Chris Collins, Jeremy, and Christian break down a service manager's pay plan: 9% of net gross profit, a $1,500 CSI bonus, and $600 base. On $200,000 monthly gross labor, that's roughly $20,100 a month or $241,000 a year.
9% of net gross profit (10% on $35 or above)
$1,500 monthly CSI bonus and $600 fixed base pay
$200,000
Approximately $20,100 per month, about $241,000 per year
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 know, 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 a. 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 look, 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, he, 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, 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 tax. 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 tax 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 a short one. And how many did he say he had?
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?
It's 9.
9% 9% of gross, Jeremy. So he's getting a fifteen hundred dollars CSI, 9% of gross and what else?
A fifteen hundred dollar monthly CSI bonus.
So for every. So for every ten thousand in gross, you're making nine hundred bucks?
Yeah. So they, he said that there was an average of 200,000amonth. At 9%, that's 18,000 dol. $15,000 in commission plus the CSI bonus of 1500. Plus it was a $600 a month kicker. So if my math, that's a, that's.
A pretty juicy paper.
So that's $20,100 a month to be the assistant manager. It'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 it.
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 have 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 cove. Idiot. Are people still hoarding toilet paper?
I don't know. It really worked for the joke.
That's, that's funny. Thank you so much for watching this clip of service drive Revolution. Now you can catch the full episode on YouTube, iTunes, or Spotify or wherever you consume your podcasts. If you have any questions, go ahead and post them in the comments below. Make sure you subscribe and hit the bell icon so you're notified when we post new episodes. I'm Chris Collins and you can find me on Facebook and Instagram at Chris Bulldog Collins and I'll see you again on the next episode.
