Enhancing Your 2020 Business Playbook

by Taylor Byrd | Dec 2, 2019 | BHPH Reinsurance, Reinsurance

“RED, EIGHTY!” “BLACK, SEVENTEEN!” “SET, HUT!”

It’s December, the fourth quarter of a conference game and your team is winning 42 – 10. As the coach, you know the game is in hand and therefore in order to get some of your younger players some experience you begin to rotate them in to the game. The starters get some needed rest before you start the playoffs next week and you get to give those sitting behind your juniors and seniors an opportunity they hadn’t had this season. Although they are not likely to help you this season, next season these young players are going to have a large role in your team’s success or failure. As an experienced coach you know that even in the midst of your current success, you always need to be working on your team for the future in order to stay ahead of the competition.

Dealers, it’s December and the 2019 business season is coming to an end soon. We are heading into the holidays, a time that is typically a little slower for sales and always a great time to be working on your business to prepare your “team” for the next season. During this time of preparation for the 2020 business season, it is always good to reflect on 2019’s wins and losses. What did you do that was successful? What did you do that was not? As you look towards 2020, what are you going to do different to set you and your business up for your best “season” yet?

There is something you should consider adding to your playbook in 2020. Take a deep dive into how a reinsurance company could help you, your business, and your customers . Ask other dealers how reinsurance is working for them. DealerRE has been helping dealers establish and run turn key reinsurance companies for well over 25 years and our clients would tell you it is one of, if not the best, decisions they have made while working ON their business. A reinsurance company is an insurance company that you own and helps you offer your customers your own warranties, vehicle service contracts, CPO programs, pre-paid maintenance, Engine for Life warranties and many other ancillary products. For buy-here-pay-here dealers it also allows you to sell your customers GAP, debt cancellation coverage, and collateral protection insurance. So instead of sending the “cost” of those products to a third party warranty or insurance company, you send it to your new reinsurance company, pay your customers claims out of that pool and you keep the underwriting profit. Not only does this allow you to capture found money, but as a 831B corporation, the IRS says you can elect to be taxed only on the investment income. This is a HUGE opportunity for you.

It is the end of the fourth quarter of 2019 and regardless of your record this year, you will start 2020 with a clean slate. During this lull between now and the end of the year, you have a chance to enhance your playbook, work on your business, and set yourself up for your most successful year yet. We want to partner with you to help you establish and manage your reinsurance program at your dealership. You do not have to write the plays yourself or reinvent the wheel. There are dealers all over the country who have been where you are, started their reinsurance company and their only regret is that they hadn’t started much sooner. We have the experience to help you be successful, so let us help you. If you succeed, we succeed. Give us a call at 804-824-9533 or email me at Taylor@DealerRE.com. I look forward to hearing from you soon. Happy holidays and a Merry Christmas to you and your family.