Benefits Before Buck$
Many dealers ask me if I advocate menu selling. My response is: I advocate, promote and preach value-added presentation of all the products. Then, I bring out the menu, and use it as a tool to negotiate the protection plan that best fits the customer’s needs and budget.
There is a huge difference between bringing out a menu (in any form) and completing a proper interview. Menus require reading the categories and asking the customer to choose options. Proper interviews establish customer needs and present the products and services as solutions – then talk money. Negotiate the benefits.
Some customers can only afford a five-year service agreement, yet so many managers just talk about a seven-year service agreement. When only one term is discussed, the question becomes a closed-end question. The issue is reduced to a yes or no decision. When given this choice, most of the time the customer opts for no coverage.
A better avenue is to create value and provide alternatives. A choice between options will yield something. A choice with no options will yield nothing.
Rather than reducing the price of the products, establish a standard product price and provide alternative terms with a variety of costs. Choices – customers love them!
Menus should have the retail prices listed, in addition to all the disclosures required by Regulation Z/Truth in Lending Act (TILA). The customer seldom gets beyond the dollar figure when prices are discussed first. Prices without benefits usually equate to no sale, no profits, and unhappy customers.
Value is the solutions to the customers’ needs. You may be wondering what determines value. First, identify the customers’ needs; then present the solution. This is followed by the required investment for the desired solution.
Customers do not spend money to save money. They spend money to protect what they already have. They spend money for convenience. They spend money to ensure ease of ownership in the future. They spend money to provide them with peace of mind during the period of ownership. They spend money to satisfy their needs. The greater the need, the more willing customers are to accept the monthly payment.
Dealers often ask me how my F&I team can improve sales of ancillary products? The answer is: Presenters need to learn how to complete a valued-added package presentation, independent of a menu. They need to present the benefits of the products before they discuss bucks. They also must have faith in the products and services they are representing.
The first step in developing a package presentation is writing out the presentation word for word. Ask her why she is using those particular words and why she is asking those particular questions. Every word, every question must have a purpose. The presenter must know what direction the words will take her.
The next step is to have the presenter read the presentation out loud. How does it sound? Practice, drill and rehearse until the presentation is consistently given. When the presenter knows what they are going to say during a presentation, they can focus upon the concerns of the customer. The presentation will not sound “canned” because they will be talking about different benefits. The product will be spoken about in the same order. The benefits will change depending on the customer. When value exceeds the price you have a sale – and a happy customer.
Dealer Marketing, August 2007, P. 49-50