RoadVantage Founder and CEO, Garret Lacour, joins the 2018 Agent Summit panel on “The Surging Ancillary Market.” Through a healthy exchange of ideas, Garret makes us proud with his valuable insights and market knowledge.
Compliance and Regulations was one of the hottest topics discussing during the Surging Ancillary Market panel at this year’s Agent Summit. The panel was asked “What should an agent and/or dealer look for from product providers to make sure the products they sell are compliant?” The consensus from the panelists was to talk with the provider’s compliance department and find out how they are integrated in their administration. Get copies of your state’s regulations and read the provider’s form to make sure it is compliant. One panelist pointed out that just because your provider shows you a State’s File & Use confirmation does not mean the form is compliant. Ancillary regulations fall under 5 categories: VSC, Limited Warranty, VPP, Motor Club and GAP. Each product must have defensibility within the category in which it falls. Ancillary regulations are fairly new and still developing. The regulations are numerous, not uniform from state to state and require careful navigation. That’s why a compliance department is essential.
BUNDLES ARE THE TREND
In the recent Surging Ancillary Market panel at this year’s Agent Summit, the panel was asked, “Is it more profitable for a dealership and/or agent to sell multiple stand-alone products or a bundled product?” Garret Lacour responded, “The most common argument I hear against bundling is, ‘Why give up four products that produce four profits for one bundle profit?’ The simple answer is that four standalones never penetrate equally, so you’re not actually giving up four profits. And the bundle value proposition can support a higher profit margin. Focus on penetration with bundles.
THE POWER OF SOCIAL MEDIA
In the recent Agent Summit The Surging Ancillary Market panel, the question was asked, “What impact does social media have on dealers that sell F&I products?” Garret Lacour, RoadVantage CEO, answered, “If the customer feels their claim was denied for a technicality or unfair exclusion they can file a complaint in seconds on multiple social sites. Social media can be your friend or worst enemy. Likewise, if they have a great experience then you win with a positive post. Customers are checking Google reviews, Yelp, and other sites for information.”