A SPIFF PROGRAM IS A GREAT INCENTIVE TO HELP PROMOTE A WELL ROUNDED PREVENTIVE MAINTENANCE PROGRAM.
What is a spiff? A spiff is a monetary incentive that is paid to a technician and/or service adviser for selling and performing certain services. The spiff, itself, is a nominal amount of money that is added to the cost of a service (commonly to the cost of the product) and paid to a technician and/or service adviser above and beyond their standard pay when that service is sold and performed. This form of compensation has become standard practice in the field of Preventive Maitenance, so we felt the need to address it here on our website and to include it to our own Preventive Maintenance program.
At KNA, we have come up with a simple and innovative approach to handling a spiff program that was designed to meet your needs. Every product in the Preventive Maintenance section of our website has a drop down option that will allow you to add the amount of spiff money you choose to the products that you would like to purchase. The amount of the spiff you choose is then added to the price of the product and calculated at the time of check out...it's that simple. Then, at the end of every month, we will calculate the amount of spiff money that your purchases have accrued and send your shop/department a reimbursement check for that amount. If you choose not to participate in a spiff program, we have that covered too. In the drop down option simply choose "NO SPIFF" and no spiff money will be added to your product. At KNA, we have the strong belief that you, the client, should be in complete control of your Preventive Maintenance program and not the company that supplies it to you.
HOW TO IMPLEMENT A SPIFF PROGRAM: If you already have a spiff program or are new to the process of spiffing, the following steps will help you get your program organized so that there is no interuption in your Preventive Maintenance program.There are many ways to implement a spiff program to generate increased sales, but for simplicity, we will demonstrate the most common method: Direct payment to the service adviser who sells the service and direct payment to the technician who performs the service.
STEP 1) Calculating your spiff program. In the near future, we will have online a program that will assist you in calculating the gross profit, effective labor rate (ELR) and spiff payout for your Preventive Maintenance program...but until then, the simplest method of calculating your spiff program is to add the cost of the spiff you would like to offer to the product(s) that you purchase, and add it to the price of the overall service.
STEP 2) Spiff Tracking Cards. Give a spiff tracking card to every technician and service adviser who is going to participate in the spiff program. Every time your technician and service adviser sells a service that carries a spiff, have them fill in a square on the card with all of the necessary information required. When the card is full, have them turn in the card for payment and give them a new spiff tracking card. Click HERE to see an example of our spiff card.
STEP 3) Spiff Payout. You may choose many ways to pay your technicians and advisers the spiff money they are owed; the way we recommend payment is in the form of a check separate from their payroll check. You may also pay by cash or gift card, but only your accountant can advise which is best for your business.