Rohrman Auto Group Drives Into Year 61

When Bob Rohrman got into the car business in 1963, the accepted way to sell a lot of cars had nothing to do with technology. And that hadn’t changed in 2005 when his grandson Ryan entered the family business.

“When I started selling cars, the No.1 thing a good salesman would do was stand by the front door,” Ryan Rohrman, now CEO of Rohrman Automotive Group, tells WardsAuto.

Those days are gone. Now, most customers who walk in the door have already made an appointment online, Rohrman says.

But some things don’t change. Another important part of his grandfather’s dealership business was community involvement. The Rohrman Automotive Group continues that tradition, from participating in parades to partnering with zoos.

“We do 17 parades a year,” Rohrman says.  “Every community we are in, we try to do every parade. We have our own traveling float.”

His employees at the dealerships where the parades take place also participate, he says.

In this era of online marketing, it is difficult to measure the exact return on such events, Rohrman says. But, “The community involvement is still the old school form of advertising. It is high in the purchasing funnel, and it makes your name sticky.”

Rohrman Auto Group also donates to local high schools. In Lafayette, IN, for example, Lafayette Central Catholic High School sports a Rohrman Tennis Facility. Jefferson High School, also in Lafayette, has a Rohrman Performing Arts Center.

The Purdue University football stadium in neighboring West Lafayette is called Rohrman Field. “My grandfather donated a large sum of money to Purdue,” Rohrman says.

The group also sponsors a “Rock & Roar” music series at the Fort Wayne (IN) Children’s Zoo. The group’s mascot is a lion known as Rohry.

Family Affair

Rohrman’s grandfather, Bob, got into the car business by opening a used-car outlet in 1963 before acquiring a Toyota franchise in 1969.

Ryan Rohrman, 39, wasn’t interested in going into the used car business. But by the time he was in college, majoring in biochemistry, the Rohrman family also owned new-car franchises.

In 2005, his grandfather persuaded Ryan to work at the family’s Schaumburg Honda store in Illinois for one summer. Ryan was hooked.

“I loved it,” Rohrman says. “There is a lot of strategy to it and many different silos. I changed my degree to a marketing degree.”

After graduating in 2007, he went to work full-time in the Honda store, rising to general manager in 2010.

Rohrman became CEO of Bob Rohrman Auto Group, based in Lafayette, IN, in 2018. Today, it has 22 rooftops with 20 franchises in Indiana, Illinois and Wisconsin.

Taking Care of Employees

While it is committed to old-school marketing, such as parades, the Rohrman Auto Group is “pretty edgy when it comes to technology,” Rohrman says.

That is crucial because some 10% of his customers complete most of their car buying processes online. “When they come in, it’s: ‘There’s the car, is it everything you thought it was? If it is, sign here.’ And they can take the car.”

Another 40% to 60% only come to “touch, see and smell the car,” Rohrman says. “The days of negotiating with the customer are fairly gone.”

That has impacted staffing in each store. While the old thinking (and still current with some dealerships, Rohrman says) was that each salesperson represents 10 sales per month, Rohrman’s goal is 15 per salesperson.

“We care about their income level,” he says. It is hard to live off the income of selling 10 cars monthly, and not making a living wage increases employee turnover, Rohrman says.

When he took over, the average tenure was 3.5 years. Now it is “sub-five,” he says. “My goal is seven years’ tenure.”

Besides ensuring a living wage, the Rohrman Restored Foundation has provided more than $1.7 million to support health counseling, education and financial emergencies for over 700 families.

That leads to more satisfied employees, and they provide a better customer experience. “Consumer experience is probably the biggest thing that drives repeat referrals,” Rohrman says.

For Rohrman customers, that experience includes some fun and games. Zac Kinch, general manager at Bob Rohrman Toyota in Lafayette, came up with the idea of installing the world’s largest Plinko board at his store. Customers can win up to $3,500 off the price of a new car.

 “You buy a car, drop big chip, and get that amount off the price of the car,” Rohrman says.

It was only known locally until an internet influencer decided to visit the store to “debunk” the offer. When it turned out to be true, the news exploded on social media.

The success of the Plinko board inspired the group’s Fort Wayne Toyota store to add a giant cornhole board that also allows customers to win discounts.

Growing Within Bounds

Rohrman’s three younger brothers all work in the business, as do some cousins. “Our desire is to keep it a family business,” he says.

The group is looking to acquire new stores that fit its criteria. “We are a very process-driven company,” Rohrman says. “Our process works well with stores selling 150 cars a month or more.”

He also wants to be close to the existing locations. “I like to know our employees,” Rohrman says.

Though he turns 40 this year, Rohrman is already thinking about succession planning.

“I don’t want to do this until I am 70 years old,” he says. “There is no success without succession planning. In the next 5 to 10 years, we will start proactively looking at what the passing of the torch looks like.”