Paint chip repair question

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I just got a paint chip 'bout the size of a pin head on my black '05 I've been trying for a week to fix it with touch up paint from the dealer and this product called Lanka.I also tried the 2000 wet/dry sandpaper on a pencil eraser(tip i picked up online) to smooth out the touch up paint.
The paint is so thin on my Hummer that when I try to smooth it out the paint will come out of the chip. I've let the paint sit for a max of 4 days like the instructions in the Lanka kit said but it still comes out.
It bothers me more since I know where it's at and the primer stands out like a sore thumb on the black paint. Why is the paint so thin on the Hummer. I know the chip is so small but it's buggin' the crap outta me.
Anyone got some tips on how to fix chips on a Hummer? Thanks