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Spiff incentives

We're considering offering Spiff incentives on some of our aged inventory. Is there any known short or long term drawbacks to offering Spiffs? - by AZBroker
We're considering offering Spiff incentives on some of our aged inventory. Is there any known short or long term drawbacks to offering Spiffs?
There is always the potential for unethical behavior which can tarnish your companies image if discovered. :( - by Agent Smith
We're considering offering Spiff incentives on some of our aged inventory. Is there any known short or long term drawbacks to offering Spiffs?
What kind of incentive is a "Spiff"? - by Franklin
AZ,

I think Agent Smith has a point. An alternative would be to figure out why you have the aged inventory in the first place, and find ways to fix those issues.

Are the listing agents not promoting the homes effectively? Would staging help? Could you do more advertising to the target market for the homes? Are the prices wrong? Could you work with the agent(s) to encourage the owners to do the things that are necessary to get the homes sold? Should the listings not have been taken, and could you counsel the agents involved? (won't fix the immediate problem, but might make a difference in the future).

Some of the solutions you identify might be cheaper than the Spiff, too.

Hope this helps.

Kathleen - by KSA-Mktg
I think Agent Smith has a point. An alternative would be to figure out why you have the aged inventory in the first place, and find ways to fix those issues.
Thanks Kathleen. Your points are valid.

Every now and again, even when we think we've covered all the bases, we find ourselves with a few properties that just don't move. Often sales people start to form negative opinions and lose their enthusiasm for these homes (aged inventory). I'm wondering if offering a small cash bonus (SPIFF) would help refresh their opinions. What do you think? - by AZBroker
I'm wondering if offering a small cash bonus (SPIFF) would help refresh their opinions. What do you think?
The easy out is to find some way to avoid the dogs. If it's really not possible, the only concern I'd have about a spiff would be if an agent pressured a buyer against the buyer's interest. I know that's a very rare occurrence :) , and if there is no way your firm would suffer from it, then maybe that is the best way.

If it were me, I'd probably try to find some way to avoid a bad situation, cause I'm kinda compulsive about things like this. I might do something hokey like in addition to the sales contract, like require a list of other homes that were shown to the clients. Probably a silly idea, but even if there were no repercussions, I'd still wonder if the dogs were sold fairly.

Not sure this helps any, just some thoughts.

Kathleen - by KSA-Mktg
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