Rewrites and Unwinds Can Wreak Havoc on Your Bottom Line
As the GM or owner of a car dealership, you know all to well that dealing with chargebacks, rewriting contracts and unwinding sales is a HUGE hassle, and is something we all strive to avoid. The upfront time spent with a customer during the sale process – reviewing and signing exhaustive contracts, answering questions, exploring financing options, etc., can take hours. So when a customer returns a vehicle with complaints or a desire to remove certain elements from his or her lease agreement or car purchase, no one is happy and no one wins. The time required to rewrite contracts and unwind sales is a costly, painful and unwanted aspect of selling both used and new vehicles, so as a decision maker, wouldn’t it be nice if you could avoid such situations altogether? If so, the answer to your problems lies partially in streamlining your sales by incorporating more dealer installed hard-add options.
The Downside of Rewriting and Unwinding Contracts
Who knows why customers return to the dealership with a desire to have their contracts rewritten. Their reasoning could be coming from a change in finances, or it could simply be a change in preference, but the first things to go will usually be dealer add-on features such as warranty packages and easily removable bells and whistles such as security and GPS features. SCL Automotive Preventative Maintenance Specialist, David Ponce worked in automotive sales for years and learned first hand the hassles of having to rewrite contracts. Says Ponce, “Rewrites are tough, and unwinds are even worse. Sales reps are penalized and can sometimes see their commission go from $1,000 to $400, which is a significant hit. It becomes a retro-active hassle if they have already been paid their commission, and the finance manager or director is also negatively impacted. From general managers to finance directors to sales reps – no one likes dealing with a rewrite because they chew up both time and money and can negatively impact a dealership’s reputation with angry reviews posted by unhappy customers. It takes a long time to fill out a sales contract, and in the end, that time equates to money.” By incorporating more hard-add dealer installed options into your initial vehicle offerings, you lower the risk of having unsatisfied customers return with a desire to make changes to their contracts. This can save you and your team a lot of time, and ultimately money.
Negative Reviews Crush Your Reputation
Regardless of the type of business, happy customers don’t usually take the time to write positive reviews. When was the last time you did? Unhappy customers, on the other hand, seem to love letting it rip when it comes to venting their grievances online through websites such as Yelp and other social media outlets. For car dealerships, as you know, word of mouth is everything, as are positive CSI ratings. A negative CSI rating can equate to hundreds of thousands of dollars of lost revenue each year, so to avoid that by avoiding contract rewrites and sale unwinds while also upholding your value, image, reputation and brand as a dealership, lean in the direction of har-add dealer installed options such as the the Petra Shield line of products, including the Petra Shield ProKits. The high-quality, non-cancellable, hard-add line of Petra Shield products include:
- Petra’s Paint Protector – A special blend of polymers that bond to a car’s paint finish, sealing and protecting surfaces from fading, oxidation, acid rain and harmful elements.
- Petra’s Leather Conditioner – Restores the original texture and appearance of a vehicle’s leather while offering long-lasting protection against stains and various types of damage.
- Petra’s PetraFlate Nitrogen and Nitrogen Caps – Extend the life of your tires and notably improve your fuel economy. Tires inflated with PetraFlate nitrogen can last up to 50% longer than those inflated with regular air because nitrogen as an inert gas is more stable in its chemical composition in relation to temperature fluctuations and pressurization.
- Petra’s Fab Protect – Provides superior stain protection for your vehicle’s upholstery and fabric through water, oil and stain repellency. Fab Protect makes surfaces easier to clean and maintain, keeping your car interior looking new.
- Petra’s H2O-X™ – Increases the water repellency of a windshield by forming a chemical bond with the windshield glass to increase water repellency, causing water to bond and easily shed off glass for superior visibility. Increases visibility and allows for safer driving in rainy and snowy conditions. It also prevents hard-water marks and stains on glass.
The Bottom Line
By moving your dealer-added options to a more hard-add based portfolio that includes items such as the Petra Shield line of products, you can dramatically cut down on chargebacks, contract rewrites and sale unwinds. Such hard-add items are non-returnable and non-refundable, which streamlines your sales right from the get-go and helps keep your dealership’s monthly and quarterly gross profit in the green.
Contact an SCL Consultant Today
In a wide range of industrial sectors, SCL is committed to being the number one logistics and solutions provider for the products that protect and optimize the machines that keep our country moving. We pride ourselves on remaining at the forefront of industry trends and technological innovations, and as the market continues to evolve, we are committed to providing extensive product and industry knowledge and total performance satisfaction for our customers. For information on how we can assist your fleet in choosing the optimal products at a competitive price, contact an SCL consultant today.