Car Dealership Goes From Mistrusted to Likeable
Store that received Honda President’s Award once got “you-suck” reviews.
Blake Underriner co-runs what he says once was “the most untrusted dealership.” Under new management, its tagline now is “the most likeable dealership on the planet.”
“If you ask for anything, we’re going to give it to you,” says Underriner who, along with Jared Hamilton, operates Walla Walla Valley Honda in College Place, a university town, pop. 8,765, in southeast Washington State.
Their business philosophy is in sharp contrast to how things were when the store was Gilbert Honda. American Honda revoked the previous owner’s franchise after an investigation revealed various misdeeds, including failure to settle outstanding financing on trade-ins, fund service contracts and pay employees, Underriner says.
The dealership went from getting “you-suck” reviews to receiving Honda’s President’s Award, he says. “With us, it is service, service, service from sales managers to the lot people.”
He is the son of William Underriner, a Montana dealer and 2012 chairman of the National Automobile Dealers Assn. Hamilton, also the son of a dealer, is the founder of DrivingSales, an automotive social network and training enterprise.
Walla Walla Valley Honda’s sales staff is non-commissioned, Hamilton says, describing that as “a game changer” because it thwarts salespeople from pushing customers into cars that aren’t necessarily right for them.
Instead of paying showroom staffers a percentage of gross profit of vehicles they sell, the dealership pays a salary plus bonuses based on customer satisfaction and internal processes.
Salespeople tell customers upfront they aren’t earning a commission, Underriner says. “Someone selling 12 to 15 cars a month earns about $5,000 to $7,000 a month.”
He adds: “We’ve had success hiring product specialists who are from outside the (auto-retailing) industry. We’ve also hired people fresh out of college.”
In addition to the Honda store’s non-commissioned sales staff, it’s other touted “principles of awesomeness” include:
The price customers see is the one they get. It’s competitive and there are no hidden fees, Underriner says. “We are not a 1-price store, but we don’t negotiate beyond $200.”
A money-back guarantee, if a car is returned within three days or 300 miles (480 km). A nominal fee is charged for gasoline and mileage, but the dealership on its website describes that as “super fair.”
A trade-in guarantee, whether or not a customer buys a car from the store.
Since taking over the bankrupt store in 2014, the new owners have done a lot of display and TV advertising “to get the word out,” Underriner says.
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