A short clip from Chris Collins' Service Driving Revolution discussing dealership compensation culture in fixed operations. Collins and another speaker argue many dealers treat service roles as fixed-salary positions rather than performance-based roles, leading to misaligned pay and potential corrective layoffs as variable profits decline. The clip ends with a show sign-off and call-to-action.
But a lot of dealers have this old school mentality that certain positions only pay a certain amount. So they'll have, you know, a service manager doing these crazy numbers and really performing and they've built a great team. And they're like, well, a service manager doesn't make more than 7, 500 bucks a month. And it's like, no, the good ones make a lot more than that. Like the good ones aren't. The good ones earn what they're worth. Like you put them on a pay plan and let them maximize it. But they're trying to figure out how to make the most that they can make. Same thing with advisors, same thing with tax. And they, they have this mindset of the position only pays this. And even though intuitively dealers understand that it's a performance based, you know, system and they will think about sales that way. So if a Salesperson was selling 50 cars a month, they'd be okay with them making whatever it was. But a service advisor or a tech or a service manager, they just see them as more of a salary type position and it's not performance based in their head. And the reason I believe it's not performance based is because they don't understand the economics and how it works.
Sure, yeah. So there's a, there's another thing that you're not figuring into that is that over the last few years we've been making a lot more money on the variable side of the business. So the overall financial statements have gotten really healthy for a lot of dealerships. So they have in some cases not paid as much attention to how much they're paying for some of the salaries for some of these people that are chasing gross and not necessarily performing to the profitability of the departments. So now we're going to have this weird reverse correction now that there's not all the profit coming in from Variable. Now they're going to start to have to pay attention to that because if they're looking at the total dealership profitability, it could have been good regardless of whether or not you're good and fixed. Right? So it's like, oh, we want the best guy or whatever. So they perceive that this is the best guy. So like, okay, we'll overpay him to get him in. Well, all of a sudden, if they're not making any money on the front end, that guy's salary starts to matter and there's a bunch of people that get blindside fired. That's what I think is going to happen in the next six months. I could be wrong about that. But it's they even the they allowed for it because they didn't care and now they're going to start to care a little bit. And I think people are going to get get haircuts all over the place whether they're performing.
Well. It happen before?
Yeah, it just seems like that's on the horizon.
Thanks so much for watching this clip of Service Driving 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.chriscollinsInc.com I'm Chris Collins and I'll see you in the next video.
