Based on data from 1,700 dealerships in the US who use the Lightspeed DMS platform, powersports closed out 2023 with a glimmer of positivity. While overall revenue was down 0.9 percent, unit sales were up 0.7 percent, signaling the potential for hope in 2024. Regionally, the Northwest, Midwest and South all notched notable revenue gains.
While interest rates and inflation clearly put a damper on sales in 2023, positive economic news in January should prove beneficial. Consumer sentiment is also showing signs of improving as inflation eases and gas prices drop across most of the country. Hiring picked up sharply in January as employers added a booming 353,000 jobs, highlighting a labor market that continues to defy high interest rates and household financial strains. while at the same time incomes of most Americans are growing.
These indicators may paint a rosy picture for 2024. But it’s critical that dealers understand one thing above all else. Selling a powersports unit today is radically different than during the pandemic. Every step in the sales process – from the initial buyer consideration to rolling that unit off the lot – requires a unique set of skills from every team member. Shifting product mixes, evolving consumer demands, and emerging ways to leverage data are all factors dealers need to keep in mind as they empower their teams for success. And F&I training is the key to ensuring team members are firing on all cylinders.
Enhanced F&I Training for Today’s Challenges
Internal EFG data reflects that F&I training in powersports dealerships delivers on average $132,000 in additional F&I revenue per year. With a $2,000 investment per team member, monthly revenue improves $11,000.00, resulting in a 100x return on that initial investment. With this type of result, a dealer principal would be foolish not to make the investment.
In January, EFG launched a new and improved 5-day F&I class, which now includes broader training on reading credit reports and compliance requirements. Additionally, each attendee is tested on their understanding of local and national regulations affecting the retail automotive and powersports industries. Role playing now plays a bigger role in class, starting on day one, and students are also treated to a guest speaker from an F&I software platform company for a demonstration.
With high interest rates, and even higher unit prices, fitting each customer with the right powersports vehicle from a financial standpoint takes skill. Careful analysis of each customer’s credit standing often reveals valuable nuggets that can mean the difference between a successful sale and one that goes bust. EFG’s training helps attendees parse through the details in credit reports, as well as understanding the current credit environment from the lender’s perspective.
Compliance is another critical component impacting the dealerships across the country. Federal, state and local regulations are constantly evolving. Failure to stay current can prove costly from both a financial and a legal perspective. EFG’s training ensures attendees are up to speed on all aspects of compliance, and fully understand the implications.
While learning new skills on paper is important, successfully putting those skills into practice is key. One component is effective communication between departments. Unfortunately, communication silos can impede collaboration and hinder productivity. By breaking down these silos, dealerships can foster innovation, improve decision-making, and boost overall performance. Role playing helps attendees hone communications skills, both within the dealership as well as with customers.
Finally, digital sales and software have become standard throughout the F&I process. EFG’s training delivers the important details needed for attendees to be comfortable and competent with all electronic aspects of F&I.
Our proven team of EFG trainers and compliance experts are here to help you grow needed F&I revenue. We bring years of experience and compliance certification to your team. At EFG Companies, we’re more than an F&I provider, we’re your business partner in the retail powersports industry. Contact us today to learn more about how our team can help you achieve your winning strategy.
