Welcome to Insights from NATDA ’ s Dealer Advisory Council !
This segment features members of the NATDA Dealer Advisory Council weighing in on current matters that impact dealership owners and management .
In this issue , we ask :
We often hear dealerships asking how they can effectively structure pay and incentives for sales , parts , service writers , and technicians . What are the best resources on employee compensation recommended for dealerships ?
“ This is an ever-growing issue across the industry . The good news is that there are several resources out there . My favorite source is each other ! Simply calling a non-competing dealership to network and share information can be helpful . ( Editor ’ s Note : NATDA ’ s member directory will be going live this year , so this is an excellent resource to find other dealers , or you can always call Member Services to find other dealers in your area or area of specialization .)
A Dealer-20 group can be helpful . Many exist and provide other services , but getting a wide variety of options from within the industry is best .
Ken Swank
Another idea is to derive information from “ like ” industries ( i . e ., power sports , etc .). They likely run their businesses similarly to how a trailer business operates . Using this information can be very valuable , including determining your shop rates .
Lastly , do not hesitate to ask the council ! That is what we are here for !”
Ken Swank White Spruce Trailer Sales
“ I agree that our best source of information is each other . Additionally , I encourage dealerships to explore NATDA ’ s benefit partners ; some offer training and consulting services that address human resources , employee benefits , and other related operational issues .
Each dealership has a different outlook on this , so it is helpful to hear from other successful dealerships about what works for them . I ’ m happy to share the ways we compensate & retain staff for our dealership ( salary , commission , profit sharing , and bonuses ). We typically follow this structure :
Shane Thompson
• Administrative and standard service techs are paid an hourly rate .
• Sales are paid a base salary and receive a flat rate commission on every trailer they sell in progressive price ranges .
• The parts manager and sales team receive a percentage of the profit from all parts sold at the dealership .
• Our service advisor is set up in a progressive sales structure , where he is incentivized monthly for the gross amount of services that he sells / completes .”
Shane Thompson President , Action Trailers
Have a question for the NATDA Dealership Advisory Council ? Contact NATDA at council @ natda . org , please use the subject line Advisory Council .
Editor ’ s Note : Pay scales and structures are dependent on the local market , so don ’ t forget to keep an eye on what ’ s being reported in your area . Platforms such as Glassdoor . com or Salary . com can help you stay aware of what is considered competitive in your area .
The opinions here represent the diversity of opinion within the light to medium-duty trailer industry . The views and opinions expressed are those of the contributor and do not necessarily reflect the official position of the North American Trailer Dealers Association who shall not be held liable for any inaccuracies presented .
10 NATDA Magazine www . natda . org