Chris Collins and Christian break down a service advisor pay plan: compensate on all revenue types, add an effective labor bonus and a CSI component worth 25-30% of pay, keep it simple enough to fit one page, and skip pooled pay that rewards underperformers.
I would bonus on effective labor with most brands. There's a couple brands I might not, but I would have a, an ELR bonus. The sales part of their pay plan should be probably 50%, 25 to 30% of their pay should be a CSI, customer satisfaction, retention. Whatever manufacturer you're with will, you know, but 25 to 30% of it needs to be on customer satisfaction. And then the other 20%.
Would be a bonus, an ELR bonus and maybe a CP sales bonus. So we're paying them a percentage of their total sales. Parts, labor, warranty, internal, customer base. That's the other thing. When they go, these guys, I don't know how they come up with this stuff or why, but they're like, oh, we don't pay the advisors on internal. We don't pay the advisors on parts or warranty.
I've heard that before too.
Yeah. What are you talking about? If they're riding an ro, they should get paid for it. And they're like, go trust me. And I'm like, I don't. First of all, I don't trust you because you said to trust me. It's like that person that says.
Never lie. It's like, yeah, everybody's lied. Give me a break. I don't trust you.
Whatsoever. Because you had to say that most. But no, it doesn't. It. They walk away from it. They're not going to put the same energy. If we agree that the pay plans drive behavior, then you're driving the behavior away from warranty and internal. So somebody just bought a bought jet skis over the weekend and now the ICB flipping whatever lights on. And what happens when you call?
We don't care.
You can come in 2027. Good luck with your paperweight of a jet ski that you just bought and your broken hearted girlfriend. Screw her too. We don't care because we don't get paid on internal.
That's how it goes.
Makes a lot of sense to me. Yeah.
So pay them on everything. Pay a lower percentage, but pay them on everything. Everything matters. Every customer is important. Even the customer that just bought jet skis.
You really hit everything fits on one page.
Christian percentage of everything, customer pay, warranty, internal parts and labor. That's one line.
3%.
It's not even a full sentence. This fits on a quarter of a piece of paper. Yeah. CSI bonus, two sentences.
Yep. And then CP labor and ELR could take up a little more because there's usually a little grid.
So quarter of a page.
Right.
So you have all this room for Your logo of your. Your ski doo dealership or whatever.
That's it. Simple. I like it. And it's a recruiting tool. When advisors come in and like, hey, bring your pay plan. And it's 45 pages. Like, what do you get paid? And they're like, I don't know. Never makes sense. Like there. It's like a moving target. Whatever. That's a demotivator for advisors. The best advisors are constantly figuring out what they're tracking to make.
Yes. So they have to know how to do that.
Makes it easy.
Yep. I wrote down on my little thing. No if then statements was the thing I think that drives me nuts the most.
Test.
Yes.
And then the trains going 4 miles an hour up a grade of 0.3 in the rain with the winds coming at it. Yeah, I'm lost. You lost me at train.
That's pretty funny. And then the last thing I said is set it and then just regularly review it.
Like the bonuses.
Yeah. So don't change the pay plan structure, but definitely review what you're doing.
You shouldn't have to change it except for like, if the manufacturer changes CSI or something. But it should be preset for a long time.
I agree.
So that's my indifferent feelings on service advisory pay plans.
That's. Yeah, I like it.
What about. What about communism? What about the manager that says, hey, Christian, my advisors, they just need to work together. And I feel like if we pulled their pay, then they would work together.
I would say that that's a terrible, terrible idea.
It's a great idea if you're not very good. It's a terrible idea if you're a high performer.
Well, I, I was gonna say. Yeah. I think that if we're. If the goal is to reward mediocrity or worse, let's do that.
Yeah. Yeah. Let's take the, the, the high performer and cut his pay and guarantee that you'll never find and share it with the guy that constantly is either on the phone or has to go to the bathroom when a customer drops in.
Right.
Give him a percentage of the. The guy that works through lunch.
I say give that guy a bucket and an individual pay plan and everything. I'll be fine.
Communism works. A lot of the big advancements in society have come from communism.
Right.
It's a highly productive environment.
You have a communism joke.
Trying to think.
Okay. While he thinks. We'll see you next time on Service Drive Revolution.
Thanks so much for watching this clip of Service Driver Revolution. We're uploading new stuff every day, so make sure you subscribe and click the Bell icon so you don't miss out. If you have a question you'd like us to answer on the show, call 8333 ask SDR and we'll answer your question on the show. That's 8333, ask SDR. For special deals on our books and training, head over to offers.chriscollinsinc.com now that's offers Chris collinsinc.com I'm Chris Collins, and I'll see you in the next video.
