Gaining AfterMarket $ales
Gaining AfterMarket $ales Many RV dealerships have new F&I offices and are experiencing a full range of associated emotions. The scale ranges from total jubilation to cautious optimism. According to a recent survey by A.G. Edwards, the current market is down 16%. Clearly, now is the time for dealerships to maximize every income opportunity.
How many products can an F&I manager sell effectively? Most seasoned sales business managers like to sell intangibles — financing, service agreements, credit insurance, and physical damage insurance. Most of these same managers are also quite comfortable with paint guard and fiber guard. Presentations beyond these familiar products and services generally lack effort. In fact, many experienced F&I personnel will admit they are relieved when the customer says no to presentations that fall outside these managers’ comfort zone. Their lack of enthusiasm becomes a self-fulfilling prophecy and missed sales.
Every time our industry convenes, we hear how customers leave the dealership and head straight for another retailer, ready to purchase add-on items designed to enhance their RV experience. These same one-touch awnings, screen patio rooms, tow-bars and backup cameras are available to your parts store. Why then are your customers going elsewhere to buy them? If your answer is that no one in the dealership is assigned to show these items to customers, consider the bottom-line benefit of an AfterMarket Sales Associate position.
The AfterMarket Sales Associate is a commissioned sales position and serves as an entry-level F&I manager. Operating after the sales commitment and before the F&I process, this staff addition takes the customer away from a fatigued sales consultant and allows the sales business manager to complete data entry, relieving anxiety for everyone while continuing the sales process.
The customer meets with the AfterMarket Sales Associate during the first visit, unless the Associate is needed as a closing person who can obtain signatures on installment contracts. The timing of the presentation allows for items to be added to the unit before delivery, thus saving a trip to your competitor after delivery.
All items the AfterMarket Associate sells should be hard add-on equipment listed in the Kelley Blue Book or NADA Guide, designed to bring value to the unit. Any soft add-on items require cash payment. The AfterMarket position should in no way place the deal in an over-advance status. Lenders tell me they will advance for hard add-on items listed in the Guide when you provide a copy of the repair order showing the equipment and the cost to the customer.
How far can one person move the amount financed? This is always a concern for the people on the front line. My response is always the same. Your customers are already purchasing these items — just not from you! We all limit ourselves due to fear; fear of the customer’s reaction or fear of placing our value system in a customer’s wallet. We need to recognize that no one can take better care of our customers than we can. No one has a greater vested interest in our customers than we have. Who then is better prepared to add these products to a RV than we are?
If your current personnel cannot give an enthusiastic aftermarket product presentation, it may be time to add a step to your sales process. Time to separate tangible and intangible products. Time to add a built-in backstop for your sales business manager. Time to have an AfterMarket Sales Associate in your dealership