F&I managers have one of the hardest, if not THE hardest, job in today’s dealership. Ask anyone who has ever been in ‘the box’ what the one word is that can describe their job and they will likely say ‘pressure’.
Pressure to maintain a high PRU. Pressure to get every piece of documentation executed flawlessly. Pressure to keep the CSI high so the owner and the OEM stay happy. It’s all pressure, all the time.
F&I managers are compensated well to deal with all of this pressure and are often among the highest paid in the store. Yet with an overstuffed menu of products, it can be a challenge to focus on the few products that yield the highest commission for all of this effort. What if there were a way to lighten that load and help the F&I managers actually make MORE money?
Sounds crazy, right? How can you do that?
What? That makes no sense, you say...but it does. Let’s see how this one simple product strategy can help your F&I managers make more by selling less…
Gives F&I the Gift of Time
If the appearance package (and more) are preloaded as a Line 1 add on the buyer's order, your F&I managers get the rare gift of having more time to focus on the products that will help them make more commission. VSC and GAP historically have a higher margin for profit and that means more commission at a time when your F&I managers could really use it.
Having the time to ask the key questions to help sell those products is invaluable and now that many deals are done virtually, F&I managers can streamline their presentations to zero in on just those products. They get the time they need because they don’t have to roll through a bloated menu and risk losing the attention of the buyer.
We all know the old saying…..time is money. Save time by preloading upfront, F&I makes more money. Boom.
Upsell, Upsell, Upsell…
If your store offers a preloaded appearance protection bundle with basic coverage, F&I is set up quite nicely to upsell the buyers to a longer protection term. Offer the preload at 12/12k as a basic coverage and it easily tees up F&I to make a quick transition (remember...we are saving time here) to the 3/36k or 4/48k coverage. It’s easy since the buyer already understands the importance of the protection they get upfront and with one or two quick questions, F&I staff can offer up longer coverage.
Any F&I manager worth their salt knows the drill...the family with 3 kids buying an SUV that’s being financed over 5 years could ABSOLUTELY use the longer fabric protection. The entrepreneur who is leasing his car wants to make sure the paint and windshield are protected during his 3 year term so he doesn’t get hit for high recon fees at turn-in. See how easy that is?
These are all simple and quick upsell opportunities for F&I to bump up the PRU and get more money in their own pocket.
More Sales, More Money
Dealers who offered preloaded bundles are positioning themselves as the ‘go to’ for local car shoppers. This is a small but powerful add that can enhance the ‘Why Buy Here’ value proposition and help increase sales. It’s almost like offering your own exclusive CPO-like advantage. Well...with more sales, F&I wins again.
If a dealership marketing team rolls out this ‘every car’ exclusive protection the right way, sales will increase and F&I managers will be busier with more chances to increase their own commission even in a tough market. COVID-19 has impacted sales across the board but that doesn’t mean that it’s time to sit back and wait for things to get better.
Now is the time to be aggressive in marketing your dealership and clearly defining for local shoppers what makes YOUR store different. Do that and the sales will increase. No, maybe not to pre-COVID levels but close. F&I managers will have the steady deals they need to help them get through these tough times, too.
F&I Can Keep Calm & Carry On
Ok, so that’s an overused meme but it works here. F&I deals with a tremendous amount of pressure to help carry the profit load at the dealership. If their menu is pared down to 2 or 3 products instead of 9-10, that takes a huge burden of their shoulders. Any F&I manager who has had to quickly race through a huge menu knows how tough it is to close on ANYTHING when they have to sell EVERYTHING.
Preloading ancillaries into a simple and inexpensive bundle upfront gives F&I managers room to breathe and present the products they way they were trained to. Consultative, relaxed, and dialed into the buyers needs. Less stress, more money.
Preloaded Ancillaries, Happy F&I Manager
Making sure every car on the lot has a preloaded bundle offers many benefits but don’t overlook the way it helps your F&I managers make more every month. It may seem counterintuitive at first but when you look at the time savings, the increase in sales/deals, added upsell opportunities, and the reduction in the stress of having to present so much at once, F&I is one of the big winners here.
ExoGloss has built an easy and inexpensive preloaded package, ExoBundle, that can be added remotely to every car on the lot. It brings together everything from PDR to roadside assistance to interior/exterior protection and more. Click here to learn more and feel free to reach out to see how we can help you put more money in the pockets of your F&I managers (and you, too!).