45 Cents Per Hour
The back story: the menu you have created is a two-term affair with 60- and 72-month terms. The interest rate is a reasonable 5% APR for both with 30 days to first payment. The option you are recommending in this case is 72 months and has a $4500 product tally with a zero deductible service contract.
So you’ve presented the menu, made your recommendation to Mrs. Jones and her husband, and she (in a rather terse tone with her hand on her hip) asks you “how much is all that stuff?” You immediately think “here we go again”. No worries at all. Try this…
“The option I’m recommending in your case, Mrs. and Mr. Jones, is $72.47 per month or $4500…now consider this. Your boss wants to give you a raise and she gives you a choice on how you receive it. On one hand, you’ll receive 45 cents per hour (based on 2080 hours worked per year), on which of course, you’ll have to pay tax. On the other hand, anything, and I mean anything at all, that goes wrong with your car regarding all the protection provided here, she’ll pay for. Any of the unexpected ownership expenses
provided for here, she’ll cover. She’ll also provide you with roadside, travel and lodging, and rental car assistance anywhere in the U.S. or Canada. Which would you choose?”
If the answer is yes: “Would you like to stick with the 6 year / 75,000 mile full mechanical, or upgrade to the 7 year / 100,000 mile?”
If the answer is no: “If your boss were only offering 25 cents per hour (based on 2080 hours worked per year) increase to your pay (a mere 2% annual increase for someone making $26,000/year) or she were willing to pay for any of your repairs included in the full mechanical coverage, certainly you would choose the repair coverage?”
The point here is every hundred dollars represented in your offering translates into roughly that many cents per hour (under the above-listed deal parameters / 72 mo.) increase to someone’s pay working a forty-hour week, 52 weeks per year, 2080 hours per year.
Give it a try.
Good luck and good selling!
F&I Performance Coach at Conley Insurance Group