If you are managing a number of dealerships by state, region or nationally, it might be time to consider a national supplier to offer a product line you do not currently offer your dealers. The benefits extend far beyond those to the supplier and can positively impact your business and dealerships’ F&I departments.
F&I suppliers live and die by effective distribution, so the power is in the hands of providers who offer that distribution to choose companies that best meet their needs and fit their business models.
Simoniz® USA is a national manufacturer of car wash, janitorial, retail and F&I warranty products. Simoniz Division President Mark Trahan says the F&I partnerships his company has established have given Simoniz the opportunity to be in markets with companies that are already well perceived and that have well-developed dealer relationships. In exchange, Simoniz offers a turnkey solution for a provider’s dealer clients that would be difficult for the provider to develop on its own.
“These partnerships allow two strong companies to bring real value to the dealer,” Trahan says. “The value comes in the form of training. Our strategic partnerships allow us to bring multiple ideas to the dealer. In an ailing economy, the best way to help dealers is to provide them with products and training that deliver strong profits and strong CSI.”
When choosing a possible supplier, the relationship should be based on several factors. The supplier should have outstanding credibility and have the interests of your own company in mind. In addition, suppliers must be properly insured, offer realistic coverage, and make training a foundation of their business strategy. “There needs to be a strong strategic and ethical fit for it to work,” Trahan says.
A clear, effective message backed by solid training is especially important to reach dealers who may be so consumed with keeping their business going that they aren’t immediately receptive to new opportunities. Providers need to understand the dealer’s mindset and explain that the purpose of a new product is to help F&I managers get more “yes” responses from customers.
Some advantages of national suppliers include:
“We developed our products and programs from the car buyer up,” Trahan says of Simoniz’s business model. “Knowing what the customer wants to buy versus what we want to sell is what we consider to be the most critical distinction in getting more yes’s from the customer.”
