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      03-27-2009, 01:00 AM   #1
hl0m4n
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Question Do BMW Dealers Like Warranty Work?

when we go to bmw dealer to get fixed something under warranty, do they like warranty work? what i mean to say i guess is how do they pay compared to non-warranty work? it's 2am and im lost of words atm
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      03-27-2009, 01:05 AM   #2
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service advisors get paid 1% of the work, your job is $3600 and they get $36, it adds up

I think some dealerships are pooled too, all the SAs split it

but yes, unless theyre lazy, there is a risk of getting them in trouble, or there are a bunch of other customers that want to pay out of their pocket, they get paid on warranty work and should welcome it
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      03-27-2009, 01:06 AM   #3
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hey steve you never sleep do you buddy ? thanks for info. also service advisors make more money than sales guy right?
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      03-27-2009, 01:12 AM   #4
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^ not necessarily. I mean if your service department doesn't get a lot of customers but a salesman is top every month then the answer is no. It's all relative.
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      03-27-2009, 01:21 AM   #5
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If they're getting paid at a rate of 1%, then I think the proper conclusion is that they DO NOT like warranty work. I have a feeling that figure is higher in reality.

$36 is another word for peanuts.
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      03-27-2009, 01:25 AM   #6
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Quote:
Originally Posted by Debaser View Post
If they're getting paid at a rate of 1%, then I think the proper conclusion is that they DO NOT like warranty work. I have a feeling that figure is higher in reality.

$36 is another word for peanuts.
+1, BMW pays for the parts and then they pay for the labor. I'm not sure where the 1% came from.
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      03-27-2009, 06:23 AM   #7
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Quote:
Originally Posted by Debaser View Post
If they're getting paid at a rate of 1%, then I think the proper conclusion is that they DO NOT like warranty work. I have a feeling that figure is higher in reality.

$36 is another word for peanuts.
Let's assume that the 1% "commission" number is true. Let's also assume that each repair job costs $1000, which would mean $10 for the SA for each job. You would need about 20 customers per day to make roughly $50,000 per year.

I, too, think that 1% number is a bit low, but it's definitely plausible.
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      03-27-2009, 07:23 AM   #8
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Service Advisors typically get paid off of parts and labor. They get up to 4% for Warranty work and up to 6% for customer pay. Take the total amount of their sales for the month (parts/labor) and multiply it by what their percentage is and you get an idea of how much money they make. They also get a bonus for good CSI. Some places will actually cut their pay if they have bad CSI.

Most SA's make between 50-70k a year. They typically work a minumum of 60 hrs per week, and have to take sh*t from just about every customer that walks through the door.

To answer your question yes, they want your warranty work. BMW's bread and butter is warranty work, as most people can't afford to pay Customer Pay prices at the dealership. Warranty work still pays well at BMW, and the Advisors make a decent living.
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      03-27-2009, 08:08 AM   #9
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No way in hell they make 50K a year. My friend is a SA for Honda and he made 80K last year. The job is very hard physically and usually around 60 hours per week.
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      03-27-2009, 08:18 AM   #10
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Yes, they can make 50k a year. I am a Service Manager for Ford, so I'm pretty sure I know what they can make. It all depends on how hard you hustle.

I have Advisors that make close to 100k a year, and some that barely make 40k. It all depends on how many cars they write a day, upsell, and if they have any Fleet Accounts.
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      03-27-2009, 10:55 AM   #11
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The OP's question wasn't how much SA's make. It was whether or not the dealer prefers warranty work or non-warranty work.

+1 for what JGriffin said...

Quote:
Originally Posted by jgriffin View Post
To answer your question yes, they want your warranty work. BMW's bread and butter is warranty work, as most people can't afford to pay Customer Pay prices at the dealership. Warranty work still pays well at BMW, and the Advisors make a decent living.
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      03-27-2009, 11:18 AM   #12
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+2 to griffin. Huzzah!
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