Most everyone has heard of the Pareto Principle, also known as the 80/20 rule. It states that 80% of outputs come from 20% of the inputs or 20% of the efforts lead to 80% of the results.
Sales penetration works the same way. 20% of the customers buying cars contribute 80% of the gross profit generated in your store both in F&I and sales, 20% of the sales people generate 80% of the cars sold, etc.
To explain re-penetration I’ll use the obligatory sports analogy. Our football hero’s aren’t remembered for the many times that they failed to gain yardage or were tackled behind the line of scrimmage. No, they are revered for gaining that extra yard on their way down from a tackle with three guys on theire back. They are remembered for turning a good play into a great play by gaining an extra yard or two. In any given year, the number one golfer in the world and the hundredth ranked golfer are separated by less than one average of stroke per round. F&I managers spend 80% of there time trying close people who aren’t buying or practicing closes and strategies to handle the same customer.
Re-penetration is the idea of spending 80% of your time selling additional products to the 20% of customers that you have already closed on a product. It happens more often that most would be willing to admit. A customer picks a box on the menu after the initial presentation or is up-sold a product and the F&I manager rolls right into print and sign mode. If the customer has seen value in a product and agreed to an increase in their payment, this is the opportune time to offer another product.
The same thing happens out front. A sales person is convinced that the customer will not pay another penny in price or payment and they walk into F&I and the finance managers earns a $3000 back end with a great menu presentation.
I am not telling you to stop grinding or working on closes for the no sayers. I am telling to to develop a re-penetration mentality and get those extra yards and be remembered as a sales hero!


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