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Dealer Ray Mungenast: 'I'm just the voice'

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  1. Dave Duncan1:07
  2. new cars0:40, 3:50
  3. JD power4:32
  4. spending cuts6:03
  5. Lexus1:55, 3:31
  6. Acura1:50, 6:53
  7. fresh baked cookies2:13
  8. Honda5:17, 6:52
  9. market share2:33
  10. Saint Louis1:48, 4:25

Fri, 14 Dec 2012|

The Dealer Speaks With Ray Mungenast


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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I spent my whole life breaking the typical stereotypes associated with the automobile business you know them plaid sport coats in the pinky rings and. And the loudness of it all the things that people don't like you perceive that they don't like I've spent my whole life trying to do the opposite. One benefit of the clothing program is that employers don't have to travel all that far. Check out the latest fashion trends we have to mannequins who had shown that different outfits that are available we have a sheet of all the different pricing. And we just help people right up front you know if you wanna work for the Kelly automotive group we have a dress code we have certain standards you know we. Everybody has behavioral standards and and conduct standards that. We have addressed them. And it and it works I think the people decide about a beauty contest is just about being neat and clean and dressing appropriately for the particular sore. Speaking of orderly this building behind the VW store is one way to battle Boston's winners. It's a 25000. Square foot climate controlled indoor show world. It holds up to 200 vehicles. Kelly says the warehouse is ideal for shoppers who want a car fast without trudging through the snow. If retiring their top practiced PDI it's cleaned and we do a lot of spike delivered so if somebody comes in sees it on the showroom and wanna look at the different colors. We bring him today. Sure we show them all the different. Products that are available they considered policies these different equipment. They've got a car an hour an hour and a half waiting to be driving that car. Kelly says the warehouse system can shape 45 minutes off the type of a typical lot transaction. His son Brenden is the sales manager at Kelly VW. Our employees like it too because it's about a 150 cars less than half the trouble off and move in the wintertime. 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And I think we as men would you like the meeting you know is offices right so we know now. I just wanted to see if it was true deceived them. And any time around one. But perk was undeterred. I wasn't going to give up because it was my lifelong dream and that's what I really wanted to do. Perk was moved to Detroit in begin working for another dealer Bob Murray and who became a mentor. When I approached him about coming to work for him. Bomb he welcomed me with open arms he gave me the opportunity. That a lot of people wouldn't give me. And all I had to do he says to me just make a commitment from me when you leave them when you get your second chance because I'm quite sure you will. Just don't picking him out people and I said you've gotten word. Perkins a second chance came in 1993. When he acquired a tiny at Nissan store in Dearborn Michigan. Along the way other dealers took him under their wings schooling him and how to successfully network with influential dealers in factory representatives. Eventually he's pulled that store and acquired his current shut its doors between 1998. And 2001. Since that time he's helped others get into the business. Perkins has guided and trained it takes people to become dealers. He's an excellent mentor and if that meant that will be his 27 year old son Monty he's now the general manager of Perkins moralis Chevrolet store in East Point just outside to trite. Montes started in the family business around the age of ten pulling weeks. Eventually he earned a degree from north point university in 2010. And completed it dealer training at the NE DA dealer academy. Monty talked about a key principle his father taught him. The one thing that these guys so they keep in mind is that that you run a business. And you know you have to you know sometimes you gotta take personal out of it it's it's got to be a business decision. And making good business decisions that means keeping an eye on expenses. Perkins that says that those he has advised it would probably describes him as frugal. I don't waste a lot of money admired manages half court watchers under 25 dollars but it is over point five dollars one. And the reason I wanna know is because I don't want chick put in front of me for a thousand dollars and I don't know anything about it. Perkins carries little debt all other real estate is stores that sit on is paid for them. But he does invest in advertising and personnel. Bob Murray on top Perkins about both. Help. The other profanity if it he explained to me feel. You may have the right products sometimes. You've you've you've got to attract people you've got to have people coming in the door. And to do that it takes two things you've got to have on target market. And you have them good people they can do something with those people when it comes to do. Between his two dealerships Perkins at spends around 200000. Dollars a month on advertising. Nearly half a each store ad budget is spent in the digital space. You know and he makes it a point to create a positive atmosphere by expressing an interest in employees' lives outside of work. Perkins also hold contests for sales people to help keep them motivated. I realize that people spend more time here than you do. So therefore I have to make this pleasant environment I have to make this environment that they want com. And they wanna participate. I have to make this the type of I want to do. I want you to Bible I want you in my house I want you about everything you want to because once you pick on that responsibility. Were you a month. So that's my philosophy adults in the film but hey I'm Duncan I wonder if they'll think about oh good. Good. For you wanna go help you pick it out you know. Perk that says he seems to be approachable. And he tried to stay as visible as possible to his staff and fellow dealers. For example he was the 2012 chairman of the North American International Auto Show. And as part of that role he was named black enterprise magazine's auto dealer of they year. By assuming leadership roles Perkins hopes to assist him more young people in becoming productive members of society. They need to see people in leadership roles in different industries industries that they may not knowing anything about. But all of a sudden they see you you know I'm one of these positions you know they're thinking of themselves well you know. If he can do that I can do. In addition Perkins believes it is imperative that minority dealers train other minorities. And create a mutual support that's down I have. Found that giving in these groups and interacting. With other people were of the viewers with people in the community it helps not only myself but it also helps them and exposes them. Hey you know. The black guy but I. Yeah it's not all that bad you know something about this thing and and you know he blanks something to the table. So I think that that's another responsibility that we have to take honest my party we have to get out there and show people. Bet you an omen audit all of my not carpetbaggers. They're not here with a hand out. Now there's a lot of minorities in this world today that are willing to work and no good at working and good at doing what they're supposed to do. Kirk says he's easing into retirement. Is son Monty will eventually take over the business. Things are watching take care.