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Are Incentives Right for Your Dealership?
To Spiff or Not to Spiff

There is no question that money motivates. Put enough money on a car, service or accessory and you can bet someone will find a way to move it. Manufacturers "spiff" the customer with incentives to buy, so why shouldn't the dealer spiff the salesman and advisors with incentives to sell? Or so the argument goes. The question is, can a spiff in any way harm customer relationships in the long term?

Needs assessment

Both sales and service customers should always be provided a needs assessment prior to a presentation, demonstration, and sales close. Building value is the key to establishing trust in you and your products and services. So what does the salesperson or service advisor usually do right after they're told about a spiff on a particular vehicle, part, or service? The tendency is to move away from a focus on the customer and toward a focus on the spiff.

So now the customer is directed to a vehicle or service he or she may not need or want. This puts the salesperson in the spot of having to create the need which is a more difficult sales approach to master than consultative selling, or what we call "integrity based selling". The customers may find a benefit , though it's likely they will not. So what is the best way to earn a spiff and maintain a positive customer relationship?

Follow the process

Don't deviate from your normal selling process. Ask open questions, listen with the intent to understand, and then match the features and benefits of your "spiff" product or service to the customer�s specific need. Just remember that you can't fit a square peg into a round hole, so avoid trying to force a customer into something not wanted. Sure, you could make a few extra bucks now, but you may never see that customer again.


For more information or should you have any questions please contact: shawn.ryder@autouniversity.com
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