Looking for a Tag Agency? Five Key Questions to Make the Right Choice
You don’t have to look too hard to find a tag agency — they’re in every state. Finding one is easy, but finding the right one isn’t quite as simple. Of course, finding one that’s most cost effective seems pretty straightforward: just choose the lowest offer and you’re good to go, right?
Wrong.
If you really want to get the most out of your dollar, you have to look beyond price and truly compare all aspects of an agency’s services.
Asking some key questions can make the true value (or lack thereof) of a tag agency clear – and doing so doesn’t have to be hard. Try out these simple questions the next time you’re in the market.
Key Question #1: How long does processing take?
You know the drop-dead date for when your customer needs plates on his or her vehicle. Can the vendor meet your timeframe? And if not, what compensation will they offer?
Too many times, a vendor will say processing takes a certain number of days but doesn’t meet that commitment. And worse, the vendor doesn’t provide an explanation as to why they missed your deadline, nor do they offer allowances because of their mistake. Make sure you lock down these details before partnering with any tag agency.
Key Question #2: If a mistake is made, how will it be handled?
When a state agency rejects the forms you submit, your timeline suffers. That’s why it’s important that the tag agency you choose performs a proper review of documentation before submitting it. This allows them to identify and correct missing items and/or incomplete forms before a problem arises.
With a formal review process in place, the agency should take it upon itself to correct any errors. If for some reason a rejection happens because of information you’ve supplied, e.g., you’ve provided a wrong fed ID number, that correction should still be handled by the tag agency – and at no additional cost.
Key Question #3: Do they track processing and how is the information being shared?
Securing your assets is a big deal. As such, you should never be left in the dark. All of the information about your transaction should be transparent, and readily available to all parties involved.
Ultimately, a web-based system that allows you to log on and view every current and past order is best. If a web-based system is not available, the vendor should be quick to respond to a phone call and/or email.
Information about any delays or additional documentation needed should be handled proactively by the vendor. Reports should be available that help track volume and total spend, both with the vendor and the state, as well as broken out by state fee.
These reports will help you track trends and enable you to adjust your budgets based on your history of highs and lows.
Key Question #4: How are research questions handled?
Let’s face it, state regulations and tax amounts change as often as the seasons do – if not more so. A great benefit of working with a vendor is their ongoing relationship with state agencies. Establishing a relationship with a vendor should open the door to free advice when it comes to these matters.
While the ultimate decision about how something is handled is your responsibility, information should be available at no charge to you. Your time should be spent running your business and not online or on the phone researching questions your vendor should have quick answers for.
When you contact a vendor about specific transaction information, if they don’t have the answer for you at the time of the call, they should get the answers and inform you within a reasonable amount of time. They are the experts; let them do the work. It should not cost you any additional fees for information.
Key Question #5: Can you manage multiple vendors?
You’ve asked the questions and have found the right vendor for your business needs – in one state, at least. Now, one question remains: do you want to manage multiple vendors?
Every state has different title and registration requirements. And every agency handles these differently. Selecting one vendor for each state will require juggling multiple points of contact.
This can get difficult to manage quick – for every state you must know who to talk to about what, whether their systems will work with yours, and whether your accounts payable department will have to handle their invoices. Ultimately, this requires more back end work and additional expense for you.
The whole goal of using an agency for title and registration services is to take administrative hours off your desk. But using multiple state agencies puts many of those tasks back on your to-do list. It might be smart to consider working with a national agency, and cut out the work it takes both identifying and working with agencies on a state-by-state basis.
Working with one agency that has the ability to process in all fifty states will not only reduce time spent but also significantly cut expenses. When you establish a relationship with one nationwide vendor, they can learn to know your business needs and expectations inside and out. In turn, the vendor can better meet your needs as well as those of your clients. And, a national vendor can answer all of your questions and have processing open and available for you to track.
The Bottom Line
When it comes to processing titles and registrations in multiple states, the shortest line between A and B is likely a national vendor. You’ll see less administrative duties on your desk, and you’ll have a trusted advisor all along the way. Plus, you can apply these very same questions to choosing the right nationwide company for your business. Getting the right responses to every question will ensure you’re working with a company that will truly earn your dollars – and will keep your fleet up and running.
