A consultative approach transformed the efficiency of a multi rooftop dealership’s F&I department and raised the profits in the long run by over 300%.
Explore how PRO Consulting Team leveraged its expertise to cultivate a competitive work environment by assessing people and processes.
A multi rooftop franchise dealership in the Pacific Northwest aspired to attain above-average PVR profit. The PRO team analyzed its people, processes, and operations. We helped the dealer make an incremental growth in the profit by raising dealership’s efficiency. The importance of the F&I department escalated more as the economic market conditions drastically impacted profits. However, we determined that the F&I department had many advantages to grow revenue relative to other dealership departments. Leveraging our decades of industry experience, we began to transform the culture of the F&I department and thus its effectiveness. We assessed employees’ competence and personality to identify the best fit for the role and provided thorough training to cultivate a high-achieving environment. Additionally, we developed a strategic compensation plan that enhanced motivation and rewarded higher production of product sales. As a result, the PVR profit increased drastically in the long run by over 300%.
- The retail sales volume declined significantly by about 50% due to the economic market conditions, reducing both sales and F&I revenue.
- Prevailing F&I manager mindset at the F&I department displayed low confidence and resisted changes needed to increase F&I profits.
- Market stresses and a negative mindset impacted employees’ performance.
With our years of experience in the automotive industry, we systematically assessed employees’ personalities and potential to place them in the right roles. A mandatory comprehensive training drastically raised efficiency. A strategic compensation plan stimulated a competitive work culture and expanded employees’ commitment to the changes in the F&I department.
The Result of Improving Dealership’s Efficiency:
- Due to the transformation of the dealership’s F&I department efficiency, the dealership exceeded its goal of growing PRV profits.
- A high increase in employees’ motivation raised productivity level, and the profitability of the F&I department doubled in the next year.
Additional Benefits of Raising the Dealership’s Efficiency:
The transformation resulted in creating a positive work culture that benefited both the employees and the dealership in several ways, such as employee retention and increased productivity. Consequently, the F&I department contributed considerably to the dealership’s overall profits and continues to positively affect the auto group’s entire sales culture, especially in uncertain times.