Watts Up? Shed Light On Aftermkt Profitability
The past few months have been a challenge for domestic dealerships. Those that typically hold steady at 200 units per month are now happy to roll 100 units. Profits are down while overhead remains constant. Is there light at the end of the shortfall tunnel?
If you know me at all, you know I advocate getting F&I in front of the customer sooner rather than later; walking and talking to build rapport in order to tailor the presentation of F&I products and services to each individual. In spite of my preaching and teaching, I still find F&I managers leaving the customer to wait alone while they type DMV documents, obtain credit reports, enter the deal into dealer track, and verify and insure checks written as a down payment. All of this busy-ness leaves the customer sitting alone in the showroom, thinking about money, checking the time, becoming less and less receptive to what will come next. The end result is lower CSI marks, less productivity in the F&I department, and unhappy customers in the drive without service agreements.
Minutes mean opportunities and you can use them more efficiently both in and out of the dealership financial center. You can turn those ticking minutes between the commitment to purchase and completion of paperwork into money-wise moments for both the dealership and the customer.
Aftermarket amplitude
A vehicle purchase is usually very personal. History shows that when customers buy vehicles a large percentage of them change something on it. They search the marketplace to add items that say, “This vehicle is an extension of me.” More importantly they will pay for it.
Do you have an aftermarket department? How much power does it add to the bottom line? Your aftermarket person should be doing a lot more than simply reviewing the factory warranty. What products do they present? (I do know some dealerships have the aftermarket person pre-sell the service agreement and protective coatings. If this is the case, ask yourself what is left for the F&I manager to present?)
Retrofitting Revenue
Radios were once an add item. So were floor mats. Remember mag wheels and the flames painted on truck fenders? All it took was a customer to want it, a factory to leave it as an upgrade for the retailer, and a retailer to dedicate someone to present the opportunity. How do you wish to pay for the customization? Cash, check, or include in the financing?
Customers today are no different from those yesterday. They want an identity for their vehicles as unique as their own. Their desires present opportunities for the retailer. Are you geared up to meet the new “bling” generation?
Put your aftermarket spotlight on customization. If you have someone in aftermarket that is more skilled at paperwork than presentation you need to power up the amps. Aftermarket is all about selling. Invite your customers to see, touch and imagine the options that can set their vehicles apart from the rest.
When our customers have a desire for flash they will find it. Can they find it at your place? If you want to keep pace in the aftermarket race, you’ll need to light up the showcase that features customizing opportunities.
World of Special Finance, February 2006 Issue, p. 14