September 2008 - Feature
8 Ways to Maximize F&I
No matter if your store is categorized as small or mega, your dealership is leaving money on the table if it isn't utilizing an F&I department. F&I expert provides the eight keys to kick-starting your F&I department.
By Ron Martin
6. Find the right training program
An aggressive training program is an essential part of a high performing F&I department. The training should be a combination of classroom, online, reading, or on-the-job education. Each type has a unique function and will compliment each other. Classroom training is a great way to motivate or recharge the batteries. But a person will only retain about 20 percent of what they learn in a classroom environment, so online training or reading can consistently keep what’s learned fresh. And there’s nothing better than seeing someone else show you how to do the job effectively while you’re on the job.
7. Evaluate performance the right way
The right pay plan should be complimented with goal setting and performance evaluation. The goals should be daily, weekly, monthly, quarterly, and yearly. Each product category should be assigned a penetration rate, as well as a dollars-per-finance-deal average and dollars-per-retail-deal average. The actual goal vs. forecast should be monitored daily. If you have multiple finance managers, you can compare their performances and rank their results. The best way to evaluate performance is by using an electronic report that maintains daily statistics. Don’t wait until the end of the month to find out the dealership’s monthly goals aren’t going to be met.
8. Use sales meetings the right way
A dealership’s daily or weekly sales meeting is one of the best opportunities you have to inspire your staff. I often hear salespeople say meetings are just a reason to come in early and are a waste of time. Problem is, most sales meetings are a waste of time.
Why do we need to get together just to tell the sales manager how many sales we have and what customers we are currently working with? A sales manager should already have that information. An effective daily or weekly sales meeting should involve the entire sales department. It should also involve the business manager. Everyone should participate in a conversation centered on improving processes to sell and service customers. Each meeting should allow success and failure stories to be shared, whether it has to do with a sales technique, product knowledge, promotions, or to provide recognition when deserved.
Ron Martin is the president of Vision Menu Inc. and The Vision of F&I Inc. He can be reached at rmartin@bobit.com.