A “spiff,” in the context of automotive retail, refers to an immediate, often cash-based, incentive designed to motivate sales personnel to prioritize the sale of specific vehicles, accessories, or services. This incentive supplements regular commissions and provides a direct financial reward for achieving targeted sales objectives. For example, a dealer might offer an extra payout for each sale of a particular model struggling to move off the lot or for upselling a specific service package.
The implementation of such incentives offers several advantages. They encourage focus on inventory reduction, promote the introduction of new products or services, and drive overall sales performance. Historically, these programs have been a cornerstone of automotive retail strategies, allowing dealerships to respond quickly to market fluctuations and achieve specific business goals. The effectiveness of these incentives lies in their ability to directly influence sales behavior and align individual efforts with the dealership’s strategic objectives.
