It’s the Process, Not the Products

Greg Hoffman is the head of Mansfield, Massachusetts-based Resources Management Group, an 18-person agency he co-founded in 1971. Like most of his staff, he spent several years working full-time at a dealership before jumping into the agent arena.

Hoffman believes that his experience in the trenches made him a better agent, and he believes the current conversation about the relationship between dealers, agents and product providers and administrators should be focused squarely on the dealerships they all serve.

“You have to have an appreciation for what the dealer has to go through,” Hoffman says. “Low margins means no room for errors, and you have to be willing to manage dealers’ expectations. Success depends on the dealer’s commitment to training and processes.”

To that end, Hoffman rarely uses the term “product provider.” He tends to refer to “structure providers” and “process providers,” and he looks for potential partners among companies that share his philosophy.

‘True Rights of Ownership’

Resources Management Group focused mainly on credit insurance before taking “a significant leap of faith” into the vehicle service contract business in the early 1980s. Several years later, the company diversified further by adding a reinsurance program, which is now their core offering.

Throughout the company’s evolution, Hoffman was determined to stick to his “True Rights of Ownership” policy. The owners are the dealers, he explains, and the providers and reps must always act in the dealers’ best interests.

“We tell our prospective partners, ‘Our dealers’ rights are non-negotiable,’” he says. “It’s a unique approach, but it works well. We deliver all the benefits the dealers should receive, and we all benefit from the long-term relationship.”

Hoffman believes that relationship should include ongoing, in-dealership training, as well as the willingness to offer objective advice. He believes that independent agents are in a unique position to provide both.

“As an agent, you must be very candid,” Hoffman says. “Clearly define what you’re willing to do for your dealers and your expectations of providers.”

F&I in the Digital Age

Hoffman recalls that, when his agency was founded, agents typically carried two or three products. Now, he says, 20 or 30 is more common, and multiple administrators are inevitable. The proliferation of products and agents has increased competition, and Hoffman appreciates the efforts both sides have made to keep up. But he doesn’t put much stock in the current debate over the state of electronic contracting and rating.

“It’s still just data,” Hoffman says. “E-contracting and e-rating offer better speed and more accuracy, and that’s one piece of the puzzle. But, like I always say, a talented F&I manager, sales manager or service writer without a computer can still beat the computer any day.”

He says the current debate over new technology reminds him of the advent of online retailers. Many predicted they would drive traditional dealers out of the business; now, that prediction has been turned on its head: Car sales still tend to depend on location, and brick-and-mortar stores are the “validation point” for online sales.

Hoffman says he will continue to embrace technology that benefits all parties, as well as car buyers, and he’ll stick to his tried-and-true philosophy for bringing on new partners.

“I can’t control whether an insurance carrier will stay in business,” he says. “But if our role is to provide a real value proposition, I’ve done my part.”