JM Lexus in Margate, FL, has been the number one Lexus retailer in the world for the last 11 years. The dealership jumped to 5th on the new Ward's 500 ranking from 11th last year. With $243.6 million in new retail revenue, the store is one of the nation's new-car powerhouses.
“I guess you could say ego keeps us there,” says General Manager David Mullen. He also credits dealer principal Pat Moran for her emphasis on customer satisfaction.
Satisfied customers are repeat customers and that is where JM Lexus focuses — driving repeat business. “There is nothing like it,” says Mullen. “I would say our fixed operations is our biggest asset in bringing in those repeat customers.”
A few years ago, the dealership eliminated the cashier position and now has its service advisors handle the customer from beginning to end.
“We don't want the process to be like herding cattle,” explains Mullen. “It's a way to help the customer to feel like that service advisor is their mechanic — just like people do when they take their car to an independent shop.”
The last day of April, the dealership handled 103 service customers. ‘We would not have been able to handle that if we did not have the right processes in place,” Mullen says.
The dealership has employed the same approach in the sales department, eliminating the typical finance and insurance positions, and instead training the sales people to sell it. The salesperson handles the customer throughout the entire process. Sales people are also paid a higher percentage for repeat customers.
It takes constant backing from Lexus, says Mullen. “I give them a lot of credit for their support and training of everyone in the store.”
One program Mullen likes is Lexus' “Customer as a Guest” program. “We bring them in every year to train everyone in the store. It's all about creating the attitude that the customer is our guest.”
JM Lexus never hires experienced people. “We bring in people with clean minds and train them from the ground up,” says Mullen.
Hanging onto those people is tough, though. The turnover rate after the first year is near 60% but if those new employees make it to the three-year mark, the turnover rate is nonexistent.
| Rank | Dealership | Owner/Principal | State | New Revenue |
|---|---|---|---|---|
| 1 | Longo Toyota | Penske Automotive Group | CA | $424,570,000 |
| 3 | Galpin Ford | Galpin Motors, Inc. | CA | $294,143,218 |
| 4 | Fletcher Jones Motorcars | Fletcher Jones, Jr. | CA | $257,088,878 |
| 5 | JM Lexus | Pat Moran | FL | $243,625,548 |
| 2 | Ricart | Rhett & Fred Ricart | OH | $242,948,047 |
| # of D/ships | Franchise Category | New Retail Dollars | New Retail Units | Used Retail Dollars | Used Retail Units | F&I Dollars | Service Dollars | Body Shop Dollars | Parts Dollars | Total Dollars |
|---|---|---|---|---|---|---|---|---|---|---|
| 20 | Mercedes Benz | $104,911,019 | 2,051 | $29,995,159 | 723 | $2,877,965 | $9,281,092 | $1,604,354 | $12,144,773 | $160,445,533 |
| 1 | Jaguar | $112,976,884 | 3,291 | $8,008,138 | 207 | $2,593,194 | $5,393,673 | NA | $6,098,845 | $135,070,734 |
| 76 | Multi-Franchise | $83,609,298 | 3,207 | $26,226,329 | 1,773 | $3,619,070 | $5,553,212 | $2,039,307 | $7,448,372 | $130,158,794 |
| 122 | Ford | $81,630,712 | 3,525 | $26,643,927 | 1,903 | $3,486,039 | $5,057,149 | $1,960,899 | $9,023,407 | $127,802,133 |
| 96 | Chevrolet | $76,568,661 | 2,951 | $26,288,434 | 1,866 | $4,252,285 | $5,251,205 | $2,869,392 | $10,778,771 | $126,008,748 |
| 75 | Toyota | $83,586,667 | 3,543 | $24,934,613 | 1,730 | $4,196,527 | $4,416,751 | $1,038,702 | $6,103,769 | $125,948,997 |
| 20 | Lexus | $90,710,508 | 2,213 | $19,520,696 | 751 | $1,217,740 | $4,618,175 | $461,658 | $5,677,251 | $122,083,479 |
| 7 | Cadillac | $56,842,949 | 1,264 | $36,130,293 | 1,583 | $2,145,500 | $6,272,560 | $3,251,661 | $9,039,456 | $113,682,419 |
| 12 | BMW | $79,531,952 | 1,610 | $19,691,449 | 488 | $1,434,426 | $4,992,671 | $443,065 | $7,159,638 | $113,253,201 |
| 10 | Dodge | $64,655,032 | 2,607 | $27,297,861 | 1,967 | $3,947,761 | $4,832,804 | $895,862 | $8,004,692 | $109,634,011 |
| 28 | Honda | $73,050,235 | 3,575 | $20,372,055 | 1,550 | $3,817,571 | $4,597,033 | $617,104 | $6,157,540 | $108,611,536 |
| 2 | Pontiac-Buick-GMC | $73,359,741 | 3,045 | $22,631,552 | 1,781 | $2,659,853 | $3,972,582 | $1,599,415 | $4,014,548 | $108,237,690 |
| 5 | Lincoln Mercury | $59,764,615 | 2,062 | $27,030,267 | 1,712 | $1,295,284 | $3,796,267 | $1,494,771 | $11,837,890 | $105,219,093 |
| 8 | Pontiac-GMC | $68,443,317 | 2,820 | $22,506,266 | 1,667 | $3,015,608 | $4,044,567 | $1,806,267 | $4,886,552 | $104,644,486 |
| 7 | Nissan | $59,173,696 | 2,799 | $27,722,563 | 2,019 | $6,326,465 | $3,614,824 | $1,261,141 | $6,488,204 | $104,350,029 |
| 5 | Buick | $62,358,065 | 2,342 | $24,139,233 | 1,724 | $2,971,392 | $4,018,318 | $1,503,955 | $5,174,585 | $100,165,548 |
| 5 | Chrysler/Jeep | $55,054,730 | 2,373 | $19,575,697 | 1,648 | $2,515,986 | $4,291,971 | $858,462 | $6,362,579 | $88,659,425 |
| 1 | Mitsubishi | $39,666,000 | 1,481 | $24,533,000 | 1,691 | $7,060,000 | $2,780,000 | NA | $2,334,000 | $76,373,000 |
| 500 | Ward's 500 Average | $80,073,057 | 3,099 | 25,532,213 | 1,687 | 3,602,233 | 5,135,101 | 1,777,961 | 8,270,828 | 124,871,095 |
| Ward's 500 Percentage | 64.1% | 20.4% | 2.9% | 4.1% | 1.4% | 6.6% | 100% | |||
| Ward's 500 Total | $40,036,528,250 | 1,549,276 | $12,766,106,702 | 843,617 | $1,801,116,638 | $2,567,550,557 | $888,980,312 | $4,135,414,065 | $62,435,547,386 | |
