Not Achieving 5%+ F&I Net Profit Per Unit Sales – Dealer Profit Services Can Help You
— Myril Shaw
WATKINSVILLE, GA, USA, August 15, 2022 /EINPresswire.com/ — We are offering training to maximize F&I Profit.
Any Dealer settling for less than 5% F&I Profit on Unit Sales is doing themselves an expensive disservice.
Achieving this level of profit is actually not difficult. It does require commitment, discipline, consistency, and enforcement.
The starting point for consistently achieving 5%+ F&I Profit on Unit Sales is to make the two guiding principles of F&I success a part of the store culture. These principles are:
1) The Hypocratic Oath of F&I – First, do no harm. Nvere cost a sales in the interest of profit,,,make sure that the unit leaves the store;
2) Aggressive and graceful in retreat – One never makes more than what one asks for the first time. The training and the culture MUST ensure that the initial offer to the customers maximizes Reserve and Protective Product Profit. That said, there has to be a plan and consistent process to walk back this initial offer when necessary without making the customer feel as though they were being taken advantage of.
Once the two guiding principles are entrenched, the path to 5%+ F&I Profit is straightforward when the rules and techniques are taught and enforced. The rules are:
1) Advertise financing very early, very consistently, very loudly, and very often. “Competitive financing available.”
2) 100% of the customers get to the Business Manager/Finance Manager 100% of the time – no exceptions. The Business Manager/Finance Manager should be introduced to the customer at the start of the shopping process – not at the end. Even if a customer says, “I’m paying cash”, they still meet the Business/Finance Manager to “ensure a delightful delivery process.”
3) Every Cash Buyer is offered the opportunity and a reason to convert to Finance immediately after selecting their unit. “If you are paying cash, you must have great credit. Wouldn’t you at least like to see what your options are and maybe save that cash for more fun in your lifestyle?”
4) For Finance Customers, the customer is introduced to the process within 5 minutes of completing their Credit Application.
5) All Finance Customers are offered a complete Protective Product package 100% of the time.
6) Finance Customers are presented with payment and term and NEVER price or interest rate unless/until they specifically ask.
With these six steps, cash buyers should be averaging 2% – 3% F&I profit on the purchase price. Finance customers should be averaging 9%+ F&I Profit on the amount financed. Together, these will yield well above 5% F&I Profit on Unit Sales.
It’s not hard – it just takes discipline. Start today.
For questions about the process/training or if for help in seeing these results, we can help.
Contact us today at firstname.lastname@example.org. We will help!