How to sell service plans in the service lane
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From F&i Report, Dec. 12, 2012
With top managers' support, proper training and a maximum of two levels of coverage to sell, service writers can significantly boost their dealerships' sales of service contracts, F&I trainer Rick McCormick says.
McCormick, national account development manager for Reahard & Associates Inc., offers these tips.
Do:
• Get management buy-in. Without it service lane sales will be considered as less important than the other things service writers have to do.
• Keep the deal in the service department. The customer, transaction and compensation should stay in the service department. Splitting transactions with the F&I office doesn't work.
• Use F&I managers as trainers. F&I managers should teach service writers how to overcome common customer objections. In return, the F&I managers should receive a payment, say, $25 or more, for every extended-service contract sold in the service drive.
• Say why before what. Service writers should tell customers the benefits of an extended-service contract -- the why -- before pitching the product -- the what.
• Start small. Have every service writer sell one service contract per week.
Don't:
• Send customers to the F&I department. Customers don't like to be moved around.
• Rely too much on technology. Technology makes it easier and faster for busy service writers to process paperwork, but it's no substitute for management commitment and service-writer training.
• Overcomplicate. Present a maximum of two plans. Don't give service writers and customers too many options for extended-service contract coverage.
• Wait to bring it up. Customers should never hear about the service contract when they are ready to leave.
• Take no for an answer, internally. Keep striving for service lane sales at your store even after hearing: "It will never work."
You can reach Jim Henry at autonews@crain.com.
