One of the best ways to retain employees is to not only offer them good pay, but good benefits as well. The Equipment Dealers Assn.’s (EDA) 2018 Compensation & Benefits Report is one tool that can help dealerships see how their compensation programs stack up. Rural Lifestyle Dealer offers this exclusive analysis of the report’s results.

The Compensation & Benefits Report covers data on dealership wages and employee benefits. It includes descriptions for over 30 jobs and bonus structures, with the data categorized by dealer revenues and other ways. The report is broken down into sections for corporate offices and retail and service locations. While the EDA report includes data on dealerships across Canada, this analysis focuses exclusively on the U.S.

 EDA used dealership feedback to formulate descriptions for the jobs listed in the report. The average base salary, commission and total compensation data for each featured position is also included, along with profit/sales percentages and long-term benefits. To order the complete report, please contact EDA at info@EquipmentDealer.org or call 636-349-5000.

Watch this Data

Rural Lifestyle Dealer takes a deeper look at other results through a conversation with Joe Dykes, EDA’s vice president of industry relations. For instance, 87% of dealerships say they provide health and dental plans to full-time employees and their families (spouse and children). That compares with 83% in 2016. Dykes expects that percentage to continue increasing. EDA recently announced a program to help dealers find the best health insurance options to address this concern. (Click here to learn more.)

Another topic Dykes advises dealers to watch is flat rate pricing for service jobs. Only 34% of dealers indicate they use flat rate pricing in their service departments. That compares with 40% in 2016. Dykes expects additional questions to be added to the survey about flat rating. (Click here to learn more.)

About the EDA Survey

The Equipment Dealers Assn. collects survey data every 2 years from agriculture and outdoor power equipment (OPE) dealers across North America. In 2018, 354 equipment dealers submitted data. These dealers represent more than 1,100 dealership locations throughout the U.S. and Canada.

A digital 83-page report was made available to all dealers who participated in this year’s survey, and is available for purchase to others.

CORPORATE LEVEL: For multi-store dealership operations with a corporate office

Corporate CEO

This is the top leadership position of a multi-branch organization that has a head office function. The CEO is responsible for the overall direction of the business and for achieving optimum financial returns. Coordinates the efforts of other senior corporate leaders and works with them to develop current and long-range objectives, strategies and policies for the organization. Promotes positive relations with all external parties (customers, the financial community and original equipment manufacturers). Pursues and negotiates mergers, acquisitions and dispositions.

• Average Commission Based on Profit: 5%
• Average Commission Based on Total Sales: 1%
• Average Commission Based on Total Salary: 45%
• 12% Receive Long-Term Benefits (Average Value: $68,500)

Corporate Service Manager

Supports branches in managing the profitability of the service department. Defines, monitors and enhances the customer interface and service operations processes and protocols. Develops, implements and enhances service department processes to meet OEM performance standards as well as safety and environmental policies and regulations. Ensures processes are in place to maintain accurate records, monitor work in process and troubleshoot related issues. May assess the technical capabilities of service staff and coordinates training. May implement marketing campaigns for service departments in branches.

• Average Commission Based on Profit: 6%
• Average Commission Based on Total Salary: 17%
• 5% Receive Long-Term Benefits

Corporate Sales Manager

Responsible for planning and directing all activities of the sales force, including assignment of sales territories, business development efforts, customer communications and preparation of sales forecasts. Ensures the organization’s sales volume and profitability objectives are met. Supervises the sales team, ensuring business development objectives are established, sales forecasts are developed, sales and communications programs are implemented and sales forecasts are achieved.

• Average Commission Based on Profit: 11%
• Average Commission Based on Total Sales: 3%
• Average Commission Based on Total Salary: 20%
• 8% Receive Long-Term Benefits

Corporate Parts Manager

Supports branches in managing the profitability of the parts department. Defines, monitors and enhances inventory management, fill rate and customer service processes in order to support branches in attaining individual parts goals. Ensures processes in place are followed so parts availability standards are met and re-order processes result in optimum inventory costs. Ensures processes are in place to maintain accurate physical inventory and inventory accounting. May assess the technical capabilities of parts staff and coordinate training. May also implement marketing campaigns for parts by working with OEM and branches.

• Average Commission Based on Profit: 5%
• Average Commission Based on Total Sales: 3%
• Average Commission Based on Total Salary: 21%
• 4% Receive Long-Term Benefits

DEALERSHIP LEVEL: Dealership level positions, whether a single dealership or a branch of a larger organization.

General Manager/Branch Manager

Responsible for financing and operating performance of the dealership/branch, customer satisfaction and employee engagement, as well as managing or supporting relationships with key stakeholders such as OEMs and government agencies. Optimizes dealership/branch performance by integrating across sales, service and parts departments. Manages performance by setting goals, monitoring performance, managing accountability and taking action to enhance performance.

Multiple Branches GM

• Average Commission Based on Profit: 9.5%
• Average Commission Based on Total Salary: 35%
• 8% Receive Long-Term Benefits (Average Value: $67,109)
• Average Branches Supervised: 6

Single Branch GM

• Average Commission Based on Profit: 10.75%
• Average Commission Based on Sales: 19%

Parts Manager

Manages the parts department to meet customers’ needs with acceptable fill rates and optimum inventory investment to deliver financial results. Manages processes and staff to ensure parts availability standards are met and re-order processes result in optimum inventory costs through accurate physical inventory and related accounting. Sets customer service standards and trains and monitors staff performance. Assesses the technical capabilities of parts staff and arranges/conducts training. Implements parts marketing campaigns.

• Average Commission Based on Profit: 4%
• Average Commission Based on Sales: 1.25%
• Average Commission Based on Total Salary: —
• Average Parts Counter Personnel Managed: 4

Service Manager

Manages the service department to deliver customer satisfaction while optimizing financial results. Through effective processes and trained staff, manages the customer experience and ensures servicing and repairs of equipment result in customer’s satisfaction. Manages resources to control costs and grows the business through repeat customers and partnerships with parts and sales personnel to promote the service department. Develops, implements and enhances service department processes to meet OEM performance standards, safety and environmental policies and regulations. Assesses the technical capabilities of the service staff and coordinates training. May implement marketing campaigns for the service department.

• Average Commission Based on Profit: 5%
• Average Commission Based on Sales: 2%
• Average Commission Based on Total Salary: 25%
• Average Technicians Managed: 9

Salesman #1 (Top Producer)

Responsible for selling products and services to a wide range of accounts and customers. Accountable for increasing sales volumes and customer base. Recognized for record sales achievements. Authoritative source with advanced knowledge of company and competitor products and services. Excels at increasing sales volumes across various revenue streams, such as equipment and aftermarket services. Provides expert advice to other sales representatives and may train or supervise more junior sales representatives.

• Average Base Monthly Pay/Draw: $20,585
• Average Commission Based on Profit: 17%
• Average Commission Based on Sales: 2.75%
• Average Commission Based on Total Salary: —
• Straight Commission Earners Receive an Average of 9%

Sales Manager

Responsible for planning and directing all activities of the dealership/branch sales force, including assignment of sales territories, business development efforts, customer communications and preparation of sales forecasts. Ensures the organization’s sales volume and profitability objectives are met. Supervises the sales team, ensuring business development objectives are established, sales forecasts are developed, sales and communications programs are implemented, and sales forecasts are achieved.

• Average Commission Based on Profit: 9.75%
• Average Commission Based on Sales: 1%
• 86% of sales managers also sell equipment; those who do spend 30% of their time selling

OPE Top Technician

Performs the same duties as an average technician, but with a higher average level of productivity. Serves as a resource to other technicians to solve unusual problems.

• Top Technician Sees Average Hourly Wage of $20.89
• Average Customer Rate: $86.77
• Average Internal Rate: $74.21
• 31% of Dealers Reporting Technical Pay Based on Efficiency
• Dealers Using Flat-Rate Pricing in Service Department: 34%

OPE Average Technician

As a journeyman (or comparable work experience), independently conducts diagnostics, disassembly, parts replacement, assembly and testing of most types of repairs. Manages own productivity to meet department goals. Prepares and submits all reports and forms related to work assignments. May supervise the work of less experienced technicians. Maintains product knowledge of OEM equipment. Follows procedures related to safety and environmental standards.

• Average Technician Sees Average Hourly Wage of $18.22
• Average Customer Rate: $87.15
• Average Internal Rate: $74.95
• 31% of Dealers Reporting Technical Pay Based on Efficiency
• Dealers Using Flat-Rate Pricing in Service Department: 34%

OPE Starting Technician

Under direct supervision and follows clearly prescribed procedures, performs basic diagnostic routines on equipment, performs basic disassemble, replacement of parts, assembly and testing. Prepares and submits all reports and forms related to work assignments. Refers all non-routine problems to more experienced technicians and assists experienced technicians with more complex repairs. Builds product knowledge of OEM equipment. Follows procedures related to safety and environmental standards.

• Top Technician Sees Average Hourly Wage of $13.56
• Average Customer Rate: $87.29
• Average Internal Rate: $74.67
• 31% of Dealers Reporting Technical Pay Based on Efficiency
• Dealers Using Flat-Rate Pricing in Service Department: 34%