Centralized Collections

Instead of Centralized Collections, would it be better to have the individual dealerships collecting their own accounts? I'm interested in hearing thoughts from both sides.

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  • I honestly believe that the folks that sold the vehicle should be the folks that talk to  their customer when there is a problem.  Building good old fashioned relationships builds a stronger business.

    • Joyce Guest I think I wholeheartedly agree...thank you!

  • Centralized collections can unfortunately “hide” other problems on your dealerships.   I’ve seen collections performed in a number of different manners.

    Without a doubt, centralized is my least favorite manner because it blurs the lines of responsibility.  I’m convinced having the sales person collect the accounts he or she have sold is the best way to establish clear lines of responsibility and thus accountability. 

    It also gives your associates many, many opportunities to provide great service and earn repeat business from your existing customer base. 

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      • Jessica King
      • General Manager
      • Jessica_King
      • 2 yrs ago
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      Eddie Hight  I respectfully disagree.  Higher collections are the goal. This is how Banks and credit card companies operate, and for good reason.  The sales level of responsibility and accountability is the explicit duty  of the supervisors to enforce when needed.  I have worked both as a manager. Store collecting is negative and so many times, employed with low salary or hourly wages by employees who typically don't understand or care which expends entirely too much time of those who need to focus on selling. Collection Agencies are in existence for a reason, and as we move toward a younger generation of buyer's, the old style of coming to the store to pay a bill is slowly becoming something of the past. 

    • Jessica King Thank you for sharing your opinion.  You make some valid points.  I'm assuming you are the GM of a BHPH dealership which is part of a larger group of dealerships, and have experienced both methods of collections we are discussing.  I'm glad you have had success with centralized collections - you are part of an elite group -  as most dealers I have observed over the years have struggled with centralized collections.  What has been the secret to your success with centralized collections?  

      You are correct about the younger generations and bill paying habits.  It creates new challenges for establishing and nurturing customer relationships.  BHPH dealers must get more creative in giving their customers more reasons to come to the dealership.  Do you have any recommendations to share on this topic?  Thank you for your time Jessica.

  • We collect our own accounts at each store and I happen to think centralized would be better.  This would allow stores to focus completely on sales and inventory.

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