May 2009 - Cover Story
The 5 Pillars of F&I
When it comes to filling the business manager position, a clerk simply won’t cut it. F&I trainer provides his take on the role of the business manager and breaks down the five pillars of the job.
By Mark Rodgers
The one thing the car
business has on this industry is that it understands the position of the
business manager and appreciates how important that person is to the
dealership. In the powersports business, we’re still learning.
Of the hundreds of F&I workshops we’ve conducted, my
anecdotal research tells me about half of all powersports dealerships have
salespeople who also fill the F&I role; the other half have standalone
business managers. And once a dealership makes the leap to a standalone
business manager, they almost never go back. Why? They do dramatically better
when there is a professional focused on the business.
This department is terribly
important to a dealership. The business office can yield dealers hundreds of
thousands (if not millions) of dollars in profit. You read that right: profit,
not revenue. There are, however, several things dealers need to keep in mind
about this position. First and foremost, clerks don’t work.
In essence, your business manager is responsible for
financing vehicle sales as well as any ancillary products and services. In
addition, they help protect the customers’ families and financing as it relates
to their purchase.
Could we add other items? Yep. Protecting the dealership’s
interests and detailed follow-up items could be added ad nauseam. But the
previously mentioned duties is the core role of the position. With that in
mind, let’s take a look at the skills and abilities that every business manager
needs to be successful.
Selling the Abstract
Instantiation is the act of
making an abstract concept more concrete, and that’s exactly what a F&I
manager does on a daily basis. See, selling a vehicle service contract is
nothing like selling a motorcycle. The former is intangible, which requires a
different kind of sales ability — one that not everyone possesses.
Here are some examples of how instantiation can be achieved
both visually and verbally:
• Drawing
“coverage visuals.”
• Using
a hard copy menu in conjunction with product brochures.
• Showing
hard copy testimonial letters from customers.
• Using
third-party articles supporting your position.
• Using
powerful adjectives such as important coverage and crucial information.
• Providing
real-world examples such as, “A recent customer of ours drove his newly
purchased motorcycle five miles before hitting a pothole that caused a flat.
His tire-and-wheel protection covered all of his out-of-pocket expenses.”
• Using
metaphors such as, “The service contract is the heart and soul of your
protection” or “Given the current unemployment numbers, there has been an
explosion of interest in our debt-protection program.”
• Work
in similes. I know it’s hard to remember when you’re in the middle of your
presentation, but here’s a tip: Using words such as “like” and “as” causes a
natural smile. Look in the mirror and see for yourself.
• Using
analogies, such as “When you have our ‘ultimate’ protection program, you’re as
secure as gold bullion in Fort Knox.”
• Practice
the rule of three, and by that I mean having three levels of saying something.
“A customer was happy he was covered.” You can also use “elated” and
“ecstatic.” More options will lend flexibility and effectiveness to your
communications.