Performance Pay
Performance
pay is very common in many industriessuch as the auto
repair industry.
Most contractors still do business the old fashion
way by paying their technicians by the hour. This is a very unproductive way to
pay technicians and that is why some contractors are using performance pay.
It
is estimated that within 10 years, 95% ofcontractors will be using flat
rate pricing along with performance pay. Performance pay eliminates
paying technicians for cigarette breaks, coffee breaks, call backs, personal
errands, sitting around at the supply houses, etc.
The
more educated and the harder the technician works the more money the
technician can earn.
For example: if a technician is replacing a blower motor
and the time allotted is 1 ½ hours but the technician completes the repair in 1
hour, then they got paid a flat rate of 1 ½ hours thus being rewarded
for theirexcellent performance.
Accu-Pricing™
comes already designed to work with performance pricing. Every repair task
number includes a code indicating the task hours to do the repair. The customer
doesn’t recognize this labor code only the technician does.
