By: Myril Shaw – Shaw Consulting US 

Who would have thought that a single process with a customer could serve to both drive profit AND reduce Compliance risk?

The process is 100% Turnover. 100% of the customers see the finance/business manager 100% of the time – no matter what. This applies to both finance and cash buyers.

This process starts early and ends late – and it is critical for multiple reasons. Not only will it help drive profit, it also helps to take one compliance risk off the table.

This process starts early. Almost as soon as the customer and the salesperson have started to talk, the salesperson, before the customer has had time to talk about how they are paying, introduces that fact that, “After we have found the unit that you have fallen in love with, you will be seeing Bob/Betty to go over all the details and to ensure that your delivery experience is as outstanding as your shopping experience.” Now, the stage is set – the Business Manager sees 100% of the customers, 100% of the time.

This is so important on the profit side of the equation – especially for cash buyers.

When the customer reaches the Business Manager, an early part of the conversation will be, “So I see that you are paying cash. That is fantastic. I do need to check though – if you are paying cash, you must have fantastic credit. Wouldn’t you at least like to check and see what your options might be – and maybe save some of that cash to have more fun with?”

Statistically, 80% of “cash” buyers are not paying with liquid cash. They are using home equity, selling stocks/bonds, or have already visited another local lender. Some percentage of the time, cash buyers will convert to finance.

No matter what, the Business Manager now has the opportunity/obligation to present all the relevant protective product options and to obtain the buyer’s signature on the “Optional Protective Product Disclosure” which shows which products have been presented and which have been accepted or declined by the buyer.

Cash buyers do buy protective products – they want warranties, interior/exterior protection, etc. This is the profit enhancement window on a cash buyer.

Moreover, it is this step that leads to the compliance protection aspect of 100% turnover.

One of the FTC’s bug targets in recent months has been “discriminatory pricing.” That have actively been investigating dealers for this practice.

Normally, when one considers discrimination they think about gender or race at the top of the list – and those do clearly matter. However, if cash buyers and finance buyers are not presented with the same options, another class have been created – Cash versus Finance – and it is no less illegal, and no less likely to cause an FTC investigation.

Once the FTC comes is, everything else about compliance is on the table too.

If cash buyers are not demonstrably presented with all of the same options as finance buyers, the cash versus finance discrimination has been created. At the very least, if a cash buyer has a problem an issue that could have been resolved with a finance offered protective product that they were not aware of, they will demand reparation from the dealer. At worst, the FTC investigates. Troubles follow.

100% turnover solves it all. Maximize cash profit, minimize compliance risk.

Start the practice today!!!

Shaw Consulting US – Helping You Maximize Profit and Minimize Risk Every Day 

Shaw Consulting US, LLC can help you achieve F&I excellence and Compliance safety – or at least a demonstrable “good faith effort” in Compliance - no matter where you are in the development and/or maturity of your store or stores F&I success / Compliance Effectiveness models. The Founders have helped lead dealers and Service Providers to achieve the highest levels of “per unit F&I profit” and have significant experience and success in equipping and training dealers in Compliance best practices. 

We train, consult, provide tools and documents, and can help source the best people. We can also assist in building out the best systems for delivering both F&I profit and Compliance best practice. Whatever you need, Shaw Consulting US is here for you.

Visit our website (and see our Blog posts) at https://shawconsultingus.com, contact us at info@shawconsultingus.com, find out about our special Comprehensive Compliance Program at compliancespecial@shawconsultingus.com, or just give us a call at (678) 641-8419.



Whether it is maximizing F&I Profit or minimizing Compliance risk, or both, or a combination Shaw Consulting US, LLC an help you be your best (https://shawconsultingus.com)