Auto Dealer Monthly Magazine is the daily operations publication serving the retail automotive industry. This automotive publication serves dealer principals, officers and general managers with the latest best practices.
Issue link: http://autodealermonthly.epubxp.com/i/158958
By Kelly Wadlinger OV E R THE CURB THE BOUTIQUE DEALERSHIP The magazine's resident boutique dealer breaks down the benefts and challenges of operating a nontraditional lot. PHOTO BY KELLY WADLINGER "Wow, I've never seen a car dealer in a mall before!" exclaims the customer walking in the front door of our boutique-style dealership. From their perspective, it's just an unusual location for selling cars. For an industry that is constantly looking for new ways to improve proftability, it's an experimental model that is popping up all over the country — and people are watching very closely to see if it is a hit or a miss. Our group launched a FIAT Studio nearly two years ago at an upscale shopping center. Our entire team has experienced the benefts and difculties that come with running an atypical operation. Like any "normal" dealership, location is everything, and we completely lucked out. We are literally next door to a Starbucks. Tere are three restaurants within our plaza. Our foor trafc does not consist only of people who have specifcally driven to a dealership to buy cars; we have curiosity seekers, time killers and bored husbands. Tat non-targeted audience generates buzz for the brand — and the occasional surprise sale. One couple marveled at how their $5 cup of cofee ended up costing them $25,000. Tey hap- pily drove away in a new Cabrio they hadn't intended on even looking at two hours earlier. At a typical dealership, that customer may have never bothered coming in, but at the mall, anything can be an impulse buy. THE CASUAL SHOPPER As you can imagine, handling customers who may or may not be interested in a car is a tough job for the sales staf. Tey don't want to smother the couple waiting for dinner reservations, but losing a potential sale by not pursuing it with vigor is unacceptable. My staf is excellent at that balancing act. I attribute their success partly to the fact that, with only one exception, my Kelly Wadlinger is the studio lead at Faulkner FIAT of Harrisburg, PA, a position which encompasses the roles of both finance and sales manager. After joining the business as a salesperon in 2006, Wadlinger quickly determined that she had a passion for the industry that needed to be shared. KWadlinger@AutoDealerMonthly.com 36 AUTO DE ALE R MONTHLY • SE P TEMBE R 2013 salespeople never sold cars before we opened. Tese professionals came in excited about the brand and about doing something different — and approach our dealership like a more traditional retail experience, not unlike an Apple store. Tey truly engage with everyone who walks through the door. Tey ask the right questions and allow the customer to feel in control of the process. Does this mean we are pushovers? Hardly. We are what I like to call "aggressively friendly." We push for the test drive — and the sale — but we make it feel like fun. Our customers love us for our laid-back approach. I would be remiss if I didn't point out that, given our location, they are also a lot less guarded when they walk in our doors. A TIGHT FIT Of course, there are many things that you take for granted at a typical dealership — like having room to display and store vehicles. With a whopping 2,400-square-foot showroom, we have room to display fve cars comfortably. Good relationships with our mall management staf and the ability to double-park FIATs in a single space allow us to have a reasonable selection in the back of our studio. Many of our cars are housed at our service and prep center, which is about fve miles from the mall. We only sell new cars, so my sister stores reap the benefts of being fed local trades. Meanwhile, I pay only a fraction of the typical dealership rent or mortgage. Of-site service, prep and accounting departments also present some unique challenges. My team and I will clean up cars on site for immediate delivery. Our customers only know our studio location, so we need to make sure there is a smooth transition to the service site. We ofen have to drive deals, deposits, mail and supplies from one location to another. Technology helps tremendously in keeping the processes fowing, but every day a trip must be made from the studio "island" to the mainland, and trafc is always a concern. I personally love having my own little sales island, even with the headaches it creates. Te right team, the right product and great communication are the true keys to success for a boutique dealership. It might not work for many dealers, but for those launching a new brand or just opening, it can be a great place to start.