In 1988, the renowned mega automobile dealer, Carl Sewell, penned an influential book titled ‘Customers for Life’. Within its pages, he emphasized 10 vital commandments for cultivating lifelong customers. Of these tenets, Sewell’s third commandment shone brightly, emphasizing, “under-promise, and over-deliver. Customers not only expect you to keep your word but to surpass it.”
Even though the landscape of the franchise automobile business has undergone monumental shifts and changes since 1988, Sewell's golden principle emphasizing impeccable customer service and crafting a distinctive business proposition remains relevant and timeless. In today's context, automobile dealers grapple with an important question: how can we consistently exceed our retail customers' expectations?
Innovating Through Product Packaging in F&I
In the rapidly changing automobile sales arena, top-tier agents have embraced the potential of product packaging, especially within F&I departments. So, what exactly does innovative product packaging entail? It is about bundling complementary products, creating an appealing offer that customers find highly beneficial and difficult to refuse.
Consider this: packaging a vehicle service contract with additional benefits like key replacement or prepaid maintenance. Or, introducing a product bundle combining value shield with GAP, aptly coined a GAP-wrap. Another attractive pairing could be Interior & Exterior products bundled with Paintless Dent Repair.
What makes such packages intriguing for customers? Firstly, these packages have proven efficacy, they work. Secondly, they pivot the sales approach from pushing individual products to selling a holistic 'package.' Let's consider real-world data: Our agency here in Minnesota onboarded an F&I Manager who adopted this packaging method. By bundling the key with the vehicle service contract, he achieved an impressive 71% key penetration and a 63% VSC penetration, translating to an enviable average of $2450 per vehicle retail.
Broadening the Horizon: Product Packaging for Front-End Sales
The power of product packaging isn't confined to F&I; it can be applied to and revolutionize front-end sales as well. As we navigate the post-Covid era, dealers recognize the diminishing front-end grosses, primarily as competitors drop their prices to expedite sales. The remedy? Offering a value proposition unparalleled in the marketplace, thereby introducing lucrative profit streams that previously lay untapped.
Take, for instance, a package combining Red Alert's rear-end collision deterrent, Waypoint GPS, and Value Shield's diminished value protection. Implementing this strategy in numerous stores has yielded remarkable outcomes. By leveraging agent services like those provided by Vanguard Dealer Services, dealers can seamlessly realize these ambitions and embody Sewell's third commandment: consistently exceeding customer expectations.
Embarking on a Profitable Journey
To redefine and amplify your profit landscape, partnering with Vanguard Dealer Services can be transformative. And remember, in an industry characterized by fierce competition and evolving strategies, procrastination can be costly. It's crucial not to let your competitors get the upper hand with innovative ideas you could have implemented first.
Drawing inspiration from an age-old Chinese proverb, “a journey of a thousand miles begins with a single step,” begin your transformative journey with a single, strategic step: prioritize innovative product packaging.
Learn more about strategies to gain customers for life at your dealership by contacting Mark Anthony at manthony@ezvds.com or by visiting his LinkedIn page.
