The biggest opportunity for building repeat business is taking care of customer problems. I am a big believer in this. If you treat people well when they have a problem, they will come back to you for sure. We give people the authority to handle problems at the lowest possible level. The higher a problem goes, the more expensive it gets, and the more likely you will lose customers. Mechanical things break. Surprise the customer by just taking care of the problem. That’s what dealerships that have been in business a long time do. People value relationships more than they value the lowest price, and they want to be appreciated for their business. Customers like to go into a dealership and see the same people they usually do business with, and they feel comfortable when they know they will be treated well and get a fair deal. Dealerships used to be pretty much the same, but people expect a higher level of service than they used to. That’s going to continue. Since customers can get the same product from many other places for the same price or less, your level of service is what differentiates your business from other businesses. Why is TADA membership important? You have a more prominent voice as a member of TADA than you do as a dealer. TADA amplifies your voice even if you are part of a big group. TADA has more members than any other state dealership organization. In Texas, most of the state’s dealers are members. TADA includes everyone from the little dealers in towns of 5,000-6,000 to the big dealers in the big cities like Houston or Dallas. Members can pick up the phone and call Karen Phillips, our in-house lawyer, and get a quick answer or advice about any legal issue. The question could be about advertising rules or any issue you might have, and calling her doesn’t cost you anything. Another advantage is that the association gives you opportunities to make friends. Texas dealers will bend over backward trying to help you. That’s important, and it helps your customers when you have other dealers who can help them, too. There are many industry disruptors right now, including the pandemic and EV. Ford has positioned itself as a leader in the EV future. What are your thoughts about the effect of these and other disruptors on the dealership industry? Direct sales are bad for dealers, but they are also bad for customers. Volvo and all the heavy-duty dealers all used to be direct. The prices were higher, and the service was worse. Value decreased. Manufacturers are good at building vehicles, but they are not as invested in service. We are set up to do different things. Our work is different from theirs, just like an eye doctor has different work than a dermatologist. It’s not good for the consumer when we get into each other's business. Manufacturers will work with us as the service side of the business declines after we sell more EVs. They will help us fill the gap by finding other services we can provide, but I don’t know what those services will be. What is the biggest issue facing Texas dealerships in the next three to five years? The industry has changed so much, and we have an opportunity to do better in several areas. I don’t know all the details, but we need to work hard and smart and adapt quickly to the changes. Expectations about the level of customer service are going up. The question is, can we change as fast as customer expectations? There are other challenges, too. We are all used to having a certain amount of inventory, but we will have to adjust to having less. As everything shifts toward an EV market, we will need charging stations. Service problems will change. Some people think individual dealers can’t continue to succeed, but not everybody wants to buy or work for the same size of a company. Also, bigger companies are harder to shift when the market changes. What are your plans as the 2022 TADA chair? We want to let people know TADA is working in their best interest. Most Texas dealers are members. We represent all the dealers, from the biggest to the smallest, and we want more participation from People value relationships more than they value the lowest price, and they want to be appreciated for their business. Customers like to go into a dealership and see the same people they usually do business with, and they feel comfortable when they know they will be treated well and get a fair deal. JOE CHASTANG — CONTINUED ON PAGE 12 11 WINTER 2021
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