The American Repossessor

January 2009
By Susan Marston

Here we go again…about to break in a new year and one that will have some distinct historical value with some CHANGES that many people will welcome, and many will not.  But CHANGE it is.

And within all that are many CHANGES that will affect the repossession industry, one way or another.  In 2008 we have seen a phenomenal growth of vehicle repossessions across the world and of course we have to attribute that, for the most part, to an element of our every day lives that we cannot control… THE ECONOMY.

We only have to look at the BIG THREE to see an immediate CHANGE that had not some kind of action been taken, we would have lost more than just jobs, but the trickle effect that not many people think of when three giant conglomerates are in danger of closing down.  This domino activity  hits the business community indirectly too.  Imagine how many companies are suppliers to the BIG THREE and how many suppliers are suppliers to the companies that supply the BIG THREE and if you multiply that up as many times as you can imagine, that makes for millions of jobs, hundreds of thousands of companies and thousands of communities that will be affected and suffer because of just 3 companies.

That’s what people don’t get!

So minimize that phenomena into your daily business lives and look to the fact that if we don’t run our companies as they need to be ran, we too will suffer similar effects.  It is the simple things in business that company owners, for one reason or another, cannot grasp.  An example of this is one client company that I began working with.  Because of their lack of control and management of both their office staff and their field agents, plus the lack of a good management infrastructure i.e. processes and procedures, they were losing money hand over fist. 

For example, by not completely utilizing the repossession software they have in place (which many companies too do not do this), their account executives were not following up on open accounts when they needed to be followed up on and this included reviewing accounts on hold or that needed more information, they had several hundreds of dollars just sitting there waiting to be invoiced.  Multiply that up by weeks and months and ultimately the company was missing out on an income level of over $100,000 per annum that was being missed just in this one area – and that was and is a proven fact! 

Once I had introduced additional management controls, new procedures for the Account Executives to follow, re-trained some of their staff, and reviewed each open account, this problem should not re-occur, providing of course that the company owners took charge of their company and run it as it should be.

Of course, we then had to look to the field agents and what they were doing and when – and that is easily accomplished, again with good infrastructure, training and usage of the resources that they had at hand.  Because field agents were not providing their updates or completing the repossession documentation on time, this in turn meant that the office could not inform the clients of the repossessed vehicles picked up in a timely fashion, which meant too, that the company could not invoice out as soon as they should have, which meant the invoicing pay period was extended and the client would pay later – not late.

This all impacts the cashflow that the company has and extends the accounts receivable, which in turn means that money is not flowing within the company as it needs to and consequently, we don’t have the cashflow to do what we need to do ie. pay bills, salaries, truck payments, gas cards, insurance premiums…and the list goes on!
It’s not complicated.  Unless this company CHANGES, inevitably their lack of control will ultimately dry up their cashflow, which consequently will stranglehold the company and if you have no cash, you can’t do business…and guess what – you have to lay off and probably close the doors to your business.

Being profitable is not just about charging a fair price for your work, and/or how many repossessions you do, it is also about how you make those things happen and constant management and control of all factors of  your company is paramount – if you want to be profitable and successful that is.

At least for this client company, there openness to CHANGE will ensure that they are well on their way to improving their business and increasing their level of performance, professionalism and bottom line.  This will enable them to stay ahead of their competitors and continue to provide a service  to their clients that they will be proud of and vital to keep their business.

The company has turned a corner and has taken control of its future.

This is more than I can say for the repossession company that “performs” on the TV program ‘Operation Repo’.  Oh yes…that wonderful, professional and quality repossession company that is second to none in our industry…NOT!  Whether we like it or not, this program and the ‘actors’ (poor ones that is) within it hurt our industry big time and no matter what we do or say, it’s out there for all to see.

I was talking to a prospective client, who was already doing some repossessions (as it was a towing company) and on discussing the optional ways to repossess, the owner of this company stated that he did not want to be involved with repossessions that were openly confrontational and dangerous–…(quote… “…just like the repossessions carried out in the repossession program Operation Repo…”  And that says it all because those comments are from someone who may not be completely within the industry, but certainly has more of an idea of it than the average lay person. 

The Operation Repo company is one that I would hope is representative of a minimal amount of repossession companies within the industry.  But having said that, I have to wonder just how many similar cowboy companies out there that are just like them. 

Daily, I hear comments about this program and the damage that these Neanderthals are doing to the industry and as much as they should be ignored, it is very difficult for many to do (see the attached link).  There may be a disclaimer at the beginning of this program, but no amount of words can replace what the visual effect presents.

One can only hope that this caveman approach to repossessions, is one that will disappear if many of us continue to work towards professionalizing  our industry and try to rid it of these primates!  Maybe, the simple introduction of regulating the industry, would wipe out these and many other cowboys, in one fail swoop.  I for one, would support it and vote it right in!  And I know for a fact that there are many within the repossession industry that feel exactly the same.

2009 is a year of new opportunity and we should grasp that and move on to continue introducing and maintaining the CHANGES that are vital to keep our industry moving forward. 

Some food for thought……

CHARLES DARWIN SAID……It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.

NELSON MANDELA SAID……Education is the most powerful weapon which you can use to change the world.

ROBERT F KENNEDY SAID……Few will have the greatness to bend history itself; but each of us can work to change a small portion of events, and in the total of all those acts will be written the history of this generation.

ABRAHAM LINCOLN SAID……The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise with the occasion. As our case is new, so we must think anew and act anew.

GEORGE BERNARD SHAW SAID……Some men see things as they are and say, "Why?" I dream of things that never were and say, "Why not?"

With that said,  I wish you    wondeRful and pRosperous, Repossession 2009!

Happy New Year
By David Branch

Well, 2008 certainly was a rollercoaster ride from so many different aspects, I am not sure if I am happy to see it go or not. From the highest prices in fuel that I have ever paid, the smoke from the financial fiasco as our economy shuddered, a Presidential race that still leaves a bad taste in my mouth to new laws and regulations for our industry in many states. On a humorous note, “Repo, The Genetic Opera” was premiered in July. Personally, 2008 brought the news that I need more knee surgery, I sold The American Repossessor and turned the reigns over to Susan Marston, my son, whom it seems I was just holding in my arms a few weeks ago, grew taller than my wife. And I ended the year just as I started the new one; with the flu.

Ok, the year ends, the year begins. Most of you will know that I am a long time advocate for the agent. I started The Tag Exchange some six years ago in an attempt to connect every agent with a base of other agents that were willing to exchange DMV info with each other. I had members from 39 states and 8 countries when I sold it to a group out of Florida. Six years out and the only change they made was the contact info and the site has died. I attempted to revive the site, after five years, with the DMV Depot, but I think by that time, everyone was turned off at the notion. The idea of bartering tag info died.

With my notion of keeping the agent in mind, I started www.RepoSpotter.com I have long had the idea of somehow connecting the agent with spotters across the country. I played with it a few times over the last couple of years, but didn’t have the time for it. I’m actively promoting the site now and hope to have a decent list of spotters for you guys to utilize. Forget high fuel prices, using spotters just makes sense from many points.

So what else am I going to do in the New Year? Hmmm… anyone looking for an experienced field agent in North Carolina?

Here is a wishing that the coming year is a glorious one that rewards all your future endeavors with success. Happy New Year!