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Dealer Bob Rohrman: ‘Never give up’
Automatically Generated Transcript (may not be 100% accurate)
Welcome to the latest installment of our series the dealer speaks. I'm Tom Moore back. He's employees describe him as hands on a mentor and above all a salesman. We're talking about Bob orbit. President and owner of the Bob warm and auto group. This operation is big -- to number eighteen in the latest Automotive News top 125. Dealership groups list. In 2011. Warm and sold 191635. In new retail units. In group revenue came in at more than 905. Million dollars. The company portfolio currently includes a 24 new car dealerships covering fifteen brands in two states plus. For use car superstores. In as we learned doing our recent visit to Chicago land those numbers are growing. The charge being led by warming himself. Whose first boss was a cigar chomping Ford dealer in Lafayette Indiana. In 1955. These. Obviously. You think maybe you've been so harsh I said yes sir again. Where you'll start I said right now he said OK your hired. And he was often running. In 1963. Warm and opened his first used car lot. In in 1969. He started selling -- Toyota's. Relatively unknown mark in some parts of the country. As Lafayette it and how to pronounce Tonioli Khaled. Priority after adding a steady stream of brands in his hometown including Honda. Warm and looked north to the booming town of Schaumburg Illinois. Where friend was selling 200 -- a month. And I -- who I should -- the dealer here there was at one. So warm and built it in 1984. His first store in the Chicago area. -- who himself isn't one to -- it actually my office probably is my car. That's him in the red Lexus. Likes to move franchises around like pieces on the chess board. The car business for me -- just been. A game. Woman's Honda store will soon move to the site of his nearby -- dealership. Use condoms will be sold in the key to show room in -- 140000. Square foot addition will house new Honda's next door. As for the -- distort well that's moving into the existing Honda dealership. And warm and it is moving his suburban Chicago Lexus store less than a mile down the road. Into a two story 200000. Square foot building in his business park which even has its own traffic -- I concentrated on the -- been so much that. We do well with and so we can. We can build buildings like the -- storm it doesn't hurt that warm and owns 51%. Of a construction company. In virtually his entire operation. Except new vehicle inventory is paid for all self funded. Never give up. Has been my model he could have went one store was three million bucks in the whole ice that with us stuck with -- me to three million dollar back. And I -- -- about 800000. Today. And that is just one of the many lessons he's passed along to his children and grandchildren who -- in the family business. Grandson Ryan is the GM at Schaumburg Honda. He takes presidents David teaching me how to sell cars and as like -- lose you know what do you mean by that is -- -- -- the very first day we emphasize it and you. And I just -- told me he said you got to love the customers and they'll let you back. Customer satisfaction is so important to warm -- that he established his own university. For new and existing employees. Where. He's he -- people. The car business. Not only in sales for news service. How we wanted to take care of the customer. How we won't be noble want the serious side. Son JER well and Arlington Nissan. As is always told us you know you could inspect what to expect. Not many dealers are routinely signed autographs but Orban does. After starring in countless TV ads over the years often in -- He says the goofy spots drive business. I have people tell me and the source. I just had coming in. Because really advertising. And they say. You're crazy. But I love it. New ads were suggested by employee looting Garcia. Who realized mormons advertising. Wasn't targeting a key audience. The area's growing Hispanic population. The two now star in this spot spoken in Spanish. -- I take all of biases. From employees good or bad sometimes as I was Lugo was this game is Maria Orman is also bullish on the Internet. He predicts 40% of its sales will soon come through that media that doesn't mean. When he now walks in the door how'd you hear of us. You should Washington and that's not -- fail. He had access. Contacted. By the end. And then we really can't say that there's an and -- sale. Meantime warm and is building a -- store in Wisconsin. And negotiating. For a General Motors franchise. His grandson chase who runs a Ford store -- growth is a motivate -- He's still going after everything facility got -- mentally -- wants to grow. I hope when you know -- Not only not only isn't healthy but this fun. Warm and employees 14100 people do stores throughout Indiana into Illinois. And like many dealers he is charitable. During our visit he presented the Red Cross a check for 100000. Dollars to the super storm sandy relief but. Next week we'll hear from -- Monday and asked co owner of the Monday advanced automotive family will see that.
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Dealer Don Forman's slick service strategyWelcome to our first installment of the dealer speaks for 2013. I'm Tom Moore back. You know when visiting stores we like most customers walk through the front door and see the new cars sparkling under the lights. while there's plenty of cool stuff happening you know show rooms. One thing I've noticed lately is that dealers face is really single light up when we start talking about what lies behind those walls. According to a National Automobile Dealers Association consultant. Service parts and the body shop generate 43%. Of an average annual gross profits. And the service department at united Nissan in Las Vegas. Well it's quite the bustling places these days due in large part to technicians mastering the entire process. Surrounding the oil change. It's such a small service but to a customer we believe it's without question most important because. Gust comes back for the first change after the car and they wait for an hour they're not coming back ever again. So last year dealer principal form and established a service skull. Provide an oil change car wash in wipe down in 25 minutes relax. And what we saw was that our routine maintenance changes started to grow. Customer repair orders alone shot up 23%. In 2012. This year. Former editor of quality control twist he diverted vehicles from the quick loop area to the 44 mean In what we're doing now were incorporating. A master tech or senior technician to actually do the walk around do the work with the tech for two reasons number one we're picking up tremendous test opportunities that are being messed. By eight by technician but the second thing we're doing to for training the technician technician. And I think I think in in the long run which you don't injure your bringing up these opportunities for you people. Sales strategies are now found in the service drive. Customers are presented with what calls timely appropriate products and it's getting competitive. For every 30000 mile service inspections sold for example. The advisor not only earns a cash bonus but an equal amount of money goes into a pool. Advisors than compete in games in which their teams can win that pool. They're throwing darts at a board you know in the service manager's office because they some type of you know us sail out there or you know there's noose there's new spent programs that are put up every day and and the and the guys are actually you know the did you just human numbers did you see in my numbers. Through February. Customer pay sales in other words out of warranty work that could have been lost independent repair shops chains. Are up 27%. From a year earlier. Our goals this year increased customer pay by about 60% and and these guys feel like they can and and when a customer's car is in the shop. Peter Sheen has transportation options. While he was chairman of these advisory board Foreman helped pilot the auto rental car initiative. The stores rental car fleet has grown from flooding vehicles to 120. And while the intent of the program was to keep the driver in the Nissan. What we found after you know after doing this for. Quite a few months was that these customers that we were taking out of their 2010 Altima or eleven that may have been having. Service worker or some civil war to job done on it. We put them in 2013 Altima as a rental car. And they come back and we and the sound of 2013 Altima. And that is the sound of a sale at united son. We heard the bell ring four times during our few hours on the floor. It creates a lot of excitement and a lot of emotion that's the car buying process to me. After the bell is run forbids employees who work to meet a 2013. Shortening the selling process. The customer agrees to the transaction immediately that at that point the sales person. Had turned the transaction to finance manager so there's no lag time between the two once the paperwork result wrapped up Foreman. Rolls out the red carpet. And then they go right outside the door. Where there are delivery area is lined with red carpet and velvet ropes and that's where their cars standing tall and beautiful and and then to the record there goes through the process of of showing them all their features their benefits form and encourages all stores to have delivery coordinators. Because if you really wanna take troop troop care of your customer you need to have masters a customer service. Which are salespeople are but are record even better later the store's general manager phones each new or used car customer. To review the process. And it's amazing what's uncovered in some cases that we can. Quickly facts and then it's also amazing how many how customers give kudos for what a great job would. Foreman is always looking to help employees become more efficient. He installed dumb that's shuttle's deals between after nine in the business office no more running upstairs. Any installed air conditioning instead of less cool swamp coolers. Keep service more productive on those hot biggest days. as for the future. Foreman who also owns two Nissan dealerships in California. Expects the number of stores under his watch to at least triple in size. I think that I see. These manufactures. You know. putting themselves in a position with certain dealers where they become almost exclusively kind of made the commitment to in our company to be in Nissan. Group and we would like to us yourself in the next five years with. Then these stores. hopes to sell about 3000 new cars at united this year a 20% increase from wanting to well. That is are tied for now thanks so much for watching this edition of the dealer speaks will see you soon.
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