May 2008 - Cover Story
Menu Selling
The one tool that's revolutionized the F&I office in the automotive industry is the menu. Now it's time for powersports dealers to reap the benefits. F&I expert shows you how to make the transition.
By Ron Martin
From a compliance
perspective, a handwritten menu can expose a dealer to payment packing. This
happens when F&I managers give themselves
a
cushion on the base payment to make it look like the products don’t cost as
much as they actually do. An electronic menu eliminates this from happening
because the software always determines the exact base payment.
An article that
appeared in F&I Management and Technology magazine for our
counterparts in the automotive niche highlighted a study on the benefits of
using an electronic menu. Increased profit was the primary reason given by
dealers, followed by presentation consistency and compliance.
F&I managers who used an electronic menu also cited other
advantages, such as increased product penetration, reduced customer complaints,
reduced errors and a reduction in the time a customer spends in the F&I
office. That last reason will certainly make the sales department happy.
Staying Ahead of the Curve
Early adaptors in the auto industry reaped the benefits of menu
selling, with some touting increases in profit of $100 per unit sold. Now most
have caught on, with the menu becoming a staple inside the F&I office.
We are seeing the
same thing happen now in powersports F&I. The question is, will you be one
of the early adopters.
“Our profits
definitely went up significantly, because we’re not step selling anymore,” said
Stacy Dancer, who works at PCP Motorsports in
California. “We’re selling packages rather
than products. I think going to a menu made my presentation much better,
because I now have a routine to follow instead of just selling off the top of
my head.”
Ron
Martin is the president of VisionMenu Inc. and The Vision of F&I Inc. He
provides F&I sales and compliance training, as well as electronic menu
solutions to powersports dealers. He can be reached at ron.martin@bobit.com.