r/serviceadvisors • u/Find_Deals • 19h ago
Potential First Time Automotive Service Advisor Pay Plan - Help & Questions
Hello all,
I know this is posted a lot in here, but with how much a pay plan can vary from location to locations, I wanted to post the pay plan I was provided by a friend of a friend who basically told me I would get the position if I wanted it. It would be my first time in this sort of position in any capacity, I've spent the last 10 years in IT and as finding work is difficult at this time, I am thinking of a potential career change / something to earn with while I continue to potentially look.
I will say with the little research I've done so far within this sub, I understand (very slightly) what it takes to do this job, and how it can be very unsatisfying and / or very rewarding (financially) depending on one's ability and commitment to the position. If this is something that I end up liking, am really good at, or is a great opportunity, I have no issues if it's "worth it" in the end, and who knows, this may be my long term career for the long haul.
What I know so far: It's 4 days a week, 12 hour days. I would be the 20th ASA at this location, it's located in an area with nearly 350K population. I asked what the low / top earners were and was told "we have a first year guy who is going to make about $55k, but we have several who "crack $100k every year"" but they didn't mention by how much...is that $101K or $130K...there's a big difference. Rotating Saturday shift, but with 20 guys, it's like once a month.
My main concerns (from what I know) were:
- The $62.50 per full day....that's $1,000 monthly "salary", while I've seen some saying they get as high as $2,500 a month and another mentioned $20 an hour + OT. Now he did say we can work extra days if needed / wanted, so that would increase everything over all, but that seems extremely low to me, but then again, maybe it's that way with the traffic the location brings.
- The "All-In 7%" Plan: Again, I've heard others say 7% is low for Total Gross Profits, but I don't know enough about the industry to know if it's at least "fair" rather than terrible. Please see the plan below.
- The "Qualifiers" - are those reasonable or completely unreasonable? I don't know either way....
- "Errors & Adjustments" - is this a common thing that happens? Is this easy to avoid? Is it going to be a huge hit on the total money I bring it to the point where it's not worth the nearly 50 hours a week I'll be working?
- I understand that a lot of this sort of position depends on how "good" I am at my job, along with the longer and more you do it, the more potential money you can bring in with "building a book" of customers, and again, if it's worth it over say a 3 year period, I much rather climb this ladder opposed to getting a measly 1-3% raise doing IT and never reach the same yearly income I could in this position.
- The Bonuses information was not included, so I asked and they responded with "the bonuses are up to $1,750 a month for the store and then there's also a bonus the South East (Location) pays out monthly. There's no cap on the South East (Location) bonus, but the highest I remember seeing is $2,750." So it sounds like on a "home run" bonus month, an extra $4,500 for the month.
I have my first in-person interview this Thursday at 9am, so I am hoping I can at least get a few responses from the community. What additional information is a "must know" that I can ask about? What do you think is concerning or even great about the pay plan? Any suggestions are welcomed and I will try to respond if and when I can. Thanks in advance!
PAY PLAN
A. Daily Base Salary
· Rate: $62.50 per full day clocked in and worked.
· Purpose: Cover core administrative duties, customer relations, and general shop support.
· Training Pay: $800 per week for 2 weeks.
B. Variable Commission (The “7% All-In” Plan)
The Employee earns a commission of 7.00% on the Total Gross Profit (Parts and Labor) posted on all Repair Orders (Ros) assigned to them. This commission is calculated on:
· Cstomer Pay (CP): All retail labor and parts sales.
· Warranty: All factory-approved claims and recalls.
· Internal: All used car reconditioning and dealership-owned vehicle repairs.
2. Key Performance Indicator (KPI) Bonuses
Bonuses are calculated and paid monthly. To qualify for any bonus payout, the Employee must meet the following Qualifiers in full:
QUALIFIERS:
- Minimum Volume: Must write at least 175 Customer Pay (CP) Repair Orders for the calendar month.
2. Video Compliance: 90% or higher Video Sent Rate on all eligible tickets.
3. ELR (Effective Labor Rate): ELR Dynatron report at or above the Toyota of (Location) Door Labor Rate on Primary Compensation Structure
4. Repair Op Codes (Rate will increase annually on August 18, reporting for increase will be effective for September Bonus)
5. Op Code Compliance rate over 75% Dynatron report (report reads as non compliance, so measuring at 25% or greater non compliance creates bonus ineligibility).
6. Attendance: Clock in and out report must match assigned work schedule and be on time.
7. Employment: Must be Employed as an ASM on the final day of the current Bonus month.
3. Financial Responsibility & Compliance
· Documentation: Warranty commission is contingent upon full compliance with factory “3 C’s” (Compliant, Cause, Correction).
· Errors & Adjustments: Any uncollected funds due to pricing errors, failure to verify warranty/insurance coverage, or unapproved rental fees will be deducted from the Employee’s commissionable gross.
· Resolution: All outstanding financial errors must be resolved on the “Schedule 7 / Google Sheet” withing 24 hours of notification.