Issue link: https://read.dmtmag.com/i/752766
32 • November 28, 2016 • Powersports Business SOLUTIONS www.PowersportsBusiness.com Some days, you just need a little variety — taking a different route to work; getting a new flavor in your coffee. But in the F&I office, variety is never a good thing. The rules and regulations imposed by the FTC demand that power- sports dealers offer the same menu of F&I products to every customer … every time. But there's more to be said for consistency. Sometimes, it can mean the difference between boosting profit- ability and leaving money on the table. How do you ensure consistency with every sale? Consistency can be difficult to achieve. Let's face it, every sale is different: Different customer, different salesperson, different financing requirements and a different F&I person closing the deal. The combinations can seem endless. But there are two areas within the F&I office that can deliver consistency every time. CONSISTENCY ON THE FRONT END While the salesperson creates a "profile" of the customer during the interview pro- cess, the F&I "truth" is not fully revealed until that customer sits down in the office. Beyond federal requirements, it's a prudent business decision to offer each customer the full menu of F&I products. Forming perceptions and pre-conceived notions can translate into leaving money on the table. The excuse of "He didn't look like a prepaid maintenance guy" can equal several profit percentage points. Make sure your menu of F&I products is always current. Have you tweaked your Certified Pre-Owned offering? Has your provider made changes to the GAP rates? You should always know the answers to these questions. Establish a practice of reviewing and updating your F&I menu at least monthly. If you receive new market- ing materials, make sure to throw out old literature to keep them from getting mixed up and using an outdated brochure. Ensure that everyone is up to date on the products provided and their details. In fact, require your provider to offer frequent training on its F&I products. Speaking of training, don't rely on employee interpretation when it comes to understanding the details of potentially complex F&I products. Simply announcing to your team that you have a new product available and handing them a brochure leaves too much to chance. This hands-off approach guarantees inconsistency. How likely do you think team members left to their own devices accurately describe all the nuances of a product? A good training program will take you a long way toward consistency in the F&I office. CONSISTENCY ON THE BACK END Because the F&I office finalizes each deal, this department is the ultimate test of consistency at the end of the sale. Ensure there is a check- list in every jacket that includes at least all of the following: Completed credit application Authorized credit report Purchase order Insurance verification Driver's license verification Red flags Privacy discloser Privacy notice Risk-based pricing disclosure or the credit exception notice Adverse action notice Payoff information Customer down payment Before closing out a deal, ensure that every item has been checked. The F&I office is the connector between all of the power- sports dealership departments. It's F&I's responsibility to meet with every person who touched the customer and double check their items were completed. When your local, state or federal auditor arrives, having complete checklists in every jacket will ease the review process. While consistency may seem boring, fail- ure to implement a proven F&I process can result in lost profits and a compliance mess. Find your variety in the donut box — not the F&I office. PSB Glenice Wilder is the vice president of Powersports for EFG Companies. A 33-year industry veteran, she is responsible for growing and developing EFG's action and powersports market channel. Consistency in F&I is never boring GUEST COLUMN "Forming perceptions and pre-conceived notions can translate into leaving money on the table. The excuse of 'He didn't look like a prepaid maintenance guy' can equal several profit percentage points." GLENICE WILDER