Proudly serving the industry for which it was named for more than 50 years, Outdoor Power Equipment provides dealers who sell and service outdoor power equipment with valuable information to succeed in a competitive market.
Issue link: https://read.dmtmag.com/i/93063
FEATURE STORY By Jim Yount added services within a given time frame — deserve to be paid more. In the past few years, we have seen technician's annual take-home earnings range from a low of $22,000 to more than $70,000. Dealers tell us technician wages and benefits in their specific marketing area range from $31,000 to $37,000. Compensating full-time and part-time, experienced and qualified technicians is a collage of formulas. They are paid in various ways: sick leave. benefits. • By the hour with paid vacation and • By the hour without company-paid • By the hour with an increasing hourly wage as billing efficiency increases. • By the hour plus commission when working on customer equipment. o Commission rate is usually part of the shop's hourly labor rate. • Commission based on a percentage of the shop's hourly labor rate. Increasing Shop Profitability (Part VI): TECHNICIAN WAGES, INCENTIVES, COMMISSIONS AND ACCOUNTABILITY Sixth article in a series C 16 ornerstone principle to remember: "When equipment retailers build a profitable service department and provide better wages and benefits, experienced, skillful and certified technicians will knock on their door." What does the word "wages" mean? If you don't know the real meaning, you could be misled or even deceived into paying more than a job is worth. Paying more than you receive in return for wages paid, cuts into your profit. Paying less than what the job is worth, usually results in a slowdown in work productivity and could lead to demoralized behavior. The worst situation is having an employee hang around your store for 20 years or more. According to Webster's New World Dictionary, the definition of "wages" is: Money paid to an employee for work done, and usually figured on an hourly, daily or piecework basis. Webster's also defines "incentive" as: Something that stimulates or encourages one to take action, work harder, and produce more. An example: Employees willing to work smarter — becoming more efficient while producing value- • By the job using a flat-rate schedule. Regardless of how technicians are compensated, each should be held accountable for a predetermined measure of productivity. Consider your responsibility. • Company pays the wages o Mandatory benefits, FICA, etc. o Sponsored benefits such as health care and retirement o Training, travel, lodging, meals and wages o Uniforms You should expect and receive equitable production in return for your investment. However, the only way you will receive equity is to manage and enforce accountability. INCENTIVE: Pay scales, accountability and performance Paying an incentive is like a coin; it has two sides. The original purpose, face (heads) side of the coin, for paying incentives is to stimulate employees to increase efficiencies and perform like a pro at all times. In return for performing at a higher level of efficiency, employees earn additional income. ("Earn" is the key word.) Side two (tails) of the coin, in return for paying incentives, the company increases sales revenue and earns additional profit. OUTDOOR POWER EQUIPMENT www.outdoorpowerequipment.com Image ©istockphoto.com/jamievanbuskirk