Transforming a cost center into a profit center

We're announcing something today that's pretty exciting for the company because we think it's kind of a "game changer" in one of the channels we serve. It's a new solution for the buy-here pay-here (BHPH) market that we call Recover It.

For the uninitiated, BHPH dealers sell cars to credit challenged customers and, in many cases, will put a device like ours on the car to make sure the customer pays the loan. If the car owner misses payments, our device can be used to send a payment reminder -- in the form of an annoying buzzer everytime they turn on the car -- or to interrupt the starter. In the worst cases, the dealer can use the GPS to track the vehicle and recover it.

We've been in the BHPH market for several years now, but haven't had an amazing amount of success primarily because we sell on value rather than price. Our device works very well and provides a number of functions that other devices don't. Still, lots of BHPH dealers think we're "too expensive" because we cost a a couple bucks more and devices like ours are a necessary evil they don't want to spend money on.

That's why we're psyched today because we've got a new solution that turns this "cost center" into a potential profit center for BHPH dealers. Recover It is a new GPS-based solution that provides payment assurance technology, but also allows a dealer to sell highly valued stolen vehicle recovery services to credit challenged customers.

Werner Scherz, who runs our finance and BHPH channels, puts it this way: “There’s no shortage of companies that can make a low-priced black box with GPS capabilities and $0 in monthly fees. By adding highly valued services into the mix, we've created a total solution that can be a profit center for dealers rather than a cost center. Most importantly, the customer gets some great benefits, including Guidepoint’s award-winning stolen vehicle recovery service and, in many cases, a discount on auto insurance. This is truly a win-win for both dealer and customer.”

The cool thing is that we're one of a handful of companies that can actually do this. Since we launched in 2002, we've been doing stolen vehicle recovery. We're really good at it. The company has a 98 percent recovery rate, with most vehicles recovered in less than two hours.

“Working with law enforcement to provide safe, effective stolen vehicle recovery service is something that takes years to develop,” said Rand Mueller, founder and chief executive officer. “Guidepoint has invested in fully staffed 24/7/365 response centers in Dallas, Detroit and Mexico that work with law enforcement every day to safely recover stolen vehicles across the country and in Central America.”

Werner is out in Las Vegas at a conference for BHPH dealers today and tomorrow to introduce Recover It. Should be an interesting couple of days for him.

Analyst report touts Guidepoint

Here's an interesting post by an analyst at a company called Strategy Analytics.   He really seems to "get" where our industry is going, and he's pretty much right on target about how we're trying to compete against Lojack.

We've never made it a secret that we compete with Lojack.   While they've been around for more than a quarter century -- compared to about a decade for us -- we believed that we've "built a better mousetrap" with Guidepoint.  Our technology is better (in our humble opinion) and we have spent a lot of time and energy developing our service by working with law enforcement around the country.   Take a quick read of the report...it's pretty insightful.

GPS helping car dealers locate new profit centers

Over the past decade, Guidepoint has established itself as a leader in consumer services for vehicle owners, including stolen vehicle recovery, tracking and convenience services. We've won awards from global firms that track the industry and have gotten plenty of media write-ups about recovering stolen cars and helping out our customers.

While recognition from analysts and reporters is nice, we know that the opinions that matter most are those of our customers and, to be perfectly frank, the car dealers who sell our products. Since our launch in 2002, we've worked with thousands of car dealerships across the country to sell, install and service Guidepoint units in customer vehicles around the U.S. They make a fair profit and are never shy about giving us feedback on the product and our services. In fact, many of them end up using Guidepoint on their dealership vehicles (e.g., parts trucks, loaner cars, etc.)

That's what's lead us to expand the range of services we can offer from "consumer" to "business-to-business" services. Today, Guidepoint offers a complete suite of services to assist car dealership and automotive finance companies enhance their profitability, including payment assurance devices, lot protection, loaner car protection and more. Dealers and finance companies can learn more at www.gpsdealersolutions.com or by calling 1-877-477-3463 for more information.

Sales team expands with NY, NJ rep

We're announcing another addition to the team today: Ralph V. Castronuovo, who's joining the company as sales manager for the New York and New Jersey markets.

Ralph has been around the car biz for a number of years, working both in the aftermarket parts business and the auto loan industry. At Guidepint, he's going to be responsible for developing our business among new vehicle dealerships as well as dealerships and finance companies specializing in pre-owned vehicles.

Prior to joining Guidepoint, Castronuovo was Eastern Regional Account Manager for El-Segundo, Calif.-based National Payment Network, Inc. He brings considerable sales experience in both aftermarket products and automotive financial services, including work with several top-tier dealer groups in New England and the Mid-Atlantic states. Previously, he was a senior account executive at Union, N.J.-based Auto Action Group, Inc.

Rich Zeichner, our veep of sales, had this to say: “We’re very pleased to have Ralph join the Guidepoint team. His background in automotive financial services and aftermarket products is a perfect combination for helping dealerships understand the solutions Guidepoint offers, including stolen vehicle, tracking, payment assurance and fleet management. As dealerships look for ways to increase their profitability, Guidepoint offers them a unique solution that is easy to sell, easy to install and easy to administer.”

Welcome aboard, Ralph!

Growth = opportunity

One of the great rewards of working at an emerging growth company is watching people develop - and being able to give them new opportunities. Today's blog is about one such opportunity because we're getting ready for a growth spurt at Guidepoint.

The next few months ought to be pretty interesting at our primary call center in Fort Worth, Texas. The addition of new products and services for two new automotive OEMs is going to cause a significant uptick in activation, tech service and service calls for Guidepoint.

Fortunately, the guy in charge of our services, Clyde Landis, is way ahead of the curve in terms of planning, hiring and execution. He's in the process of hiring more activation specialists to handle increased volume that we should see throughout the summer and fall months. In order to properly hire, train and manage a larger team, he's promoted Pam Bilbrey to the post of Inside Sales Manager, effective June 14. Pam's been with the company for a couple of years and has proven herself in a variety of roles.

Here's what Clyde says about his new inside sales manager: "Pam brings a wealth of sales experience to the table; we all have seen that. But, she also has great judgment and a unique ability to train and develop talent regardless of skill set. Take a few minutes to congratulate her now while she can appreciate it; as of June 14, she won’t have the time."

Congrats Pam!

Global research firm honors Guidepoint

Later today, the global research firm Frost & Sullivan will be announcing that Guidepoint has been given the 2010 North American Frost & Sullivan Award for Customer Value Enhancement. The award recognizes our work to establish Guidepoint as a preferred vehicle tracking solutions supplier to both OEMs and the aftermarket in North America.

We're pretty stoked to receive this honor, especially when we were selected from others in the industry -- including some much larger and much older competitors, as well as the plethora of small companies that sell black boxes and pings.

“While there are some aftermarket suppliers for vehicle tracking systems, they are either too small to offer comparable benefits to those offered by GuidePoint or are geographically limited,” says Frost & Sullivan Research Analyst, Ratika Garg. “Besides end users, GuidePoint offers benefits to distributors and installers as well since the system is easy to install and can be reconfigured quickly and cost-effectively based on customer demand.”

Frost & Sullivan found a number of noteworthy features in Guidepoint's technology, including the fact that it's easily programmable, our new Smartphone apps and our power management. The report on the research award note: "The GuidePoint device is easily programmable and new features can easily be rolled out to existing customers by making changes to the software through wireless downloads to the unit. The configuration is such that functionalities and services can be adapted to customer needs, making the system highly customizable.

The company offers applications for users of smartphones such as the Droid®, iPhone®, and the Blackberry®. An innovative element of the GuidePoint system is that all antennas are embedded within the device, which makes the installation process robust and simple. Another innovative element is power management. The GuidePoint device draws minimal power from the vehicle, resulting in a highly energy efficient product. Further, focus on quality remains strong. The GuidePoint system is EMC-tested and is expected to last virtually the entire life of a vehicle. GuidePoint installers are trained directly by the company and accredited. Master technicians are brought into GuidePoint, trained and given certifications, ensuring a consistency in service delivery."

Our CTO, Tom Gafford will be receiving the actual award, but we all know that the trophy is just really a symbol of the hard work by our research, product development, marketing and customer services teams.  To everyone on the Guidepoint team, take a bow.

Pushing for Money, Not Just Metal

Here's a nice Q&A from Auto Remarketing News with Werner Scherz, who runs our finance and buy-here pay-here (BHPH) channel for Guidepoint. He makes some great points in here relative to using GPS systems for credit challenged customers.

The reality is that lots of dealers sell black boxes to BHPH dealers and finance companies with the pitch of: "We're cheap, and if the customer skips, you can use our system to get the car back."

Our approach is different. Our SurePay solution is based on the notion that dealers don't really want the car back from the customer. What they want is for the customer to pay their loan every time a payment is due. Our system offers a multi-step approach to changing behavior and getting customers to pay, including payment reminder and starter-interrupt functions as well as a regimen that's proven to work. Take a read.

Tech support team gets MECP certified

Many of us at Guidepoint have been around the mobile electronics business for several decades, and we know there is one thing you can always count on: technology doesn't always work.

There are lots of reasons why a product fails to deliver the expected performance, whether it be user error, installer error, product defect or my personal favorite: gremlins. When things don't work, we try to take an immediate and practical path: "Fault is irrelelvant. What's relevant is fixing the problem."

Enter our tech support team. Lead by James Wood (or "Woody" as he's known to everyone), Guidepoint's tech support team is really a customer-service unit in disguise. When stuff isn't working, they diagnose, advise and help fix the problem as quickly as possible. To that end, Woody has put his team through the paces of becoming MECP certified under the Mobile Electronics Certified Professionals program. Each of them has spent time in the classroom and under the dash to learn all the "what can go wrongs" in an installation and help create "Best Practices" for installers around the country. Currently, we have six MECP certified techs on staff that work 'round the clock.

"If a consumer has a problem in the middle of the night, we need to be able to assist," Woody explains. "Our products and services are evolving constantly as GPS and wireless technology advances, and vehicles are becoming more and more computerized. MECP certification provides an installer the necessary knowledge to integrate aftermarket accessories into today’s complex vehicles. This also proves to employers and customers that you have a professional commitment to expanding your knowledge of the job."

Tech support members include, Stephen Escamilla, Cesar Salas, Blake Mize, James Woody. There are also two employees on the graveyard shift (11 p.m. - 7 a.m.) that took part in the MECP training: Bryan Martinez, Chris Okon.

Another smartphone app - for Google's Android

Today, we're announcing the launch of another service-based app for smartphones, specifically the ones that run on Google's Android® operating system. The best-known of these smartphones is Motorola's Droid®, but the new Guidepoint App works on any of the other smartphones that run on the operating system.

Like the app we created for the iPhone, this new one is a service-based app that can be downloaded for free and allows users to control their vehicle or gain access to a variety of location-based services including stolen vehicle recovery, driving directions, emergency help and other assistance.

Guidepoint’s app uses a smartphone’s built-in GPS technology and its wireless connectivity to deliver the phone’s exact location to Guidepoint. Once the app is activated, users can set up an online account with Guidepoint and access services with just a few touches of their Droid screen.

Our CTO, Tom Gafford, said this: “We’ve designed our Android app so that users can quickly and easily access our 24/7365 response centers. The integration of our services with the available technology on the Droid and other smartphones that run on the Android operating system lets us quickly deliver whatever the customer needs to his or her exact location.”

Rand, our CEO added this: “The new Android app extends the availability of our award-winning services, which we’ve developed over the past decade. It’s another great example of why we focus on being a service company rather than a technology company. As manufacturers of unique technologies such as the smartphones continue to develop new technology, we want to partner with them to deliver innovative, highly valued services to consumers and business owners.”

Bottom line, we're beginning to leverage our capabilities as a service provider with smartphone apps, as well as some other projects we're working on with radio-nav suppliers, GPS companies and other technology makers who want to differentiate themselves in the marketplace. Things are going to get interesting here in the coming months.

Guidepoint for iPhone: A Service App

For years, we've been working under the premise that Guidepoint is a service company, not a technology company. Yes, we've got cool technology, but it merely enables us to provide the services customers value such as stolen vehicle recovery, emergency assistance and roadside help. The GPS part of the equation lets us deliver those services based on the vehicle's pinpoint location.

For the first 10 years of our existence, we've always provided the GPS technology through our propietary hardware and software...until now. We have launched a Guidepoint app for Apple's popular iPhone and, unlike similar GPS-based apps that have been introduced thus far, we're offering more than just tracking.

Yes, Guidepoint owners can use the iPhone app to locate and control their car, but here's the rub: You don't need to have a Guidepoint in the car to access location-based safety and convenience services from our response centers. If you're an iPhone owner, you can set up an account and then we'll use your iPhone's built-in GPS capability to deliver services to you.

It's a one-touch proposition to reach our call center, and we'll have the GPS reading of your iPhone by the time you've said, "Hello." From there, we can help you out with directions, concierge services, emergency dispatch, towing...whatever you need. (Yes, there is a fee for services, but it's nominal). You can check it out at the iTunes store.

GPS for Powersports Redux

About 15 months ago, we announced Guidepoint for Motorcycles, which represented a leap into a new market for us. Most of us here at Guidepoint are, frankly, car guys who've grown up around the auto business. So we figured that our GPS-enabled theft recovery device for cars would work equally well on bikes, ATVs and other powersports vehicles. Suffice to say, we learned pretty quickly that it worked "good enough" but that "good enough" was not what the powersports market was looking for. They wanted excellent performance, durability against the elements and, of course, a very competitive price point.

So we went back to the drawing board and designed a new GPS-enabled box that's built specifically for bikes and powersports vehicles. We're introducing it today at the SEMA show in Las Vegas (Booth #38058 if you're here) and calling it Guidepoint Xtreme. It's water-resistant, dustproof and features the latest in advanced power management.

Exposure to the elements and dead batteries can render an otherwise adequate security system inadequate. The new GPS Xtreme features expanded water-resistancy so it can be submerged for up to 30 minutes. The unit’s casing is also dustproof to protect its electronic components from even the tiniest particles of dust.

GPS Xtreme also features the latest in advanced power-management, which allows the unit to draw as little as 50 microamps of power without sacrificing a moment’s protection. If the unit senses motion, it immediately enters full-power mode and sends an alert to Guidepoint’s 24/7/365 response center.

Here's our CEO's Rand take on it: “Theft of motorcycles and powersports equipment is an epidemic. We’ve designed the new GPS Xtreme to protect against thieves by making it the most advanced system on the market in terms of reliability, durability and the latest in GPS technology. By combining it with our 24/7/365 response centers, we can respond to thefts and tampering quickly and with pinpoint accuracy.”

Guidepoint Connect getting noticed

Lots of interest in the media and blogosphere about the new Guidepoint Connect. Check out stories from popular tech blogs like engadget, ubergizmo, nexus404, gadgetorium and phonemag (doesn't anyone use caps anymore?), as well as general blogs like cars for girls, I4UNEWS, Slippery Brick, TechBlips and SlashGear. Have also been doing some interviews with both the trade and the general media about Guidepoint Connect as part of our effort to get the word out on this cool new product.

You can read the original release and see the online photo posted on the wire services here.

Bluetooth+Service+GPS = Guidepoint Connect

We're very proud to announce Guidepoint Connect, which we believe to be the first-ever Bluetooth kit that comes with free emergency dispatch and roadside assistance services. It's designed specifically for vehicles and can be mounted on a largely unused piece of real-estate in the car -- the steering column.

Here's how it works: It's a pretty standard Bluetooth kit with a dial button and a hang-up button. But it also has two other buttons that connect the caller to Guidepoint's services. The first button, which has a phone on it, connects the driver via Bluetooth/hands-free call to our 24/7/365 response center. The second button, which has a cross on it, can be integrated with a Guidepoint GPS tracking unit(sold separately) so the driver can send a panic alert to our response center. As soon as we receive the alert, we track the vehicle's pinpoint location and call out to the driver immediately. If we don't reach the driver, we send emergency help.

A few years ago, a friend of mine rolled her SUV and her phone flew into the back of the truck. With Guidepoint Connect, she could have pushed a button and made a hands-free call, then had us dispatch help to her location using the GPS unit. That kind of integration between Guidepoint Connect and our Guidepoint GPS tracking units is kind of what lead us down this path in the first place and one of the reasons why we refer to it internally as "OnStar® for everyone else." (OnStar, of course, is owned by General Motors and is factory equipment on most GM models, so the "everyone else" refers to owners of non-GM cars and trucks.)

We've also designed a slick piece of wireless capability into the unit - we call it "Clear Connect" - that allows an iPhone® user to connect wirelessly to the Guidepoint unit to play music over the vehicle’s stereo. The unit can also be used to control portable music devices (e.g., iPods, MP3 players).

Our CEO Rand said this in the press release: “Guidepoint Connect is much more than just an exceptional Bluetooth kit – it’s a tool to make driving safer, easier and more convenient. As more and more states enact and enforce driver distraction laws, we believe Guidepoint Connect will be a great accessory for driver safety and convenience. Additionally, by offering ‘one-touch-then-hands-free’ services such as emergency dispatch, driving directions, towing and concierge services, we can help drivers focus on the road, while we do the work. We are confident that the combination of Guidepoint's driver services and advanced wireless/GPS technology with Brandmotion's Bluetooth technology will allow us to offer a superior aftermarket-installed product.”

Guidepoint Connect is being launched at new-car dealerships and through retailers of mobile electronics. Manufacturer’s Suggested Retail Price for the Guidepoint Connect is $399 (exclusive of installation fees). The cost of the unit includes free E-Call™ service for emergency dispatch, plus one year of complimentary Guidepoint Silver™ service that includes roadside assistance, directory assistance and unlimited concierge service. The unit can also be integrated with a Guidepoint GPS tracking module (sold separately) to provide stolen vehicle recovery, online vehicle tracking and pinpoint location-based services.

Guidepoint Connect is the first new consumer product developed jointly by Guidepoint and Grand Rapids, Mich.-based Brandmotion, LLC (www.brandmotion.com), leading developers of integrated technology products for automotive interiors. It's been a long path, but ultimately, we think this product will be a winner in the marketplace.

New board members

We're announcing two new board members today -- two guys who have very impressive resumes and should help take Guidepoint to the next level as a company. Their names are Al Giombetti and Walter Young, and they are both senior level executives with substantial experience in the automotive, manufacturing and tranportation businesses.

Al (top left) is the former President of Ford-Lincoln-Mercury, and he brings three decades of automotive executive experience in both domestic and international markets to Guidepoint’s board. Al spent most of his career at Ford until earlier this year when he left to start ASK Consulting, which specializes in strategic and operations planning, and as a Partner in Compass Marketing, LLC, an investment firm. His professional affiliations have included board positions with the Country Music Hall of Fame in Nashville, where he chaired the marketing committee, and King’s College Business School.

Walt (bottom left) brings Guidepoint a broad range of corporate experience, including growth initiatives, M&A and organizational turnarounds, to his board role at Guidepoint. Young served for 13 years as Chairman, CEO and President of Champion Enterprises, one of the nation’s largest builders of manufactured homes. Prior to joining Champion, he served as a senior-level executive with several companies including Wheelbarator Corp., The Budd Company, The Henley Group and B.F. Goodrich. Mr. Young has completed 23 domestic and international organization turnarounds in a variety of industries (tire, chemical, automotive, transportation, foundries, machine tools, manufactured housing) and over 75 successful mergers, acquisitions and divestures.

Here's what Rand had to say: “We are very pleased to add Al and Walt to our board, and look forward to leveraging their expertise. Guidepoint has continued to grow at a double-digit rate despite the challenging economic conditions, and we are preparing to launch new growth initiatives for automotive OEMs, the aftermarket and other channels. Being able to tap the decades of experience and winning attitude that Al and Walt bring to every endeavor is a huge plus for Guidepoint as well as its customers and suppliers.”

New plans for dealer protection and profit

We sell Guidepoint through about 2,000 dealerships across the country these days, mostly as a product they can sell to consumers. Today, we're announcing a couple of new applications and plans that are aimed at helping the dealership protect their unsold inventory and loaner cars - while still giving them a profit opportunity.

Later today, we'll be announcing a new Loaner Car Protection Plan that will help dealers protect the vehicles they loan out to customers. Believe it or not, some customers don't return loaner cars in a timely manner and, occasionally, they don't return them at all. While the dealers can charge lates fees and fines, the reality is the dealership doesn't want to be penalizing its customers...it just wants the metal back. Our new loaner car plan gives the dealership the ability to remind the customer that the car is due back and, if things get really dicy, they can shut down the starter and use GPS to track the vehicle and send police to recover it.

We've also launched a new Lot Protection Plan that allows dealers to protect and monitor inventory vehicles. Cars do get stolen off dealer lots at times, and for mega-dealers, they sometimes get "misplaced." The lot protection plan will allow them to track the whereabouts of unsold vehicles and, in the case of a theft, use Guidepoint's award-winning stolen vehicle recovery service to get the car back quickly.

Here's the cool thing for the dealers: In addition to protecting the vehicle while the dealer still owns it, the Guidepoint unit can later be sold to the customer who purchases the vehicle. The consumer can then use the Guidepoint unit for a variety of services, from stolen vehicle recovery and emergency dispatch to turn-by-turn driving directions, tracking a teen driver or managing a business fleet.

Both the new plans use our state-of-the-art module and can be paired with an ODB-II connector for a fast and simple install. That should mean less time under the dash and, as always, time is money.

Our CEO, Rand, had this to say: "With the challenging economic climate, it’s more important than ever before for dealerships to reduce their losses and seek out new profit opportunities. These new services can help dealers cut losses from theft and vehicle misuse, but can also give them a unique and sought-after selling opportunity after the vehicle is sold.”

Both new plans utilize Guidepoint’s award-winning technology and services; including 24/7/365 call center support and an easy-to-use Web interface for tracking and controlling vehicles. We've really begun to use those assets to crank up the innovation in the past 18 months, and now deliver a range of services for vehicle owners, dealerships, lenders and business owners, including our award-winning stolen vehicle recovery, emergency dispatch, driver convenience, fleet management and vehicle tracking and control services.

Connectivity & services for new Visteon unit

Our creative geniuses in product development created a new Windows®-based application that will allow users of a new Visteon® Navigation System to access the Internet in their car or truck.

The product launch is still a few weeks off, but it's a touchscreen radio-nav head unit that Visteon is developing for the aftermarket.  We're going to provide connectivity and driver safety/convenience services by integrating the Visteon unit with a Guidepoint module.  Once they're tied together in the car, the integrated solution will allow users to surf the Web, track the car with GPS and access location-based services.

We are also going to be the exclusive provider of location-based content and services for the new radio-navigation unit, which is expected to be available in July 2009. Guidepoint will provide the following services through its 24/7/365 response centers and technology infrastructure:

• Emergency Services – customers will be able to access 24/7/365 emergency help to their pinpoint location with the touch of an icon on the radio-navigation unit’s touch-screen.
• Concierge Services – customers can access a variety of concierge services via a one-touch, Bluetooth-enabled connection to the Guidepoint 24/7/365 response center.
• Traffic – customers can get traffic reports within a 10-, 15- or 20-mile radius based on the current vehicle location.
• Weather – customers can get a current and future weather forecast based on the vehicle’s current location.
• Yellow Pages – customers can get comprehensive Yellow Page® listings, displayed on the head unit screen.

Here's what Jonathan Weisberg over at Visteon had to say:  “We’re pleased to work with Guidepoint, which has established itself as a leader in the consumer telematics industry over the past decade.  Their experience in consumer services and GPS-wireless technology, combined with Visteon’s vehicle systems expertise and overall automotive intellect, should help make this new product initiative successful.” 

Teen driver safety

Guidepoint has been doing vehicle tracking since 2002, but we've usually marketed that capability for a specific purpose. Our bread-and-butter has always been stolen vehicle recovery, because we grew up around the car security business and we know that customers aren't really buying a product from us -- they're buying a service that they need. And let's face it, when your car gets stolen, you don't just "want" help, you "need" help and pretty quickly.

That service orientation has been a guiding principle over the years, as we've added convenience services to make driving easier and safer, fleet services to make managing business vehicles more efficient, etc.

Today, we're announcing a new suite of services aimed at the teen driver market. We're calling it Vehicle Tracking and Control (VTAC), and it's designed to let a parent (you guessed it) track and control their young driver's vehicle. With a suite of protection features at the user’s fingertips, VTAC GPS owners can instantly view and track the speed and position of their vehicle from the Web browser of any Internet-enabled computer. In addition, they can set alerts to inform them when the vehicle has left a location or reached a destination, or travels outside a preset boundary. This is extremely useful for parents who want to ensure that young drivers travel safely. Every VTAC GPS system also includes Guidepoint’s award-winning stolen vehicle recovery service, plus other security and safety features including E-Call™ for emergency dispatch to the vehicle’s location.

In a lot of ways this is merely "old wine in new bottles" -- we've done tracking for a long time and parents have bought Guidepoint with the express purpose of tracking their teen drivers. What we've done is arranged the service offerings in a cost-competitive way that should really interest the market.

While we've primarily sold the Guidepoint stolen vehicle products through new car dealers in the past, the new VTAC GPS is going to be a branded product with the tagline "powered by Guidepoint" and we're going to sell it mostly through specialist retailers and mass merchants nationwide at a suggested retail price of $499, which includes one year of VTAC 200 service. Professional installation is recommended (at an additional cost.) For more information, visit http://www.vtacgps.com/ or call 877-GPS-FIND/877-477-3463.

New box, expanded capabilities

There's a news release out today about Guidepoint selecting Laird Technologies to develop a vehicle M2M device. Out product team has actually been working with Laird for several months now on this product, which will give us an additional manufacturing source and engineering partner with world-class capabilities.

Laird is a big company that is known for designing and supplying custom, performance critical components in the wireless and advanced electronics space. They have a ton of expertise in RF (radio frequency) technology, they're a big company (10,000 employees globally) and the know the auto business, which was a critical factor for us.

So many of the people in the telematics business are telecom guys who are trying to learn the auto industry - these days, that's like trying to get a Ph.D. in six month's time. One of our strengths at Guidepoint is that we've been hanging around the auto business for most of our careers. In fact, every single memeber of the senior management team has been doing auto-related work for at least a decade. Both our CEO (Rand Mueller) and our VP of Marketing (Geoff Dixon) have been developing and peddling technology to car dealers, expediters and OEMs since the late '70s. (Sorry guys, you are that old!)

We kind of believe that our automotive experience, coupled with the new partnership with Laird, will bring us huge opportunity in the long run. Our view is that someday, a product like Guidepoint will be standard equipment on all cars, and having an established Tier 1 supplier like Laird as a partner can only help position us in the cross-hairs of the OEMs when the time comes.

Here's what Rand said in the news release: "Throughout our ten-year history, we have focused on building successful partnerships with best-in-breed companies. Partnering with a company such as Laird Technologies gives us additional opportunity to accelerate the evolution of GPS tracking technology that's easy to use, easy to install, and easy to sell."

New finance company client

This afternoon, we'll be announcing that Guidepoint has been selected to supply a customized collections solution for Southfield, Mich.-based Automotive Credit Corporation. Our new finance company sales guy, Werner Scherz, put the deal together with help from our CEO and CFO. It's a pilot program to help them use our hardware, firmware, call center and, most importantly, brainpower to help them increase their collections.

This is NOT the old "box and pings" strategy that is so prevalent in the buy-here/pay-here world. That model is rife with issues --from hidden costs to privacy to overall effectivness. More than anything, lots of the GPS companies are selling their devices for punitive purposes; that is, if you miss a payment, we use GPS to repo the car.

Our model is different. It's much more consultational and based on a "behavioral change" philosophy that gets the customer in the habit of making payments on-time. At the end of the day, the dealer or the bank doesn't really want the car back - they want the customer to make the payments. Or, as we like to say: "Because you want the money, not the metal."

Anyway, here's what Werner says about the ACC deal: “We’re very pleased to partner with ACC, which is coming off of its most successful year to date in 2008, with expansion into six new states and record sales numbers month after month. They’ve established themselves as an industry leader by creating innovative programs that serve both dealers and credit-challenged consumers. We will be working with ACC to design a service-oriented program that will help them increase collections, reduce repossession and collections-related costs, and strengthen their relationships with dealers and consumers.”

Our key contact at ACC, Tony Stallworth, says this: “Guidepoint has proven itself as an innovator and leader in all of the markets where it competes. We look forward to tapping their expertise in the subprime market, as well as their proven approach of combining high-tech hardware/firmware with high-touch service delivered through their 24/7/365 response centers.”


About Automotive Credit Corporation: Headquartered in Southfield, Mich., ACC is a regional automobile finance company focused on the subprime market. ACC purchases installment contracts from both independent and franchised automobile dealers for consumers with limited or challenged credit histories who are unable to obtain financing from traditional sources. Founded in Michigan in 1992, ACC has partnerships with hundreds of dealers throughout the Midwest, East and Southeastern United States, including Michigan, Ohio, Illinois, Indiana, Tennessee, Kentucky, Missouri, Georgia, Maryland, Florida, Virginia, Kansas, Arkansas, and Alabama

Targeting national dealer groups.

We've added a sales director to help develop our business among the national dealer groups like AutoNation, Asbury Automotive and multi-store chains. Her name is Tara Rahe and she joins us from Procon, a Knoxville, Tenn.-based company that's best known as a seller of GPS devices to the buy-here/pay-here market. Previously, she was a sales consultant at two Iowa-based Ford dealerships, Victory Ford in Dyersville and Finnin Ford in Dubuque.

Here's what Rich has to say about Tara: “We’re pleased to have Tara on board at Guidepoint. She's going to be singularly focused on getting Guidepoint in front of the national dealer groups, and showing them our value-add as a partner. As dealerships look for ways to increase their F&I performance and profit per vehicle, Guidepoint offers them a unique solution that is easy to sell, easy to install and easy to administer.”

Her role at Guidepoint is important for us, too, given the looming consolidation in the auto industry. At NADA last week, the talk was all about the number of dealerships that the automakers were going to need to shutter in the coming 24-36 months. GM, Ford and Chrysler alone were talking about closing more than 1,000 dealerships over the next couple of years. Most of them, of course, will be small, independent dealerships. Kind of a shame, really, when you consider the impact that locally owned dealers have on their local economies -- everything from newspaper advertising to jobs, payroll taxes and sales tax revenue.