Case Study: a plumbing supply distributor regains control of SPIF governance with Alexander Group

Alexander Group’s Client regains control of SPIFs that made up 50%+ of rep pay with Alexander Group

The client, a plumbing supply distributor, faced a challenge as vendor-issued SPIFs accounted for over 50% of sales rep pay. These uncontrolled incentives often conflicted with company strategy and created administrative burdens, leading the distributor to seek help from Alexander Group to redesign its sales compensation and SPIF governance.

Alexander Group analyzed the distributor's SPIF programs, identifying their volume and gross profit impact. This allowed the vendor to create a roadmap for simplifying the program and regaining control. The solution enabled the distributor to prioritize changes with minimal risk, map administrative costs, and secure executive buy-in for an initiative that realigned incentives with company goals.