F&I Rules
With fall comes a focus on education. If your F&I profits are tumbling right along with the leaves, it may be time to review the rules that drive F&I production.
Rule #1: Time means money
There is no good time to leave the store for training, and there is no good time in the store to devote to learning new skills. There is no one-dose vitamin or one-shot solution to instantly increase the profit of F&I. What it takes is the F&I manager getting out of the daily work routine to focus on new skills or reflect on errors of commission or omission when a customer (opportunity) is front and center. Whether the educational venue is on-site or off-site, on-line or off-line, learning can only occur with a real time investment free from distractions and interruptions.
Rule #2: People + Products = Profit
Menus don’t produce profit; the people who use them do. People buy from people and people purchase what they perceive they need. Skillful interviewers discover the needs; the right product mix makes it possible to fulfill them. Keep your products current to meet the demands of the marketplace. Some factory warranties now have longer terms, traditional service agreements are changing, and the opportunity spotlight is shining on prepaid maintenance products. Many dealers have told me that if they sell the factory’s prepaid maintenance they will never see the customer again, due to the long intervals in what the factory plan will cover. If you think the factory plan is not addressing the needs of your customers, come up with an in-house plan that takes care of your customers and your service department.
Rule #3: Value beats price
When value exceeds the price and the products are included in every presentation, customers purchase the plans. What does it take to ensure inclusion? It takes a well-placed faith in the product or service. An F&I producer who believes in the product is able to construct a presentation that conveys the value of solutions to customers’ needs. A consistent initial presentation to every customer and a consistent second effort to focus on value will consistently increase sales without damaging the dealership’s CSI.
F&I is a critical profit center for your dealership. Stay well schooled in the rules that give your F&I producers the tools to convert time, products and value to build the bottom line.
World of Special Finance, October 2006