Expenses that can Hurt a Dealer’s Bottom Line

Have you ever wondered where your money is going every month? Being in control of your business spending is an essential component to the health of your dealership. No matter how minor they may seem, expenses will quickly add up and if left unchecked, can eat directly into your profits. By taking the time to identify which areas of your dealership are generating the greatest charges, you can find ways to save money. Here are some tips on how to make sure you’re controlling your expenses:

Make Efficient Changes to Operating Costs – While certain expenses like rent and payroll for your employees may be fixed, there are other areas where you could be saving money. Doing simple things like installing LED lightbulbs and fixing leaky faucets can help keep your utility bills down. If you outsource services like lawn maintenance and snow removal, make sure you’re paying the lowest rate possible by shopping around for a vendor with the best pricing. While it may not seem like much, things like office supplies and break room snacks are also areas where you can save money by reducing waste.

Evaluate Your Technology Needs – Internet pricing can range anywhere from $35.00 to upwards of $500.00 a month and it’s easy to assume that the most expensive service is going to be the best for your business. But that’s not always the case, especially if you’re using older technology or don’t have multiple people online at the same time slowing down your internet speed. Make sure that you’re using your current service to its full capacity and if not, look into getting a cheaper service. Thanks to advances in technology, there are a lot of options available to you (DSL, cable or fiber) at different price points so you can find the right service tailored for your current dealership needs.

Optimize Your Advertising Dollars – Be money-wise when it comes to buying ads to market your dealership. Digital ads are a fraction of the cost compared to traditional print, TV and radio. You can also target specific types of audiences so that you know your ads are reaching the right customers. Use your social media channels to showcase your inventory and link to your dealership website where customers can start the buying process. If you need help getting started, there are several articles available online with tips and best practices on how to implement digital marketing into your sales process.

Re-evaluate Your Need to Travel – With so much available online, you should ask yourself if you really need to leave your dealership for certain purchases. Whether it’s picking up office supplies or buying inventory at an auction, you can save both time and money by buying online. Additionally, make sure that you’re keeping your personal and business travel expenses separate. It can be easy to write off a fuel receipt when you’re out running personal errands on your way back from an auction but keeping tabs on this type of spending is another way you can help protect your bottom line.

Save Time and Money – Time is one of your most valuable resources and you can’t afford to waste it. Make sure you’re delegating day-to-day tasks as much as possible to other employees if possible. You should also ask them for their feedback on ways to save money as they may have noticed additional areas you haven’t thought of. If you’re a one-man show, take advantage of tools you already have at your disposal like your email calendar and apps on your phone that you can use to set reminders and help you project manage. If you use a floor plan, NextGear Capital’s Account Portal can help you streamline your business by helping you to do things like clear audits and pay off inventory in real-time.

Just like creating a budget for your personal expenses, taking the time to thoroughly examine your business spending allows you the opportunity to make any needed adjustments to increase your profitability. And no matter how small the savings may seem, they can quickly add up to generate the same amount of additional income equal to making an extra sale each month, helping your dealership thrive.

Jaber Motors Forges Ahead

dealer on his lotWhen Ahmad Jaber started floor planning with NextGear Capital two and half years ago, he didn’t know much about the used car business. “My family owned and operated several grocery stores, but no one had ever sold used cars before, so I didn’t really know what I was getting into when I got started.” Despite his lack of experience, Jaber had already heard negative things about floor plans from other dealers, but after doing some research, he decided to use one from the start. “Even though I didn’t have experience using a floor plan, I viewed it the same way as using a credit card, you have to know how to manage it correctly to keep from racking up a bunch of fees, or you’re going to quickly get in over your head.”

Jaber started out with a modest inventory of 25 vehicles so he could take some time getting used to managing his new floor plan. “I think a lot of dealers who have issues with their floor plans take on too much too soon, so I wanted to make sure I was comfortable before expanding my inventory.” He also credits his Portfolio Manager, Walker Ruby with helping him to get up to speed quickly, “I love Walker and I’m not just saying that, he’s really been great and is always there for me when I need something.”

Now that his inventory has expanded to 150 vehicles, he said that using NextGear Capital’s Account Portal tool really helps him manage his inventory. “I use Account Portal every day. I like how easy it is to use and it allows me to access all of my account info quickly. I can also keep track of all of my inventory in real-time, so I’m never worried about missing a payment.”

Perhaps it’s Jaber’s ability to adapt that’s behind his ability to continue running his dealership successfully despite the current COVID-19 pandemic. “Once COVID started, I noticed a lot of dealerships around me stopped getting new inventory in, but I kept my inventory level the same. While we initially experienced a decline in sales for a few weeks, business quickly picked up again and I believe that part of the reason why is because we still had plenty of inventory available and our competition didn’t.”

While like everyone else, Jaber Motors has had to make some changes to their operations to ensure that their customers remain safe during this time, he also says that it’s helped to make their sales process more efficient. “We only take customers by appointment now and we have them complete as much of the paperwork as possible electronically before they come in to complete a sale. While this helps to reduce the risk of anyone getting sick, it’s also a real time saver for our customers and creates a better buying experience. We’ve always been focused on providing a high-level of customer service and if anything, we’ve been more determined to make sure that’s what we’re delivering.”

Jaber has also been a big advocate for using all types of social media to help advertise his inventory. “We’re on all the social media channels that the kids are on; Facebook, Instagram, Snapchat and we just got onto TikTok. As soon as the vehicles are detailed and ready to sell, they go up on our social media channels. “

When it comes to giving advice to other dealers, Jaber says that being able to adapt is key. “Don’t be afraid to try new trends and embrace technology. I think that’s what a lot of the Reedley area dealerships around me struggle with. I was always the guy that liked to go to the auctions before so I could ‘kick the tires’ on the vehicles I was going to purchase, so I completely understand how difficult of an adjustment that can be. I want to make sure that all the inventory I’m selling is safe for my customers to drive, and I felt like the only way I could ensure that was to physically inspect each vehicle I was going to purchase. However, I took this as a learning opportunity and I’ve gotten very savvy over the past few months at purchasing inventory online and now I know that by looking at the condition reports thoroughly, I still have that same piece of mind when I purchase a vehicle and I think other dealers will too.”

Despite all the changes and uncertainty over the past few months, Jaber hasn’t let it deter his plans for the future. “I recently bought some land and plan on expanding my business. My customers have primarily purchased vehicles that are priced $10,000 or less but I’ve also seen an increase in interest for a little higher end vehicle and I want to make sure that I have the room needed to expand my inventory options. Despite everything going on, the demand is still there and if I have 500 vehicles in inventory someday that would be amazing.”

4 Ways an Auto Dealer Floor Plan Can Help You

Car dealer speaking to a customer

Car dealer speaking to a customerBefore looking into the ways an auto dealer floor plan can help you, it’s crucial to understand the concept of a floor plan. The way they work are similar to credit cards. In the simplest form, floor plan financing acts as a “credit card” made to purchase inventory to keep their dealership stocked up for consumers.    

The auto dealer floor plan company extends a line of credit to the car dealer. The dealer can then use the line of credit to purchase inventory.    

So, how can a floor plan benefit you? 

#1: More Inventory  

Since floor planning relieves dealers from using their own cash to buy vehicles to stock their lots, dealers can purchase more and sometimes better inventory using their floor plan. With additional inventory, there will be more options for consumers, making sales more likely. Some auto dealer floor plan companies offer fewer purchasing limitations on inventory, making it easier to get the make and model of vehicle the dealer desires.  

The increase in cash flow will give the dealer the flexibility to use cash for other dealership improvements, for example a service center. Enhancements like this can serve as another profit center for dealers that want to find ways to generate more revenue.     

#2: Cover Unexpected Expenses 

While floor plans are known in the automotive world for providing dealers with additional funding for purchasing inventory, many dealers don’t know that they can also be used to support other areas of their business and cover unexpected costs. 

For example, dealers should take the necessary steps to ensure that their dealership is running as efficiently as possible. This may include making upgrades to their existing technology or even investing in new software. Floor plans can provide the funding to acquire the technology needed for dealers to remain competitive in a changing world. 

Dealers can also apply the additional financing they’re receiving from a floor plan to help support their sales and marketing strategy. Whether it’s investing in social media ads or advertising an upcoming promotion, funds can be allocated from a floor plan to cover the cost. 

 #3: Save Time  

Running a dealership involves a substantial amount of time an effort, and a dealer’s time is valuable. Auto dealer floor plans are designed to save you time.     

For example, dealers buying with cash have to take additional steps and keep track of paperwork at auction to ensure their new inventory is properly purchased. With a floor plan, dealers can simply bid and put the unit on their line of credit.  

Since there is a constant stream of buying and selling cars, dealers carry the responsibility of managing titles for a variety of different vehicles. Some auto dealer floor plan companies offer title services and innovative online and mobile account management tools. Dealers spend less time managing titles, which means less time spent at the DMV.   

#4: Increase Profits  

It’s commonly said that most dealers make money when they buy a vehicle, not when it gets sold. By using a floor plan financing, dealers will be able to see profit almost immediately after a unit is sold. If a $9,000 piece of inventory sells to a consumer for $11,000, dealers can pay off the original loan value plus any fees, all while having the flexibility to use dealership capital for other expenses.  

Some floor plan providers, such as NextGear Capital, offer the ability to guide dealers into making good buys.     

NextGear Capital dealers have access to the Manheim Market Report and Kelley Blue Book valuations from the convenience of the Account Portal. Dealers can use these resources to reassure they are making good purchases.  

Are you ready to start growing your business with a dealer floor plan? Feel free to give us a try by applying for a line of credit or letting us know if you have any questions or hesitations by contacting us or reaching out to your region’s representative.  

Social Media Basics for Auto Dealers

Dealer using social media

Dealer using social media

Research has shown that most car buyers start their search online. When you establish an online presence for your dealership, you can start attracting potential new customers. In this article, you’ll learn tips for using social media to help support your business. 

 Create a Business Account 

It’s important to create a separate social media profile for your dealership instead of using your personal account. Why is this important? The average consumer doesn’t want to see what you do outside of your work hours and it allows you to maintain some personal privacy. When it comes to promoting your dealership on social media, you always want to remain professional and on topic. If you already have a Facebook account, creating a business profile is easy. Here are some instructions on how to set up a free Facebook Business page. 

Build a Network 

Gain a following by sending invites to your friends, colleagues, and other professionals you know within the automotive industry. You’ll want some followers on your page before you start reaching out to customers, they’ll like to see others are already following you. To help gain followers, you can ask them to recommend your business to their friends and family. Politely ask them to invite people they know to follow your business page so when the time comes for them to purchase a vehicle, they will know who you are and can reach out to you. In addition, Facebook offers many local automotive groups you can join. These are great for connecting with people who live locally, love a specific car brand or vehicle model, or share the same interests as you do. When you join a group, you’ll gain access to a new consumer base who may not follow your page but will connect and chat with you in a more laid-back environment. 

Just make sure to follow the rules the group administrators set. Some groups allow advertising and others will not. If advertising is not allowed, offer advice and your expertise without selling and you’ll build a good rapport among the members. 

Post a Variety of Content 

A common mistake dealers make is trying to sell cars in every social media post. While it may sound strange, it’s a tactic that can cause people to unfollow you. We recommend posting frequently, but make sure you are posting a variety of content. 

Try posting vehicles for sale when you get fresh inventory, or if it’s a hot model that everyone wants. Take a few photos from different angles and include a personal note on why it would make a great purchase. If you want to sell cars through Facebook, use the Facebook Marketplace. 

The bulk of your posts should be to entertain and educate your followers. A “no sell” social media post could be a simple picture of your lot or showroom. Caption it with some positive news and tag any people who are in the photo. You can also share articles from trusted sources. There are tons of great automotive social media accounts and websites where you can find news stories about the brand you sell or just general automotive information your followers will enjoy reading. Here are some more ideas of social media posts for your dealership: 

  • Share Pictures or Video of Your Customers and Their Newly Purchased Vehicle– This is a milestone moment for them. Ask them if you can take a picture, or better yet, video of them getting in the car, that you can post to your professional social media page. Make sure you tag them! 
  • Post Pictures of New Inventory– Snap a couple of “beauty pictures” of new inventory on your lot, or a trailer dropping off inventory with a short caption. 
  • Office/Employee Celebrations– Do you have an employee celebrating a work anniversary? Shout them out on your dealership page! Also, consider participating in “fun” holidays, like National Donut Day. This will give your customers a look into the culture of your business. 

 Make sure you are responding to any comments on your posts in a timely manner. Social media allows people the instant satisfaction of contacting someone whether it’s through a comment, review or a private message sent to an inbox. When this happens, make sure to respond within a few hours. You never know, it could be the sales lead you were waiting for. 

To learn more social media basics or for industry tips click here. 

 

How Floor Planning Compares to Local Lenders

When dealers are looking to purchase more inventory or want to make improvements to their dealership, they will often need to secure additional funding to do so. While they may feel more comfortable working with a local lender they’re already familiar with, they should be aware that they might be missing things like access to other features that come with a traditional floor plan and can help them run their business more efficiently. Here are some ways that traditional floor plan financing differs from financing through a local lender:

Established Security – When you take out a loan for your dealership through a local bank, you may feel an added level of security because you’ve worked with them before on your personal banking needs. But you could also be making yourself more vulnerable to your personal assets being impacted by the health of your business because a lot of local banks will ask customers to use things like their home as collateral to establish a new loan. However, when you finance with a traditional floor plan company your personal assets won’t be tied together with your business loan.

Additional Tools – While you may like the simplicity of your local banks financing, you may also be missing out on opportunities to streamline your business. Floor plan companies like NextGear Capital know that there are many different aspects to running a dealership and that’s why they’ve created additional resources to support the independent dealer with their day to day needs. Tools like Account Portal allow dealers to manage their inventory, floor a vehicle, or release a title all from the convenience of their desktop or mobile device.

Transparency – Like a lot of independent dealers, you may think that part of the benefit of working with a local bank is that you won’t have to worry about the surprises that come with larger floor plan companies. What you may not realize is that a lot of local banks use traditional floor plans as their main lending option to dealers, and are just as susceptible to the same types of changes. That’s why companies like NextGear Capital know it’s important to provide straightforward information when it comes to a dealer’s terms or fees.

More Inventory Options – A lot of dealers will find that floor plans available through local lenders come with restrictions when it comes to the types of inventory they can sell, which is understandably frustrating when you’re looking for certain types of vehicles. NextGear Capital knows the importance of getting the inventory your customers are looking for and don’t have restrictions on things like vehicle models. Since they’re also a part of the Cox Automotive family, they’re integrated with Manheim Express which allows dealers to purchase inventory online from different auctions so they have access to a larger variety of inventory.

Customer Experience – It’s easy to think that when you work with a local lender you’ll receive a more personalized level of customer service. But when you work with a floor plan company like NextGear Capital you will have access to an entire staff of client facing team members, including a dedicated performance manager who can answer any questions you may have and ensure that all that all your business needs are being met.   

Don’t be afraid of getting out of your comfort zone to work with a floor plan company that’s designed to support the needs of the independent dealer. Contact us to find out more about how a floor plan can help support your business.

Caring During COVID: Part 2

During the past few weeks, NextGear Capital team members and clients have sought out ways to support their families, friends and community through the current pandemic. With all the negative news out there, we want to share some of their stories and bring you some “good news” to showcase how we’re all in this together:

Doing the Right Thing, Always

Two weeks before the COVID-19 outbreak forced many businesses to require their employees to work from home, I-35 Credit Auto dealer Tyson Heltzen had already sent all 15 of his employees home. He then completely shut down his dealership for 30 days out of concern for the safety of both his employees and customers. Heltzen also ensured that not only would his employees continue to be paid during that time, he also gave them each an additional $250 and purchased supplies for them including vitamins to help keep their families healthy. He continued to stay in contact each week, making sure they were all still doing well. When he decided it was safe enough, Heltzen slowly started allowing mechanics back into the bays one at a time but kept the dealership closed for a few more weeks. Now that the dealership has opened again, he continues to take extra precautions limiting the areas his customers and staff are allowed to access and makes sure they are wearing masks and gloves. Heltzen continues to go above and beyond to take care of his employees and help keep his customers safe.

Building Towards a New Future

Kathy Ward has been successfully running Ward Motor Company in Amarillo, TX since 2001 and had just started construction on her new building when the pandemic hit. Instead of getting discouraged, she made the best of the situation. Before the sheetrock went up, Ward invited her longtime customers who’d always been supportive to come to the new building and write scriptures on the studs so they would always be a part of the building.

Ward also continues to support the two military groups she’s a part of, Military Moms of Fort Jackson and Military Parents Operation Support. Along with other members, Ward sends letters and care packages to active service members who’re currently facing special challenges including increased time to their deployments due to the pandemic.

Creating Jobs in Puerto Rico

Carlos Muniz, a Field Assurance Specialist, has been giving back to his community by providing work to college students that have lost their jobs due to the COVID-19 pandemic. Along with his wife Zacha, a Bilingual Content Specialist, they’ve provided income for a little over 10 students from the University of Puerto Rico. Puerto Rico has had one of the strictest lockdown policies in the United States, including a 7 p.m. curfew in place since mid-March. The closing of businesses caused unemployment for many of the citizens living on the island, including those students who had been working part-time to afford food and housing. Thanks to the efforts of the Muniz family, at least 10 college students have been able to have a sustainable part-time job, working in agriculture while continuing to keep themselves and their loved ones safe, as they practice social distancing.

 

How a Natural Disaster Sparked the Idea for a Nonprofit

Steven Schneider is no newcomer to the automotive industry. He started out as an automotive detailer and has worked his way through almost all aspects of the industry. In 2012, he branched into automotive rental and sought out some financial help.  

“I started out with a competitor of yours to start floor planning vehicles. We were just getting started in a market that was unproven. The payments we were making were killing us, and we weren’t near profitability,” says Schneider. 

 About a year after struggling with the new business, a NextGear Capital employee reached out to Steven and got him setup with a NextGear Capital floor plan.   

“NextGear had better terms, and I was shocked at how smooth and simple the process was. It allowed us to survive the learning years and build up the company bank accounts.”  

In October 2017, tragedy struck Schneider, his family and thousands of others in Sonoma County, California. His house and everything inside were completely destroyed in the Tubbs Fire. They lost everything but remained grateful that they made it out alive.  

Because of this natural disaster, Schneider reached out to his lenders to make sure he had their support. Lenders that had once promised to help him, began reducing Steve’s lines of credit. “The only one who didn’t bail on me was NextGear Capital,” Schneider says. “While others were reducing my lines of credit, NextGear Capital doubled-down on me.” 

Not long after the fire, while Steve and his family were still living in a hotel trying to recover, he noticed a group of homeless people camped out along a river just yards away from the hotel. Seeing this sparked his desire to create shelters for the homeless. “If someone like NextGear can help me when I’m in need, then I should be able to pay it forward and help others.” 

This experience inspired him to start Homes 4 the Homeless, a nonprofit that provides low–cost modular housing created from shipping containers to victims of natural disasters.  When Steve shared his idea of turning shipping containers into homeless shelters with his Portfolio Manager, Robert Clark. Inspired by his story, Clark spoke to some of his NextGear Capital team members about the work Steve was doing and, NextGear Capital gave the organization its first donation. “NextGear not only stood by me and my business, but stepped up to the plate and gave my organization its very first donation- which we have framed and proudly displayed in our office.” 

He used the donation to launch the nonprofit’s marketing efforts and has successfully created a strong online presence which has caught the attention of news stations, celebrities and more. 

With the news of his nonprofit spreading quickly, Schneider knew he needed to find a shipping container supplier quickly. With more than 500,000 people estimated to live without shelter daily throughout the United States. Schneider says Homes 4 the Homeless has partnered with one of China’s largest manufacturers of shipping containers and have a supply chain able to deliver thousands of prefabricated modular homes in a timely manner. 

While Schneider’s vision of a complete village of container homes hasn’t been brought to life just yet, it will soon. Homes 4 the Homeless recently received their first order for 500 container homes! 

 At NextGear Capital, we applaud Schneider and his team of volunteers working tirelessly to bring Homes 4 the Homeless to life. We will continue to support their efforts to reduce homelessness across the United States. 

 Feeling inspired? Visit homes4thehomeless.org to find out how you can help fight homelessness in the United States. 

How to Move Inventory During COVID-19

Dealer looking at his inventory

Dealer looking at his inventoryThe COVID-19 pandemic has created a new normal for businesses, resulting in many independent dealers making adjustments to their sales strategies. One of the fastest growing adoptions for this group has been digital retailing which is currently being utilized by 47% of independent dealers.* This business model allows dealers to effectively manage their inventory while reducing the risk of exposure to COVID-19. Here are some tips for implementing digital remarketing tactics into your current business plan so you can continue effectively moving metal off your lot:

  • Reduce cost by monitoring inventory – If you’re using a floor plan, keep an eye on the number of days your vehicles have been sitting on your lot. In doing so, you can focus on offloading aged inventory first to help reduce fees and optimize profitability. Ben Footh owner of Footh Auto Sales in St. Paul, Minnesota says that he used the pandemic to make some changes to his existing business strategy including his inventory, “While my goal is to be aggressive and get vehicles off my lot as quickly as possible to avoid having to pay for extra fees or curtailments on my floor plan, I also want to be able to source new types of inventory so that if there’s a shift in market demand in upcoming weeks, I’ll be ready.”

 

  • Consider alternative ways to offload inventory – Dealers who previously relied on foot traffic are now considering new methods like wholesaling to offload inventory. Whether you decide to market a vehicle for wholesale or retail, you should be knowledgeable on the valuation of each of your vehicles and keep updated on any market changes due to increased competition. Being able to act quickly on a potential sale is a key tactic that dealers need to embrace to prevent inventory from sitting on their lot.

 

  • Invest in online tools – Besides embracing online auctions and posting inventory on your website, dealers need to utilize tools like the Manheim Express app which allows them to quickly and easily list vehicles to Manheim’s digital marketplace which has the largest digital buyer audience in the industry. Apps like these widen your customer base and create a user-friendly method of creating a digital listing, including 360-degree images and detailed information on each vehicle, expediting the sales process.

 

  • Keep an eye on vehicle demand – Consumers needs and preferences have shifted since the start of the pandemic. Vehicles that are priced $10,000 or less are expected to be in high demand through the summer as car buyers have become more budget conscious due to an unstable job market. Vehicles such as pickup trucks that consumers used to shy away from have also gained in popularity due to the significant decrease in the cost of gasoline over the past few months.

 

  • Investigate new revenue streams – Now is the time to consider offering additional services that may have once seemed like a luxury to help increase revenue coming into your dealership. Customers who are cautious of venturing out will gladly pay extra for services like mobile maintenance which is currently being offered by only 11 % of independent dealers.* This service allows customers to get maintenance like oil changes done without having to leave their homes. Deep cleaning or sanitization services are also quickly growing in popularity and can be an additional sales enticement for customers who may be on the fence when it comes to purchasing a used vehicle due to health concerns.

 

By staying on top of the latest trends and research you can make informed decisions that will both give your customers some piece of mind and also increase your chance of running a profitable dealership during this uncertain time.

*Source: 2020 Cox Automotive COVID-19 Dealer Impact Study

How This Dealer Found Success During COVID

Mikey Rudman has successfully operated Scottsdale Wholesale Direct out of Phoenix, AZ since June 2015, but realized he needed to get into another type of business while at a football game with friends. “I went to a football game in Denver with some of my colleagues and not one person was talking about the game. Instead, they were all talking about the camper vans they had just purchased.” Rudman said that while everyone loved their new camper vans, they weren’t thrilled with the hefty $100K+ price tag and 6-month build time it took before they were completed. He had already been thinking about making a change and when he realized he could take the vans he was already selling at his dealership and turn them into camper vans at a much lower price, he jumped at the opportunity. Tommy Camper Vans officially went into operation in December 2019.

His instincts proved to be right because a short while after opening, Rudman was approached by a customer named Rhylee for a custom build for her van. She was very specific about the things she wanted to incorporate into the build, including more storage space. Her build was completed in just 7 days and Rudman soon found out that Rhylee was a cast member from Bravo TV’s reality show Below Deck. She tagged Tommy Camper Vans on her social media accounts and in the course of a day, Scottsdale’s Instagram account views tripled. From those posts Rudman’s business received 102 inquiries about potential camper van builds including one from another Below Deck castmate, Captain Sandy Yawn. Tommy Camper Vans was also recently featured on Bravo’s “Style and Living” blog.

Circumstance was also on Rudman’s side because camper vans have significantly grown in popularity due to the current COVID-19 pandemic. “With the quarantine going on, people want to go out but don’t want to stay in a hotel or fly anywhere. They want to be safe and the best thing about the ‘van life’ is that you can still get away and keep your distance from other people. It’s not like an RV where you have to park in an dedicated space in close confinement around other RV’s. You can go off the grid, drive down to the creek or lake and just explore and unplug.”

Rudman also says that there are some key things that have helped him to be successful during the pandemic:

  • The ability for his customers to easily shop online by providing multiple photos and virtual tours of his camper vans.
  • Doing FaceTime walk throughs of the inventory he has available.
  • Widening his customer base by providing free shipping to customers who live out of state.
  • Financing assistance.

Despite his success, most of the proceeds from Tommy Camper Vans goes to nonprofit organizations. “I’ve donated to different organizations like St. Jude Children’s Research Hospital and the MS Research Foundation after I completed a build for a one of my best friends who was diagnosed with MS two years ago. I don’t care about having a lot of money so if a customer comes to me with a good cause, I’m willing to donate to that as well.”

With a 2-year-old and another baby on the way, Rudman is optimistic about the future. Since cornering the market on affordable $50,000 camper vans, Tommy Camper Vans has gone on to be the fastest growing custom van company in the world. To keep up with demand, he’s been looking into ways to increase production including the possibility of adding an assembly line to his operations at some point. He’s also working on adding Camper Van and Adventure Truck rentals to his business offerings sometime in the near future.

 

Caring During COVID: Part 1

(Photo taken Pre-COVID)

During the past few weeks, NextGear Capital team members have sought out ways to support their families, friends and community through the current pandemic. With all the negative news out there, we want to share some of their stories and bring you some “good news” to showcase how we’re all in this together:

A Neighborhood Brought Together

NextGear Capital’s Director of Portfolio Management for the North Central region, Lisa Long, has been busy supporting her community during the COVID-19 pandemic. She donated a small collection of laptops to Kingswells, a local nonprofit organization who assists families unable to afford a laptop. Kingswells provides students with the resources necessary to continue learning in their school’s new virtual environment.

Additionally, Lisa created a Facebook group for her neighbors to ensure residents are able to watch out for each other. In fact, 14 homes have shared their contact information so they can easily checkup on one another. Several people in the group are helping by providing meals and running errands for a neighbor who is paralyzed from a car accident and another who’s currently undergoing cancer treatment. Long has also put together a special senior day for a high school student who is missing out on her high school graduation. Working alongside neighbors, Long was able to decorate the student’s house, collect cards and get flowers and a cake so she can still celebrate while at home with her family.

Weathering the Storm

After a tornado ripped through the Nashville area on the morning of March 3, several local businesses, schools and homes were left decimated, changing lives forever. One of the businesses impacted was Williams Auto Sales in Cookeville, TN., a family owned, multi-generational business. The dealership and all of its inventory was completely destroyed during the tornado. Despite these tragic circumstances, the family spent time helping their local community sort through the debris while trying to put their own lives and business back together.

NextGear Capital Portfolio Manager Eli Thompson has been in close contact with the dealership over the past few weeks, and fortunately, the family has been able to secure a new location in the same area and has reopened. Even amidst the current pandemic, Williams Auto Sales was able to resume its operations and business looks good as it navigates toward a new normal.

Helping Those in Need

When Don King, a Portfolio Manager from Toledo was first hired, he accompanied a group of NextGear Capital team members to the Ronald McDonald House in Indianapolis to cook breakfast for families. He was immediately overwhelmed by how rewarding the experience was after seeing how grateful the families were. In fact, many shared that this simple gesture allowed them to send more time with their children when they needed it most.

As a direct result of this experience, King went on to become an active volunteer with Toledo area nonprofit 33 for Charity. 33 for Charity is a group made up of 45 local businessmen who donate both their time and money to give back to several charities within their community. This year, due to the effects of Covid-19, they took up a special emergency collection and made two separate donations to the Connecting Kids to Meals and Seagate Food Bank of Northwest Ohio organizations totaling over $3,000.

King also volunteers at Hospice of Northwest Ohio where he provides companionship to patients who’ve been placed in hospice. He also provides relief for their caregivers which enables them to run errands and still attend their own appointments. Due to the current pandemic, he’s had to make some adjustments, including limiting interactions to phone calls, but remains committed to ensuring his current patients remain unaffected by COVID-19.

We know that not all heroes wear capes! Be on the lookout for the next episode where we will feature more team members who’re doing good things during this difficult time.