Find out why over 1,200 dealers have already made the switch to Auto/Mate and experience the DMS that does business differently. LEARN MORE
Ok, full disclaimer. I know that this is a polarizing topic in dealerships everywhere. That having been said, without bias to either side, I would like to present an argument for both sides and see where the community lands. Hilary Clinton once said, "Freedom means the right of people to assemble, organize, and debate openly.
So, SPIFF. A dirty word to some dealers and a heavenly gateway to results for others.
Position A: I have spoken with many dealers who take the position that their sales consultants are very well compensated within the confines of their pay plan and should be expected to perform to certain standards without cash bonuses playing a part. One dealer also expressed the very analytical opinion that the additional expense generated in manpower required to track such cash bonuses and assure that they are properly accounted for in payroll for tax purposes was not worth any "lift" they would receive from offering them. Phew, quite a mouthful indeed. And furthermore, (Yes, he had more to say) offering spiffs is like giving your consultants Crack Cocaine! Give it to them one time and they are addicted.
Position B: I heard it said by more than one GM in my NADA General Dealership Management class (Many moons ago) that if they offer up a Saturday morning $100 spiff for the 1st unit sold, oldest unit sold, and for a hat trick, they are guaranteed to have a good day. In fact, many sales consultants will chase that "Cash in Fist" so hard they will stack appointments for Saturday! (Hmm, does that statement belong in position A?) Someone even went so far as to say that he would offer a full commission at the end of the month or a 50% cash spiff on the spot in lieu of said full commission. (I do not advocate that for accounting and payroll legality reasons but it was his store ) Any guesses on how many opted on the "Cash on the spot?"
In conclusion, I have my own thoughts about spiffs but I throw this debate out to the Ultra Intelligent DrivingSales community for a healthy discussion on what your position is......... TO SPIFF OR NOT TO SPIFF?
Let's move some metal!