Pre-Loading Hard Adds a Win-Win for Dealerships, Customers

SCL Now Offering Paint, Fabric, Leather Protection Kits in Bulk Packaging

There’s no disputing the value of hard-adds for dealerships. From extended warranties and service agreements, to paint, fabric and leather protection, providing extra value to customers can increase profit and instill much-needed loyalty. They also offer a more level playing field with today’s educated buyers, who often come into showrooms armed with competitor pricing and online values that chip away at profits.

But what happens when the added values lead to greater liability for dealerships and the potential loss of profit you worked so hard to gain?

Petra Shield ProKits offer robust protection for new vehicles, including 3-year and 10-year warranties on paint, leather, carpet and upholstery.

The benefits of that protection to the customer and as a hard-add for the dealers are evident, especially from a Finance & Insurance product perspective. But when a customer has to turn around and bring the vehicle they just spent hours securing back in the following day to get that protection applied, liability for the dealer goes up while potential customer satisfaction goes down.

“The last thing customers want to do is turn around and bring their new car back into the dealership, get a rental from the dealership and leave it for hours while that protection is applied,” said SCL General Manager Travis Becktel. “We believe wholeheartedly in the product – we’re just working to find a better solution when it comes to increasing penetration on that F&I product for dealerships and decreasing any associated liability.”

Bulk Purchasing and Revising the Process

Formerly, Petra Shield ProKits were only sold in individual units that dealers applied to vehicles after getting customer buy-in during the financing process. Now, as a solution to removing the hassle of that extra step, SCL is proposing that dealers buy that protection in bulk and add it to every car in their inventory before they are purchased.

“Applying these kits to every car during UDI & PDI has a couple of added benefits,” said SCL Automotive Specialist Don Parker. “One, you’re dealing with a lower per unit cost from the dealer perspective if that product is purchased in bulk. And two, you’re removing the liability for dealers related to that customer buying that protection, then driving off the lot without it applied, issuing rental cars, and of course, time on the back end.”

Penetration for paint, fabric and leather protection should easily be at 80 percent, Parker said. And with SCL, dealers will only pay for the units sold during the F&I process.

“It’s truly a win-win for dealers,” Becktel said. “They get a lower per unit cost, they reduce their liability due to up-front application on vehicles, and their customers don’t have to deal with any inconveniences when it comes to returning to the store right after purchasing.”

The Details on Bulk Purchasing for Paint, Fabric and Leather Protection

In addition to the actual leather, carpet and upholstery protection product, Petra Shield ProKits including 1 year of roadside and road hazard assistance; a 3-year or 10-year paint, leather, carpet and upholstery warranty; optional 3-year unlimited glass chip repair warranty; and an option for a 3-year theft warranty.

Instead of individual containers for the paint, fabric and leather protection, bulk purchases will include gallon-sized containers of protectant with direction on the amount of product each vehicle demands.

“In addition to the financial gain up front dealerships stand to increase with this product, I think it’s important to understand that the warranty included with these kits ties customers back to your dealership,” Parker said. “And brand loyalty, that’s something you truly cannot put a price on.”

Contact an SCL Consultant today

In a wide range of automotive, industrial and commercial sectors, SCL remains steadfast on its commitment to product and industry knowledge, performance satisfaction and superior logistics. We protect and optimize the machines that keep our country moving. For more information on how we help automotive partners with services including bulk purchasing or managing inventory, contact an SCL expert today.

 

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