Author: Tom Hampton Agency

An August to Remember

Posted on | by Tom Hampton Agency

Well my friends here we are after what has been a relatively slow summer.

Now what?

How do you drive MORE eyeballs to your Ads?

DO SOMETHING DIFFERENT!

12 years of working with Dealers all across this state has taught this old car dog – a few new tricks.

I have one Dealer driving 6 more sales a week using a GPS SECURITY PKG* – free to every parent that purchases a “back-to-school” vehicle from them.

Really smart and a definite “win-win”.

Jr or Missy gets their school vehicle – mom & dad quit becoming taxi drivers AND they can “spy” on the kids whereabouts for an entire year – for FREE !

(OK it’s a “win-win-closed sale”).

Yet another Dealer is using the free GPS SECURITY PKG* in his BHPH operation – this one is an INSANE stroke of genius!

Every vehicle purchased receives a free GPS SECURITY PKG* as his way of saying “Thank You & you-owe-me-2-referrals”.

Now here is where the MAGIC starts – when the client signs off on the GPS disclosure – it is explained that Texas civil law requires the owner to acknowledge a GPS has been installed.

(free GPS SECURITY PKG*).

Since doing this she has tracked a RADICAL decrease in GPS units being taken out of “Note Units” AND his referrals are through the roof!

(amazingly she is underwriting a “better clientele” in those referrals).

This “Program” is bringing 8-10 more Notes in every month for her !

This is why we at Tom Hampton Agency carry a VARIETY of Product lines and Services (TOOLS – to build your business with)!

All these products and services we offer are designed with one goal in mind when I as the owner; look at them – “Is it easy to use and does it make my Dealers more successful ($)”.

You guys are the GENIUS’ doing the grass-roots marketing and knocking it out of the park!!!

SO with no further adieu I will explain – ****** free GPS SECURITY PKG*.

How it works is very simple – I carry a GPS line that allows me to “pull” that GPS unit out of “Your inventory” and create a separate stand alone account for the “End Customer”.

That protects you on two fronts – 1st you have no access to their free GPS SECURITY PKG* (HIPA – Privacy Act) and 2nd you have satisfied Texas Civil Law Statutes (they signed the GPS agreement).

The GPS units both Dealers are using are the $69 – 1year 4GLTE units.

Cheaper than a 90 day POWERTRAIN Warranty (which the customers never seem to remember it’s 90 days only – IF they remember at all).

For the 1st three months the End Customer appears to be showing off his/her new toy – “See where my car is – right here on my smart phone” to anyone that will look (every time they do the selling Dealer is yet remembered again).

So as I and a few other dealers see it …

$69 INVESTED into every deal has been paying off – ROI (Return-On-Investment) as much as TEN fold or more!

THIS MY FRIENDS IS DOING

“SOMETHING DIFFERENT”

If you want to keep selling (or attempting to sell) exactly the SAME way as all your competition – know that every MONTH your profit margins will continue to dwindle!

Your Ads look JUST like every one else – so it becomes a price war (only the Customer wins -Nahhhhhh)!

Now that your Ads have real VALUE – people stop/look & buy (don’t believe me – C**MAX is King at that).

Change your future – make August/September BANNER months.

We can help, we specialize in:

  • free GPS SECURITY PKG* Programs
  • Warranty Programs (have one that the Dealer never has to sell -it pays $200 a copy)
  • License: GDN /OCCC/ Lenders/ Salvage / Lease
  • Consulting: Sales training / Strategic growth sessions / pre-OCCC audits

Just to name a few!

The idea here – we can help and you will make more (when our client succeeds – we succeed).

Create-A-Great-Day,

Tom Hampton

Riding Out the Holiday Season

Posted on | by Tom Hampton Agency

Christmas is a unique time of year in the automotive industry, sales are historically very slow in most markets of the U.S., and Texas in particular.

Most of you know that I travel extensively across Texas, and so far I have found sales to be slow with ONE exception – CASH.

For decades I have known and passed on to my dealers: from late October until mid February CASH cars are king!

I have dealers all across the state still selling 18 – 25 cash cars – EVEN in December.

Depending on your market / advertising / transparency the pricing ranges from $6,500 up to $11,500 with mileage from 110k to 140k – pay ATTENTION to what I just said!

  • Target market = knowing to “whom” you are advertising / their pricing point and the particularly “hot” vehicle they are after.

This will greatly affect what you are purchasing and from where you purchase.

This is where recon is KING and having a standard 60 /80/120 point STANDARIZED check list is worth it’s weight in gold!

Having all of your inventory go through the same process of reconditioning only assures MORE customer satisfaction and can be on Hell-Of-A-Closing tool for higher gross profit.

Having a DMS (dealer management software – like Frazer) can be an invaluable tool because of the information with in.

What color car sells the quickest?

Which make of vehicle sits on the lot the longest?

Where are your advertising leads doing their best?

All of this information including zip code analysis and more is available to you right now. Most DMS companies can create custom reports for their clients for a small fee or no fee at all!

Having a CRM (customer relationship management software – like Selly Automotive) allows you to “funnel” all those leads through one place with plenty of “tools” built in for calendaring / email / texting / photo sharing / price quoting / etc.

Having all that in one place, along with reminders for you about followup (which leads to more sales and referrals) allows you more productivity and less “Oh Crap I Forgot to …” !

If you have salespeople, you can watch “how” your lead is being handled and what is being said – not to mention switch prospects between salespeople, should the need arise (vacation/termination/etc.).

  • Niche Advertising = knowing where your dollars get their most return – not only in number of leads generated but also in leads closed.

Where is your target market looking first?

Is social media important in your target markets PURCHASING criteria?

If so and you know nothing about social media (Facebook/Twitter etc) then HIRE someone or some company to do it for you!!!

****WARNING**** you had best do 2 things when “contracting out” your advertising

– 1st ask for references and verify that results are worth the money

– 2nd Preview and authorize all verb-age and campaigns BEFORE they are posted
(remember it is YOUR license on the line here if a complaint is lodged).

How much will you spend in advertising in order to garner a sale?

Average advertising dollars that I see being spent out there is $300 per unit.

That being the case the WHY are some of you still only adverting on Craigslist “For Sale By Owner” (besides a lie to the customer – which by-the-way BLOWS your credibility you are limiting yourself to that niche market only) ?

  • Transparency = knowing when to “show your hand” and what to show is now a crucial and key part of today’s selling.

When you have certain standards in place (recon check list and procedures) these become major assets to your sales.

Today’s buyer wants to know as much about your vehicle as possible (CarFax / Autocheck/ NADA / Recalls / etc.) BEFORE it becomes their vehicle and the burden is on you for this information.

Now if this is a $2,995 unit – they can spend the money for the CarFax, however if it were me – I would still provide one (procedures – standards in place).

Your reputation is EVERYTHING in this business – that and most dealers out there are STILL conducting their business based off a 100yr old model.

Business has changed and if you are not willing to keep up and make some changes in your business thinking – then do not complain when you are left behind and your sales tank !

If I had a prospect that was curious as to the vehicle’s condition – promise you they would have an overload on their hands. I would gladly show all my pictures (showing any and all imperfections) along with my recon report showing what I did and what I did not do. Then my CarFax, NADA retail sheets and a “Drive Out” price quote. If my unit is more expensive than another one that prospect is looking at – then I am going to use those reports to build value in my unit / my dealership and myself. People pay for quality and value – EVERY TIME. As a matter of fact in most instances once value outstrips price – people buy!

OK, so there you have a successful formula
to “Ride Out” the Holidays.

Create-a-great-future : One day at a time, one client at a time

From all of us at Tom Hampton Agency (Tom/Lety/Ana/Denise/Barbara)
We send our warmest wishes for you and yours – that this season is one of great abundance
(Family, Friends, Love, Health and Happiness)

Cyber Monday Sale

Posted on | by Tom Hampton Agency

2017 is right around the corner…

Are you Setup to Succeed in the New Year? If you have any doubts, or just want a refresher, take advantage of our Cyber Monday Sale! Book a Consultation today for a date in January and Save 25%!*

Get Setup for the Following:

  • Sales Training
  • Ins & Outs of Financing
  • Leaving $$ on the Table: How you’re missing 100’s of Dollars each deal
  • What makes a good Vendor
  • Covering (& Re-covering) Your Assets
  • & More!

Your Success is important to us here at Tom Hampton Agency!

Call us at 713-481-6712 or Send us an e-mail to book today & see the full range of things we have in store for you.

Create A Great Day!
Tom Hampton

*Bookings must be paid in advance to qualify for 25% Discount. Must book by 12/10/2016. Promotion applies to Houston Area Only. Travel fees may apply for locations outside promotional area.

 

Thanksgiving 2016: Time to Reflect

Posted on | by Tom Hampton Agency

Here we are in November 2016, two months into the 4th Quarter. The time of year that is historically slow in our industry is the perfect time, my friends, to BE thankful. Thankful for the opportunity to Reflect & Change.

During this slow season we encourage you to capitalize on the ONE thing missing the rest of the year – TIME. Use this time to look back over your 2016: your inventory, your make-ready, finance, vehicle sources, and  advertising dollars. Is where you are now where you wanted to be at the beginning of the year? Have you reached your goals?

Looking back allows you the best viewpoint. After all, they say hindsight is 20 /20. To see any of the failures or “mis-takes” that may have been made. “Mis-takes” that may have been encouraged and ended up costing time, money, or clients in some form or fashion. By finding the so called mis-takes, you know where to make adjustments to make your business even more successful.

Every successful business has course corrections along the way. These come from taking responsibility for important Business Decisions and learning from both Successes AND Setbacks. By looking at our “failures” we gain the opportunity to learn, and then change that aspect of our business.

Allow me to give an example:

  • Year to date – 78 Units Sold
  • Year to date – 127 Units Purchased
  • Year to date Gross Profits – $93,600
  • Year to date Net Profits – $32,760

That leaves quite a gap between Gross and Net Profits. So where is the missing $60,840 ?

  • Divide $60,840 by 78 sales = $780 per unit
  • Subtract $200 per unit in Advertising and last minute recon,  that leaves $580 per unit.
  • Rent $3,000 / Utilities $1500 mo = $45,000 divided by 78 sales = $576.93

and THAT my friends eats up the $580 per unit carried.

What this tells me as a Dealer – 1 st is that I have MADE profit.

2nd is that I did not make enough to GROW my company

3 rd Time to change the way that I do my business so that I can GROW my dealership in the coming year, starting Jan 1, 2017

Here are a few things that I would be looking at very closely

  • Business plans -vs- Action plans
  • Shift Advertising dollars into Referral dollars
  • Shop finance companies and floor planners
  • Find 3 new mechanics
  • Find 3 new inventory sources
  • Invest into networking and social media
  • Transparency -vs- Take-home mentality

Some of this must sound like a foreign language – it is the language of Business and Change.

Every and I do mean EVERY successful Dealer has incurred SPECTACULAR failures along his journey’s way. Failure is an integral part of success – if you never fail you will never know HOW to succeed. Where the difference in success comes from, is by doing exactly as we did in the example above – Analyze and Learn. Then immediately apply ACTION in the needed areas.

Belly-aching or Brainstorming – which is going to make you the most money for time spent? I will testify to the latter of those two . If you are stuck and can not see a way to change, then brainstorm with a successful buddy (regardless of business type). A fresh set of eyes and ears can make a HUGE difference on your perspective. Helping you find your desired outcome from the changes you are willing to make.

Let’s be honest, shall we? – At one point, we have all allowed Pride to take money out of our pockets. That can be human nature, at times. The better part of human nature also allows to invest in our dreams. That investment can be financial / physical / social / emotional or just plain old Time.

When was the last time you looked at your “dream”? Do you have the same dream, or in the last 10 months, has your dream shifted? If your dream has shifted, do you like the direction it’s going now?

Knowing your Dream and keeping your dream alive, having it in front of you everyday, will act as a compass towards greater success – EVERYDAY!

YES, November is a month of thanksgiving and evaluating – in not only business but relationships as well.

I appreciate all of you in a way you may never fathom. You are my Clients, my Friends, my “Comrades-in-Arms”. We have exchanged so much knowledge and learning between us. You have allowed me to build a business that I so dearly cherish and champion! I thank you for every opportunity you have given us.

The holiday season is upon us! We here at THA wish all of you a healthy, happy, most successful and prosperous seasons to come.

Sincerely,

Tom Hampton & the Team of Tom Hampton Agency

New Documentary Fee

Posted on | by Tom Hampton Agency

Starting June 1, 2016, the documentary fee amount, that does not require a cost analysis, was increased to $150. This is a result from recent amendments to the documentary fee rule at 7 Texas Administrative Code §84.205.  While a dealership could file for a documentary fee up to $150 starting May 25, 2016, your dealership could not charge a documentary fee up to $150 until after June 1, 2016.

The new online filing system became available in the Application Licensing Examination Compliance System (ALECS), in late June. Documentary fee filings will only be accepted through ALECS. We encourage your dealership to link your ALECS account if not done so already and you intend to submit a documentary fee filing.

A retail seller must comply with the notification requirements of Texas Finance Code, Section 348.006(e) prior to increasing its documentary fee above $50 or prior to increasing its documentary fee from any previous filings above $50 up to $150. Documentary fee filings above $150 will require supporting cost analyses to review for a determination of reasonableness. The OCCC will provide written notification when a documentary fee has been determined reasonable. The new filing system in ALECS will allow a dealer to check the status of a documentary fee filing.

How to change your Documentary Fee in ALECS:

Log into your ALECS Account

  • Choose Manage my Business On the Left side of your screen
    • in the License group
  • Doc Fee Filing (on the far right side of the screen)
  • Select your license  (Motor Vehicle Finance License)
    • Add the Amount you want (up to $150)
      • Add your Name, Email and the Start Date then click on Submit