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A note from Tom

Posted on | by Tom Hampton Agency

I have been thinking, in all earnestness, WHAT I could compose that might propel YOU into a great summer.  

  • The idea (more so inspiration) came in 2 words, “EVEN KEEL.”
  • Another way to put it simply is BALANCE.  

My great granny’s garters; I could go on about this one for days.

OK, start at the beginning – For ANY business to grow beyond the owner, certain things must happen.  

First, the owner must have concise written goals (1yr/3yr/5yr) and “study”. (Review and work on them every day!)

Improve the owner – improve the business!  

Second, if you haven’t done it yet, start putting together a procedure manual (how-to instructions) for every position in your dealership. I am talking porter to YOU. Heaven forbid, should something happen, illness, family emergency, etc., to an employee or you. – Open the book and follow instructions!

Seems rather simplistic; however, I have seen too many times F&I or the lot manager out sick, and the ENTIRE dealership is “locked up,” “bottlenecked,” or at a “snail’s pace” (however you choose to call it.)

I call it LOST INCOME.  

Now, before I go, one final thought. Last month we put the word out that as of Jan 1, 2019, the state reversed its position on referral programs. We as Dealers are now allowed to actively promote this program!

Referrals are not only a cost-effective marketing strategy, they also build more loyal customers over time. According to the Nielsens 2013 Global Trust in Advertising Report, 83% of people worldwide trust recommendations from people they know. They also point out that people are 4 times more likely to purchase, when referred by a friend.  

So. What shape is your Referral Program in? Have you thought about how you are going to track your referrals? -How many? Who are they from? What is the reward for referring an ‘x amount’ of customers?  And finally, if you don’t have one, what are you waiting for?

Get all your goals down. Study. And create your balance! 

Cash Is King.

Posted on | by Tom Hampton Agency

All right people. “Tax Season” is done and gone – soooooooo…

What are your marketing strategies for your Summer Business?

Did you know, that as of January 1, 2019, the DMV reversed their interpretation of Referral Programs? Since 2008, we as Dealers were not allowed to have anywhere in our written materials that we paid a “bird-dog” (referral fee)!

Now that has changed – we can now openly market our “Referral Program”!!

Now for some house keeping; COMPLIANCE.

We can market ONLY to existing customers up to 3 years back!

Next is, if you are going to be sending an email campaign to all the customers you have had for the last 3 years regarding your new Referral Program, make sure that you have an “Opt-Out” button at the end of your email. This is a Federal Law on any advertising or mass mailing. I only know this because I have an Awesome team that works with me.

Now If I may; a few “suggestions” to make this season one of growth!

Firstly, how do you want to drive your Referral program? Think about how you are going to track the referrals. Then, how much are you willing to pay for each referral?

For the sake of your sanity, find a “Mailing Service” where you can send out all your emails with just a few clicks and meet the compliance rules.

Which brings me to our second “suggestion”

100% INVENTORY (allow me to give you MY definition).

100% = 10% “Fashion Vehicles” – Lifted Trucks/Convertibles (Trendy)
25% “Work Vehicles” – Quad cab Trucks/Vans (all sizes)
40% “Family Vehicles” – Sedans/ 3rd row SUV/ Minivans
25% “CASH Vehicles” – Small Sedans/ small to medium SUV/ Higher
mileage Trucks

The last category is usually an “afterthought” for most dealers, however, it can comprise (just like the figures say) up to 25% of your business!

The key to CASH sales – QUICK – mileage!!!!

Small SUV & Sedans =125k and DOWN
Mid size SUV = 135k and DOWN
Full size SUV = 150k and DOWN
Trucks (quad cab only) = 175k and DOWN

If your cash vehicles meet these parameters AND are $12,500 and DOWN – these units can roll in 21 days or LESS!

Cash sales will also lead inevitably to MORE financed sales ( Outside & In-House) – think about it! A client has $8000 – that will get almost ANYBODY financed regardless of credit!

Cash sales also keep “eyeballs” on your web-page (Hello!) and thus even more business!!!!!

Cash sales & Summertime go hand-in-hand!

Last suggestion. Are you ready for GRADUATION !?

How many cars do YOU have in inventory now? Graduation is next month and you might think about an advertising campaign – ummm, like yesterday!

Here is an idea to just start your advertising.

“ Mom & Dad buy your Grad’s vehicle from us – get a free GPS Security package” This program one of my Dealers implemented did amazing. His results were 96 units in 6.5 weeks.

On a side note, we carry the GPS’ (the only company out there) that you can “GIVE” your customers a GPS unit where they can have a separate account. Keeping you in COMPLIANCE and out of the HIPPA loop!

So to sum it all up!

GET IT IN GEAR – before the competition DOES!

After all there is ONLY 19,000 “+” dealers in Texas – what makes YOU different and makes YOUR DEALERSHIP stand out?

Create-A-Great-Day;

Tom

STARS & SWIPES!

Posted on | by Tom Hampton Agency | 2 Comments on STARS & SWIPES!

NEWS FLASH – THE WORLD IS NO LONGER FLAT!

Most of you, if not all of you know this fact! or do you?

First, let us relive a bit of the past – Math Class. We learned how to graph on “Y” and “X” axis, given a set of “points” we could use these axes to pinpoint the location – on a FLAT piece of paper!

Those of us with a propensity for math also understood the “Z” axis – 3D.
With all the “points” we could pinpoint the EXACT location in space – not just a flat piece of paper.

Well, my friends welcome to the wild frontier of the Internet. Unfortunately, most of you still are based and run your business on a FLAT model that is over 100 years old! The car business is the most dynamically changing industry on the planet, and yet many do business like it’s 1985! You still cling to the past ways of doing business because they work. Do they really?
Most of you I talk to are moaning about the poor selection and high price of inventory, not to mention the lack of “buying” customers. I have said this to almost ALL of you at one point or another – INSANITY (and poor business management) is defined very simply:


DOING THE SAME THING OVER AND OVER
EXPECTING DIFFERENT RESULTS!

We no longer live in a FLAT world! Our success is determined by stars (literally) and swipes. Our stars determine our position on that crucial “Z” axis – are we ABOVE or BELOW standard? Swipes determine if we’re going to pay our bills that month or not. What REASONS do your “potential” have from buying from you – if you say PRICE, then you have already lost!
Let’s look at it from this perspective – would you rather be a port or a ship? A ship can bring prosperity to new and gloriously new markets. A port, on the other hand, IS prosperity attracting numerous “ships” laden with treasures for her inhabitants and their future. Most of you out there are “ships” looking for ports to “unload” your merchandise.

Those of you out there that are “ports” have labored hard with your inhabitants to make it “the destination” of prosperity.
In simple terms, PORTS build relationships with their ships and merchants!
Far too often in this business it’s “sell it and move on” to the next customer (that would be the price model) with never enough time to build any sort of “relationship”. Hell; only a handful of you even understand the POWER of a simple yet sincere, handwritten Thank You note mailed out!
“Port Dealers” find ways to constantly keep in touch with not only potential customer, however, they also go “above-and-beyond” to keep past customers in their community “loop”.

Newsletters, videos, emails and most importantly a “stunning” web presence. They have become a vital part of their “ELECTRONIC COMMUNITY” They build VALUE into themselves, their product and their web presence.

OK, so that is the long-and-short of my message here people. I think I’ve broken my own record for metaphors and analogies in one paper. Over 50+ years of communicating with folks I have learned a way-or-two to “pitch” an Idea and I am sincere; that’s one of the reasons people see value in me when we do business together. What do people see in you and your business?
Where are your STARS and how many SWIPES sent you and your website to electronic oblivion? Time to up your game folks – if not now, then when. There are numerous tools and services out there at your disposal – some of it even free! You have to make it a PRIORITY in your day and your business.
If you spent ½ as much time in a month growing your business electronically as you do hunting down inventory and going to auctions, well my friend you would definitely be on the BETTER path to success (lasting and financial).
So there you have it April’s nugget of wisdom to ponder upon ( & hopefully act upon).

CHANGE IN THE WIND

Posted on | by Tom Hampton Agency

After a long and prosperous relationship with Frazer Computing, we here at Car Guys Agency (formerly Tom Hampton Agency) announce our parting!

Frazer is a wonderful DMS and I personally think has the best Help Desk in the USA (the reason I represented them for over 12 years).

Michael Jordan is no longer with our agency; we thank him for the numerous doors and opportunities he brought us in his time with us/ We wish him the best of luck in his new endeavors!

We here at CGA are growing in new directions as we speak.

We are expanding our GPS business and will continue to bring quality product at great pricing!

We are in the process of negotiating a sponsor for my DEALER 101 class that will be held 2x monthly in Houston (yes, my friends after all these years I am listening to you and teaching full time).

This will be a FREE 90 minute class that can easily fill in the gaps for both the seasoned vet and the green-pea alike!

13 years traveling this state from one corner to the other and the privilege of consulting with over 1600 dealers had allowed me to glean a ton of information to help grow your business.

Watch our website and updated in email for future dates!

I will be at the TXDMV Dealer Training Seminars in April (IF you haven’t made your reservation for the class – DO IT NOW!).

These classes are free, give you the ground rules AND keep you abreast of the current interpretations of said rules (if there’s one thing I have learned; the rules seldom change – how they are interpreted and enforced DO change often).

We will still be assisting Dealers with License procurement as we have done for the last decade (96% + approval rate too!).

We also still have strong ties with V-12 and their fantastic array of tools that help you “get there” quick.

Well my friends that is where we are TODAY, tomorrow has yet to dawn.

Those of you that know me and have dealt with various members of our team know that we hold ourselves to the highest standard of professionalism and efficiency.

We sincerely thank you for you support in the past and are excited to help you exceed your goals in the months that are to follow.

Now one last word to you my “family of steel” – crunch time is coming; Tax Season is all but done and that “gravy’ will be drying up!

Sooooooo, what’s-your-plan?

Going to continue to “wing & prayer” – OR – are you working on your Action Plan for the next 90 days?

In the coming weeks I will be working on expanding my “open” slots in my calendar so that I may be available for MORE consultations for those of you willing to embrace this changing marketplace we call the Car Business.

Go out there and CREATE-A-GREAT-DAY!!!!

With best wishes,

Tom Hampton and crew (Barbara, Ana, Lety & Cat) at CGA (Car Guys Agency)

Fourth of July

Posted on | by Tom Hampton Agency

As we celebrate this day knowing the price of freedom is high, we give thanks for all whom laid this foundation.

 We give thanks for those that protect and preserve this independence we so enjoy.

 We pray that generations bridge gaps and gulfs of differences , remembering this great nation has thrived because of that very reason. Our differences when utilized and cultivated in united goals has not on changed the face of this nation, it has helped to change the face of the world.

May it also be that we unite and remember that INtollerence, INjustice and INdifference were what our forefathers gave their lives and fortunes to irradicatte.

Create-A-Great-Day

Tom