By Myril Shaw, Chief
Operating Officer, Dealer Profit Services
Welcome to Dealer Profit Services best time of 2022! Really!
The RVDA Conference just ended, The Boating Industry Elevate
Summit/Powersport Accelerate Summit/BI Top 100 Gala starts today, MRAA Dealer
Week (potentially the biggest ever) starts in about 3 weeks, the National
Marine Lenders Association is voting on new Board Members having just finished a
great Conference and heading into what promises to be a fantastic workshop in
mid-January. When you are a high value delivering,
high profile, high performance financial service company who also offers a
Comprehensive Compliance Program that offers all manuals, complete training,
and other tools to demonstrate compliance “good faith” as called for by the CFPB
and the FTC (and also addresses the FTC’s latest announcements) – this time of
the year cannot be any better.
Dealer Profit Services offers one financial services product –
profit for dealers. This is not
something that dealers themselves, or other providers could not do – the fact
is, the process delivers the profit.
It is key, before even beginning, that the Finance team understands
the current economic dynamics driving buyer behavior – that is why the NMLA,
the RVDA, and the MRAA are so important.
The process for maximum profit is:
·
The dealers announces
that they offer financing early, often, and loudly
·
The Business
Manager/Finance Manager is introduced (at least virtually) at the start of the
shopping process so that 100% of customers (cash or finance) know from the
outset that they will be seeing this person after they have selected the unit
·
The Business
Manager/Finance Manager does talk to 100% of the customers
o
They try to convert Cash
to Finance
o
They follow the two
fundamental principles of F&I
§
The Hypocratic Oath of
F&I – First, do no harm – never cost a deal
§
Aggressive and Graceful
In Retreat – You never get more than what you ask for the first time –
initially, the maximum reserve and maximum backend profit is requested and then
back down gracefully as required
·
THIS HAPPENS 100% OF THE
TIME
Once this process is
fully implemented, the results should be dynamic and exciting.
Dealer Profit Services
is delivering, and every dealer and other service provider should be able to
deliver the following, at a minimum (and there should a focus on continual
improvement);
·
70%+ Protective Product
Penetration on Finance deals
·
35%+ Protective Product
Penetration on Cash deals
·
8%+ F&I Profit on Amount
Financed on Finance Deals
·
5%+ F&I Profit on Unit
Sales (when 100% turnover is practiced)
This “Wonderful Time Of
The Year” is when Dealer Profit Services really gets to broadcast this.
Then there is Compliance
– especially this year, after the FTC made a lot of noise – becomes even more
important.
Both the CFPB and the
FTC have said that “a good faith compliance effort will be considered in
potential prosecutions.”
Dealer Profit Services
offers a Comprehensive Compliance Program (that does address the FTC
concerns). This program is online,
on-demand, per location and for as many users as needed at a location during
the subscription year. It includes:
·
Complete Compliance
Manuals (on demand)
o
Red Flags
o
Disposal
o
OFAC
o
Safeguards
o
USA Patriot Act
·
3 hours of video
training
·
Training completion exam
to be completed, signed, dated, and stored with Compliance documents
·
Compliance Inspection
forms on demand to be completed, signed, and stored with Compliance documents
·
More…
Welcome to the best time
of year.
Any
questions? Contact us today at info@dealerprofit.com. We will help!
About Dealer Profit Services
As
a premier F&I Services Provider, Trainer, Consultant, and Comprehensive
Compliance Program supplier, Dealer Profit Services, a member of the Brunswick
family, is about improving a dealer’s F&I profit and then providing the
tools to ensure that profit is protected. As a Service Provider, Dealer
Profit Services provides complete F&I services and delivers industry-leading
F&I Profit Results. As Trainers and Consultants, we help dealers
improve their in-house F&I departments. Through the Comprehensive
Compliance Program, Dealer Profit Services provides an online, on-demand,
Compliance Program with documents, training, and tools to make F&I
Compliance a process that helps protect the dealer against potential risks from
compliance issues. Learn how to use Dealer Profit
Services F&I Delivery Services – Click here. Get your Comprehensive
Compliance Program here - just click. Learn more by visiting dealerprofit.com, email info@dealerprofit.com, or call (470)
326-0966.
