Fixed Ops Journal - August 2019 - F36

FIXED OPS JOURNAL

LETTERS

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Complex systems make flat
rate for technicians obsolete
Richard Truett's Hands On column "Flat
rate foe" (June) was very good. I agree with
dealer Coleman Hoyt that the flat-rate pay
system is antiquated, given the complexity of
new systems.
Service technicians need to be able to focus
on guest services and performance and not
be sidetracked by "Am I winning or losing?"
on particular jobs. Our dealership has moved
most of our flat-rate technicians to a hybrid
combination of flat rate and hourly compensation. We pay techs an hourly rate based on
skill set, with a proficiency-tiered bonus
structure that rewards them for performance.
On this plan, our technicians never have to
worry about how much they are getting paid,
regardless of whether a particular job is taking
longer than expected. It's a win for everyone.
We have not transitioned all our techs, as we
want it to be their choice to make the move.
Technicians work incredibly hard, are highly skilled and need to have a clear, positive
mind to be able to perform day in and day
out. No position would have long-term stability if associates had to worry about their paycheck on a weekly or daily basis.
We don't have a tech shortage, especially
when you look at the turnover rate. We are
selling new cars at all-time record losses behind invoice without a second thought. However, we make our highest gross-profit producers ride the "What am I getting paid?"
roller coaster. Happy technician - happy life.
TIMOTHY CARDILLO
General Manager
Balise Lexus
West Springfield, Mass.

Technicians must focus on
electronics, not just mechanics
I am director of operations for a single-point dealership. Fixed operations at a
new-car dealership can be very profitable, if
they are run in a manner that is current with
the times and the client's world.
Today's vehicles are pretty sound mechanically but very fragile electronically. Most service technicians entered the field because

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AUGUST 2019

A.M. deLANGE
Reisterstown, Md.
The writer is a former oil company engineer
who now is an independent provider of
vehicle servicing.

education after high school was not required.
But today, you have to be electronically as
well as mechanically inclined.
With less vehicle maintenance, there is no
need for flat-rate pay. Outside of recalls, it is
pretty much impossible for a technician to
make real flat-rate time (no dealer matching
the hours). Unapplied time has grown, as well
as administrative expenses. The manufacturer seldom knows what will fix the vehicle,
hence increased buybacks.
There may be no one correct fix, but there is
much that can and must change, or the quality of fixed ops will no longer exist.

What about the customers who
seek to avoid the service lane?
"Virtual realities: Artificial intelligence supports work of dealership service advisers"
(June) gave several examples of solutions that
make it easier for the consumer who chooses to
visit the service lane. What about the consumers who want to bypass the friction of visiting
the service lane? I believe dealerships that offer
to pick up and return service vehicles for consumers will win the day. Eventually, with
autonomous vehicles, this will be a moot point.

SALVATORE SALAFIA
Hartford, Conn.

TIM O'ROURKE
Jacksonville Beach, Fla.
The writer is an independent automotive
consultant.

Indie shops more customercentered than dealerships

One explanation for vintage
Chevy's Tacoma connection

I no longer use dealerships for service, even
during warranty periods. They attempt to sell
"requirements" that are not recommended by
the manufacturer. They perform a "free" inspection and review their suggestions before
they lay a wrench on the car.
The independent shop I use never sells anything unnecessary, stands 100 percent behind its work and won't argue when you have
a concern. The mechanics (they do not call
themselves techs) will come out when they
see you and explain anything you want to
know.
No leather couches, no free coffee, no
high-definition TV in the lounge, just service
and appreciation for your patronage.
When the factory air-conditioning compressor on my Chevrolet Suburban failed, it
was replaced and repaired at no cost. No argument, just an apology for the inconvenience.
That was a lot better than when the AM radio quit on our 3-month-old Cadillac and the
dealership service manager told my wife that
AM was not worth listening to. We got it fixed
eventually, but it took months and lots of service visits.
Mechanics at dealerships are as likely to
hop from job to job as the sales staff, and they
are not brand-knowledgeable. People will

The spare wheel cover on the 1933 Chevrolet Standard Six pictured in your June Fixed In
Time photo has "So. Tacoma" written on it. I
don't know about Sullivan Chevrolet, the
dealership where the photo was taken, but
the Tacoma, Wash., Chevy dealer in 1933 was
South Tacoma Motor Co., which operated
from 1919 until the late 1980s. Perhaps the car
had been bought there, but the radiator was
being repaired at a different dealership.
ALDEN JEWELL
Yuba City, Calif.

Low salaries discourage young
people from technician jobs
The number of young people becoming service technicians will diminish. They all know
they will have tens of thousands of dollars of
student debt, plus tool expense. They all know
how to use the Internet, and when they look up
"auto technician salary" for a dealership, they
see that overall earnings average less than
$62,000 a year. And we continue to wonder why
young people avoid our industry like Ebola.
JOE HENRY
Owner
ACT Auto Staffing
Palm Harbor, Fla.

Fixed Ops Journal - August 2019

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