F&I Expres-Station#5-Building Value In Your
It is our responsibility to create value in our products prior to discussing price. The big question is “How do we build value?” Many dealerships represent many different products. When you present products via the step selling method, the customer will most likely take a “mental vacation.” The result? The customer says, “No, thank you.”
Now, let’s review the winning strategy. Create a value added presentation by first grouping all of the products you offer into three categories.
What is Your Process?
Think about your current process. Do you have a two-visit process? This is where the customer selects the vehicle they want to purchase, negotiates with the sales consultant, and then the manager approves the deal structure. The F&I department writes the receipt and purchase order and confirms the delivery date. The installment contract is written prior to the physical delivery. If this is the case, then set up your presentation book to support the process. Have one section for the first visit and a second section for insurance related items to be presented during the second visit prior to typing the installment contract.
Now we have arrived at the delivery day. The customer is on time because you set the appointment on the 7 minutes (i.e., 9:07 a.m., 9:17 a.m., 9:27 a.m., etc.). Remember, orientations for larger vehicles can take hours. Many of you have the customer inspect the vehicle to ensure that the dealership has successfully added the awnings, the generators, or any other promised add-ons. You then take the customer to the F&I department to complete the delivery.
Create a Presentation Book
In the F&I office, begin with mechanical protection, this includes service agreements, tire and rim coverage, and any roadside assistance plan. Follow the mechanical protection with the equity protection which includes GAP, credit life and disability insurance. Both policies do, indeed protect the customer’s equity in case of those unfortunate events.
Create a presentation book that helps the flow. Required items include top loading page protectors and at least two brochures from each product. The goal is to present the products without having to move the book, only the pages. Brochures need to be placed back to back, with one of them upside down until the page is turned; this way, the customer is able to view the contents clearly without the book being constantly turned.
The F&I manager met the customer earlier and established a degree of rapport with him or her. The manager needs to identify on the first visit the customer’s motivations for buying. Each product must be presented as a solution to the customers’ needs, wants, and desires. Keep in mind, a solution without a corresponding need will result in wasted time and effort.
Talk about everything as if it is a suit of clothing: Is it the right fit, design, etc. Present the features in the F-A-B mode; Features – Advantages – Benefits. Remember the Golden Rule: No feature should be mentioned without connecting it to a benefit.
A Feature is a specific item, such as, the policy covers 100 percent of parts and the customer is responsible to pay the labor. An Advantage is what’s in it for the customer. Why do they need the item you presented? For example: “This policy covers 100 percent of the cost of parts, so you will not need to reserve funds for future repairs, which means increased financial security while you are on the road.” This leads us to the benefits, which, in this example is increased financial security for the customer. Think S-P-A-C-E-D:
Security
Peace of Mind
Affordability
Convenience
Ease of ownership
Dependability
I tell my students, if we were to conduct an informal poll of ten people and ask, “Do you want a service agreement?” Seven will say, “No, thank you.” When we do the math and see only a 30 percent closing ratio; 70 percent of customers pay for all of their own repair bills.
When we create value prior to discussing price, the closing ratio is much higher. Some of my students have had a 75 percent or higher ratio, month after month. The secret is to discover the customer’s needs, wants, and desires, then to present the value of the protection from their point of view.
When you ask for the business, ask for all of it. Use a menu to summarize and itemize the investment, which, as we all know, must be done for accounting and disclosure purposes. There’s no time like the present to look at all of the figures.
Our next stop on the F&I Express: Taking care of customer concerns and turning objections into sales. Get ready and Remain on board until we travel to all of the stations!
RV Executive Today, May 2007, P. 44-45.