Spiff on accessories & F&I or pay on total gross?

Ron Henson
I'm curious about which of these methods are more prevalent today. Also, I would love to hear on any creative ideas that may be outside the box.
Dustin Lyons
It seems that the trend is either a spiff or a low % on the gross. We went from a fairly high % on backend to a low % on backend, and I highly recommend paying on the total gross and paying a decent percentage. The reason I say this is because even though we were paid more than the average, we had extremely high accessory and F&I profit. We consistently led our 20 group in backend profit, and they were always trying to copy our system. Of course there is more to this than just the pay plan, it depends on how strong your people are in those departments. Another reason why I say this is I saw what happened to the attitude on the floor from sales people when the pay plan changed to a lower backend %. One of the reasons we were so strong in this area is because the sales guys were getting paid to do a great job of setting up the customer for the backend pitches. We worked very well as a team and the sales guys definitely made it easier for the acc. and F&I guys. Once the pay on backend was lowered, the guys stopped having a good incentive to prep for the backend and it went from being a great synergy to being a front vs. back struggle so to speak, where all sales guys cared about was front end (which is what they should care about) but they didn't care much about helping or setting up the back anymore. Of course this was the initial reaction and a bit childish on some peoples behalf, but at least at first it did impact the backend gross. Things eventually leveled off and got back to normal, but it is definitely not the same feeling between front and back as it used to be.
Megan Barto
We pay 7% on all accessories and have flat amounts if the customer finances, purchase a vehicle service contract and also our rewards upgrade. The 7% on accessories really encourages our sales professionals to sell extra accessories - but then again, we put wheel locks (if they're alloy wheels), splash guards, all-season floor mats & a cargo/trunk tray on every single new car. So yes, the sales professionals get paid the 7% even on these accessories.
Ricky Wood
We do the same as Megan - to drive home the importance our parts manager attends the weekly sales meeting with cash in hand to pay on accessories.
Dustin Lyons
We went from 15% on Acc. and 10% on F&I down to 2% on both. But we had a lot of other great spiffs like a tri board that paid out on gross each week. Eat the frog spiffs. and other weekly spiffs and monthly bonuses.
mark rask
we pay a spiff on f and I

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