Treat employees well and watch customer satisfaction and sales soar.
That’s the gospel according to Butch Hancock, senior managing partner and general manager at Kenny Kent dealerships in Evansville, IN. “Employee and customer satisfaction go hand in hand.”
Hire slow, fire fast is his employment mantra. It seems to be working. Kenny Kent has been the No.1 volume Toyota dealer in Indiana since 2012 and is on pace to repeat that this year, Hancock says.
“If you instill a great culture in a dealership you won’t have problems with turnover,” he says.
The Kenny Kent family had run Chevrolet, Toyota, Lexus and Scion stores in the Evansville market for years. The family began City Chevrolet along with Phil Drachman in 1953. The name changed to Kenny Kent Chevrolet in 1954 after Drachman retired.
Kenny Kent’s son Robert Kent took over ownership in 1977. The Kent stores became part of the Van Tuyl megadealer group 11 years ago.
Good employees and managers make for high customer satisfaction in Hancock’s scorebook. His operation exceeds the industry average.
“Employees know how important it is for us and our customers that they meet high standards,” he says. “Some dealerships will hold a career day and hire all 20 people to see who shakes out.
“That’s not the Kenny Kent way. Part of our culture is that we train and retain. We try to attract and retain great employees, so there’s very little turnover.”
Managers look for good fit. If employees have the right attitude, “we can teach them the rest,” Hancock says. “We offer careers, not just jobs.”
Hancock has dedicated 33 years to Kent dealerships. He began selling used Chevrolets in 1981, moving to general sales manager at the Toyota store in 1991. He washed cars for Kent back in high school. His father, Bert Hancock, worked as Kent’s Chevrolet sales manager until 1984.
Kenny Kent Toyota-Lexus ranks No.73 on the 2014 WardsAuto Dealer 500. The store posted $148.2 million in total 2013 revenue.
Enter Warren Buffett
There are big changes afoot for Kent dealerships, as part of the 76-store Van Tuyl Automotive Group, No.6 on the WardsAuto Megadealer 100. Billionaire Warren Buffett’s publicly owned Berkshire Hathaway firm is buying the privately owned Van Tuyl group.
The deal is pending approval by major automakers in early 2015. The late Cecil Van Tuyl began the business in 1955 with a single Chevrolet store. His son Larry Van Tuyl succeeded him.
“The Berkshire-Hathaway culture started with the same entrepreneurial spirit as Cecil and Larry Van Tuyl embraced,” Hancock says. “This will be good for us,” Hancock says. “Jeff Rachor, the new CEO at Berkshire Hathaway Automotive, is a sharp guy. He gets it.”
Rachor was an executive at another megadealer group, Sonic Automotive, then became chief operating officer at Van Tuyl in 2010.
“We’re experiencing a robust recovery period overall,” compared to five years ago, Hancock notes. He sees pent-up market demand. “I look around and see many 6- to 8-year-old cars on road.”
His thoughts on Internet shopping at times are lukewarm.
“If you rely too much on the Internet to sell, you lose the emotional aspect of buying vehicles,” he says.
Shopper Should Enjoy Dealerships
He says automakers and dealers should educate buyers, especially millennials born between 1981 and 1998, to shop at dealerships and make them more appealing environments. Customers need to smell, touch and drive vehicles, he says.
An aspect of the Internet he dismisses is quote shopping. “People want dealers they can trust,” he says. “There are so many ways to shop for cars today. Someone is always going to beat you by a hundred bucks or so. But the lowest price is not always the best deal.”
Hancock wants Kent customers to be able to say, “I’ve got a friend at Kenny Kent who sells cars.”
He adds, “Transparency is very big in our business. Customers expect dealers to be honest and fair. We can't sit back and allow Internet shopping to be the only (customer) experience. Our brick-and-mortar dealerships play an important role in the total experience and decision-making process. I’m passionate about that.”
When a customer has a problem, such as in recall situations, it’s especially important to have a local dealer connection, he maintains. In some cases, he has called automakers on behalf of customers who need help and made sure they got it.
Hancock credits mentors, including Larry Van Tuyl and the Kent family, for his successful dealership run. “They (Van Tuyls) always set the bar higher, and that made us better,” he says.
“When I think about my successes, they would never have happened if I hadn’t had mentors, including those in the Kent family. Mr. Kent knew how to build a good team,” he says.
He fondly remembers Steve Fraser, a retired used-car manager who showed him the ropes.
Hancock’s family members also take part in the dealerships. Brother Bret Hancock serves as service manager at the Kent Lexus store. Nephew Nick Brazel is a finance manager. Daughters Lauren and Haley Hancock serve in marketing roles.
Hancock is doing a second stint on the Toyota Dealer Council. “Being part of the Toyota Dealer Council gives us insight into what Toyota is thinking and its future direction and projects.”
Looking back, he says, “I’ve been blessed. I have a passion for autos and the auto business. To have both is a win-win.”
Profile Box
Dealer Profile: Kenny Kent dealerships
Location: Evansville, IN.
Senior Managing Partner: Butch Hancock, who studied business at the University of Southern Indiana.
Ownership: Van Tuyl Automotive Group since 2003.
Brands: Toyota, Lexus, Scion and Chevrolet.
Major awards: Toyota President’s Award for 20 years, Toyota Dealer Council,
Elite of Lexus Dealer Award for 14 years.
WardsAuto Dealer 500 Ranking: No. 73.
Total Revenue: $148.2 million in 2013.
Vehicle Sales: 2,465 new and 1,390 used units in 2013.
