Incentive Plans [THA 191]

Bio and show notes here:
https://remarkableresults.biz/a191

The Panel

Bryan Kelley, owner of Valley Automotive Electric and Chairman of ASA Northwest. Brians previous episodes HERE .

Seth Thorsonhas specialized in the service of European automobiles since 1999. First, in Michigan and now at his current location in New Brighton, MN. He just started to build a brand new shop and experts to be in by June 2021.

Seth was educated at a UTI in Chicago, where he was at the top of his class. He then went to BMW Step to finish the master’s program. Thorson was hired in at a BMW dealership in Bloomfield Hills, Michigan. From there he moved to an independent shop in Waterford Michigan and learned VW Audi. Seth’s passion remained with BMW and he was offered a chance to buy an existing shop in New Brighton, Minnesota near where he grew up.

He is the owner of Eurotech, which specializes in BMW, Mercedes, and Audi cars. He is a firm believer in using factory tools to ensure proper repairs and coding. His team of highly trained and certified technicians is able to diagnose today’s complex vehicle systems! His second location, Green Garage, works on all makes and models.

Seth also owns and runs a BMW tech support company called LMV Bavarian that provides support and programming to a growing network of over 200 shops via remote diagnostics. He also teaches national seminars on BMW diagnostics. Seth has also partnered with SSF auto parts in their unique ‘hands-on’ training program.

Seth belongs to AASP in MN, BIMRS as well as NASTEF. He is also a member of Cecil Bullards (Institute for Automotive Business Excellence) 20 group. He believes idea sharing and networking with other shop owners have helped grow his business. Listen to Seth’s previous episodes HERE .

Bill Haas, AAM, is the owner of Haas performance consulting LLC, with 40 years of experience in the automotive service and repair industry. Clients have access to Bill’s solution-based focus, expertise, unique perspectives, and in-depth knowledge of the industry.

Bill began his career working part-time at a full-service gasoline station in Appleton, Wisconsin. His career includes time as a technician, shop owner, technical trainer, and on the staff of the automotive industry’s oldest and largest association representing automotive service and collision repair businesses. While at the association, Bill had the opportunity to work with all segments of the industry.

His knowledge of the industry has been shared on many occasions as he has been invited to speak at numerous industry events as well as providing testimony at hearings of the US Congress and several state legislatures on important legislation and regulation affecting the automotive industry.

Bill received the Accredited Automotive Manager (AAM) credential from the automotive management institute in 1996 and has been a member of the automotive management institute’s faculty since 2002.

Bill is also the business manager for NACAT, the North American Council of Automotive Teachers. His services include business management seminar development and delivery, keynote presentations, business consulting, performance coaching, and strategic planning facilitation. Listen to Bill’s previous episodes HERE .

Key Talking Points:

• Build your pay plans to accomplish the goals you want
• You can not have a business-focused incentive plan. The individual and team must play a big role. Must be a win-win for both.
• If a shop doesn’t feel they can’t afford people, they aren’t charging enough.
• Find ways to afford your people
• The reward for their performance
• Incentivize the individual so they can earn what they want based on their contribution to the business
• Some employees are not worth what they want or need to earn. No problem moving on.
• Some pay plans allow a great income when milestones or goals are hit. Put the power in the employee’s hands to be an ‘earner’.
• You need all the measurements to show your people their opportunities. Therefore good, smart Key Performance Indicators. (the numbers)
• You must track lost sales to find the potential that exists.
• It is all connected; for example, a good inspection program gives the service consultant the power to sell. That information equips the service consultant.
Bryan Kelley:Not everyone is money motivated. We make that error often
There are other motivators:Time off
Praise
Teamwork
Ownership
Don’t lose the second half of the equation. Don’t dangle a stick and carrot
Provide them an incentive to grow
• Caveat: consider your state’s laws around discrimination in pay plans
It is about the culture you create if you instill strong incentive plans because eventually, everyone needs to be on the same page going in the same direction working toward the common goalCulture before pay plans
• There are creative ways to accomplish incentive plans for individuals.
Incentives can be:Time off
Retirement
Health care
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