Corey Choate, general manager of Economy Honda, was faced with a serious financial decision on Sept. 15, 2008: Either change the way he did business or close his doors, a dilemma driven by a looming recession and falling consumer confidence.
He chose to give the business a high-tech makeover, diverting all the company's resources into infiltrating every online sales avenue he could find. He even opened a storefront on eBay.
"We came up with a different way of doing business through the Internet," Choate said. "Our closest competitor used to be across the street; now they're an eighth of an inch away on the same screen."
Since he took the company to the Net, Internet leads have jumped to 1,500 from 400 and his online sales have climbed to 160 from about 40, he said. Record-breaking July sales this year totaled 366, up from the previous July record in 2005 of 330, according to Choate.
He started by hiring an energetic young Web team for his revamped business, including eSales agents Amanda Phifer and Natasha Stanke, who together account for almost 60 car sales per month, they say. Stanke, who sits on a blue exercise ball while selling cars over the phone, bounces happily in the office while talking to customers over the phone.
"The ball helps me stay focused," Stanke said.
It helps her stay so focused, Stanke hasn't sold fewer than 20 cars per month, and often moves up to 30 vehicles every 30 days, said Alecia Teem, the newly promoted assistant eSales manager.
When Teem started working from the Web nine months ago, the company was literally building its office from scratch, she said.
"We could still smell the paint when we moved in," Teem said.
Now seasoned veterans, they have enhanced the business, Choate said, aided by a renewed companywide focus on gaining referrals by giving customers the "VIP" experience.
"We offer our out-of-town customers limo pickup at the airport, a free dinner and a night in a downtown hotel if they need to stay overnight," Choate said, though guests do not have to commit to buying a car to get the "VIP" treatment.
His theory is that consumers stay at nice hotels, eat at expensive restaurants and go on nice vacations because the experience is pleasurable. "What if we took the car buying experience and made that pleasurable?" he asked.
As a result of putting his theory into practice, Economy Honda now employs 112 associates, up 17 from July 2009, and the dealership was recognized by Honda's in-house magazine for winning eight consecutive Council of Excellence awards, one of only five dealerships to win the honor so many times, the magazine said.
For Beth Davis, a repeat customer who visited the dealership recently to purchase a Honda Fit for her college-bound daughter, the friendly employees are the secret ingredient that keeps her coming back, she said.
"We've always been well taken care of, and everyone's really friendly," she said, as her three children played with toys in the specially designed kids area. "We've always had a good experience."
It's the job of employees like Josh Bowers, 21, to see to it that customers like Davis have a good time.
"Most people are expecting to have to look around a little for what they want," he said. "We're going to show them what they want."