bthotugigem05 said:
Former service advisor here (not for Keating), we got paid on commission from the number of hours of service we wrote.
Service was done based on flagging hours, i.e. how long the job "should" take. So if a tech does an oil change, for instance, the flag rate across the industry (at the time) was .4 hours. Tire rotation was .5 hours. If the tech could get both done in 15 minutes they still got paid for .9 hours.
Parts markup was usually around 200% or higher, that's where the money was made.
Wow. I ran an 18 bay shop for Monkey Ward a long time ago….late '80s. We used Chilton or Mitchell for flag time. If a guy was good and fast, he could make some nice coin. Come-backs paid 25%.
Outside parts purchases were marked up 40%. I doubt work would've been done at 200% markup.
Side story: the security guy hated me and tried to fire me every chance he got. One time I got dragged into the office with him, HR, store mgr, etc. They pop out a guideline stating the 40% markup for outside parts and tell me I'm only doing 28%. After a heated discussion and a call to an accountant, they figured out they were looking for 40% profit instead of markup like the guideline stated. It felt good to be 20 yrs old and prove to a bunch of upper management that they were wrong. I burned off from there a couple of weeks later. Didn't need the headache.
