Tag Archives: BEBdata

Using BK Data to Sell Cars – Case Studies

A local dealership has been using our Lead Program for over 20-years.

Our Bankruptcy Leads help them sell an average of 15 additional cars a month.

They spent less than $60K (including postage) and generated over $360,000 in profit last year using our Bankruptcy Program.

We just completed a test program with another local dealership. We mailed 1,526 letters to people recently discharged out of bankruptcy. That generated 11 calls from 8 prospect which resulted in 3 cars purchased. That’s a 37.5% close rate! Cost per closed deal, including postage was only $522.

Our Special Finance Lead Program Works!

 

The USPS Holiday Heist

U.S. Postal Service Announces Proposed Temporary Rate Adjustments for 2021 Peak Holiday Season

WASHINGTON – The United States Postal Service filed notice the Postal Regulatory Commission (PRC) regarding a temporary price adjustment for key package products for the 2021 peak holiday season. This temporary rate adjustment , which was approved by the Board of  Governors Aug. 5, will affect prices on commercial and retail domestic competitive parcels – Priority Mail Express (PME), Priority Mail (PM), First-Class Package Service (FCPS), Parcel Select, USPS Retail Ground, and Parcel Return Service. International products would be unaffected. Pending final approval by the PRC, the temporary rates will go into effect on Oct. 3, 2021, and remain in place until Dec. 26, 2021.

The planned price changes include:

Priority Mail, Priority Mail Express, Parcel Select Ground and USPS Retail Ground:
• $0.75 increase for PM and PME Flat Rate Boxes and Envelopes.
• $0.25 increase for Zones 1-4, 0-10 lbs.
• $0.75 increase for Zones 5-9, 0-10 lbs.
• $1.50 increase for Zones 1-4, 11-20 lbs.
• $3.00 increase for Zones 5-9, 11-20lbs.
• $2.50 increase for Zones 1-4, 21-70 lbs.
• $5.00 increase for Zones 5-9, 21-70 lbs.

A full list of commercial and retail pricing can be found on the Postal Service’s Postal Explorer website https://pe.usps.com/text/dmm300/Notice123.htm

First Class Postcards Just Got Bigger

On July 28, 2021, the Postal Regulatory Commission (PRC) approved increasing the size limit for a Presorted First-Class Mail (FCM) Postcard. The new 9″ by 6″ maximum size card has a slightly different minimum thickness of .009″ compared to the previous  maximum size dimensions of 6″ by 4.25″ with a minimum thickness of .007″. (The minimum .007″ thickness still applies to cards less than 6″X9″).

Previous dimension restrictions made it easy for First-Class Postcards to “get lost” in the mailbox as larger pieces pulled away attention, and marketers didn’t have the needed space to sell products or services. The Postal Service argued that the proposed change would make the First-Class Postcards more valuable by creating new opportunities for marketers and nonprofits to take advantage of technologies such as QR codes and variable personalization making them even more effective.

Being able to send larger cards using First-Class Postcards rates will also give mailers faster delivery service circumventing the recent reduction of delivery standards recently implemented.

See the size comparison below:

Gathering Data on Your Customers & Prospects is Changing

In the past, dealerships haven’t considered using their customer data as a source for advertising. That data was primarily used for sales follow-up calls or service inquiries.

That’s because third-party cookies (small pieces of text sent to your browser that remembers information about websites you visit on the internet) are becoming extinct. Privacy regulations and laws are driving digital giants to stop the use of them. Apple’s latest update allows users to opt out of ad tracking, Firefox and Safari have already stopped storing cookies, and Google will phase them out of Chrome by 2023.

The loss of cookies will make it more difficult to target people who previously visited dealership’s websites making digital ads less personalized.

The good news is that dealerships have a treasure of data of their own. Customers’ emails, addresses, phone numbers, details of their automobiles and more. This data is collected through CRM systems and dealership websites. It’s known as first-party data.

Social media companies can continue to track their user activity within their own platforms which helps to build an audience and allow for retargeting through advertising directly through the platform such as Facebook or Instagram. Social media is facing extreme challenges with the newly introduced privacy options as Apple user opt out of ad tracking, social platforms lose their ability to identify their user locations.

With the recent change in size regulation for First-Class postcards (from 6 X 4.25 to 6 X 9), dealers are beginning to revisit direct mail.

Data compilers can help to “fill in” missing data from dealers first-party data through a reverse append. You provide us with your data, name/address/city/state/zip and we can append phone numbers, email addresses, and run the data through cleansing software that will update records based on the National Change of Address Database, standardize the address information, and check the addresses for accuracy.

To learn more about reverse appends contact us today.

Consumer Bankruptcy 10 yr Comparisons

In 2000, 1.2 million people filed for bankruptcy compared to 1.5 million in 2010. That was a 26.2% increase. The chart above shows comparisons, by year, for a decade. 2001 – 2005 compared to 2011 – 2015 showed significant decreases, up to 59.8% between 2005 and 2015. 2006 compared to 2016 showed a 28.9% increase in filing, then the reduced number of filings trend resumed.

BK Filings – A Tidal Wave on the Way?

So far, a surge of personal bankruptcies has been avoided during 2020 and to date, bankruptcy filings are trailing last year’s numbers.

Even though the federal stimulus payments and other government programs most likely have a lot to do with 2020’s decline in consumer bankruptcies, it could also be attributed to people borrowing less. However, consumer bankruptcies are likely to rise if unemployment and income loss continue.

Some industry experts forecast a “tidal wave” of filings starting in the fourth quarter of 2020 and gaining momentum after the first of 2021.

Mortgage forbearance nearing its end could also be the start of a significant bankruptcy filing surge. You remember that part of the CARES Act allowed homeowners with federally backed mortgages to stop making payments for periods of six months, with a possible extension of six additional months. Starting as soon as October 1, affected homeowners will not only have to resume payment, but banks could demand immediate make up of all missed payments.

Depending on how lenders work with those who exercised the deferral, a wave of Chapter 13 bankruptcies could begin. Chapter 13 allows debtors to set up a repayment plan usually allowing three to five years to catch up on payments.

Bankruptcy booms have happened in the past but it’s unlikely that even Covid-19 could produce anything like the historical peak of filings in 2005. In October of 2005, a new law, the Bankruptcy Abuse Prevention and Consumer Protection Act, went into effect. Because it was seen as less favorable to borrowers, people rushed to court before the law’s effective date resulting in a short-term surge of filings. Soon after, filings dropped (significantly) and stayed low until the housing bubble began to collapse in 2007. The next peak was seen in 2010 as foreclosures skyrocketed.

In any case, looking for trends in this unprecedented time may be futile, as nothing is normal during the “new norm”. We will continue to keep you abreast of current trends as they unfold and share industry analysis and forecasts through our weekly blog.

Up & Down – Which RE Markets Get Hit

A recent UBS report says that housing prices in areas where the economies depend on leisure and hospitality will be under greater pressure than other areas. The report mentions Las Vegas, Miami and Orlando, which were some of the more disastrous markets during the subprime crisis.

Home prices were hot at the start of 2020. As we muster through the pandemic, gains in values will likely slow. However, prices are not expected to fall nationally. There is a severe shortage of homes for sale which is unlike the subprime mortgage crisis. Home values fell as much as 50% in some markets 10-years back. Now, the supply-demand imbalance favors stronger prices.

Although numbers are still rising compared to 2019, (in the first two weeks of March, new listings were up 5% annually on average), slower gains are indicative to the current market, (the second week of April, new listing were down 47%). There has also been a slowdown in asking prices. In early March, median list prices were, on-average, up by 4.4%. The first half of April reported the slowest growth in seven years with an increase of just under 1%.

Consumer Debt Going Up

U.S. consumer debt grew in February by the most in seven months with a rise in non-revolving loans, prior to the coronavirus pandemic.

Federal Reserve figures showed a $22.3 billion increase in total credit from the prior month.  Non-revolving debt, which includes auto and school loans, rose by $18.1 billion — the most since 2015 — while revolving or credit-card debt was up $4.2 billion.

The pandemic has quickly spawned financial hardships for many in the US. Uncertain incomes means that consumers are likely to begin to cut back on purchases and borrow less.

Household credit has been expanding over the past few years at about the same pace as it was prior to the 2007-2009 recession.

Nearly 40 Percent of Americans Plan to Use Stimulus to Pay Debt

720 System Strategies surveyed more than 80,000  students in their credit-score improvement program, many of whom lost thousands of income dollars due to the Corona-virus. 34.95 percent plan to spend their one-time stimulus check and twelve-week unemployment benefits on paying down debt.

In a recent Yahoo! Finance blog, CEO and Founder of 720 System Strategies, Philip Tirone is predicting that the number of 2020 Consumer Bankruptcies will skyrocket past the 2010 high of 1.5 million.

Used Car Market in “Strange Moment”

Click here to check out this excellent recap of the Used Car Market by our friends at Automotive News.

For the week ended April 12, wholesale auction volume totaled just 19,000, an 83 percent drop from the pre-virus weekly average, according to J.D. Power. Retail used-vehicle sales during the first 12 days of April for franchised dealers tumbled 63 percent vs. the same period in 2019. J.D. Power now forecasts used-vehicle prices to fall 7 percent through June before beginning to recover — though Jonathan Banks, vice president of vehicle valuations and analytics, notes the outlook is fluid and contingent on a gradual recovery in the back half of the year.