Profit opp cracker
September 10th, 2009 by Richard Aucock
PROFIT margins from warranty product sales can now be calculated, thanks to free new tools from MB&G.
The warranty firm have developed the kit of calculators to help dealers gee up staff and get them upselling.
Simple to use, they’re real profit-boosters, says MB&G director Kevin Pearce. ‘In the current economic climate, it’s a tough time for those involved in the motor trade, so these tools offer a way to visualise additional profit potential within a dealership.’
The idea behind it is target-setting. Dealer principals can decide upon ‘ideal’ monthly upsales of, say, service plans, warranties, GAP products and tyre insurance. The benefits of meeting these can then be clearly presented to sales execs.
‘Dealers can set their own goals for warranty sales, based on their own experience and past sales figures, and see instantly how much extra profit would be generated by hitting these sales targets.
‘It could even be incorporated into a bonus structure for dealer staff, which would motivate them to sell the products and help the business grow.’
The intention is to really bring home what a difference just a modest boost in upsales can bring.
‘Sales teams are so focused on hitting their vehicle targets for the month, they can often overlook the additional profit opportunities that can come from adding warranty products to a transaction.’
Pearce illustrates his case with a modest example, of a car dealer selling 50 service plans a month. Result? A £54k revenue boost – and £46,200 extra profit for the car dealer…
Can you afford not to check it out?
Tags: aftersales, insurance, profit
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