Streamline, Simplify and Clarify
Kirk Manzo - In Chet Holmes’ bestselling book, “The Ultimate Sales Machine,” he identifies that the reason many organizations struggle is because “management attempts to implement 4,000 different ideas. When all they really need to dominate any market is to identify their core strategies (usually about 12) and repeat them 4,000 times until everyone in the organization has mastered them!”
Success in F&I Doesn’t Have to be Complicated
In Chet Holmes’ bestselling book, “The Ultimate Sales Machine,” he identifies that the reason many organizations struggle is because “management attempts to implement 4,000 different ideas. When all they really need to dominate any market is to identify their core strategies (usually about 12) and repeat them 4,000 times until everyone in the organization has mastered them!”
On the surface, this concept appears overly simplistic, but like most worthwhile endeavors, implementing this strategy requires far more discipline and consistency than most dealerships currently apply.
Each week and each month, there is this search for the next great idea. The seduction to uncover this hidden jewel or secret to success is very compelling. Unfortunately, Aesop’s Fable of the Tortoise and the Hare still holds true. It is the consistency of effort that will win the race.
The evidence to support the streamlining and simplification of the F&I process was well-chronicled in recent studies of the nation’s largest automotive retailers. AutoNation’s Mike Maroone was recently asked about the auto group’s strategy to achieve high performance in the F&I department. He indicated that two areas of focus have favorably impacted F&I results. First is training. Every F&I producer participates in full review sessions six times per year. Folks, we are talking every eight weeks, someone is working with each manager to improve and hone his or her skills.
When was the last time someone video-recorded the menu presentation of each of your managers? Do each of your F&I producers have a written multi-page presentation scripted out to define what every menu presentation will sound like? If not, perhaps they should.
The second area was focusing on five core F&I products—vehicle service contracts, maintenance programs, GAP, tire and wheel, and some form of security product. What does your menu look like? It has been well-documented over the years that consumers respond more favorably to presentations in which an odd number of products are offered (3,5,7,9) in a good, better or best format.
For all those reasons, as well as good time management , five is the recommended maximum number of products you should offer on your menu. Clearly one of the advantages of using an electronic menu template is the flexibility to tailor your selection of which five F&I products to offer each customer. In the end, apply the principle that less is more.
Buyers often respond unfavorably to the length of time associated with purchasing a new vehicle. Anything you can do to streamline and simplify the F&I menu process (limiting the F&I menu to the best five products) will help your cause.
Remember. Streamline, simplify and clarify.
There is another very interesting correlation between high-performing F&I departments and those that struggle—compensation. Every high-performing group knows exactly how their pay plan works. And yes, they also learn how to work their pay plan. Based on the revenue stream that one F&I manager can produce, does it not make sense to compensate accordingly? How many other members of your staff can impact your bottom line so directly? At California’s Magnussen Auto Group, F&I managers are in the top 10 percent of earners in each store.
Design your compensation strategy based on the end game you desire. What would you be willing to pay a producer who achieves $1,000 per vehicle? As Stephen Covey suggests, “Begin with the end in mind.”
Vol. 7, Issue 7
More Dealer Ops

Dealer Debrief: Defection Data & EV Updates
In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.
Read More →
How Defection Data is Bridging the Dealership Conversion Gap
Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.
Read More →
Dealer Debrief: Where are you losing customers?
In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.
Read More →
Dealer Debrief: Improving Your Inventory Management
In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.
Read More →
Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
What Market Timing Mistakes Mean for Your Reinsurance Program
When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
