Issue link: https://read.dmtmag.com/i/360137
FOCUS PSB F&I www.PowersportsBusiness.com Powersports Business • August 11, 2014 • 17 I've spent well more than half of my life in and around the powersports industry, riding, racing, working in dealerships and consulting. I love what I do. I can't imagine doing anything else. This is what has helped me to continue to learn and chase our industry's best practices and continue the search for the magic that creates success. While moderating a Gart Sutton and Associates Best Operators Club meet- ing not long ago, we talked about the many things that can keep a finance depart- ment from performing at 100 percent. What are the most common? Here are a couple of things that most dealerships can improve upon. CREATING OPPORTUNITY FOR FINANCE Lack of opportunity can be looked at in two different ways. Is finance being given the opportunity to build customer rapport before it's time to sell? Also, on a more practical level, has the department been given a deal with enough room within the finance cap to sell what they are expected to sell? Let's look at the more practical matter of the money first. It is true that the sales department's pri- mary duty is to move the metal. The key is to move the metal without shutting the door on finance. This is done in two ways. The first is getting a commitment from the customer on down payment. The most effective way that I see this done is to present the customer with a substantial down payment figure that either "customers commonly put down" or "banks like to see." If the customer says that they can- not put that much down, respond with, "How close could you be?" Asking that question will typically get some down payment rather than no down payment. Now, how about the rapport? All of the top finance managers I know meet the customer on the sales floor as soon as the deal is closed. They found that the most effective time to build rapport is when there is nothing to sell. They go out to the customer at the salesperson's desk, sit and chat for a couple minutes. They bring with them the customer information, so they can verify that they have everything they need in order to do their job. If the customer is planning to pay cash, this also gives finance a chance to talk about what financing might be available for the customer. This is the perfect time to convert the cus- tomer. If the customer is already financing, this is also a good time for finance to ask for more down if need be. Last, they can give the customer a realistic expectation as to how long this part of the process will take, avoiding the inevitable question that will be answered by the salesperson with just a few more minutes. Building rapport and making sure the cus- tomer stays happy going into finance is just a small part of the entire picture, but it has a big effect on the results. SELLING EXPERIENCE, NOT INSURANCE Right thought leads to right action. If finance managers can think of themselves as people who provide a positive experience to custom- ers when something bad happens, then the way they talk will also change. Let me give you a couple of examples. "If you have a mechanical failure, our ser- vice contract will pay for any covered repairs." Vs. "If your bike breaks down, bring it to us, we will fix it, and you won't pay a dime." Or… "If someone steals your bike, our theft cov- erage will give you $5,000 down on your next purchase." Vs. "If your bike is stolen, you will get up to $5,000 toward a new bike." Notice how the examples in each pair make the same point, but the first emphasizes the insurance product. The second emphasizes the customer's positive experience with that prod- uct. The more I hear finance managers talk about the customer and their experience, the more success they have. We can all agree that when a customer buys a bike, what they are really buying is the expe- rience that comes along with motorcycle own- ership. They are buying the ability to go riding with their friends, or the ability to experience Sturgis, or any number of other things they might want to experience. It is the same with what is sold in finance. PSB Steve Dodds II is a moderator, trainer and con- sultant for Gart Sutton and Associates with a focus on sales and finance departments. Con- tact him at info@gartsutton.com. Two proven ways to maximize finance profit GUEST COLUMN industry's best practices and continue the search for the magic that creates success. While moderating a Gart Sutton and Associates Best Operators Club meet- ing not long ago, STEVE DODDS