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FINANCE & INSURANCE SELLING AND CLOSING
What to say
How To Handle Customers
That Use The "C" Word

What To Do When You’re Customer Uses The C-Word!

This is about Strategic Selling & Strategic F&I combined. That’s right, sales and F&I in one package. It’s real and people are asking me what it’s about. I just came back from 3 days in a dealership and once again I had a ton of fun because I got to talk to customers, sell and close some deals.  

We had a customer come in and started flapping his lips using the C word. Yeah…that one. And the one that was most uncomfortable to hear about the cancellation was the F&I manager…. What word did you think I was talking about? The C word in F&I is cancellation and it’s prevalent this time of the year because it’s the holiday season. Parents run low on money… gotta buy presents, tons of food and toys. Some of your customers are gonna come in and cancel whatever they can so they can get some money for Christmas. They won’t tell you that’s why though. They’ll tell you they don’t need it…they’re selling their bike. They don’t want to lie but they’ve got to save face. 

Who wants to walk into a dealership and tell everyone….Hey…I’m broke so I’m gonna cancel the products on my side by side! Don’t fall for it. So to take care of this cancellation request we had to get strategic and bust out our F.I.L.M support material to figure out what to do. Yeah….F…I….L…M…F&I Lives Matter. 

When someone wants to cancel an F&I product it means a chargeback to the manager, the dealer and the protection company. Everyone loses…including the customer. Because now they’re not going to have a warranty. And if they’re like everyone else out there…They’re on a budget. And people with budgets don’t budget for broken RZR axles…

Here’s what we did for this case. First the salesperson tried selling the guy a new side by side. They sat down at the desk…looked over some numbers…and after about an hour of this the guy said it was too much money. He couldn’t do it. He owed too much on his trade and would just try selling it on his own. Everyone agreed that was a pretty good idea…until he mentioned the C word.  Cancel the warranty on his side by side…Which always sucks...because  it means you’re giving money back to the customer out of your pocket. 

Fortunately the dealer grabbed me…told me the situation and asked what to do. Now….the strategy….And it’s really easy. I introduced myself the customer, thanked him for coming in, told him we’d get his papers ready for the cancellation and then I used the 1 to 10 close. If you don’t know that close then watch my video on the 1 to 10 close after this because it’s one of my favorites. So…after I asked him to rate the new side by side…he said he’d rate it an 8. I asked what would it take to make it a 10. He said give him more for his trade. I asked him how much he was hoping for. He said..pay it off. That’s an offer right there. I had an offer!  That’s all I wanted…an offer. 

We had already offered him about a grand under his payoff so I said…other than paying your trade off is there any other reason we couldn’t wrap this up right now. He said he’d do it right now. So as soon as I suggested that myself and the manager take another look at his trade I was told the trade was still at his house!!! You can close a lot of deals without seeing a trade( that’s another strategy) but when you’ve got to step up on a trade to close a deal then you’d better get the trade in the store.

I’m going to shorten this story up by letting you know that we ended up selling the guy another side by side that same day but here’s the strategy part. Whenever someone brings up the C word…you can’t get defensive but you’ve got to get strategic. First find out what they’re gonna do with the unit they’re cancelling the products on. Next…assume that whatever comes out of their mouth was just a reactionary excuse to save face and not necessarily the truth. After all who doesn’t want a warranty on their side by side? No one. Who doesn’t want a GAP policy on the motorcycle they’re making payments on? No one. Tire and wheel protection? Same answer.

Back to my strategy. Since I was confident the guy would come right back with his trade, because he wanted a refund or a new unit I had the guy go home and bring his trade back. After he pulled up..we unloaded it, did a real appraisal on it. Put real money on it. Came up a few hundred bucks on his trade value, showed him his new payment and had a deal. Plus he protected his new one too.

That’s what strategy is about. Knowing what strategy to take when somebody wants to cancel on you.  Knowing what to say when someone says NO I don’t want to buy this right now. Have you got strategy’s and how do you get them? You show up to my Strategic Sales Conferences or my Strategic F&I Conferences. Get some strategy’s with some of these little tricks and you’ll become a top performer and make more money. 

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