The job of a Sales Director or manager isn’t only to focus on units sold, but also to focus on missed opportunities which could generate additional revenue for their automotive dealership group. Sales Directors or managers are tasked with ensuring the profit on each vehicle is as high as possible and so need to focus on additional upsells such as F&I to drive performance. As automotive dealerships continue to operate in a volatile market, F&I can be the answer to tighter margin challenges and are a strategic focus for most dealerships across the UK.
In this article, we explore our new F&I Performance report and dashboard. This creation has been featured in our latest John Clark Motor Group case-study and is already proving very popular with other customers since roll out. In this article, we explore some of the frustrations faced by Sales Directors when trying to manage F&I across various dealership sites, and the solutions delivered through using our F&I Report.
Problem: “I can’t see information of how each of our F&I products are performing.”
Module Solution: Our new dashboard details penetration rates, profit per unit (PPU) and total profit for each F&I product (Finance, Paint Protection, Warranty, etc). This information is then available as monthly trends and YoY comparisons, enabling you to track progress over time. We will also show you the information for your entire group, and broken down to individual site level, ensuring you can see the performance of each product at all times.
Result: By seeing each F&I product broken down separately, the Sales Director or Manager is able to identify the highest profit earners. This enables them to understand if staff may need additional training or incentives around other less performing products to deliver better results. By showcasing trends across months and years, you can easily track team improvements overtime. Further to this, tracking trends will enable your team to quantify the value of seasonal dips or declining products.
Problem: “We’re leaving money on the table, but I don’t know where.”
Module Solution: Our newest F&I report has been designed with action in mind. It highlights opportunity units vs actual sales for each product, ensuring your team can identify what’s possible. Further to this, it quantifies profit opportunity gaps and identifies negative PPU, making it easy to identify any potential pricing or process issues.
The following table is an illustrative example as to the missed opportunity commonly found across F&I:
Example Table of F&I
|
Product |
Opportunity Units |
Units Sold |
Penetration % |
PPU (£) |
Actual Profit (£) |
Missed Opportunity Profit (£) |
|
Finance |
150 |
60 |
40% |
800 |
£48,000 |
£72,000 |
|
Paint Protection |
150 |
30 |
20% |
250 |
£7,500 |
£30,000 |
|
GAP |
150 |
0 |
0% |
300 |
£0 |
£45,000 |
|
Smart |
150 |
0 |
0% |
200 |
£0 |
£30,000 |
|
Tyre & Alloy |
150 |
5 |
3.30% |
150 |
£750 |
£21,000 |
|
Warranty |
150 |
2 |
1.30% |
400 |
£800 |
£58,000 |
|
TOTAL |
900 |
97 |
— |
— |
£57,050 |
£236,000 |
As you can see, tracking the penetration rates across each product is vital to ensure opportunity is not being left behind.
Result: This report becomes an actionable list for your sales team. Each vehicle is listed against its F&I opportunity, making it easy for your team to see what has or hasn’t been added to the sale.
The ability to identify negative PPU can put a stop to any issues before the month ends, closing the gap before it’s too late.
The report can also be used for learnings going forward. Tracking missed opportunity is fundamental for automotive dealerships who want to grow profit as it visualises the difference for the sales team clearly. This information can also be used to create leaderboards within teams to encourage healthy competition.
Problem: “Some teams are surpassing targets, others are lagging—but I can’t easily compare them.”
Module Solution: Our report will break down your data per location and per sales executive, making it easier than ever to compare performance. Filters include individual sales executive, location and brand.
Result: Seeing your entire operation in one place means you can learn from your own performance through benchmarking each of your locations. Teams can use this report to create new incentive programmes to help staff engaged on F&I sales. The reports can also be used as a tool for identify what locations or executive may require additional training.
Problem: “How do the finance houses used within our motor group compare?”
Module Solution: The report will list the finance houses used, as well as the number of deals, average income and total financed amounts. It identifies top-performing lenders and ones that are under used.
Result: The Sales Director understands the value and popularity of each finance house. Deals without a finance house are identified quickly for follow up..
Problem: “Why are some deals missing finance or add-ons?”
Module Solutions: Our new F&I dashboard will always flag exceptions in your data. Examples include deals with no finance house assigned, deals with no add-ons not being sold despite being eligible or deals with no financed amount.
Result: The Sales Manager or Director will be able to review this report on a daily basis, enabling them to follow-up with specific salespeople on specific orders with ease. This makes it easier to understand why some deals are missing finance and close off any errors before the sale is finalised.
Our new F&I report enables your team to sell smarter, and helps ensure no opportunities are missed. These actionable insights enable your sales team to identify and close any gaps before the vehicle is invoiced and delivered to the customer. If you’d like to read more about how impactful this new module has been for John Clark Motor Group, read our full case-study here.
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