Multiple Streams of Profit Available In The Repo Industry
Maximize Your Profits Through Multiple Streams Of IncomeToday I want to talk about how to maximize your profit and also add manpower and equipment to your business that pays for itself. Repossession work is one stream of income that is available to you. You get paid for voluntary and involuntary repossessions. You can make money on storage fees and sometimes charge the client for making keys. There are other areas in the business that can pump up your profits. I wanted to offer my clients a one stop shopping experience. The way to do that is offer a wide variety of service to lenders and by doing this, you will reap the profits. Some repo companies offer just collateral recovery services, but there are many ways to use your idle equipment and manpower to put cash in your pocket.
Utilize All Of Your Equipment And ExpertiseTake transport for instance. Every repo company should have a transport division. You can have a fleet of transport trailers and trucks or a fleet of flatbeds or a combination of the both. The transport division can be picking up lease turn ins at dealerships and transporting them to auction. They can be transporting repossessed collateral to the auctions and while they are there they can pick up and transport vehicles that were bought by used car dealerships. There is no need to go the auction loaded and then come back empty. You are losing out on half of the trip.
Another way to make money was to offer skip tracing services under a different name, but ran in the same office as your repo company. You can do skip work on the accounts that you are already working for your clients and also do skip work for them and other lenders through your skip tracing company. The two compliment each other and help to pull in more profit. This is profit that is within your each and ripe for the taking. Why should some skip company make the cash? Having your own skip company is just one more way to boost your profit. There are other ways to amplify your business with the equipment that you have.
There are companies out there that do nothing but field visits. As a matter of fact, many lenders have a field visit done prior to issuing an account out for repo. Lenders will pay $100 or more for a field visit and you should make sure that you are getting the profit from that. You could have an employee that is out spotting vehicles and also doing field visits. If you have a good data base and record the result of the door knock, house description and any other pertinent information, then you can forward this information to you agent if he is issued the account. Once again, the lender does not need to know that you are the same company. Many times, different departments handle field visits and repossessions. All of the field visit information can be relayed by fax or email and is quite easy to maintain.
Even More Profit for Your Repossession CompanyAnother one of those ways is to have a flatbed on call 24 hours a day for towing. This benefits your repo company by putting an extra man and an extra piece of equipment on the street at the company’s disposal. Your driver can be doing tows and service calls and in the meantime can be used to pick up vehicles from around the area that have been recovered by your repo agents. This saves the agents the time of traveling back and forth to your storage lot and also helps lower the company fuel costs and wear and tear on your fleet. The flatbed can be available for tows, transports and the shuffling of collateral back to your shop. The other possibility is using the flatbed to pickup vehicles that are up for repo that have been spotted by one of your employees that is just driving around in a car.
I know of one repo agent that steals a car just as quick in a flat bed as most agents do in a self loader. He sometimes prefers a flatbed and picks up two cars at a time before returning to the storage yard.
Another option for making money is police towing. There is big money in towing and storage fees when you are contracted with the police department. This also is a way to have a really good working relationship with the department and also builds friendships with officers as well.
Repossession companies usually have towing equipment, so why not use the equipment that you have to increas4 your cash flow? If you had a pizza restaurant, it would be fairly easy to add spaghetti, fettuccine, garlic bread and Caesar salad to your menu. If you owned a shoe repair shop, I would not suggest that you sell 24 different flavors of ice cream. The two businesses are not related. But if you own a repossession company, you probably have drivers, tow trucks, flatbeds, car haulers, office staff, phones, cell phones and a storage lot. All of this equipment should be put to use and put more dollars in your bank account.
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