13 Jun When One Product is Better Than Many
Dealerships have been some of the hardest hit businesses due to the COVID-19 shutdowns, particularly single rooftop stores. Large auto groups may have been a little better insulated from the slowdown but your independent stores have thinner margins and have to increase profits quicker to avoid lasting harm to the bottom line.
An easy way to increase F&I profits that should not result in too much pushback from customers is to preload protections on each unit as a Line 1 add. Sounds simple, right? It can be if done right.
Your customers are going to be looking for any deal they can get beyond just the price of the vehicle. For those buyers who are going to be particularly resistant to adding any F&I products, preloading one simple protection may be the answer.
When One Product is Better Than Many…
If most of your inventory is coming in at a lower price point, a simple preload for one protection that everyone would agree is a must for any new car. If your buyers object to multiple products as a preload, try one instead…
Windshield protection. Simple, low cost, and easy installation.
Salespeople can be trained to seamlessly lock in this protection with every customer as an inexpensive protection that adds extra peace of mind to the customer who logs a lot of miles.
Price it well and stress to the customer that this level of protection is part of your store’s commitment to helping customers keep their field of vision crystal clear for safety and appearance.
The only objection (that windshield is usually part of comprehensive insurance coverage) can be handled easily by explaining that the application keeps the windshield from having to be replaced and all without a deductible. Most insurance companies may charge some nominal deductible amount for replacement. Your dealer windshield protection covers chips so that replacement is less likely right from the start.
It may not seem like a high-dollar add but if you have 100 cars in inventory and you hold a 90% penetration on this protection at a net profit of even $150 or so, that’s easy profit that doesn’t have to come from F&I.
No, it’s not a sexy product to preload and of course it’s always better to sell as much product as you can but sometimes it’s ok to start with one dealer-branded add to see how your market reacts. You may be surprised.
Want to know how easy it is to add windshield protection to your inventory? Hit us up here to find out about ExoVision.