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paul_canada

Canada
66 Posts

Posted - 06/04/2010 :  20:22:51  Show Profile  Click to see paul_canada's MSN Messenger address  Reply with Quote
Hello,

Currently the dealership was adding the spiff that was paid out the sales person onto the cost of warranty, propak, etc. Now the dealership has changed their minds and said that the business manager has to pay out of pocket for the sales persons spiffs. How do you spiff your staff, on which products and how much, and if they don't help how do u fix that, also do u still spiff if they havn't said anything to the customer?

P.S. Anyone have an excel menu?

Paul
paul_singh23@hotmail.com

fi4everish

USA
1337 Posts

Posted - 06/05/2010 :  06:07:52  Show Profile  Visit fi4everish's Homepage  Reply with Quote
here we spiff the salespeople on warranties,accessories and paint and fab. we dont rust proof. the cost comes out of the f&i dept. if the sales people dont sell the extras or mention any product ....no money for you...usually its $25.00 per product
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snowman

Libya
2138 Posts

Posted - 06/05/2010 :  08:03:31  Show Profile  Reply with Quote
quote:
Originally posted by paul_canada

Hello,

Currently the dealership was adding the spiff that was paid out the sales person onto the cost of warranty, propak, etc. Now the dealership has changed their minds and said that the business manager has to pay out of pocket for the sales persons spiffs. How do you spiff your staff, on which products and how much, and if they don't help how do u fix that, also do u still spiff if they havn't said anything to the customer?

Paul
paul_singh23@hotmail.com



So, the way I read this, the company you work for has decided that A) they don't give a rat's a*s whether or not SP's endorse F&I product, and B) they just cut your pay plan.

Aparently, they are not committed to the sale of back-end product or don't believe that the sale of product is a team effort.

I could not disagree more! I strongly believe that the sale of F&I product begins on the sales floor. And, I believe that those people who produce income for the company should be rewarded for their efforts.

Here (and we may be the glorious exception), we train and expect salespersons to endorse (not sell, but endorse) applicable F&I products. Then, when the vehicle is delivered and products are booked, we pay them for their efforts. SP's here can make up to $250 per unit on F&I product contracted in the business office, PLUS 5% of reserve. All spiffs are considered payroll expense here, and are not charged to F&I, as your company formerly did to you.

The reason that we incur this additional expense is because we recognize that maximixing the sale of F&I product takes everyone's involvement, and, oh, by the way, the company MAKES MONEY every time a F&I product is sold.

Sure, I could do it all in my office, and cut the SP's out of the loop, but as good as I am in here (and I am good, BTW) I would not sell as many products on my own as I do when SP's are involved. For example, if an SP endorses Wheel & Tire and the customer agrees that that would be a good thing to have, we've already got one in the bag before they ever come in here. So now, if I sell an ESC and, let's say, GAP, we've now got a 3-product deal that pays the SP $150.

In my opinion, that's how it should be done. Unfortunately, there are far too many dealers out there that can't see the forest for the trees. They don't realize that paying the SP and the F&I Manager to work together, makes them more money.

Fools!
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JimD

USA
11966 Posts

Posted - 06/05/2010 :  08:08:59  Show Profile  Reply with Quote
Does the SM get paid on F&I? Does that come out of your pocket too?

Does the SPs front end commission, come dollar-dollar out of the SMs pocket?

Stupid friggin GMs/DPs thinking to pick up an extra shiney nickel, stepping over that dirty old dollar bill to do it. They want to take SPIFFS out of my pocket as a FIM, I'll kill the SPIFF program dead. Failing that, my resume would updated and polished within minutes, and within hours 1/2 dz other people would have a hard copy in front of them.

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Snowrider

USA
1001 Posts

Posted - 06/05/2010 :  08:41:04  Show Profile  Reply with Quote
Agree with what snowman said. We train the SP to "endorse" the product. The only product they actually present to the customer is the chemical protection package prior to F&I. Each store has a display vehicle 1/2 done, and the SP has a script to explain the features & benefits of the package. No prices, no pressure - just explain the product and turn to the F&I office.

Our pay system is different with the SP's paid on a point system. Bonus points are earned for purchase of a service contract, finance, gap, chemical protection package, etc. It all adds up to give them a much nicer paycheck that month by getting the F&I add-ons.

The spiff points are part of the payroll program and don't get charged to F&I. We have F&I integrated into the sales process and therefore don't play games like charging F&I for something that should be part of the process anyhow.

Paying SP spiffs out of the F&I managers pocket is, (as General Norman Schwartzkopf said during Desert Storm), bovine scatology.
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jimbo67

USA
2066 Posts

Posted - 06/05/2010 :  09:42:41  Show Profile  Visit jimbo67's Homepage  Reply with Quote
Guess I'm on the other end of the spectrum here. I agree that the FIM should not pay spiffs to salespeople, but I do NOT want the sp to even mention back end products to the customer. I sell service contracts, gap, cl/a&h, and t/w as back end products and paint/fabric as a front end product with proceeds going to f&i. So the sp should try to help sell paint/fabric but not true back end products. They do get spiffed on back end products by the dealer and that keeps them from undermining the opportunity. I have found that when sales people "endorse" back end products, walls are immediately put up and it takes me longer to tear them down than to avoid the wall ever being erected. Since I started here, back end product sales are up...just gotta keep getting better on vsc for Cadillac and Buick(will take tips). Besides, if the sp could sell back end products, they wouldn't need me!

I've discovered that common sense is not as common as the common person would expect.
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WhatUSay

United Kingdom
2250 Posts

Posted - 06/05/2010 :  12:14:07  Show Profile  Reply with Quote
We teach our FIM to not rely on SP to endorse, discuss, or otherwise ancillary products. In our opinion the FIM has too rely on their sales abilities.
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patrickb

Canada
2 Posts

Posted - 06/05/2010 :  14:08:08  Show Profile  Visit patrickb's Homepage  Reply with Quote
Agree with snowman...I believe that it starts with the SP. Here, I don't ask the SP to sell the items for me, but to just mention them in their presentation. Just plant the seed. Then when they come up to see me, they already know (somewhat) what to expect and makes it easier for me to give our customer their options.

The SP has spent the last few hours earning the customer's trust. We don't have that much time. A little help from the floor helps everybody in the dealership make more money.

spiff $10 per pro pack item and $20-$40 per ESC. No mention, no spiff.

www.automotivesalesblog.com
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paul_canada

Canada
66 Posts

Posted - 06/05/2010 :  14:49:41  Show Profile  Click to see paul_canada's MSN Messenger address  Reply with Quote
The way it was done 2 weeks ago before I got hired was the spiff money was added to the cost of the product now it come off our gross of our paycheque. So, if I make 9,000 and spiff 500 now I made 8,500 and that amount gets taxed, etc.

They stole me from my other dealer where we paid no spiff and now within a week of being here they have changed it.

9/10 sales people here try their best to help the business office

we are now thinking 20 for warranty and pro pak 20 for full doc fee which is 499 usually comes in at 250 10 for tire and rim which we sell for 199 with a cost of 56

Any ideas or suggestions would be greatly appreciated since this money now is coming out of my pocket.

Paul :)

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JimD

USA
11966 Posts

Posted - 06/06/2010 :  05:43:18  Show Profile  Reply with Quote
polish your resume and start looking for a new gig. No way in hell should you PERSONALLY, be making payroll for an employee in another department.

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paul_canada

Canada
66 Posts

Posted - 06/06/2010 :  10:55:58  Show Profile  Click to see paul_canada's MSN Messenger address  Reply with Quote
They used to add it to the cost of the product, but now it's this way but they have the type of sales staff if we don't pay them I think the support will disappear. I figure we would pay about 500 a piece a month in spiffs, they sell about 70 cars a month and we do about 80,000 in gross. 80,000* 14%=min 10,000 a month and I work about 50 hrs a week. They own an other store in the city beside us and wanted to change the spiff program to match them. I could quit but there aren't many jobs out there right now so how do u think I can fix the spiff program so I get support but dont pay a lot.

Paul :(
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JimD

USA
11966 Posts

Posted - 06/06/2010 :  11:22:43  Show Profile  Reply with Quote
No clue really. Frankly, I would question the very legality of doing it the way they apparently intend to. IOW, the SP do NOT work for you, you do NOT sign their paychecks, so why are YOU paying them?

Good job or not; getting F'ed without getting kissed, aint worth a damn.
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paul_canada

Canada
66 Posts

Posted - 06/06/2010 :  11:58:29  Show Profile  Click to see paul_canada's MSN Messenger address  Reply with Quote
i get what u mean but the want to copy the other store is their excuse also what am i going to do quit and make 0?

i was thinking of getting rid of the spiff program all together but then the sales staff might not help us at all then

what do u think i should do?
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JimD

USA
11966 Posts

Posted - 06/06/2010 :  12:23:47  Show Profile  Reply with Quote
no you dont quit and then look. You look, find and then quit.
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paul_canada

Canada
66 Posts

Posted - 06/06/2010 :  14:42:35  Show Profile  Click to see paul_canada's MSN Messenger address  Reply with Quote
i understand that, what i need help with is how to set up a fair spiff program that wont cost me a lot of $ out of my pocket

what do u managers do?
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djbishop

Germany
1575 Posts

Posted - 06/06/2010 :  16:59:49  Show Profile  Reply with Quote
I never,ever,ever,ever wanted the salespeople to talk about back-end products. If the customer brings it up and wants a warranty or gap to be worked in as part of the initial deal,that's a different story.
When it comes to spiffs,the dollars should come from the F&I Dept's gross....not directly out of your paycheque...that's the most ridiculous thing I've ever heard of. Is it even legal?


Frickin' idiot's Moron's Jackass' Pinhead's Blockhead's Nitwit's Simpleton's

^^^^^^^^^ referring to upper management here

Edited by - djbishop on 06/06/2010 21:09:27
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