Contractor "Spiffs" - What Incentives Influence Product Decision? Good, Bad and Ugly

Steve Thompson (Taco) · January 2017

I'm reading with great interest "Curious About Wholesaler Choice" and Wall Influence posts. Both got me thinking about the millions of dollars us manufacturers "give away" annually as promotional spiffs (cash, trinkets & trash etc). It's paid for when you buy our stuff so you should have a say right?

What kind of WIFMs do you folks like? For example:
- Jackets, hats, tools etc (please advise if anything specific comes to mind)
- Points towards prepaid Visa cards
- Coupons to redeem cash or product
- Bakers dozens (by 12 get 13 for example)
- Extended warranties (circs, valves etc from same manufacturer extend warranty)
- Wholesaler counter man spiffs (acknowledges the better counter guys - one of the keys to a good wholesaler in my opinion)
- Nothing - just a good deal so you can put more dough in your pocket
- Point of Purchase rebates (outside of State/Utility incentives)

I'm real interested to here your opinions on this. You are the folks that make the purchase decisions - we (all manufacturers, not just Taco) need to target the precious marketing spiff $$$ to what you want/need and see as added value.

RayWohlfarth · January 2017

Steve I personally do not like spiffs and would prefer buying my own jackets and hats. I would love seeing the money spent on technical support. There is no more lonely spot than being in someone's basement of boiler room with an inoperable unit and waiting for someone from tech support to call you back. Either that or provide better training to the wholesaler so they can help you get the unit operating properly. Just a thought from an old grey haired codger in the autumn of my career.

Ironman · January 2017

My opinion may not be the norm, but I think you'll find a lot of the older guys who have small shops and that have been doing this for a good while feel the same.

'Spiffs"are not gonna convince me to buy a product: I'm looking for quality and customer service at a reasonably competitive price. If a supplier or manufacturer won't stand behind what they've sold me or respond when I need them, then a hat or a $25 gift card ain't gonna make it right!

This is the biggest problem that I see permeating every part of our industry: Millenials want to sell you something with a lot of hype, but then forget about you until they want the next sale. This goes for contractors, suppliers and manufacturers.

Stop with all the "sizzle" and concentrate on "substance". This is not to say the Taco doesn't give good service - they do. But it's all too common with many now days.

Solid_Fuel_Man · January 2017

Product line that is of great to exceptional quality. I agree with the rest that hats/jackets don't do anything for me. As has been said, good training and reading (such as caleffi's idronics) is paramount in our industry.

If you want to keep contractors buying your products:

1. Make a great product, you can also make a lesser grade "homeowner grade" product for a bit less $$$ if you want, but keep the good stuff comming.

2. Stand behind your product if (when) it has flaws.

3. Sometimes it really is not the manufacturer's issue, but when you still step up to the plate to make it right, we ALL notice (and we all notice when that doesn't happen as well).

4. KEEP MAKING IT IN THE USA! We all win when an American manufacturer keeps building stuff here (European manufacturers are euro manufacturers and that's OK too) just don't ever sell out to those TWO countries we all know have cheap labor and even cheaper quality.

5. I'd still be up for a trip to the factory (for two of course!) All expenses paid....

Not all of these are specifically aimed at Taco or any other manufacturer, and many of these things Taco already does and does a great job at! Remember it's not always about the lowest bidder, maybe I'm old fashion, but quality and longevity are what makes me buy a product 95% of the time.

Taylor

GW · January 2017

I like Visa gift cards, Bosch has a promotion once or twice a year. Nothing beats cash (visa).

DanHolohan · January 2017

GREAT question, Steve. Thanks.

JohnNY · January 2017

At the risk of overstating this, I've been saying for a long time now that Weil-McLain's incessant pushing of FREE BOOTS when you buy a boiler is downright insulting.

I'm a professional and I'm technically savvy. When I buy a boiler, I know it's going to live inside the envelope of a building along with real people. The promise of "free boots" is in no way an incentive toward having me buy something as expensive and sophisticated as a fuel-burning, carbon monoxide producing, highly-fallible, mechanical product like a boiler and the fact that a manufacturer thinks boots would influence my decision suggests to me that they think I'm not comparing products in a professional way.

I used to sell Burnham in the residential market by telling people "The only reason the other contractor recommended Weil-McLain is because he gets a free pair of boots with every boiler he buys." People would laugh and I'd get the job, with Burnham.
Worked (practically) every time.

As it turns out, Weil-McLain is actually the better company for a contractor/consultant like me to deal with and so I've begun switching over. But they can keep their annoying Constant Contact campaign and free boots.

You know what I'd really like?
For some manufacturer to treat me to hotel and airfare to one of the big trade shows in Europe or AHR.
Now that's a perk.

JohnNY · January 2017

Actually, I just realized who started this thread. Steve, see above.

psb75 · January 2017

I heartily agree with second poster Ray Wohlfarth. Everything he said. And I don't need F.W.Webb Red Sox tickets and "spiff."

DanHolohan · January 2017

And as Steve said, you folks are paying for every bit of this stuff.

Robert O'Brien · January 2017

In a perfect world, I'd prefer better pricing rather than "spiffs" Is a rebate or baker's dozen really the same as hats or t-shirts? One is attempting to build good will, the other is a quid pro quo

Sailah · January 2017

Send the boots to me!!!

Harvey Ramer · January 2017

I feel like we'd all get more out of it if the dollars were diverted to public campaigns for hydronic heating awareness and advertisements to the public, about the benefits of modern Hydronic heating. The majority of the younger generation don't even realize it's existence. Forced air has become the normal. Might be a good time for hydronics to push back as a brand new technology.

I could care less about the spiffs and I don't like being bothered by rebates.

DanHolohan · January 2017

Harvey, the challenge with that is that the manufacturers will see their singular effort as also helping their competitors. This is an age-old problem in the hydronics industry. Spiffs are supposed to bond the contractor to the one manufacturer giving out the swag. That's why they do it.

This is a terrific thread.

Tinman · January 2017

I'm that small contractor that Ironman describes. But...I don't mind the perks. Those bakery made cookies or muffins that I mentioned in a previous post sometimes are the highlight of my work day. That said, a jacket or a pair of boots are never going to persuade me to buy, install, and service a piece of equipment in my customer's home that I don't believe in. I can't be bought.

hot_rod · January 2017

The give a ways, parties and trips also serve as a thank you from a manufacturer to the customer.

Erin Holohan Haskell · January 2017

Interesting question and great points. Thanks, guys.

Tinman · January 2017

Back in the 90's, I had so many Burnham Carhartt jackets from buying their boilers everyone I knew ended up with one. I thought it was great. I still have one. I believed in Burnham and I saw it as a "thank you" as Hot Rod said, not the other way around.

There are certain brands that could offer me a 2 for 1 deal and I would still say no. I value sleep.

hot_rod · January 2017

Those Vasque boots from Weil Mclain lasted me almost 20 years, they took me on some great adventures.

I have a collection of wines from Wirsbo/ Uponor waiting for a special occasion, they would show up every year whether I bought product or not, an nice gesture.

rick in Alaska · January 2017

I got a Christmas card from one of my suppliers..........
They used to give us some kind of small trinket gift, but not anymore.
Sometimes it doesn't "pay" to be a small contractor at the end of the road.
But, it still would not make a difference for me to buy their product if I didn't like it. But it would make me look harder at it.
Rick

Abracadabra · January 2017

weil mcclain just had a promotion that just ended with free boilers. buy 10 get one free. i was able to score 2 free EG-50

their boiler bucks program... meh.. free jackets and boots.. don't need them

Bob Bona_4 · January 2017

My timing always seems to be off regarding promos. I'd forego any spiff for excellent tech support and at least a token comp for warranty work, just to ease the pain and suffering. Navien pays labor up to a certain amount for the first year. Steve, I'm happy to tell you I cannot recall any warranty issues on Taco products.

JohnNY · January 2017

hot rod said:

I have a collection of wines from Wirsbo/ Uponor waiting for a special occasion, they would show up every year whether I bought product or not, an nice gesture.

You got wine? ****? You know much tubing/manifolds/fittings I buy from them?

hot_rod · January 2017

JohnNY said:

hot rod said:

I have a collection of wines from Wirsbo/ Uponor waiting for a special occasion, they would show up every year whether I bought product or not, an nice gesture.
You got wine? ****? You know much tubing/manifolds/fittings I buy from them?

I think the wine spiff may have ended a few years back, to be honest.

DanHolohan · January 2017

The wine ended a while back. John, it was great!

Bob Bona_4 · January 2017

I think they're still paying Mark Hunt by the foot. Mr Barba dared Mark to get up and sing karaoke one trip out to MN. Bet him 1000 feet of Hepex. John didn't know Mark used to sing in a band. <smirk>

Contractor "Spiffs" - What Incentives Influence Product Decision? Good, Bad and Ugly

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