MAXIMIZING PERFORMANCE IN CHALLENGING TIMES

By: Jason Rasti, The LDS Group

As we wrap up January and advance through the first quarter of 2023, a clear view of new challenges is quickly emerging. Rising interest rates and a lingering hangover from the most favorable conditions in the history of the car business lead us to wonder if the party is over.

Rising interest rates affect finance penetrations, rate spread, and product penetrations, which all can result in a lower PRU. We have seen this in F&I performance across our region. Year over year comparisons for January tell us that finance penetration dropped from an average of 78% to 73%. VSC penetration declined from 58% to 55%. PRU is down $190 from $1,995 to $1,805. F&I numbers are decreasing for our industry. Despite 2023’s early obstacles, there are some ways dealers and managers can continue best in class performance.

Establish Performance Standards

Performance standards meetings are a must. F&I managers, sales managers, general managers, dealers, and your LDS territory manager should be present and participating. A thorough review and group discussion should take place to establish one set of performance standards. These are not “goals” but standards that will be attained by the team. Everyone signs off and comes together on a process and plan to make it happen. Each manager is accountable to that process and plays their role in completing them!

Training made easy

We all learned a thing or two during COVID. For us, it was virtual training. Not only did this play a key role during that time, but it continues to be a cornerstone in the LDS training offerings. Each day for 15-20 minutes at 10am LDS presents a positive training message delivered by Cole Miller (our Director of Training) or any one of our 11 territory managers. We are continuing to average over 100 virtual attendees daily as we look to give you an edge on our current economic times!

Performance Driven Pay Plans

If you have not reviewed your F&I managers’ pay plans lately, now is a great time to do so. Are they aligned with your performance standards? Do they motivate your desired behaviors? Do they cultivate teamwork while rewarding top performers? These are just a few questions to ask. LDS territory managers are available for a complete pay plan analysis and review.

While there are many other actions that should be taken to ensure we are maximizing results, starting with these three will certainly get you on the right track. Please contact your LDS Territory Manager or myself for assistance. We would love to help!