The Cost of Collecting LPR Data Has Gone Up. Why Hasn’t the Pay?

The rising cost of collecting LPR data is falling on recovery agents. Shouldn’t the industries profiting from it help pay the bill?

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The Cost of Collecting LPR Data Has Gone Up. Why Hasn’t the Pay?

GUEST EDITORIAL    

First, I think it’s awesome that DRN has been stepping up and advocating for recovery agents by communicating to clients the need for a fuel surcharge. Unfortunately, despite those efforts, we’re still not seeing much cooperation from clients.

I genuinely appreciate DRN’s partnership and willingness to advocate for the agents who are out there doing the work every day.

But I have an idea, and I’d really like to hear everyone’s thoughts on it.

Let’s not forget that agents are the reason LPR companies like DRN have the valuable data that lenders and other industries rely on. Without agents investing in equipment and putting vehicles on the road every day, that data wouldn’t exist at the scale it does today.

Think about the costs agents are absorbing just to collect that data:

* LPR camera systems and equipment
* Vehicles, maintenance, and repairs
* Commercial insurance and liability
* Employee payroll
* And most importantly, FUEL!

Agents are taking on the financial burden and liability of collecting data that continues to generate value long after it’s collected.

So here’s my proposal: Why not increase the dollar amount of the market share checks paid to agents and have DRN incorporate a fuel surcharge into the pricing of the data they sell?

Here’s why I think this makes sense.

Instead of relying solely on lenders to approve a fuel surcharge on repossession assignments, we could spread the increased cost of data collection across ALL the industries that benefit from purchasing that data.

This way, it’s not just the lenders helping offset our rising operating expenses. Every industry benefiting from the information we’re collecting would contribute toward the increased cost of obtaining it.

After all, why should recovery agents carry 100% of the increased operating expenses when multiple industries are benefiting financially from the data we collect?

The value of the data hasn’t decreased. The cost of collecting it has increased. Our compensation should reflect that.

This isn’t a criticism of DRN. I value our partnership and appreciate what they’re doing to advocate for agents. I simply believe this could be another way to work together toward a solution that benefits everyone.

Without the agents, there is no data. Without the data, there is nothing to sell.

I’m curious what other agency owners think.

Would increasing market share payments and incorporating a fuel surcharge into data pricing be a better long-term solution than continuing to ask lenders alone to absorb the rising costs?

The Cost of Collecting LPR Data Has Gone Up. Why Hasn’t the Pay? – The Cost of Collecting LPR Data Has Gone Up. Why Hasn’t the Pay? – The Cost of Collecting LPR Data Has Gone Up. Why Hasn’t the Pay?

Danny Pabon

Vice President at Florida Repossession Agency | CEO at Matchless Auto Group

The Cost of Collecting LPR Data Has Gone Up. Why Hasn’t the Pay? – Repossess – Repossession – Repossession Agency – Repossessor – Repossession – Repossession News – Fuel Costs – Gas Prices – Data – Data – LPR