Success in any F&I program is all about offering the right products in the right way to the right customer. Building a successful F&I program involves taking the time to understand your customers and your dealership’s internal processes to ensure you are offering the right products to the right customers to maximize revenue.
Here are some common missteps, and how to avoid them:
- Too many choices. When it comes to F&I products, more is not more. Properly selling an F&I product takes time, so having many different plans can inhibit effective sales. Try bundling things as much as possible to avoid this problem. For example, offer tire and wheel protection as an add-on to an appearance package rather than a standalone product.
- Internal competition. Many dealerships offer products that compete with each other rather than complementing each other. Keep your sales simple by presenting the best option for your customer.
- Demographic mistakes. Take time and leverage data to deeply understand your customers, their motivations and their buying habits. This information can predict the products they are most likely to want and be able to afford.
Ideally, your F&I program will make selling products easier and lead to more customer satisfaction. More profit and more return business will follow.
FLADCO has decades of experience helping dealerships tailor F&I programs to their unique needs. We can quickly analyze your current plans and help you dial in your F&I offerings for maximum profit and effectiveness. Contact us to learn more.