The Trouble With Spiffs
"Spiffs need to be used in a constructive and productive way," Rogers said, noting that spiff offers from IT vendors can misdirect a solution provider's sales force. She related one experience where sales representatives sold printers below cost in order to earn the manufacturer's spiffs.
* Avoid spiffs that can lead to products being sold below minimum prices and margins.
* Manager approval should be required for participation in spiffs to ensure they are consistent with company objectives.
* Reserve the right to reset spiffs distribution.