Stair-Step Incentive
A stair-step incentive is a manufacturer bonus program that pays dealerships escalating per-unit bonuses based on sales volume thresholds.
A manufacturer incentive program that pays dealerships escalating bonuses based on sales volume thresholds. For example, a dealer might receive $500 per unit for selling 80 vehicles, but $750 per unit for selling 100 — making those last 20 units worth significantly more. Stair-step pressure can lead to increased desk overrides as managers push to hit thresholds, often approving aggressive pricing on the final units needed to reach the next tier. The economic logic is sound (the bonus on all units more than offsets the per-deal margin loss), but without override tracking, it is impossible to verify whether the discounting was proportional to the incentive at stake.
Category: Finance
Override exposure calculator
How much gross could untracked overrides be costing your store?
Drag the slider to match your average retail units per month. DealerInt customers typically see override leakage drop 30–50% in the first 90 days once every decision requires a reason and shows up on the GM's dashboard.
Est. monthly leakage
$16,800
Est. annual leakage
$201,600
Based on observed override patterns across DealerInt stores. Actual results vary; this is meant to make the invisible cost visible.
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