Every dollar counts towards the bottom line, we get that. But it is easier said than done as not all customers are presented extended warranties, service contracts, or any other protection packages your dealership offers to the customer. As for the excuses, they can be anything from "not believing in the product," to simply not presenting the product! What is worse, the F&I manager might not know the ins and outs of what is offered, which is a big concern. Here are some of the top things to consider in ensuring that your F&I team presents all customers the additonal products.
Do Not Assume the Customer Does Not Want An Extended Warranty. Ask for the Sale.
Sounds simple. But the truth is that you cannot purchase something you do not know of, no? So we have to ask ourselves the hard questions: why aren't we offering the products to the customer? Is it a time issue? Is the deal already completed? Did the customer already agree to a monthly payment? All are good questions, and sure the customer might have previously agreed to the payment. But that does not then mean that s/he is not open to a warranty. Not to mention, it also has a lot to do with how the products are presented to the customer when they are in the finance office.
One of the biggest things to consider is the purchasing of a vehicle is often the second most expensive item a customer will purchase. And it is no secret that many people want to protect what they just purchased. But if you go into the signing of the deal assuming that s/he does not want and or need the products, sure they will not purchase them. However, if you break it down and offer something to the effect of "for less than 17 dollars a month you can have the peace of mind that your brand new vehicle will now be covered for up to 100k miles or 6 years. It is an inexpensive way to ensure that you're on the road for years to come." This is not to say that it will work every time, we get that. But we cannot sell what we do not offer, either.
Do You Know What the Value or Benefits the Products Offer?
It is not easy to sell a product or service that you are unaware of! One of the best ways to ensure that you know of the product is to have a cheat sheet. One that highlights all of the advantages/selling points of the product. In addition to the qualifications; for example, more often than not, pre-owned vehicles will have stipulations as to what qualifies for an extended warranty. As for the OEM warranty, it is essential that you understand what the OEM has to offer to the customer. Namely, there is nothing worse than mistakingly telling the customer that they have a "bumper to bumper" warranty when they do not. The OEM does not cover all items necessarily on the vehicle. All the more reason to sell an extended warranty or a warranty that is comprehensive so the customer does not have a large unexpected bill!
Provide POP Marketing, Videos, Or Any Other Collateral that Sells the Products!
One of the best ways to introduce all of the products and services your dealership has to offer is while they are waiting to sign in F&I. This way not only is the customer staying engaged while they wait, but they are also aware of the products and services. Making it that much easier to sell the customer when they are sitting with you. One of the best examples of this is a video on your dealer's protection package with regards to key replacements. More often than not, people do not realize the cost of purchasing a lost key! It is not cheap, but with the protection package - if this is something you offer - it could potentially save them hundreds of dollars! The point is, try and find ways to relate to the customer when selling all of the advantages and benefits of the products.
The Bottom Line: selling a healthy amount of warranties, service packages, and or protection packages can add a healthy amount of revenue to the bottom line. But this is not possible if you are not presenting any of these options to the customer at the time of purchase. More importantly, you have to ask yourself why you are not offering these products? If it is a knowledge concern, take a minute to learn about the products. Better yet, as mentioned above, create a cheat sheet of the selling points. In doing so, not only will it increase your personal income, it is mutually beneficial for both the dealership and the customer!
How do you present the extended warranties, service contracts, or protection packages?