How to Stop ‘Good enough’ F&I Practices that kill gross profit


Why do we accept $1,500, $1,800, or $2,100 in F&I profit as ‘good enough’?

We all know the ‘good enough’ mindset leaves profits on the table.

Traditionally the work needed to capture the additional $40-$120 PVR most dealerships forgo has outweighed the profit reward. Thus, ‘Good Enough’ has become a dollar figure per unit sold.

What if we changed the ‘Good Enough’ and dollar goal per unit to a mindset of Maximum profit per deal?

F&I managers with a goal of $1,800 per unit and work a deal that is delivering $2,100 know the deal will keep their average PVR high enough to meet the goal. That’s when the mindset of ‘Good Enough’ really kicks in. The deal is solid, and they move on to the next deal without reviewing all lender decisions for MAXIMUM profit opportunities.

They often focus on deals under their goal PVR to get more revenue and keep their average from being brought down. These lower PVR deals are more challenging, longer sale efforts, and frequently don’t move customers to buy more products.

We all know stubborn, low-profit deals happen, and spending additional time trying to upsell products are usually not that productive.

What if the F&I team took a ‘MAXIMUM’ profit mindset on every deal, including the deals they feel they are crushing it on. In the example above, where the goal is $1,800, and they have a $2,100 deal, what if they didn’t say ‘Good Enough’? If they continued to work the deal looking for maximum profit, they could likely capture another $100 or more to the ‘Good Enough’ deal.

Capturing additional profit on the ‘Good Enough’ deals is how dealers using ProfitIQ see an increase of $40-$120 increase in TOTAL monthly PVR.  That means a dealership that sells 100 units a month is capturing between $4,000-$12,000 a month in additional revenue on the vehicles they are already selling.

‘Good Enough’ is a costly mindset even though it has been an F&I industry standard for a long time.

If you are interested in learning more about ProfitIQ and ready to change the ‘Good Enough mindset for a MAXIMUM profit mindset, please reach out to us at – sales@creditiq.com 

Kent Mihlbauer
Author: Kent Mihlbauer

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