Stair-steps wreak havoc
Stair-step incentives, which pay dealers escalating bonuses as various sales targets are hit, wreak havoc in local retail markets and disrupt dealership business models.
The accelerated use of stair-step programs by some automakers that have lost market share is worrisome because it suggests intrinsic weaknesses in product programs and a lack of legitimate, rational marketing efforts.
Some smaller dealerships like stair-steps, which allow them to compete with bigger stores. But stair-steps are a marketing vice from which the industry must recover.