Menu Selling (K.I.S.S.)

It has been at least 10 years since I sat behind a finance desk and called myself a finance manager. Through out those 10 years I've held monthly meetings with my finance staff on what was expected, and what was new. I remember on several occasions discussing the use of a "Menu Selling System", only to be told at the next meeting the several reasons of why it doesn't work. I recall discussions on finding a way to get the 300% rule in place, whether it was using the menu or not, we needed to find a way to get 100% of the product, in front of 100% of the customers, 100% of the time. I sat through several online meetings with a couple of different menu selling companies, trying to derive at a system that works with the Power Sports business.

The Menu Selling companies, chose the dealership I was working at, at the time, because we were a high volume dealership. Not your typical 200 unit a month "high volume" dealer, but at our best, we did over 200 units in one day. Our best month was over 1400 units sold. For a few years we had an 800 unit per month average. There was no one more qualified to try a menu selling program for the Power Sports business then this dealership. However, the biggest reason (excuse) the menu selling did not work was because we were high volume and there was not enough time to double input customers information and figure out different formulas for the customer to choose. That was still no excuse for not getting 100% of the back end products available, in front of the customer. There was a great deal of back end profits lost by not having a system in place.

In my defense, my compensation had no bearing on how successful or unsuccessful back end products were sold. Which was partially my fault for not negotiating and the dealer principals fault for not recognizing the potential. Nonetheless, the finance department was the responsibility of the Sales Managers and the success or failure of the department, rest with us.

Now fast forward a couple years, in a new dealership, instead of managing the F&I department, I am the F&I department and, in getting hired on, I stated I would find a way to make the menu system work. Find a way to get 100% of the products available, to 100% of the customer, 100% of the time. Here's some of the reasons I heard, in previous meetings, on why it wouldn't work:

Customers have exhausted their time and efforts in negotiating the (front end) deal and don't want to hear what is available to them (back end).

Customers are always in a hurry. It doesn't matter if they have no place better to be, once confined into an office to sign paperwork or just the thought that they have to get into an office to sign, puts the customer in "hurry up" mode. They stop listening before you even start.

Customers are far more educated these days, with the Internet, on the spot news articles, word of mouth, and the experience of previous purchases. Customers know what they want and don't want.

So, being faced with customers who had no money, or time, and over (or under) educated about back end products, I needed to come up with a way to get the products in front of the customer regardless. One of my favorite reminders to salesmen who made things too hard on themselves and the dealership, was K.I.S.S. or Keep It Simple Stupid. So I came up with my own "menu" and instead of emphasizing the price or the payment, I put everything available on the menu. I used key words and phrasing and no more then four bullets to emphasize the features. (ex. Warranty = Mechanical Breakdown Coverage...Gap = Total Loss Protection, and bullets like Nationwide Coverage, Unlimited Mileage...Pays Deductible, Pays Deficiency..etc) and I represent this "Menu" as an "Accountability Sheet" which makes me accountable to you, the customer, and my boss (the dealership) that all available protection is being offered at the time of the sale.

So far, I have had a number of customers, who not only listen intently, but open up to the idea that maybe there is more to these back end products then just a "way for dealerships to make more money." There is much more to my "Accountability Sheet" and a simple, yet effective approach to presentation, and I get 100% of products, to 100% of the customers, 100% of the time. That's Keeping It Simple Stupid.

I'm still finding ways to perfect my presentation, and I learn something new with every customer. I would be very interested to hear from other Power Sports dealers on their approach to the "Menu System" do they have one? Does it work? Are the Customers Responsive (Positive)? Are you interested in my "Accountability Sheet"?

SIDE NOTE: This past weekend was the busiest we've had this year. All day, deals were stacked one after the other, using various finance companies, mixed with "in a hurry" cash customers. This sheet was presented with 100% of the deals and the outcome was a 70% close ratio with, not just warranties, but insurance, gap, and Lo Jack as well.

I've worked with, heard of, and experienced my share of "F&I Managers", and most can be categorized in either a "Hard Sale", or a "Soft Sale" approach to back end sales. I would generally categorize my self as a "Soft Sale". This sheet helps step up the soft sale and ensuring that the products are being introduced. From my experience the hard sale approach leads to unhappy customers, more cancellations, less repeat business.

That's "My Take", what's yours?