The No. 1 enemy of consistent success in the F&I process is the law of entropy. In physics, the law of entropy says that systems tend to move from order to disorder unless energy is applied to maintain or restore order. While this law governs physical systems, it also offers powerful insights into human behavior and even the F&I process. So how does a law about thermodynamics relate to F&I skills? Let’s break it down.

Entropy in the F&I process is the natural tendency toward chaos. In the F&I process, this plays out in several key ways. Customer attention degrades over time. People are bombarded with information constantly, online and once they are in the dealership. A prospect who showed strong interest in the information shared initially will begin to drift—just like energy dissipates—unless you put in consistent effort to re-engage them. The F&I process must consistently engage the customer and provide insight into what a product is, how it will work for that person and what it means to his or her future experience. 

However, F&I professionals can also be the victim of entropy. The skills that brought success earlier will deteriorate without practice. Just as muscles weaken without exercise, your efforts to inform and educate the customer will decline without regular use and refinement. Sharing insight, handling objections, active listening—these skills don’t stay sharp on their own. If you’re not applying and improving them, entropy takes over.

Fighting Entropy with Energy

To combat entropy in the F&I process, you need to apply consistent energy. Here’s how:

1. Practice Relentlessly - Skills that are employed yet rarely practiced become stale and less effective. A slump in results can usually be traced back to a slump in practice. Every professional, whether in sports or in business, must practice staying sharp and ready for the next challenge. A professional baseball player wants to experience a 90 mph fast ball in practice before facing it in a real game. And it is more productive to practice overcoming objections with our peers before we encounter them with customers! 

2. Deepen your understanding and reload yourself with concepts that resonate with customers - Read and research about the parts on a vehicle, computers used in vehicles today, and the cost of replacing them. Customers expect to hear the same things they heard the last time they bought a vehicle. And sadly, many times they do. Be a student of your profession. Spend the time gleaning information and insight not readily available to the general consumer. Share something new and different with your customers about the vehicles they are purchasing.

3. Consistently Adapt - Market conditions, interest rates, inventory levels and buyer expectations evolve. The market and customer perspective can change quickly and without notice. We must be ready to pivot and adjust to those changes. This demands that we routinely read, research and monitor the conditions of our industry and customer challenges. What gained customer buy-in yesterday may not be effective today. It’s through conversations with our customers that we discover their needs and help fill those needs. We must be an active and intentional listener so we can understand their perspectives and challenges effectively. What we do every day protects the family, finances and future of our customers and ourselves.

Entropy Is a Law—Not a Choice

We must consistently add value to the process that we walk through with our customers. We can make their experience and ours valuable if we avoid the law of entropy.

Rick McCormick is national director of training for Reahard & Associates.