Kelly’s Korner: Spiffing up F&I Sales
Q. Our sales force holds the view that if they do not directly benefit from the sale of F&I products and services they don’t see a need to support the F&I process. What can we do to help the sales staff take a more team-oriented approach?
A. A sales consultant’s attitude toward the F&I process has a direct effect on productivity. Creating synergy between sales and F&I is often a challenge. Although a dealership may have different store locations, special sales events can bring all the sales consultants together. In these circumstances, it is critical for management to recognize that their employees use these occasions to compare store policies, up to and including compensation of every sort. When one location rewards the sale consultant with cash incentives for assisting the F&I process and another location does not, the inconsistency may create discord among sales personnel.
Kelly Enterprises believes that consistency within the ranks is the best policy. With that in mind, here are 3 ways to encourage sales consultants throughout the dealership to participate in the F&I process.
1) Cash Spiffs. If the dealership’s policy is to pay spiffs to sales personnel, make them available to the sales staff at all locations. We recommend “CIF” (Cash In Fist) spiffs, taken from F&I department funds before calculating the F&I manager’s commission. Sales consultants will sign a voucher for the cash they receive from the F&I function during a sales meeting. Tax on the CIF will be taken from the sales representative’s pay.
If you do not want to pay cash spiffs, here is another idea.
2) Create a point system for monthly sales performance. Award one point for high gross; one point for most units rolled; and one point for each F&I product sold, including financing, service agreements, credit insurance, and aftermarket products. The sales consultant with the most points earns the “Salesperson of the Month” award. The reward can be lunch with the dealer, a parking space by the front door or a special dinner for the producer and a guest. The reward could also be a donation to the winner’s favorite charity or the points can be used to purchase items in a gift catalogue.
The third idea can be used in any state except Florida.
3) Create a VIP coupon worth $100 off the sale price of a service agreement. Every time a sales consultant’s efforts aid in the sale of a service agreement, the F&I manager can present the sales consultant with a VIP coupon after the deal is completed. The sales consultant now has a special item to give to a customer. The customer will feel special when the sales consultant says,” You have been such a great customer. I want to give you this special coupon to help you save money on some valuable protection.”
Everybody wins with this idea. The customer receives an incentive to buy an F&I product. The sales consultant receives Kudos from both the customer and the F&I manager. And, best of all, sales and F&I staff reap the rewards of working as a team to maximize sales and increase profits for the entire dealership.
Squeaky Wheel, January 2003