Why aren’t my F&I product penetrations higher?
In F&I Profit Leaks and Solutions (Part 2), The College of Automotive Management reviewed 3 common reasons why F&I products aren’t sold when they should be.
In Part 2 of F&I Profit Leaks and Solutions, we continue to examine the most common causes of F&I profit leaks and how they can be avoided.
Profit Leak #7: Lack of Credibility
SOLUTION: Explain what is Not Covered – Full Disclosure
In many cases, managers don’t explain what is not covered, and therefore lose credibility. Customers know there are no free rides and that products generally don’t cover everything. But that doesn’t mean that they’re not valuable or desired by customers. When F&I Managers fully disclose what is covered and what is not covered, they gain credibility, they improve their relationship with the customer, and they increase the customer’s trust in everything else they have to say.
The benefit of being forthright and honest about coverage and cancellation options is more product sales.
We provide training solutions and role-plays to help F&I Managers understand how they benefit when they offer complete and accurate product explanations and increase their income while eliminating needless cancellations after the sale.
Profit Leak #8: Presenting Price with Benefits
SOLUTION: F&I Process that Presents Benefits before Pricing
There are F&I Managers all over the country that present the price before the benefits of the product or at the same time on a “menu.” This creates senseless objections that can be very difficult to overcome. In effect, they are muddying the waters and making it difficult for customers to make an informed and intelligent decision using flawed processes and bad procedures. We provide a proprietary F&I Sales Process solution to help ensure price has not become an issue until the benefits of each product have been fully developed and understood by the customer.
Profit Leak #9: One Size Fits all Presentations
SOLUTION: Customize F&I Presentations
In many cases, F&I Managers don’t have all the information they require to customize their presentations and recommend products to satisfy each customer’s specific needs. There’s not much time for F&I to gather all of the information that could help them sell more products.
We provide a number of solutions to help F&I Managers get the information they need to make targeted recommendations that resonate with each individual customer based on their lifestyle, driving habits, and purchasing cycle.
Profit Leak #10: Inappropriate Product Prices
SOLUTION: Choose Prices Resulting in 50%+ Penetration
Spend your day getting more “yeses.” Why not choose pricing that allows for 50% or higher penetration to all customers – including cash customers?
Once the value of each product is fully developed, there’s a price that most customers would agree with, and if one product is priced too high in a package of F&I products, a customer might not buy any products at all.
We provide dealers with the training and suggested strategies for arriving at maximum product prices while maintaining 50% or higher penetration levels to all customers, including customers who pay cash or finance short-term leases.
Reach Your Career Goals with The College of Automotive Management
CAM employer partners prefer CAM grads.
The College of Automotive Management will arm you with the tools and skillset to increase your production penetration, regardless of the education of your customers and regardless of how they pay for their vehicle.
Call us at 888-857-4411 to learn more and to speak with the College about your career goals. We look forward to hearing from you!