F&I Practitioners Act as the Glue

In full swing, and most F&I practitioners are running with their hair on fire about now. The first quarter is filled with shows, open houses and big advertised sales every weekend. Practitioners have been working bell to bell, dotting their Is, and crossing their Ts to accelerate deal approvals, sign out scheduling and accelerate funding as quickly as possible.

In this swirl of activity, F&I practitioners must sell products to earn themselves, and the company, a living. In addition to trying to meet established goals and penetration percentages, F&I coaches are offering best practices—even though most never worked in the department themselves.

My last article described understanding buyer and generational changes. While working in retail dealership operations, we are in the people business as well as the RV, auto or powersports industries. Our responsibility is to become a student of the business with a degree in people.

F&I practitioners should provide Gen X and Gen Y consumers with all available information, as quickly as possible. To do so, implement a standardized process. The process gives consumers information to put them at ease without using pressure.

One important suggestion is to get an immediate turnover, including a phone close, at the point of sale. Only the F&I practitioner or sales manager should be taking a credit card over the phone to secure a deal. Having a consumer on the phone with their credit card is a perfect opportunity to open a product dialogue.

The problem with the suggestion is many stores leave turnover decisions at the point of sale to the salesperson. Yes, the practice still goes on, even in RV dealerships today. The sales manager must implement a policy requiring 100% turnover at the point of sale to avoid this situation.

An Effective Buyers’ Process

Once F&I practitioners receive the deal folder, they have time to review the documents for appropriate management approval. The F&I practitioner also gathers knowledge about the buyers to assess their ability to secure a loan. During this time, consumers can tour the parts and service area. Consumers can consider additional value offerings before their introduction to F&I.

A parts consultant with thorough RV lifestyle knowledge and actual experience with ownership enhancements should introduce buyers to the F&I practitioner. The parts consultant should suggest products and prearrange packaged parts and accessories deals. The deals can be added to the purchase before loan paperwork is submitted to lenders.

After consumers’ parts and accessory visit ends, F&I practitioners should approach them in their comfort zone, the salespersons’ desk. As practitioners, be prepared to discuss everything from financing to product needs.

Establishing common ground first is usually the best approach to bring the consumers’ defense walls down. Be prepared to answer questions directly. Answering directly is usually the best way to build confidence in the new relationship. If you do not know an answer, assure consumers you will find the answer for them.

Protect Their Investment

As you build a face-to-face relationship, discuss RV maintenance and repair options. Will consumers perform their own repairs, and be exposed to the financial burdens if they do? This question always opens a dialogue for F&I practitioners to discuss a solution. Remember, you are the consultant and the expert providing solutions.

As practitioners, be prepared to discuss available marketing materials during the face-to-face interview. Some practitioners use ballpark figures at the salesperson’s desk, then discuss specifics in the office. Details should encompass exterior/interior protection packages, extended service contracts and other products.

Your presentation should include common repair coverage and expensive repairs or replacements such as refrigerators, air conditioners, toilets and PC boards. Inform buyers that roadside benefits start the day of purchase. The value you are building is locking in today’s rates and costs to prevent future expenses and rising labor rates. The presentation should discuss coverages like a fixed savings account, protecting you from being exposed to changing market rates.

Once you bring the customer to the office to discuss financing and credit, present the products and package pricing on a menu. The menu should be based on a monthly budget. Consumers usually receive the monthly amount better than pricing.

If you think about cell phone, iPad and other technology device costs, I have difficulty getting my head around pricing. Phone apps can cost $1.99 or more, and even a special coffee or latte at the corner store can run between $5 and $25. Explaining to a Gen X or Gen Y consumer that a product package costs $10 or up, by comparison, is not a bad value. Reduce the package from a ridiculous price, then close on the payment.

Closing Over the Phone

Consumers who were in the store Saturday are calling the salesperson to close the deal over the phone Monday or Tuesday. When this happens, F&I practitioners should consider two things: pursuing turnover opportunities and buyers’ age demographic.

Why did the consumers not close Saturday? Maybe they were shopping for another RV, or they wanted to discuss financing options with their bank. Regardless, F&I practitioners should receipt the down payment with the customer’s credit card. Getting a credit card over the phone is a perfect reason to turn the call over to the business office. For compliance reasons, many stores let only F&I practitioners or sales managers take a buyer’s credit card number.

F&I practitioners should actively pursue finance opportunities and product sales over the phone. When you are talking with consumers, keep in mind the generation they represent.

Ask consumers how much time they have because you need to review some items with them. Explaining the process and what to expect removes unknowns and the burden of the unknown. Include in your presentation the ability to immediately email or text a brochure. By doing so, you can ask consumers to open the marketing material and review with them. As far as pricing, tell them you will send a package plan, then email a menu after discussing the value.

Some will say sending a menu is a poor idea. In my travels, consumers complain more about feeling pressured when they decide without a chance to review their options. When you are open and transparent about products, consumers more often are pleased.

In closing, identify your buyer’s generation and lead your presentation as a consultant. Gen X and Gen Y prefer a consultative approach and the chance to solve problems with a button push or phone call.

Be the consumers’ solution provider and build repeat customers. They will be buying more RVs in the future. Have a great selling season.

Greg Artman

National Training Manager Diversified Insurance Management, a Higginbotham company

Greg Artman is the national training manager for Diversified Insurance Management, a Higginbotham company. He spent more than 20 years in the automotive, RV, powersports and marine industries as a finance training and managing representative, of which the last 17 years have been with Diversified Insurance Management. He worked as management in numerous dealerships.