Help Please

Angela Schuster

I have the opportunity to change the pay for my reps. I currently have 5 of them and we cover three dealerships.  Our pay right now is an hourly pay plus a monthly bonus.  I am looking for a pay plan that is more motivating and a plan that is more aggressive.  My department opened in March and we have continued to get better month after month.  I want to give them an extra push so making the pay plan more aggressive is the next step.  I will outline ours below and if you have any suggestions at all, please feel free to reach out to me !  Thank you so much!

Hourly Pay - $10.00

Show Bonus - 

50% - $100.00, 55% - $150.00, 60% - $200.00, 65% - $250.00

Sold Bonus - 

Self Generated Sold and Delivered (not from hot internet leads)

1-9 $75.00 each

10+ $100.00 each rectroactive

All other sold and delivered are $25.00 each with a volume bonus of 20+ = $250.00

Team Member Performance Bonus

$100.00 for meeting the following requirements - 

17 dials per hour = 100% complete

120 appointments set with a 50% show rate

20+ referrals obtained (no one has ever gotten this bonus due to the amount of referrals)

I am not sure if it matters but we are in North East Ohio.

Thank you all for taking the time to read over this information.  I am looking forward to the information that you will provide.

Angela Schuster

 

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Chris K Leslie

I like where you are heading with this. I would only make 3 suggestions. 

1. Show bonus should have a whole value number attached too. meaning if the bonus is based on percentage shown only I would want to set fewer appointments to ensure my show percentage stays in line. Could bite you in the long run. 

3. Sold bonus -  Different payouts for different sources can lead to arguments. 

2. Team bonus should focus on the end result of the team like a lead -> sold percentage of sources they handle. 

Basically what I am getting at is if you bonus on simple things like numbers dialed you will get simple results. Design bigger goals get bigger results. 

Elizabeth Powers

I agree with a lot of what Chis is saying.

I keep our very simple and tied to mainly solds. The more black and white the better.  The bonus on calls/tasks is interesting but depending on your CRM could be faked very easily.  Ultimately every task is an effort to produce results.  Like sales people, we only pay when results happen.  If you do your work results happen and that should take care of itself. 

Basically when the dealership wins we win.  We have an hourly of $10-$12 per hour.  Then we do a tiered commissions so the more you do the more you get.  The number of units may vary based on your stores volume.  We have a centralized BDC for a very big group.

< 10 cars sold you get $10 per sold only

11-19 $10 for show and $10 for sold (retro)

20-29 $10 for show and $20 for sold (retro)

30+ $10 for show and $30 for sold (retro)

We also have a pay plan for prospecting.  All our leads are active for 90 days after that they move to the prospecting bucket. Rules are different then.

This pay plan has encouraged average reps to work more and rewards the great ones.  This has assisted in better results for the stores with a 2% increase in sales and better retention among employees.

William Phillips

Another Take 

See BDC's all over the country with the same thing happening in all.  The BDCs job should end when the clients shows at the showroom floor and all bonuses ect should be on shows only.  Sold bonuses are a distraction.  Its called Business Development Center, not Business Baby Setting Center.    Follow up from the showroom visit forward should be the responsibility of the person who test drove them, worked a deal with them ect.  If the BDC spends valuable time chasing down unsold traffic they stop setting new appointments.  The showroom staff in almost all cases fails to document and communicate what happened when the client arrives and leaves (sold or not) and BDC stops setting new appointments to chase down unsold or sold's for bonus protection.  BDC's DO NOT SELL CARS, they sell appointments.  They are a very valuable part of the team when functioning correctly, not the whole team.  If you feel you MUST have a sold bonus, it should be very small with the focus on appointment shows.   Shifting this focus as it should be, if coupled with accountability for the showroom staff following up, causes magic.   If not lets just do it all for the so called sales staff.  Set, demo, deliver and take the voucher to there home so they don't even have to come in.    Rewarding on sales is a mistake no matter which way you shake it.  The BDC has ZERO control on that, and the relationship after the showroom visit forward gets muddy when someone else other that person who spent time selling the actual product to them calls.  Im a car nut, get these calls all the time (just yesterday as a matter of fact)  poor BDC person calling me that had no idea what I been discussing with the sales person and manager.  POSITIVE this will rub a few the wrong way, doesn't make it not the truth to those who see many BDC's all doing the same thing.   Hourly base, UP the show bonus, minimize the Sold bonus, and focus on driving traffic to the area its most effective to have it, Fresh show room traffic. 

Angela Schuster

William, 

I am very interested in what you have to say.  What kind of bonus structure would you have in a situation like mine? We have Hyundai, Subaru, and VW.  I have 5 reps and they are all doing the same thing and working from the same internet leads.  My dealership concentrates on sold units for the bdc and I have tried to get them away from that because we have no control over that. The response that I get is that if we set good appointments, they are in a buying state of mind when they get in and it stops the bdc from setting bad appointments.  If you have time, please send me over an example of what you would recommend. 

William Phillips

Will do, if you will send your email address, I will be happy to send you some examples of what we suggest.  Its a weak manager that makes the statement " buying state of mind" BS.  All customers are in the buying state of mind, some can buy, some can not.  How can a BDC with an inbound possible customer set a bad appointment??   Has someone come in looking for ham sandwiches lately, that was set by the BDC?  Management that thinks this way needs a reality check.  Management of a well run store wants every opportunity they can get to the showroom floor and doesn't ask the BDC to prequalify opportunities.  Pass every thing I have written here to your ownership and see they agree.  Im positive they will. 

 

bill@aimdealer.com

Born and raised in Ohio, brother still lives there.    all the best   Bill  

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