Saturday, June 26, 2010

Promotions

Tags On Demand designs a new concept, whereby Tags On Demand converts the dealer's trademark to a temporary tag design.

Use of vector graphics allows the full-color trademark to be fully resized while retaining the trademark's integrity.

Or, Tags On Demand uses graphics design software to create a tag with the dealer's name.

Texas Department of Motor Vehicle ("DMV") has removed the DMV logo from its temporary tag design that is offered on the DMV website.  The removal is, presumably, to avoid "issuing" the tag which is not allowed by State law.  See "Monopoly."

Tags On Demand utilizes this empty space to place the trademark.

The dealer's name, or trademark, appears transparently under the temporary tag number, promoting the sale of the vehicle.

Integration

At this point, we're thinking that one possible solution would be for the DMV to allow for integration.

The DMV needs to allow Tags On Demand to access the serial numbers for the temp tags.

Tags On Demand was written by a Texas software developer and Tags On Demand could easily modify that software to work with the DMV.

DMV would still get its five dollar fee, but Tags On Demand would profit from the software it developed.

Tags On Demand would also be providing an environmentally safe, waterproof product.

Proper Vehicle VIN Numbers

Tags On Demand uses a special algorithm to warn the user when an improper VIN number has been entered.

The TX DMV website will allow an auto company to enter any VIN number without correction.

Saturday, June 12, 2010

Florida allows Private Production

The State of Florida Department of Motor Vehicles ("DMV") allows free enterprise.

The DMV gives third parties a range of numbers with which to issue tag numbers.  These third parties, such as Tags On Demand, collect information concerning the sale of the vehicle; that information is then uploaded to Florida's DMV database.

In fact Tags On Demand has sold an exclusive, non-royalty license of the software to Auto Data Direct, Inc.("Auto Data") in the State of Florida.  Auto Data is a corporation founded by an entrepreneur who began by automating the towing industry.  He saw a similar need for automation in auto sales and bought the license for Tags On Demand in Florida.  In the past year, Auto Data has issued over a million tags.

Auto Data Direct, Inc. Tallahassee, Florida

$1.50 vs. $5.00

The State of Texas Department of Motor Vehicles ("DMV") charges $5.00 "to maintain a secure, real-time database of information on persons to whom temporary buyers' tags are issued." Transportation Code Sec. 503.0631

4.4 million vehicles are sold each year in Texas.  At $5.00 for each tag, these sales generate approximately $20 million for the DMV and the State of Texas.  According to the Transportation Code (see the above paragraph), this revenue is to "maintain....a database."

Tags On Demand, offers the same services to the dealers for $1.50.  This fee would include supplies that are not currently included with the $5.00 fee paid to the State.

These materials are superior in that they are water-proof, plastic-free and environmentally friendly.

Before the creation of the DMV in 2009, and for the five years preceding, Tags On Demand maintained the database for its auto dealership clients for 70% less than the current $5.00 charge.

Tags On Demand can still offer these services--both the materials and database maintenance--at $1.50.  However, the DMV does not allow access to the numbers that will be assigned to each tag.  Since the DMV is in charge of the database, no tags can be issued without first accessing these numbers.  Herein lies the problem of the effective monopoly described in the previous post.

Texas Raises the $50 Doc Fee

Up until March 17, 2010, the Documentation Fee--the fee the dealerships charged you for your car registration--was capped at $50.

Now, the dealership is required to give written notice to the Office of Consumer Credit Commissioner ("OCCC") and then allowed to charge the consumer from $50 to $125.  OCCC Documentary Fee and The Reasonableness Standards Rule

Under the new rule, the dealership may charge the consumer more than $125 if they provide additional justification that meets the new requirements.

Even though the Department of Motor Vehicles in the State of Texas can still provide the number for the tags and the .pdf file for direct printing from their website, no other entity is allowed access to the information in a way that would make processing the tags profitable.

If another entity were allowed this information and provided this service to the auto dealerships, the service may cost the dealerships an additional $1.50.  This increase is 30% of the $5.00.  But, the dealerships have been allowed at least a 150% increase in the documentation fee which more than covers the $1.50 expense that Tags On Demand would charge.

Tags On Demand is an independent, experienced software development company in the State of Texas and should be allowed convenient access to the tag identification numbers in order to provide these tags.

A Monopoly in Temporary Tags


By law, the State of Texas may not issue temporary tags.  According to David Dewhurst, our current Lieutenant Governor, the State does not issue tags.  But, the tags are printed from the Department of Motor Vehicles website, and the process used by the DMV effectively bars other vendors from issuing the tags.

The Tags on Demand software and the product was created in 2003.  It was already in use by several dealerships for over five years.  The product has been licensed and is currently used in the State of Florida.

The DMV, a State agency, was created in June 2009 to register and title vehicles.  The agency then created a new program which would generate the tag numbers and prescribe the tag specifications.  The dealer then prints the tag directly from the DMV website. The tag numbers are exclusively under the control of the DMV; they are not available to any other company that may wish to issue the tags.

By the process that has been instituted by the DMV, no other entity is capable of issuing the tags.  Therefore, a monopoly has been created.

The product is inferior.  The temporary tags no used are not water-proof and require the addition of plastic bags for inclement weather.

The process denies a Texas resident, a US citizen, the right to a profit from hard work, ingenuity, and the invention of a better product.
Transportation Code Sec. 503.063 Buyer's Temporary Cardboard Tags

Department of Motor Vehicles e-Tag FAQs