TSLA404.220-3.24%
GM82.4801.94%
F11.9300.22%
RIVN11.670-0.15%
CYD24.0000.59%
HMC33.680-0.392%
TM194.850-1.71%
CVNA59.050-0.18%
PAG211.950-0.2%
LAD288.690-2.04%
AN164.180-0.63%
GPI249.540-4.66%
ABG193.530-1.46%
SAH63.130-0.55%
TSLA404.220-3.24%
GM82.4801.94%
F11.9300.22%
RIVN11.670-0.15%
CYD24.0000.59%
HMC33.680-0.392%
TM194.850-1.71%
CVNA59.050-0.18%
PAG211.950-0.2%
LAD288.690-2.04%
AN164.180-0.63%
GPI249.540-4.66%
ABG193.530-1.46%
SAH63.130-0.55%
TSLA404.220-3.24%
GM82.4801.94%
F11.9300.22%
RIVN11.670-0.15%
CYD24.0000.59%
HMC33.680-0.392%
TM194.850-1.71%
CVNA59.050-0.18%
PAG211.950-0.2%
LAD288.690-2.04%
AN164.180-0.63%
GPI249.540-4.66%
ABG193.530-1.46%
SAH63.130-0.55%

Why pay plans for express auto technicians need to change – Don Reed

How are you compensating your express auto technicians? Today on Inside Automotive, we’re pleased to welcome back Don Reed, CEO of DealerPRO Training, one of the nation’s top fixed-ops training platforms for dealers and host of the CBT show, Service Drive, to discuss how service pay plans look today.

Years ago, the goal of opening up a dedicated express service operation, in addition to the primary service department, was to get service customers as quickly as possible. However, that means many one-item repair orders, which is not conducive to profitability as a standalone operation, says Reed. Since then, express service operations have evolved and no longer focus on speed exclusively. Today, the primary mission of express service is to make sure every customer drives away in a safe and reliable vehicle.

Car dealers and fixed ops managers must do two things to achieve this mission. First, express auto technicians should start performing multi-point inspections on the vehicles that come through. Second, it is vital to establish fair and effective pay plans for express auto technicians.

Recently, Reed analyzed an express operation that services about 800 repair orders a month. He found that the express auto technicians were getting paid a flat hourly wage with no opportunities for incentives or bonuses. The highest wage was $11 per hour out of six express auto technicians. Reed says it’s no wonder why the industry is experiencing a chronic shortage of techs with pay plans like these. 

Productivity-wise, these express auto technicians are running at 50%. What’s the incentive for these young techs to increase their performance? There is none. Reed explains that car dealers have to give these employees pay plans that are fair and that will reward them for producing at a higher level. If an express auto technician produces 20 hours of work during a 40-hour workweek, incentivize that employee to start producing 25 hours per week. Consider extending a $1-2 bonus for every hour above 20.

All young express auto technicians can perform at higher levels, says Reed. Try pairing lower-skilled technicians with more experienced mentors through an apprenticeship program. Also, consider turning these techs into inspection machines. By utilizing these pay plan options, car dealers can increase employee loyalty and the bottom line.


Did you enjoy this interview with Don Reed? Please share your thoughts, comments, or questions regarding this topic by submitting a letter to the editor here, or connect with us at newsroom@cbtnews.com.

Be sure to follow us on Facebook and Twitter to stay up to date or catch up on all of our podcasts on demand.

While you’re here, don’t forget to subscribe to our email newsletter for all the latest auto industry news from CBT News.

dealers

More from Fixed-Ops
All American Auto Group expands mobile service to strengthen customer loyalty

All American Auto Group expands mobile service to strengthen customer loyalty

- October 27, 2026
The first service appointment can set the tone for a customer's entire relationship with a dealership. Jim Sabino, Fixed Operations Director at All American Auto Group, explains how his team...
Growing revenue and customer loyalty through mobile service

Growing revenue and customer loyalty through mobile service

- October 23, 2026
Mobile service can grow well beyond recalls and oil changes when a store commits to building it out. On today’s edition of CBT Live, Jeremy Stephens, Remote Operations Director at Bozard...
The new formula for fixed ops success | service department i

The new formula for fixed ops success

- October 13, 2026
Your service department is the backbone of your dealership. Through economic ups and downs, changing customer expectations, and new technology, service has stayed a steady source of profit and growth. But...
What AI means for the future of dealership headcount

What AI means for the future of dealership headcount

- October 7, 2026
AI will change where dealership employees spend their time more than it will shrink headcount. On today's edition of CBT Live, Todd Smith, CEO of QoreAI and Author of The Intelligent...

Add us as a preferred source on Google

CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.