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Dealer Ray Mungenast: 'I'm just the voice'
Automatically Generated Transcript (may not be 100% accurate)
Hello I'm Leslie Alan welcome to the dealer speaks. As chair of the American international automobile dealers association. -- look at ray Monday it asked of them boys for the import dealer. If the job his late father Dave among -- senior had in 1998. In fact the group's lifetime achievement award is named for Dei -- -- -- But rage and Brothers Dave junior and hurt aren't living in the shadows. They run at 327. Million dollar enterprise. Moving more than 5000 new cars a year. And Raymond and asked -- this part of the business with a simple philosophy. A superb -- -- and good service will keep them coming back. This is the among NASCAR multifamily history wrong and begins in 1934. With my father's birth. -- among get Matt hails from a family that a natural thing blew it needs no introduction. Hi I'm Dave Duncan missed his father started selling motorcycles in 1965. And -- entered the car business. Actually was late 1966. Early 67 we opened our first automobile dealership which was at Toyota story. Don't want -- automotive family now comprises five dealerships. A motor sports store. And collision sensors there's also -- motorcycle museum which honors the legacy of the company's founder. An avid biker who died in 2006. On the lack of the thing who have been 51 year old Graeme mound in -- domain. Stands at fourteen acres in west Saint Louis county. There's the Acura store. And next door a 78000. Square foot Lexus showroom which he opened in 2009. It's twice as big as this all -- -- a nearby. And mountain NASA has gone out of his way to give the place the comforts of home. A TV lounge. A children's lounge. A -- row with coffee and fresh baked cookies. There's also a business loans to keep customers connected. And a fireside lounge quiet free of distractions. All -- a country club feel. These amenities. Are not just for show. The main thing was customer retention and and growth of market share and and also on an equal level was our employee satisfaction. The response. Overwhelming. We opened this building in November of 2000. And kind and it was probably the worst economic time that you could have opened and taken on. Financial challenge like this for our customers responded immediately. Even those times were tough -- during their vehicles and for service and buying you were pre owned vehicle when they could. If it's helped us and we've we've been profitable since they want the story. Cuba -- once service customer who tells the store over free shuttle ride to the mall. She looked around since. Why -- why would I wanna leave this place. Reminded that it was a sign that he hit the mark he had found what customers want in a facility. One of the best ways to retain customers is to have a good service department and here the Lexus door there are no fewer than 32 service -- -- Work twice as many as deep as our prior facility. We do a very good business and our customers are very happy with the so they continue to bring their cars to us even. They have 607080000. Miles long. Would close the ninety new cars being sold each month. Your service -- just don't have the number of service -- that you need so that was probably the single most. Reason for building the new facility. Was a multi -- service drive to receive our clients. And then have the days to get the cars through so customers can bring their vehicles and for service when they want. He says customer service awful means communication. Don't try to sell them everything. Is it immediately just the constant communication about their vehicle. On the day of our visit it was unseasonably warm in Saint Louis we headed for where else the fireside lounge. On the mantle a JD power award a reminder of one of the stores and best practices. Customer follow lot. It's easy to think what we know holly wanna be treated but sometimes that changes. And changes ongoing me too so we followed constantly to make sure that we're achieving. Expensive training keeps employees on tests. A state of the -- training center offers a stunning view of the show room below. That becomes somewhat of a distraction what people are contributors and perhaps. And I can't tell the story of the Monday and asked automotive family or -- mug and ask for that matter. Without mentioning one thing. And that's motor sports. This is a photo of when I was the general manager of or Honda motors works agency he was 28. And like his father a bike enthusiast. He even spent time racing in Europe. And that drives to stay in the game could serve mound -- -- well in the coming years. He says the biggest obstacle facing hit stores in fact all dealerships. I think government regulations and it may get worse before it gets better it's a very competitive market the banks are just now starting -- money. It took to some of the perspective fires again so. That's getting a little bit better but that's been huge challenge to get people financed with a fiscal cliff with a fiscal put these two. And there's the uncertainty about whether automatic tax hikes and spending cuts will hit the US next month. Not a minor concern for a luxury dealer of customers often run their. Owned businesses. The danger of the fiscal cliff is that we are. We are in an economy that is just beginning to repair itself -- it's it's wounded but it's repairing itself. That's on the way back the fiscal cliff could could just knock it completely back down is deeper and deeper as it was in recession. You know just a couple years ago. In February 8 month and half half the gavel plus to AI AEA -- -- now drop. I'm just voice and and I appreciate the opportunity to have been that -- in 2012. And among their -- operation could be growing plants are in place for a new Honda store and an Acura expansion is being considered. Thanks for watching the -- speaks take care.
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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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