100% Commission??

[Krissy0852]

Hello,
I’m a service advisor at a Ford dealership. I’ve been at this dealership for 2 years but have been in the business for over 5. I recently asked my employer for a raise and provided plenty of reasons why I feel I deserve a pay increase. I currently make hourly plus commission. My employer declined my request and instead offered to switch me to a different pay plan. The new plan would be 100% commission with a forgivable draw as my weekly pay. I was wondering if anyone has experience or opinions regarding that type of pay plan and what there thoughts are. I’m very Leary of the idea because I still need to make a living and I’m afraid with this change I will actually be making less. It feels like a pay cut in disguise to me and my boyfriend (who also works at the dealership in the parts department) also feels like it’s a bad idea. Another piece of information. I’ve never been given a raise nor have I asked for one untill now. He on the other hand has been given 3 raises over the past 2 years without asking for them. We’re both very good at our jobs but have different direct managers. Either way any raise or pay plan change has to come from our general manager who declined my request in the first place. Any way any opinions or suggestions would be greatly appreciated!

 

[diyjake]

I wouldn't take that route, they are offering it because they will win in the end.

 

[zrxkawboy]

In general, things like this usually don’t work out in the employee’s favor.

 

[kschachn]

How did you end up on Bitog with this as your first post? Seems like an odd place.

 

[UncleDave]

Could work out great, or it could be cut - you dont know until you see the plan.

Ask him to see the comp plan and do the math.

You either wrote/ write enough business to earn more or you do/did not.


UD

 

[Quattro Pete]

Hello,
I’m a service advisor at a Ford dealership. I’ve been at this dealership for 2 years but have been in the business for over 5. I recently asked my employer for a raise and provided plenty of reasons why I feel I deserve a pay increase. I currently make hourly plus commission. My employer declined my request and instead offered to switch me to a different pay plan. The new plan would be 100% commission with a forgivable draw as my weekly pay.

The math should be pretty easy to do based on what you write up and what you currently make. So what does the math tell you?

Also, are there other service advisors working at this dealership? What pay plan are they on? Have any of them been offered that 100% commission plan? Have any of them tried it? If not, why not?

 

[paulri]

Is there a way to "backtest" this? As in, get some specific numbers from the one offering you this forgiveable draw, and go back and figure out what you would have made in the past year if you were on it?

 

[Burt]

While I don't like the notion that my service "advisor" is on commission, let me put this in the eyes of the employer. Perhaps the employer is trying to reward you, a performer, without having the all other service advisors hearing about it (they will), being disgruntled and come in for the same thing. I had a friend in the Compensation department of HR and he said that if there is one person in the company with a comparable job that is paid more than you, you feel under paid. The "underpaid" employee doesn't necessarily see that their performance isn't as great. If they give you a 100% commission, it's a way to pay you more and if a lesser performer comes in and wants the same deal, They can say "fine".

Can I ask how they measure performance? I assume it's not just dollar revenue, but customer satisfaction and repeat business? I'm curious when I walk up to the service area, the advisors aren't quite fighting over who gets me, so I assume that you have a understanding that there is a rotation so the advisors get about the same number of customers?

 

[Nick1994]

Sounds like it would be much more stressful, as you'll be really wanting customers to do the extra recommendations from the techs.

Find our what other jobs are offering for pay and if it's worth the leap to another company. Or work with your boss to find out how you can climb the ladder, like taking training classes to be in management.

 

[Hillbilly Deluxe]

I don't understand why people that work at dealerships are always complaining about low pay. Go work somewhere else. The people that own and run dealerships know that people will stick around on a promise. How do you think they sell cars?

On the same note, dealership service department waiting rooms are always FULL of people that don't know how to tie their shoes, much less perform simple maintenance on their cars. I bet the take rate on all those recommended services is 50%. How do you not make plenty of money? If you are good at your job, maintain relationships with good customers, go to a locally owned private shop.

I'm not jumping down your throat - I'm trying to help you get to a happier place that appreciates you. FWIW, my wife and I make enough money to have our vehicles serviced at the dealership. But I choose to do my own and the dealership is the LAST place I think about going for a problem I can't solve or a repair I don't want. Parts? Absolutely.

 

[02SE]

Lots of sales jobs are commission only. Really effective salespeople usually prefer commission only. If you are good and have no problem selling services to customers, it could be a much better deal for you. The Dealership knows it will be a better deal for them too, if you're selling so much that you end up making more on commission.

The possible downside is if you don't sell services, you'll make less.

It's a challenge for sure. Do your due dilligence, honestly evaluate your potential earnings based on your past success and customer flow through the service department.

 

[UncleDave]

This line of work definitely has a ladder of earning worth climbing, and all the higher paid writers are all commission.

My lexus service writer has been at the same dealership over 15 year and makes really good money. He's really good.

Women that are good at this do better - because women tend trust women and men aren't threatened by them.

It's one of the easier sales jobs there is from a bunch of perspectives.
1. the clients come to you
2. you get one on one time to tell them what they need to and should spend money on.
3. It's bang on dead easy to add value - write whatever is requested, and whatever is obvious, add - whatever the manual says is due or near due.

Its one of the few sales jobs I ever had where I didnt even need to "push".

UD

 

[Blagoje]

I worked for a few years in sales jobs (including car dealerships) at 100% commission, while earning minimum wage in the instance that my commission equaled less than I would earn at minimum wage. I made a lot of money during those periods of time because it motivated me to do better and stay hungry to succeed.

Perhaps it is just my personality type or something else but every time I have had a job with just straight salary or hourly wages a hard complacency sets in and I end up absolutely hating the job to the point of usually leaving after I am fed up with it.

With what I have learned from having to function working on commission I and others who know me well have seen vast improvements in my life from how I think, act, and prioritize what I need to care about in life.

 

[tomcat27]

Your success under the proposed plan is totally up to you. If you are a true "sales" person ( an order "maker"), instead of an order taker, then you will thrive. Do you know your customers? Do they know you? Could you double, or triple, your current sales?

 

[tomcat27]

whether you take the new plan or stick with your current one, build your brand. Make sure that your customers know your name, and give them excellent service. you want them to WANT to work with you - they should be asking for you.
make sure that they know the status of their repair - especially if there is a delay. I know this sounds basic, but half the service writers that I have worked with..... do a very poor job. one called and told me my car was done. 45 minute drive... oh, they lost my car. and lost the paperwork. actually, it turns out it wasnt done.

 

[CKN]

I worked in Industrial sales at 100% commission for the most part of my career. Made great money-retired at 55 years of age. I can tell you that if you start making great money (over $100,000.00) employers have a tendency to "change the plan" and it won't be to your advantage. Something else to think about.

 

[bdcardinal]

I have been on salary plus commission for 10+ years. When I would do if I was the OP, is look at the proposed pay plan and then figure out what you would have made comparing it to your historical sales numbers. I'm lucky in that I have been doing this for a long time, have good numbers, keep up with my certifications, and have a fairly loyal customer base. Plus being in parts my commission is based on the department numbers, not my individual numbers. Also be aware that although they might seem like they are giving you a raise to reward you, somehow and someway you will probably make less.

 

[CKN]

I have been on salary plus commission for 10+ years. When I would do if I was the OP, is look at the proposed pay plan and then figure out what you would have made comparing it to your historical sales numbers. I'm lucky in that I have been doing this for a long time, have good numbers, keep up with my certifications, and have a fairly loyal customer base. Plus being in parts my commission is based on the department numbers, not my individual numbers. Also be aware that although they might seem like they are giving you a raise to reward you, somehow and someway you will probably make less.

THIS^^^^^^^^^^^^^^^^^^^^^^

 

[Blagoje]

I worked in Industrial sales at 100% commission for the most part of my career. Made great money-retired at 55 years of age. I can tell you that if you start making great money (over $100,000.00) employers have a tendency to "change the plan" and it won't be to your advantage. Something else to think about.

I wanted to comment to say that I have been a victim of this. I worked at a major auto group car dealership in a major city for two years and was the top salesperson during my time there when it came to generating profit for the store. Our store was also the highest grossing store in the auto group and despite that the store management always harped on us that we just had to keep it up or else upper management would cut our lucrative pay plan. I thought it was just a bunch of smoke to keep us motivated but at the beginning of calendar year 2018 they in fact altered our pay plan in a way that allowed uncontrollable circumstances to dictate whether or not we "qualified" for certain compensation, bonuses, etc.

I had earned a $2000 bonus for the month of January 2018 that was taken away from me due to some loophole technicality in the new pay plan and I was furious. I ended up making a pretty big stink about it and they paid me after all but I found the ordeal so ridiculous that I ended up turning in my letter of resignation a few days later. My self worth is too high to be jacked around like that by an entity that I helped earn a small fortune for, so I left and went on to earn a bunch of money at another dealership in a different state.

 

[ABN_CBT_ENGR]

How did you end up on Bitog with this as your first post? Seems like an odd place.

You caught that too, huh