On Nov 30, Pep Boys Auto went to a commission pay structure for all service advisers and assistant service managers after cutting hourly rate by $5.00/hr. The service manager was excluded from this commission basis for pay, no pay change for the service managers.
The commission to be paid is 2.5% on parts and labor money that are paid through the register, so no commission on warranty parts, no commission on coupons presented to reduce customer payments. Tires commission are 2% except for the cheapest tires -Cornell 1000- their commission rate is 1%.
The company has sent out thousands of 10% and 15% off coupons to customers to get them to come in which cuts commissions that Pep Boys has to pay to the workers.
The company has a web site that consumers can leave feed back about their service or store experience using the web address on the cash register receipt. If the rating from this web site is 50 or higher one gets the full commission rate, but if one's rating is below 50, all rates are cut -parts and labor dollars are paid @1.5%, tires @ 1% and Cornell 1000 tires at. 5%, though the difference is banked and if rating goes over the 50 rating by the end of the quarter, full commissions are then paid.
Based on a 40 hour work week, everyone's pay was cut $200.00. Sales, to say the least, are down and the average pay cut is over $100.00/week for service advisers and assistant service managers. Customers do not have the money to spend on car repairs today because the economy is going badly.
However, Corporate at Pep Boys blames the service writers and assistant service managers for the down turn in sales at the service department.
The company now wants every customer who comes in for service to have all their information written down on paper including name, address, city, state, phone numbers, all vehicle information, IE: year, make, model, vin#, license plate, mileage, tire size, tire tread depth, wiper blades condition, if any light bulbs are out, head light lens condition, etc before any information is put in the computer system which has all this information on prior customers. They are going back to the time before computers were common & everything was done by hand like 1950's or 1960's.
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