What is on the Menu?
Why Does Menu Order Matter?
Are selling for Profit or Retention?
Decades ago, the product that was the most profitable was credit life insurance (remember those days?) and that gave way to the late 70’s and 80’s where every deal had a VSC included in it.?
But the order in which you offer your F&I products matters more than you think. If you are offering the most expensive product first every time regardless of the deal you’ve created, you could miss chances for small wins by swinging for the fences too early.
Sometimes coming in with smaller products or a bundle of smaller ancillaries can soften the blow when adding to the deal. But beyond that, there is another consideration when settling your order presentation…
Retention
Switching the Order Can Impact Customer Retention
The most important factor in what products to sell is retention…does the product have a high likelihood of helping bring that customer back to the dealership for the service work in the plan?
Will they come to your service lane for the alternator replacement or the dent removal?
Will your parts department get to help with that replacement key fob?
You want to focus on products that help them come back to you first. That’s where the money is.
Looking at the two most popular products, VSC and GAP, they are often #1 and #2 when offered after the financing is settled.?
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There’s a case to be made, now especially, that GAP in particular can be pushed further down the menu. GAP policies have been steadily increasing in cost over the last 3 years and two big factors are driving this.?
Banks are capping the amount of a GAP policy as a percentage of the overall deal (assuming it’s financed)?
The industry knows that insurance companies are more likely than before to simply total a car rather than pay for it to be fixed.
Another reason to reconsider GAP as the second product presented…there is no retention advantage to it. GAP doesn’t bring your customer back to your dealership as the claim is settled between the customer and the insurer.?
Great Time for a Product Bundle
Offering a solid product bundle right after presenting the VSC makes sense here.?EXOBundle?is being leveraged this way as an immediate compliment to the VSC as protections for the smaller things that can be easily fixed at your dealership for added convenience.
All easy to offer together for a low backend cost.
Preload it to make it an easy sale for customers that see that the little things can add up and cost more than they thought.
Great tips! ??????