Flat Rate vs Hourly-Bonus Hybrid Pay Plans [THA 157] - a podcast by Carm Capriotto, AAP

The Panel:

Jeff Matt from Victory Auto Service in Minneapolis and St. Petersburg, FLA, was featured in episode 48. Jeff owns six locations with one being in Florida. He has over 40 team members and has grown through acquisition. Jeff opened Victory in 1997 as a one-bay shop and has slow steady growth over the years. His growth offers up a great view of multi-shop ownership. Episodes Jeff Matt is featured in HERE.

Michael Maloney is president of Convenience Auto Service and owns two general repair facilities in Ann Arbor, Michigan. Mike brings a fairly unusual blend of corporate technical expertise and business leadership to his shops. “I spent thirty years working in large companies, but always wanted my own business.” He launched that dream following his retirement from a series of ‘regular jobs.’ His insights into spaces where automotive, consumer electronics and customer service intersect are drawn from real world experience with some of the world’s most successful and innovative companies, including Ford, Nokia, Tyco, GM, Apple, B&W, and Microsoft. His leadership of technology acquisitions, engineering, manufacturing, and purchasing for companies in the consumer electronics, audio and auto spaces gives him a unique perspective relative to other shop owners. Listen to Michael’s Episodes HERE.

Corey Evaldi grew up in Buffalo, NY (Lackawanna). He owns Olmstead Auto Care, Olmstead Falls, OH. His dad had his own auto repair shop before Corey was even born. In 1988, he built the shop that is still in business today. He started to enjoy the electronics and troubleshooting of vehicles really young. During his junior and senior year of high school, He went to Potter Road Career and Technical Center and took the Automotive programs. His senior year had an automotive competition at ECC, local community college.

In 2015 he returned and was overwhelmed with the responsibilities of running a shop. he was a technician, service writer, accountant, clean up person, the fireman that extinguished fires all over. He could not keep doing what he was doing. He produced 40% of the billed hours out of 4 techs. He looked for help. Found a coaching firm that really showed him what a business owner looks like. After implementing the changes, there was extreme push back from the existing crew. After standing firm on most things, change over was inevitable. Listen to Corey’s Episodes HERE.

Joe Hanson owns Gordie’s Garage. Joe has attended Management Success, NAPA training, Lawrence Tech University and most recently he is a member of the RLO 20 Group 13. He has earned his ASE C1: Automobile Service Consultant Certification. Under his father’s leadership, he has seen what it really takes to make a business like this work. Listen to Joe’s Episodes HERE.

Talking Points For Flat Rate

• Jeff Matt: I've never met an hourly paid technician or a technician with a high guarantee of pay that is a high producing technician.


• Our limited commodity is time.


• To be an effective leader we need to know that pay is just one part of an employee experience


• You need to keep your shop full


• When they produce you need to be willing to pay them


• Mike’s tech's hourly rate goes up fast when they hit the breakeven number. He has tiers of hour they need to perform


• Jeff:End of day on a Friday when a battery comes in the door....

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