Spiff Program

We frequently have a program running to help us reduce old stock. It involves paying an extra “spiff” to the salesperson who sells the old stock item. The COO determines when to run a spiff program and how much that spiff will be.

When the program is in use, all items entered before a particular date will be on spiff (see exceptions below). You can determine the age of the item by the stock ID number, as these are assigned in consecutive order.

Inventory will provide Salespeople and Accounting with a maximum stock ID each month. Any item with this or a lower Stock ID number can be sold at ANY reasonable price. “Reasonable” is defined as at least 5% over adjusted cost (or the highest cost listed in the record) to cover any fees incurred in making the sale. As long as you meet these criteria, the salesperson will be eligible for whatever spiff is in play at the time.

We will pay 8% of the adjusted profit for the spiff. We will add 2% of the adjusted profit if the salesperson is current on reviews per the Additional Commission for Reviews policy. The percentage can be changed at any time by an announcement by the COO.

Exceptions are:

• Hearts on Fire
• Marco Bicego
• Rolex & Rolex Accessories
• Loose Diamonds

Rolex accessories that we would not consider re-ordering may also be spiff-able. Sales must get approval from Inventory (“SPIFF” & signature on the invoice) to be paid full spiff commission on any of these items.

Please use common sense when determining which items to sell at “reasonable” prices below the marked minimum. Common sense includes, but may not be limited to:

• Items that are noticeably tagged/priced incorrectly: If you encounter an item you feel may have such an error, bring it to Inventory immediately for correction.
• Any item that we would need to replace if the stock piece is sold: Coge bands are a great example. They are often used for special ordering, but occasionally, a customer whose finger is the stock size will come in. Before you decide to sell below minimum, consider:
  • Whether or not this is a piece you or your co-workers would want to have in stock to show future customers. If the item had to be sold at a significant discount, Inventory would have no motivation to re-order it.
  • If the piece is beginning to look shopworn and would warrant a further discount to compensate.

Accounting will run the weekly sales report and pay commission on all valid spiff items with the above exceptions. If there is no indication of Inventory approval on exception items, Accounting will assume no spiffs on these items.

SALESPEOPLE, YOUR COMMISSION IS BASED ON THE TOTAL AMOUNT OF PROFIT MADE ON THAT ITEM (minus fees), SO SELL IT FOR AS MUCH AS YOU CAN, BUT GET THESE OLD STOCK ITEMS SOLD.

You can make a substantial commission on these items.

Remember that for any items that are not already designated spiff items, the item must be sold for a 10% profit to be eligible for stats or commission. See PL “Commission Schedule.” We do not designate spiff items on the fly – they must be already established by the previously released stock number by Inventory.