Kelly’s Korner: Improving F&I Production
Q. How do we improve the production of the F&I department?
A. “Ability without opportunity is of little value.” Alexander the Great
First, have you, as a dealer principle, authorized all the industry-recognized standard products available? Second, have you sent your personnel to training lately?
If you think you cannot afford to send F&I personnel out of the dealership for training, consider the potential liability of inaccurate sale documentation. A wrong phrase or misguided answer to a customer’s question could cost a dealership thousands in legal fees and penalties. (Not to mention the missed opportunities for additional income lost chances to build a strong customer base.)
A dealer recently told me, “Our dealership believes in ongoing training because it is less expensive than the cost of ignorance.” Documentation shows that a company reaps a $30 return for every $1 spent to train. From a shear investment standpoint, training makes sense at every level.
The third step to an improved F&I department is a pay plan that rewards productivity and a high level of customer satisfaction.
Products, training, and a pay plan are the keys to improving profitability.