F&-I took center stage at NADA 2005. F&-I menus were everywhere. Service contract providers had them- so did computer companies. One menu an F&-I director shared with me listed service agreements as the first choice. The remaining three choices did not have a place for a service agreement, and the F&-I director seemed puzzled when he confided that his service agreement production fell to below 30 percent when they implemented the menu in his store. I suggested to him that when a products presence is diminished on a menu, the message sent to the customer is that the product is neither reliable, nor valuable. McDonalds still sells french fries because they ask customers to buy them. They did not remove them from their menu.

Some dealers believe that menus sell F&-I products. My friends, menus do not sell anything. It is the enthusiastic presentation of F&-I products by F&-I representatives with faith in their products that creates the customers desire to buy. The menu is used most effectively as a summary and closing tool.

F&-I issues were clearly on the mind of many dealers at the convention. Ethics, compliance, and proper representation were the themes of many presentations. FTC attorneys were exceedingly helpful in answering questions.

With the legal spotlight still focused on the F&-I department, full disclosures and complete documentation will be on the line in 2005. Dealers must instill a code of ethical conduct and insist upon full compliance from F&-I personnel.

Take full advantage of F&-I training and your state association meetings to dial in to what it takes to become 100 percent compliant with federal regulations. Use the FTC outreach program and download publications to stay informed. Evaluate your current practices and correct questionable activities immediately. Document the steps you are taking and monitor your progress. Your dealerships profitability and reputation are riding on it.

Jan Kelly, president of Kelly Enterprises, is a sales trainer and consultant, convention speaker, and frequent contributor to industry publications. For information about training opportunities, call 800-336-4275 or contact Kelly Enterprises at www.JLKelly.com.