Increasing Income with the Same Number of Deals
F& I is a prime source of increased revenue during the slow times we are now experiencing. The need for the business center manager to see every customer has never been more critical. As Alexander the Great said to his generals before their last battle,
” Gentlemen, ability without opportunity is of little value.”
In order to increase income, you must first have products and services. Then you must ensure 100% solicitation, 100% of the time, to 100% of your customers — without exception! The core products of the business center (F&I) will be changing. Hard adds come to mind here — items listed in the used guides that lenders will fund.
Loan advances are often restricted to invoice plus 10%. In many states, that equates to the invoice price plus sales tax and license fees. If lenders want to fund on invoice plus hard adds, then it is time to re-evaluate what business center managers talk about.
Today’s customers want lots of options on their vehicles. If they do not purchase these options through a dealership, they will go to an aftermarket product company and purchase them there. Dealers must take the opportunity to capture all the business related to the vehicles they sell.
When the business center manager has two or more opportunities to present products to each customer, rethink the process. Make sure every customer sees the manager at the point of commitment on the vehicle. Use the customer’s first visit with business center personnel to present the customizing package. An example might be the GPS system with an entertainment package. Most folks like remote controls and gadgets of every flavor; they simply do not know what is available through your dealership.
During this first presentation, ask your personnel to focus on a product that should be added to the vehicle before delivery. In addition to the obvious electronics options, they could also present the appearance package (paint guard and fiber guard) and security systems. The business center manager should also conduct a credit interview to secure the financing. Financing always makes it easier to purchase other items.
During the second visit, at the point of delivery, business center personnel should take the time to present core insurance protection plans, service contracts, and credit protection (Credit Life and Disability Protection).
The adage, “Timing is Everything”, applies to the business center. Evaluate how personnel are spending their time now. Do they have the products available? Are they giving everyone the opportunity to upgrade their vehicles and to protect their new investments? Have you secured proper training for your personnel to make these presentations?
Conducting a consistent, ethical sales presentation requires education. Because the business center carries contingent liability for the dealership, full disclosure and complete documentation are not optional. Cutting corners in this area just doesn’t pay. Give your business center a tune-up every year. Things change, and so must we if we are going to stay in the game of business.