November 2008 - Feature
Upselling P&A in the F&I Office
Parts and accessory sales might seem like a sales thing, but there's a way for F&I professionals to get in on the act as well. F&I expert discusses how and why it can help keep your customers in a buying mood.
By Kevin Burke
Regardless of which one you choose, both programs provide a second source of F&I income for the F&I professional. That’s because a sale of either program means you’ve effectively pre-sold those parts and accessories. As for compensation for the sale of either program, all your dealer principal needs to do is employ the same formula used for the sale of a pre-paid maintenance program.
Of course, as a F&I professional you should always inform the customer of the importance of the protection products you offer. Ultimately, however, it is the customer who chooses to buy a $1,000 worth of pipes and a $500 leather jacket instead of GAP and a service contract. You can do your best to advise the customer, but you cannot force the customer to accept the protections. However, there is no reason why you should not take full advantage of the opportunity to increase your income.
One thing you need to be mindful of is your agreements with your lenders. Aside from knowing whether a lender will even fund gift cards, you need to know what limits it places on such products. Some lenders frown on this type of transaction because they view it as a cash advance, so discretion is advised.
In today’s economy, every business needs to use every option available to maximize profits. Money left on the table in a motorcycle deal may not seem like a big deal in the short term, but add up those missed opportunities and over time you will see that you could be losing out on tens of thousands of dollars or more.
Kevin Burke is president of K-Reb Consulting, a powersports and automotive consulting and training firm. He can be reached at
kevin.burke@bobit.com.