Tag: THA

To buy or not to buy…

Posted on | by Tom Hampton Agency

April showers bring may flowers, but this year’s February freezes brought us auction squeezes! We are seeing prices are far above normal tax-time hikes, with no signs of tapering off. Playing the usual Price Game is the surest way to the poor house in our current market!

 

How are the new car dealerships holding on to high mileage trades and still getting their money for those units? Trust, transparency, and a supply-and-demand mentality! With less inventory on hand, we know that that means every unit we already have needs to get adjusted for retail. Time to re-appraise all your current inventory and start looking at replacement cost / availability.

Trust and Transparency are a symbiotic relationship. The more transparent you become in all your processes and procedures; the more trust is built along the way. Make sure your website is easy to navigate and all your policies and procedures are outlined in detail. Finance options/information should be easy to understand and access and make darn sure it is all secure!

There has been so much success in providing customers with an online credit application. Financing and an approved loan amount first, vehicle second, then delivery in minutes (not hours!) Knowledge of one’s financial abilities in any type of purchase is empowering and removes a lot of fear from the entire process! For us, it removes having to show them 20 different cars, only to find out 3 hours later, they can’t even afford the porters ’98 hooptie!

Find your technique to symbiotically build Trust and Transparency in today’s marketplace and on your website. Remember my friends. Without us, the independent used car dealer – most Americans would be walking! The better you serve your prospects, the greater your client base becomes.

Create-A-Great-Day

Tom

A KEY TO PROSPERING DURING COVID-19

Posted on | by Tom Hampton Agency

Weeks of continuous communication across the nation and across the industry has allowed me to put a few tick-marks under some points on my TALLY sheet! 

These conversations are all the same: 

  • HOW are you (the owner) Re-Inventing in all areas (personal/business)?  
  • WHO are you collaborating with (friend & foe)? 
  • WHICH areas would you recommend an immediate change in? 
  • WHAT communities are you a RESOURCE for and which communities are a resource for YOU? 
  • WHERE would you concentrate MORE effort into and why? 

The conversations have lasted from 10 minutes up to 4 hours! The answers have been insightful, inventive, original and most of all … full of HOPE! 

The point on my tally sheet that got the most tick-marks? 

A REFERRAL PROGRAM!    

Using Texts, Calls, Emails, and/or Video Chats. All have been fruitful. Integrating your referral program into your Social Media is PARAMOUNT to prospering. 

That being said, 

HOW is your referral program? Old School Simple to the rescue! It is very simple, very effective, and no complications necessary! It also provides a very powerful income stream to your previous customer (scared & financially insecure)! 

A Simple Referral Program example: 

You (previous customer) notify me (the owner) that someone (referred friend/family) is coming to do business with me. I (the owner) roll out the covid-19 sanitized Red Carpet for the client (referred friend/family). When the referred potential customer (referred friend/family) does business with me then You (the previous customer) that referred the new customer will receive a pre-determined MONITARY amount!  

Example:  

I sell used cars, you bought one from me 2 years ago. You got my Rewards Program email and are in need of extra bucks during this crisis. So, you tell every Tom, Dick & Henrietta to see me if they need a car! 

Bingo! Now I (the dealer/business owner) have an ARMY of salespeople giving the BEST kind of recommendation on the planet – Free positive advertising via word of mouth! 

****Note: Be sure the reward paid out is fair and intriguing enough.  

In the previous example that dealer would have started his referral fee at about $250 and climbed up to a preset limit. Think about it; Previous customer sends a buddy that buys a $25,000 truck – caution if paying out a $100, that customer will never send YOU (Mr. Dealer or Mr. Business owner) another referral.  

On the other hand, if you own a carpet cleaning business and you do the whole JOB for $250, then that referral may look like a nice Thank You card and a $20 gift card (about 10% of the job). 

It is all relative, however, the KEY is the referral program. There you have a little nugget, that if worked properly, may well be you/your companies’ lifeline for a while. At the very least, it will be fun adventure! 

Remember. If you don’t CREATE your future, then your future WILL create you! 

Create-A-Great-Day, 

Tom 

Time to Change

Posted on | by Tom Hampton Agency | 4 Comments on Time to Change

Funny thing, time… it has so many different meanings and associations.  

We here in Houston measure distance by time- “My Office is only 30 minutes from the Galleria.” We as Dealers buy according to the seasons (another different measurement of time) – for example, during the holiday seasons, we buy less and for Tax Seasons and Back to School Seasons, we buy more. 

Time regulates us. Here in Texas, you can only operate certain hours and for certain days (no consecutive Sat & Sun). Time is a man-made concept used to regulate and equalize life across the planet. 

We all have 24 hours in a day, no matter where you are on the planet. It is whether we spend or invest those hours that determine our financial future, our emotional future, and what guides us on our charted path. 

We as business owners often find ourselves in the “there are not enough hours in a day” mode. We hurriedly put out fires in various directions as we attempt to accomplish at least ONE thing on our growing TO-DO list – before the phone rings yet again? 

Sound a little too familiar? 

It happens to all of us at one point or another, after all, we are Entrepreneurs’ and we can handle ANYTHING! Well um, maybe some can, however the rest of us devoid of super-human abilities, we muddle through each day. 

Muddle time is over, (oops, there’s that time thing again) my friends! Earlier I quoted that you can either SPEND or INVEST your time. Most Dealers “spend” time looking for inventory, getting cars in and out of the shop, attempting to collect information for financing, and a whole host of other things! 

Some Dealers “invest” time sourcing inventory, recon is done in-house for most vehicles, and they have people or services prescreen their leads to expedite financing! 

What? You say that is investing MONEY and not time? Money we can always get MORE of; time, on the other hand, you cannot get back. 

So, the answer is YES. By investing capital, you gain TIME. 

Most business owners think you only have x-amount of hours in a business day. Well, I am here to tell you that you can easily “buy more hours” in a day! Some of you by now might be a bit confused, so I will clarify. 

Investing capital to “buy” more hours: Hire someone or some company to do some of the tasks you are doing right now! 

Think long and hard before you answer these:  

  • Would you pay $200hr to run to the courthouse for 3 hours to get 4 cars titled? 
  • Would you pay $200hr to run get parts or drop a car off to the shop? 
  • Would you pay $200hr to make calls for missing information and verify information already given? 

In fact – most Dealers do this every day and wonder why their business is so stressful and their profits are so low. As a business owner, your time is worth approximately $200hr! 

So, the smart operators pay out $25-$50hr to get something off their list so that they can INVEST the time into growing their business, not SPENDING their time running their business. (In some cases, the business runs the Dealer!) 

Yes. A business must be “run” in order to make money, however, that does not mean you have to run it all. 

Competition continues to come into the Independent Used Car market every day. That means your slice of the pie gets smaller with each new Dealer in town. However, the more time you can invest in yourself and your dealership, the quicker you gain market share. 

When was the last time you took a sales course or even had a sales meeting? When was the last time you paid a service to evaluate your webpage and then implement the changes When was the last time you went to a networking opportunity in your community? When was the last time you overhauled your Social Media strategy – or came up with one? 

You see my friends, there are numerous opportunities to “invest” in your future – some take capital, most simply take time. 

March 8, 2020 Time will change yet again (Daylight savings) and we will barely notice. Ask any 14 yr old the horrors of losing an hour’s sleep and March 8, 2020, has a very different meaning! 

Perspective is the key to success. 

Some may see themselves investing their time wisely by running the company; After all, they are saving money! That is what I call treading water. In a deep endless ocean, you can only tread so long before you drown. 

This is your business and your 24 hours. My role is to play WHAT-IF. So, what if you started paying a title company to run a few titles a week? What if you tried a couple of wholesalers and saved 10hrs at auction this week? What if your salespeople or heaven forbid – your customers – only be allowed to turn in complete applications for financing? What if you started your own Dealer Group to share resources and ideas? 

What If’s are endless. Your possibilities are too. 

Invest or Spend. What will you do with your TIME? 

Create a Great Day! 

Tom Hampton 

Contact us today MyRep@CarGuysAgency to learn more about our dependable products and services! Invest in growing your dealership today!  

www.CarGuysAgency.com 

The Power of Connection:

Posted on | by Tom Hampton Agency | 11 Comments on The Power of Connection:

2019 has drawn to its close my friends. It is usual for this time of year to be a time of reflection and planning. Did we measure up to last year’s goals and where are we heading to this coming year? This is very important in EVERY business, so I encourage you to get away from the dealership, turn off the phone (voicemail is wonderful) and invest an hour in this process. 

First and foremost; please come into this meeting with yourself armed with 2 very crucial things – PATIENCE & VISION. 

Patience for yourself and your employees; Business can be start-n-stop as we grow to new levels, each with its own set of challenges to master. After all uncharted waters can be both perilous and prosperous. 

Vision for your company and its potential.  

At this point, it is good to remember that only 2 things stand between unimaginable success and you. The first is LIMITED knowledge. The second is LIMITING beliefs (yours AND your employees). Who do you let in on the vision you have for your growth? If you only have employees — there is no reason to share your vision with them. If you create a family, a team — then it would be best that all share and contribute to your vision.   

Connection is the key, employees stay disconnected; whereas team members are tightly interconnected. Tight interconnection promotes COMMUNICATION, which as most of you know, is the cornerstone of any successful business (or given situation for that matter). 

Nelson Mandela was once asked what made him such a good leader. His reply was a brief story about his father. When his father sat in council with others, he always made it a point to be the LAST to speak. That way, he had heard the concerns and opinions of the others and could NOW communicate with the input of all. A pretty wise man in my book. This is one I myself am continually working to be better at. 

We tend to listen so that we can respond, not hear. A customer calls and starts to BBQ your backside over a minor issue with the vehicle (OK, minor to you)! Most of us within 2 minutes of the tirade tune out the rant ONCE we’ve heard the problem. We have our reply ready – the moment the customer takes a breath … our turn to talk, even if we cut them short! 

After all – we have the solution, we don’t need to hear all the “drama” we perceive the customer is espousing. What if, just, what if… you really listened with fresh ears? Yes, we get complaints and put out fires what seems like 100 times a day. Most of it without thinking, ‘been there – done that’ kind of thing. 

So, what if those fresh ears spent 5 minutes (that’s usually enough time to hear the whole story) and listened to this person’s fears? 

That’s the real reason they called, fear. Is there something wrong with the vehicle they just got from you? After all, they are informed customers and have listened to, read, and researched all the material about how crooked car dealers are. Didn’t cha hear?… Car dealers buy that vehicle for $1000 and just “patch it up”… then sell it for $6000 to some poor unsuspecting, hard-working person. Unfortunately, there is a very small grain of truth to that. There are too many dealers out there that skimp on recon. They spend just enough to sell it.  

What is all this rambling about goals, visions, ticked off customers, employees, team members, and connection???? Connecting to your employees, your clients – both groups’ needs/wants/desires will put you ahead of the game. Dealers are always coming up to me asking about sales/advertising/finance/inventory – Why do you suppose that is? I haven’t sold a car in 19 years and still know more about what clients want than most dealers do, by staying connected. I stay connected with the buying public. I stay connected with my clients (dealers) all over the state. I stay connected in my relationship with both the car industry and the government. Not a week goes by that I do not purposely engage someone at a gas station, convenience store, or out in public that has a fresh paper plate on the back of their vehicle (regardless of what state it is from).  

Purposely INVESTING your time into these areas will make growing your business faster and much more profitable. When people know (or feel) that you have listened to them – even when you still disagree, things will be easier between you. They feel as if they have been heard. After all, we all want to be heard – even you!  

I get asked daily for tips and tricks on how to grow. Connection is the best one in my arsenal of tips. It is always sharp and can penetrate even the most difficult of challenges when used. The goal of 2020 my friends, may be rather simple…Create as many “Fans” as you can. Starting now, begin connecting with your team, sharing the dream, and teaching them new skills to better connect with your clients. Most dealers have customers – yep sold them a car. Great dealers have fans – yep sold them a car, their cousin, a person from their work, and their postman came by too. You ONLY get fans by staying CONNECTED. 

Go out to our website at www.carguysagency.com. I have recorded a series of podcasts designed to help YOUR growth process. 

Be sure and subscribe as I put the really good podcast out to subscribers only. I figure if you subscribe – you WANT to grow and I’m going to help! 

Go out there in 2020 and CONNECT to your prosperity.   

Create-A-Great-Day, 

Tom Hampton 

TRICKLE TO TREND

Posted on | by Tom Hampton Agency

We all know that our industry is irrevocably linked to the new car industry and will FOREVER be subject to “trickle-down”  

Two and half years ago the consumer, through social media, brought FIRE to the F&I Departments and our industry felt it in our outside finance sources tightening their belts – We sold less cars and are still recovering from it.  

NOW-HEAR-THIS. The next wave of major trickle-down is HERE.  

PRICE is dead!!! TRANSPARENCY & VALUE are coming!  

Your client knows MORE about your car than you do in most instances. Consumers are now spending upwards of 15 hours of research using the same tools we do. They research reliability, dependability, serviceability, trade values, depreciation, current market values, and a bazillion other things.  

Then my friend; they research YOU.   

Most of you still cling DESPERATELY to price when ALL your efforts should be in VALUE! Look up Simon Sinek on YouTube. Man has some great things to learn. His concentric circles are one of the BEST I have ever seen to convey and teach what customers REALLY want.  

It’s simple folks –  

  1.  WHY are you the best person on the planet to buy a used car from?  
  1.  HOW MANY people agree!? 

What incentive are you enticing buyers with? 90-day warranties don’t cut it. A couple of suggestions,  

  • Give 1 year free GPS Security Tracking*  
  • Free oil changes for a year (3k miles= 4 per year) 

Look at what you do from the customer’s point of view. Houston area alone has over 4,000 dealers – How do you stand out?  

The only thing standing between you and wild success is LIMITED Knowledge and LIMITING Beliefs. Both can be modified. Although knowledge is plentiful, it can be tricky to interpret and implement. As far as Limiting beliefs, MOST simply fade away when YOU choose to do things differently.  

Habit and complacency are the top two killers of dealerships that I have ever found over the last 50 years. Now – what are you going to do and what are you going to change? – most importantly WHEN?   

Create-a-great-day!
Tom Hampton

*Visit us online to get more information on our selection of GPS Units!