Ditch The Pitch (You'll Sell More Stuff!)

By Ronald J. Reahard

"Setting an example is not the main means of influencing others; it is the only means."
- Albert Einstein

Today's consumer appreciates having a knowledgeable F&I Professional help them make an informed decision about the options available in connection with their purchase.  They loath listening to a sales pitch.  If we're not genuinely trying to help that person across the desk make good decisions, then the F&I process is adding no value to the customer's purchase experience.  It's adding aggravation.

Regurgitating word tracks and spewing out benefits until the customer either gives up or gets angry is one of the least effective ways of selling F&I products.  If you ditch the pitch, and instead focus on that unique human being on the other side of the desk, you'll sell more stuff!  Today's F&I Professional has to utilize needs-based selling, not greed-based selling.  Let's examine eight ways you can ditch the pitch and improve your product sales... today.

1.  Give 'Em An Out

If a customer has bought a vehicle in the last twenty-five years, they've been in an F&I office.  They expect the same thing will happen in that office that happened the last time… somebody is going to try and sell them some stuff!  Let's not do what they expect!  By telling a customer up front they don't have to buy anything, you eliminate the fear of the decision making process.  People really do want to know what their options are, they just don't want to listen to a sales pitch.

Let's say before you even have a chance to review their options on a menu, the customer says, "Don't even bother, I'm not buying any of that stuff."  Give the customer an out.  "No problem.  These are all options.  You can take all of them, some of them, or none of them.  (They don't have to buy anything!)  Here at ABC Motors, we feel like we have a responsibility to review all the options that are available to you in connection with your purchase, and answer any questions you may have, so you can make the right decision for you and your family.  However, these are strictly options.  You don't have to buy anything.  (Give them an out!)  Would that be okay with you?"  All that sales pressure they thought they were going to get… is gone!  When you reduce sales pressure, you reduce sales resistance.

2.  Discover Their Needs

Every human being is a unique individual.  So are their needs.  Every F&I product presentation must be tailored to that customer's unique needs.  The best way to sell products is to get the customer talking, to enable you to learn the customer's wants, needs, and concerns.

Asking open-ended questions about the customer's job, family, and reasons for purchasing a new vehicle will quickly engage the customer in a dialogue.  More importantly, when the customer is talking, you can discover what they're thinking, how they're feeling, and why they need (or feel they don't need) the products you have to offer.

Selling F&I products is like building a house.  Just as the most important part of a house is its foundation, the most important part of a sale is the needs discovery process.  If we don't discover any customer needs, we have no foundation on which to build the sale of our products.  And you can only learn customer needs when they're talking, not when you're talking.

3.  Know Your Stuff!

If you want to sell more stuff, you first have to know your stuff!  Product knowledge, knowing the benefits of your products, requires continued practice.  It doesn't matter whether you're a professional athlete, actor, or F&I manager, professionals practice… every day.  Spending 20 minutes a day practicing should be a regular part of your daily activities, just like brushing your teeth.

Want to sell more service agreements?  Learn something about a car.  Knowing your stuff requires that you learn what the various covered components in a vehicle are, what they do, what happens when they fail, and how much they cost to fix.  The more you know about a vehicle, the more service contracts you'll sell.

Continuing education is critical to your growth as a professional.  A true professional strives to become better at their craft every day, and embraces every opportunity to improve their skills.  I'm always amazed by F&I managers who find any excuse not to attend a training class, workshop, or F&I Conference & Expo… since they're already running $400 per retail unit.  Professionals actively seek out new ideas and ways to improve their sales techniques.   Amateurs don't need to.  They already know it all.

4.     Make 'Em Thirsty

F&I professionals have to be capable of making customers thirsty for their products.  Thirsty to learn more about that product, thirsty to know the features and benefits of that product, thirsty to know why they need that product, and more importantly, thirsty to buy that product.  That's what selling is.  Making customer's want what you have.  And what you have is knowledge, expertise, and products they need.  Whenever you launch into a features-advantages-benefits presentation of a product that a customer has expressed no interest in, they just want to get out of the F&I office as fast as possible.  Because we're not helping them- we're wasting their time!

Unfortunately, too many F&I managers are still asking those old-school, manipulative "If I could, would you?" questions.  "If I could get you a better rate, would you finance with me?"   If I could get you the 6yr/100,000 mile plan for the same price as the 5yr/75,000 plan, would you want the protection?"  That is not making them thirsty, that's making them wonder why you tried to rip them off instead of offering them that lower rate or lower price in the first place.

5.  Make It Visual

A simple, hand drawn picture on the backside of your F&I menu or on a legal pad to illustrate the factory warranty vs. the VSA coverage, or the importance of GAP insurance, tire & wheel road hazard, or accident health protection is an excellent way to get the customer involved, keep them interested, and help make an intangible product… tangible.
 
We have to help the customer "see" the need and/or benefits of each product by involving the customer in the presentation and making it visual!  To sell vehicle service agreements, you need to have an actual part from a car in your office, and a story to go with it.  Customers have to "see" that these new cars are complex, sophisticated, hi-tech machines, they're made using component parts, and as a result, they're extremely expensive to fix.  Whether it's GAP, credit insurance, or tire and wheel road hazard, visual aids get the customer involved in the presentation, and help make an intangible product tangible.

6.  Involve The Customer

Rather than tell a customer why they need a product, involve the customer in the presentation, so they can figure it out on their own.  Allowing a customer to self-discover the value of a product is much more effective than telling them a bunch of reasons why they need it.  Handing the customer a part, such as an engine control module, a mass airflow sensor, or an antilock brake computer gets them involved in the presentation, and helps make something intangible tangible.  Now they can see the reason they need a service contract- they're holding a defective part in their hand.
   
You want to keep the customer involved as you draw your visual aid by asking them questions.  By using the information they provide as the basis for your illustration, you're allowing them to self-discover the value of your products.  Since every picture is tailored to their unique situation, they can't dispute the information, because they provided it.  A customer is much more likely to buy a product when they can see how it will benefit them specifically.  A simple hand-drawn illustration using the information they provided keeps them involved, and helps them "see" why they need GAP.

7.    Make "Yes" Easy

"Do you have any questions before I continue?"  "No."  Rather than ask questions that result in a "No," ask questions that result in a "Yes."  "What the GAP does is pay the difference between what you owe and what the insurance company pays, plus it even pays your deductible.  Wouldn't it be great if you didn't have to pay your deductible?"  I've never yet had a customer say, "No, I like paying my deductible!"
   
Once you receive positive feedback from a customer, you have earned the right to go for the close.  We want to make it easy for the customer to say yes and difficult to say no.  The best way to do that is ask the customer closing questions that ensure we get a yes, or set up a choice between two options, both of which are win-win for us.

"What day of the month would you like the payment to fall on?"   Whatever day they choose, they're financing with us.  "Which option do you think would work best for you, the preferred or the standard?"  Whichever option they choose, you just sold a package!  "Which coverage do you think would work better for you, the 5 year or the 6 year?"  Whichever one they choose, you just sold a vehicle service contract.

Whenever you ask the customer to buy, it should be a win-win question, so that whichever option they choose, you sell a product.  A closing question that allows the customer to choose from two options, either of which results in the sale of a product, makes it much easier for a customer to say "yes."  Making "Yes" easy for a customer makes selling stuff a lot easier for you!

8.   Feel Their Pain

Whenever you get an objection, the most important step in overcoming that objection is to feel their pain.  In other words, acknowledge the customer's concern and demonstrate empathy.  The customer has to know that you truly understand their concern.  This requires more than telling the customer, "I know what you mean…" or "I understand…"  You have to rephrase the customer's objection to let them know you really do understand, and then demonstrate that you feel their pain.  "I can certainly appreciate your concern, especially since your last payment was only $400.  I wouldn't want a payment I wasn't sure I could afford, either."
 
Before you can overcome any objection, you must first put yourself in the customer's shoes.  Demonstrate that you are seeing the customer's concern from their perspective.  When a customer knows that you understand their situation, and can relate to how they feel, they are much more willing to listen to your recommendation.  Show them that you feel their pain before you attempt to overcome their objection.

Are you ready to increase your income?  Ditch the pitch!  Make sure you give every customer an "out," discover their needs, and know your stuff.  Make them "thirsty" to hear what you have to say, use visual aids, and involve the customer in your presentation.  Make saying "Yes" easy and "No" difficult, and feel their pain before you attempt to overcome their objection, and I guarantee, you'll sell a lot more stuff!

Ron Reahard is President of Reahard & Associates, Inc., an F&I training company providing F&I classes, as well as in-dealership and online training.  Ron conducted the F&I Workshop "F&I in an X & Y World" at the 2008 NADA Convention in San Francisco, and he will be conducting the workshop "Front-End Solutions" at the 2008 F&I Conference & Expo in Las Vegas.  He can be contacted at 866-REAHARD, or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it