you at 8, you know, can't wait to see you. Plan on spending 10 minutes together, something like that. And so you, you can kind of do the pre. Suasion. The pre. The pregame. And then the other thing is when they get there, just say, oh, you know, meet them and say, oh, okay, I'm so glad you're here today. So I need a couple minutes. We're gonna. Let's look at your car together and let's catch up and, you know, let me ask you a few questions and just take control from the very beginning. That's it. Just assume it. I don't think it's any harder than that.
Yeah, the best way to make somebody do something is to not give them an option. So I think that that is the thing. And exactly what you said, framing the situation, not only does it help to establish control, but it also lets the client know what's going to happen. And then that starts to give them comfort in the experience. And if you're framing, explaining what happens every step of the way, there aren't any surprises. And I think that that's what builds up a great customer experience.
I think customers want you to take control.
Ultimately, they want to know that whoever they're dealing with is the right person for the job.
Yeah, you have to do it.
I agree. You know, God can relate to this one. So, Chris, you said it perfect. You got to control the narrative. You've got to have your process down. You got to do the pregame. I think now more than ever, we've got a pregame better than ever. We need to, you know, reach out to that customer, be prepared for our appointment, go through our pre appointment checklist. But when you're at the car and you're petting the dog and that customer wants to walk the other way, you do what Jesus did to get his disciples. You just turn, you look at them and you say, follow me. And you turn around and walk into your desk and that's it. And then you don't wait for them. You let them come. That's how Jesus gathered his disciples.
Great segue back to God. Do what your son used to do with his disciples and just say, follow me. That's genius, Jeremy.
Genius.
God approves.
Can we get a stamp on that that says God approved?
We can make that up. You can put that on. We can put that on our O's.
I really thought you were going to the free booze part of like turning water into wine, but I don't know, I like follow me way better.
It works.
This next question comes from YouTube. Hello, Chris. I am a new service manager. I was a shop foreman for two months after being a tech for 30 years. What advice would you give a new service manager that was a tech for as long as I was? I seem to have done well in six months. I'm a natural leader. I work hard and don't put things off. I guess a good question would be, how do I have confidence in myself even though I know I have a lot to learn? Maybe that narrows it down. Thanks for your videos. I'm learning a lot.
So was a tech, became a service manager, shop foreman.
Yes.
Was a shop foreman, became a service manager.
Yeah, Three runs in that letter. Tech shop form and then service manager.
So the first thing I would have done is I would have made you write service for six months.
That's what I would have done. But just because you got to see it from that side of things, it's a completely different side of it. But I think the kind of the topic we're going to talk about today too is, you know, make sure that you are managing from a position of what's important and what, you know, what are the true measurables of winning or losing. I think a lot of times we promote a foreman to service manager and we're like, here's the desk, here you go. And they don't understand that profitability and retention are the two most important things you want to focus on. So do everything you can to educate yourself on the customer experience and systems and profitability in the financials. So I don't know if you're in our on demand or if you're in our coaching, but I would get in there and I would learn right away, get a coach and learn the financials, learn pricing strategies. You know, the industry has let you down as far as there isn't really good training for service managers and you need some training. Like, I always make the joke that a guy running a 7:11 has more training than a service manager. Like, you ask a guy running a 7:11 about items per customer margins, they just know, they understand retail and you're in, you know, you went from a production position to a retail position and you want to learn that. So surround yourself with a coach and get in our coaching group and learn that stuff and then everything will be a lot easier. Because also what happens is when you don't understand what's important and how to create an outcome for what's important, like you don't understand how to create profitability, you don't understand how to recruit, how to lead. You end up just slowly becoming irrelevant because most of your day is spent just fixing broken things like upset customers and fading heat all day, basically. So you're, you're going to get to the point where you're going to come in, grab the tiger by the tail. It's going to pull you around all day and you're going to go home and you don't know if you won or lost. So you need some superpowers and some magic right up front, in my opinion. What do you think, Jeremy?
I do. I wrote down crystals are great thoughts that you need to build your service department around systems and reinforce it with the right people.
Initially I wrote Systems First.
Systems First.
Absolutely nobody, nobody likes to hear that because everybody's like, oh, people are so important. I'm so. I used to debate that with people all the time. Like, oh, you're such a jerk. You don't think people are the most important thing. That's not what I'm saying. I'm saying systems first.
90% of people out there are a hole. So it's. I like systems better than.
Wait, we should have a bit on here where we play a piece of music and like a drum roll and then it's. Is it fact or conspiracy? That was all conspiracy or 90% of people a holes. Is that a fact or is that a Jeremy conspiracy?
Right.
We could also put a poll on there. Like time says 90%, 70% or 40% of people are a holes. But Jeremy's going full nine out of 10. That means almost everybody here is an A hole.
Yeah. So basically in this room you're saying that God is an A hole. You're saying that Christian is an A hole. Caution, Michael. A holes. And the only one that isn't an A hole is me. That's what you're saying.
Well, that's not exactly what I said.
That is exactly what you said. How do you call God an A hole?
Oh, very easily. Look at all the rules he places on us. Have you read the Bible?
Let's get back on track. So Systems First.
System. Systems first. Build your service partner out system. Now the other thing is this. Believe in yourself. Here's what's cool. They took you from a 30 year tech, put you in a shop foreman role for two months and then moved you into service management. Dude, that rocks. High five.
Yeah. You clearly are a leader and you have a lot of good qualities because they believe in you.
Absolutely. And I. Absolutely. I used to fight with my wife about this all the time. I have always had a coach. I pay for coaching out of my own pocket. I and coaching has made me more money than I've ever spent. You want a 10 to 1 return on your investment, invest in yourself. Coaching is the way to go. I love it. And it keeps you on track. It's going to help you out.
I would never fight with my spouse about that.
It's not debatable. It's not open for conversation.
It's always open for conversation.
I'm writing three books right now and the third one is for you. It's called Taking Back America. One relationship at a time.
Why is it for me?
Because you're debating that with your Wife.
It's not debatable. We're taking that relationship back.
Oh, man. You know what, man? Today's awesome. I just got a new arrow in my quiver. So the next time she says something, I'm just gonna be like, whoa, stop. This is not debatable. And I'm going to walk away.
And that's coming from one out of the 10 people. That isn't an a hole.
Let me tell you something. That probably won't work.
Oh, it will.
Well, no, it's like. Okay, so let's. Let's just talk about being alpha for a second. Right? So is the person who walks in the room and says, I'm Alpha ever really the alpha?
No.
That's what you just did to your wife.
Yeah, I know you're confused. You're gonna have to read the book. But it's. It'll all be in there laid out for you. The dedication is gonna be to Jeremy o'.
Neill.
Read it twice. Okay.
I just appreciate. I just appreciate the tool. This is not debatable.
Okay, next question. God.
This next one comes from YouTube. Hey, Chris and Jeremy. Huge fan of the show. Been an advisor now for a couple years, and my manager just told me he wants to learn parts also, which I feel is huge for my career. Two questions on that.
One.
If I'm in parts and service, who can I blame everything on? But also, I was wondering if you have any tips or suggestions for me learning this new position. I. I'm going to stay an advisor, but just have parts training also. Thanks a bunch.
So stay an advisor, but be trained on parts, I think. What do you think, Jeremy?
I'm concerned for this person because obviously there's something in their behavior that their service manager is seeing that they want them to learn parts. So he must have seen that you like to reflect things. Like, I deflect blame and all that. You're. So you just are going to stay in your office and never come out. Like, what's happening to that? You're not going to connect with people and then, oh, I know you're not going to check in your stock order, and I'm only going to get one rotor when I need two, so this is great. Your CSI scores are going to tank, so I completely understand where he's going with it. I have to look in the mirror and be like, what did I do? Deserve to get to kick the parts? Come on.
Oh, you're going to start a parts revolt.
So now, now, seriously, there's something wrong with the fact that your boss want you to learn parts. Because what he wants you to learn is how to deflect blame, how to sit in your office all day.
What else?
Not checking the stock order. So we only get one of the two rotors that we never check the.
Stock or just let it automatically order whatever it thinks so it orders one rotor instead of two.
Whoo.
That's funny.
That might work in the NASCAR states where they just turn left on day long.
So I don't know, I, I think I'm kind of like to the question before in a lot of ways like hey, somebody thinks more of you that they want you to learn more stuff. Learn everything you can. You'll never regret. You'll never regret it. I think with, with parts.
Most of every. I don't. Most of everything you kind of need to know is on the month end statement. I can look at a parts department's month end state, month month end statement and I can see how much they're adjusting the stark order. I can see how many lost sales they're putting in. I can, you know, see their inventory, their obsolescence, their margins, all that. So it doesn't, it, I don't know. I would embrace it and I would learn everything I can. Always, that's always been my, my approach.
I would ask a question in a non threatening way which would be what's the outcome of this? What is it that I need to learn from doing this? Because you know, our world is changing and shifting. So why is it that you want me to go learn the parts department? You know, is it for the grand scheme of things? Am I moving, grooming myself for service management, you know, general management role? So that's just maybe one of the.
Questions that I would, I would say to just thinking about this. I don't know that I've ever pieced this together, but the best parts managers I've ever had were service employees that I turned into parts managers. So Gary, for example, was a service manager that, that was made a parts manager. A guy in Illinois, Ken, same thing. He was a assistant manager, made him a parts manager. And so some of the best parts managers I've ever worked with or had came from service. So I know why that is.
Right. So, so there's a reason why that works so well. Because when you go stop for a.
Second, do you think this is going to be a joke or is this going to be real? Jeremy?
No, I think it's real.
Okay, let's see.
Yeah. Although that seems to be happening more lately where I'm talking to People, and they're like, wait, is this a joke?
That's what I was thinking.
So I'm going to have a little sign. No joke. Totally serious. So the reason that that works, it's a beautiful recipe. Because when you grow up in the parts side, your main focus is what it's the parts.
You never know the others because you affect service in a big way. But you kind of. Like I was saying, the foreman should write service for six months before he becomes a man.
Same exact theory. But when you go from service to parts and you're thinking about the operations of the parts department, but your background's in service, you're like, okay, how does this affect the customer?
Yeah, how do I get these techs to be more efficient? Because honestly, a lot of parts managers, their training and their mindset comes from the position of control. They're more worried about you clapping when you're walking around the parts department. So you're not putting anything in your pocket or stealing than they are about how long it takes to get a part to attack. They're more worried about not ordering the part and getting in trouble for the obsolescents than they are ordering the part and figuring out how to sell it.
Yeah, it's misguided, focused, like the they want to do.
That's a good point. Yeah, I agree with that.
But I think that really the thing is, is if we get. And hands down, our best parts managers that we see in our client base are always the ones that are, well, what about the customer? The second they ask that question, you know that that's the person that should be running that.
Do you think, Jeremy, you think God has been seeing his girlfriend during this quarantine?
Which one?
I think he only has one girlfriend. Right, God.
God only has one girlfriend.
I don't. Isn't there a rule that, like, different continents doesn't count or something like that? So he could technically have seven.
No, no, no. God's. God's faithful.
God's monogamous. He's got one. But do you think he's had, like, a conjugal visit?
Yes.
You do?
Yes.
God, have you had a conjugal visit?
God can neither confirm nor deny whether God has had a conjugal visit from his girlfriend.
That's a clear yes, clearly.
Did you get that from your interrogation skills?
Yeah, I'm. I. Everybody, I don't know if you know this, but I'm a. I'm a certified interrogator. And God just basically confirmed.
Admitted it without admitting.
Yeah. Any more Questions, God.
God has one final question.
Can you imagine being God's girlfriend? The pressure, you gotta, you gotta like, you know, that's what you should talk to your wife about, Jeremy. Like I was talking to God today and he's.
You know, just. You need to be. Feel lucky that you're not God's, you know, you're not married to God. Think about the pressure that comes with that.
True.
This final question comes from LinkedIn. How do I know I'm getting a good pay plan? If offered a service manager position? Is there some general percentage of gross profit or something like that? I'm currently an assistant service manager and I get 9% of net gross profit. And at $35 or above I get 10% plus a 1500 dollar monthly CSI bonus, plus $600 fixed base pay for being the assistant service manager. I am in charge of 5 advisors and 14 techs. Total monthly gross labor is currently at $200,000 and room for growth. What does that sound like for a range of pay?
Okay, first of all, five advisors and 14 techs you got. You either need more techs or you need to get rid of some advisors. But the, the rule of thumb here is.
Well that depends on how good their parts department is.
One to three. So if you have five advisors, you should have 15. How many did he say?
14.
14. So you need one more tech at least.
And then. I don't know. Like I don't, I don't. Christian might. Might. I don't want him to hear this because he might take that job. So what percentage of gross?
9%.
9% of gross, Jeremy. So he's getting a $1500 CSI, 9% of gross and what else?
A $1500 monthly CSI bonus.
So for every, so for every 10,000 in gross, you're making 900 bucks?
Yeah. So he said that there was an average of 200,000amonth. At 9%, that's $18,000 in commission plus the CSI bonus of 1500. Plus it was a 600amonth kicker. So if my math.
That's a, that's a pretty juicy paper.
That's $20,100 a month to be the assistant manager. That's $241,000.
Where's this dealership?
He doesn't say. He wishes to remain anonymous.
Christian and I are looking for jobs.
Holy cat tattoos. That'd be great.
Yeah, that's a, that's a juicy pay plan. Get that gross to 400,000. Double it. Even make them.
Could you make 40 grand a month to be the Assistant service manager.
That's like. That's what you make when you're a general manager.
And the one thing, I mean, my mind is just wrapped around, you know, the gross. The big number is fine, but what are the, you know, what's your effective labor rate? What are your technicians pushing out every single week? Can you push those numbers up and literally double the numbers? So, sounds like it's a pretty good pay plan. And if I could get the name of that dealership, I'll put it on my watchdog for when they're hiring and I'm there.
Yeah, that's a good pay plan. I would. I would encourage you to pay attention to what we're going to talk about next, though, because the one thing that happens is you. You think that that pay plan is juicy, and then six months later, they come in and change your pay plan, and you're not sure why. That's, you know, that's what we're going to talk about. Was that the last question?
God?
God has no further questions.
Thank you, God. Good. Good job.
Thank you.
I have a question.
What do you call someone that doesn't respect social distancing, goes around sneezing and not covering their mouth, and then walks into the grocery store and buys 200 rolls of toilet paper?
I don't know. What do you call them?
A covidiot.
A Covid hit. Are people still hoarding toilet paper?
I don't know. It really worked for the joke.
That's. That's funny. Okay, so I was. I was thinking about this, Jeremy, and this. This actually happened to me before the. The lockdown. I was flying back from the Midwest, and I'm on the plane sitting next to somebody, and the. You know. You know how when you're sitting next to somebody on the plane and it's that weird? Like, do you talk to people when you're sitting next to them on the plane?
I try not to. I put my sunglasses on, put my earbuds in, and if they talk to me, I just let them know that I'm a fundraiser for a religious cult, and if they had a few minutes, I could talk to them.
Yeah, so the. The thing that happens there is if you. If you do talk to him, then now this is your best friend for the next four hours or whatever. Right. So you're kind of.
That's right. Like, if you want to get some work done. Right. Or you had a plan for that time, it's like, oh, no. So. Been there.
Yeah. I think the time I sat next to you on a plane. You just went to sleep.
That was you, sir?
No, that was him.
No, you.
You were out. I was.
It was weird, too. He had, like, a whole thing. Didn't he have, like, an eye cover? He was one of those things you wear when you sleep. You were out, bro.
Are you talking about our. Our trip to Kansas City?
Kansas City?
Yeah.
Yeah.
You are napping.
Great conversation on the way there. Maybe the trip back. I slept the trip back.
You didn't even make takeoff, Jeremy. It was a tired.
It was. So.
You worked hard, though. You spoke two times. So we were. We were just sitting at the bar eating wings or whatever. But okay, so. So it's that weird, awkward thing. And then. So then I think we. We did decide to talk. Then you get into that thing. Like, what do you do? But I kind of have a. I have a feeling that the guy knew who I was, because he was definitely initiating the conversation. And so he didn't ask me what I do, but I asked him what he did, which also makes me think that he kind of knew who I was. So he says, oh, well, I was the service.










