3 Reasons to Private Label Your F&I Products
When you think of private label branding, it conjures up images of Costco selling products under ‘Kirkland’ labeling or Walmart selling shampoo under the name “Equate’. A large retailer sells the same product under a name they create. It’s the same ingredients but sold at a lower cost.
For a dealership, private label branding won’t involve slapping their name on a bar of soap but rather attaching their established local brand to products that would be sold to buyers, especially in the F&I office. Never thought about that before? Probably because your administrator either doesn’t offer private label branding or they won’t allow it. Their name must appear on every brochure and all paperwork that the F&I department executes.
How Would Private Labeling Help Your Dealership?
If you were working with an administrator (like….truWarranty) that offered private label branding of all F&I products, your dealership would benefit in more ways than one.
Let’s take a look at all the ways leveraging the power of your dealer brand on F&I products would help the bottom line…
- Higher Profit Margin - Your current menu of products has a set cost and you mark it up accordingly. Now think of this...if you added YOUR dealership name to the VSC for example, your customers see that product as YOURS. Not some random company they have never heard of.
Now you are in a position to charge a little more than you would otherwise because your buyer sees this policy as exclusive to your dealership. And by using an administrator with a lower cost, the margin grows higher.
- Better Customer Loyalty - By offering your brand on all policies and protections, your customers easily see your dealership as providing something extra that no other local dealers offer. Your brand is everything and how your customers think of you keeps the doors open.
They will be more likely to recommend you to other shoppers in the market and will appreciate knowing that any VSC or GAP policy is handled by their hometown dealer. That keeps them coming back to your store for their future purchases. It’s the ‘why buy here’ proposition that keeps CSI high and generations of shoppers coming back over and over.
- Helps the Service & Parts Departments - Any marketing ‘guru’ will tell you that when a buyer interacts with a brand long enough, they will branch out to buy other items from them. In the dealership, private label branding the F&I products can help other departments, too.
If your F&I staff are selling a high volume of dealer branded PPM’s, your customers are more likely to bring the car back to your store for service and parts needs. They may not even consciously realize they are doing it but just seeing your dealer name on the paperwork and brochure will make them feel as though they HAVE to come to your service lane for that next oil change. It’s all about creating a sense of trust with the customer, the feeling that everything they may need in the future such as repairs, maintenance, and other unexpected issues will all be handled by their hometown dealer.
truWarranty offers a robust private label program for every F&I product that puts your name front-and-center for your local customers. We take your logo and tagline and create all the marketing materials you need to display in the F&I office and online. Our mission is to help you instill that sense of trust that your dealership is not farming out critical protection support to faceless companies across the country. We want your name to mean more than just a good deal on a car...we want it to mean help when it’s needed and trust that the products they add to their purchase are administered by their hometown dealer.
Reach out to us here at truWarranty and let us walk you through how we can make every product your F&I department offers be a powerful reflection of who you are both to your customers and the community you serve.
One of the most powerful ways to make an immediate impact when building and/or strengthening your dealership brand that you may NOT be doing now? Private labeling your F&I products.
Your dealership brand is who you are to the car shoppers and community at large. They know you, they may have bought many cars from you, they trust that you have good cars at fair prices. And it doesn’t stop with sales...it’s service, parts, and yes, F&I.