This story first appeared in the April issue of AutoTalk – CLICK HERE to download the magazine FREE
It’s always hard work keeping a dealership running smoothly and even more so when you run one of the biggest provincial operations in the country.
But that’s what Coastline BMW has been able to do, thanks to the ground work of dealer principal Tristan Kurz and his 60-strong staff.
The Sunshine Coast dealership was recently crowned 2016 Australian BMW Dealer of the Year.
The dealership, based at its showroom on Nicklin Way in Currimundi, had already taken out the BMW Provincial Dealer of the Year award.
BMW chooses its Dealer of the Year after looking at a range of aspects of the dealership including market share, new car target achievement, profitability and customer service in both sales and service areas.
Around ten to 15 categories are assessed, weighted and scored.
“There isn’t just one particular area but a whole lot of them in which a BMW dealer must excel,” Kurz told AutoTalk.
“This is good as it encourages dealer principals and general managers to look at every aspect of their business.
“There are scorecard updates every month so every dealer gets to see where they stand against other dealers. We currently sit at the top of the scorecard ratings for market share and customer satisfaction.”
Describing his management style, Kurz says the most important aspect of his job is to walk around the dealership and talk to customers and staff.
“Doing this is crucial as you notice things you might otherwise miss. It is something I make sure I do every day, at least once a day – to walk around the entire dealership and every single department.
“I also ensure I have an open-door policy at all times with all the staff. It does not matter if it’s a manager or a new staff member. We try very hard to ensure we have a positive work environment for all our staff.”
It’s the first time since 2002 that Coastline BMW has landed the sought-after title of overall BMW Dealer of the Year.
The dealership has 60 staff and turns over $65 million annually. It is on track to sell approximately 1000 cars in 2017.
Key challenges and opportunities
AutoTalk asked Kurz to identify the key challenges and opportunities facing a successful dealership in the current market.
“When it comes to challenges it is a combination of two aspects,” he says.
“The first is to have a strong working relationship with the manufacturer. The second is that the staff have the best working atmosphere, which is conducive to them putting good results in, and that they have the tools to get the results.”
Trying to balance those two aspects and to be in the best position possible is the biggest challenge in dealerships today, Kurz says.
The biggest opportunities lie in new technology, he says.
“Dealerships that are capable of transitioning from the analogue to the digital era – particularly in terms of marketing and customer relationship management – will be the dealerships that will reap the biggest benefits in the coming years.”
Advertising, staff mentoring and sales
Coastline BMW grew by 7.3% in 2016 and so far this year has risen 5.6%, with just under 100 new cars sold.
Kurz says used cars are a “very interesting part of the business” as the dealership has become reliant on the online advertising of its cars.
“This appears to be very much a double-edged sword. Online advertising is putting us in front of more people than ever before but by the same token, it’s creating downward pressures on grossing opportunities.”
When it comes to his staff, Kurz takes the view that if he can get them wanting to be at work, knowing what their objectives are and ensuring they have the tools to succeed, that will translate into increased sales and customer satisfaction.
“If we can do these three things right then we will create greater customer satisfaction. Part of that is making sure that every staff member – no matter whether it is the dealer principal or the car detailer – is prepared to help the customers. That might be greeting them at the door, answering the phone or making them a coffee.
“Everyone is expected to do all of those jobs.”
Parallel imports and ASIC
Asked for his views on possible changes to parallel imports regulations, Kurz says: “All parties of the industry need to have a good look at the opportunities and the risks. The question will be ultimately what will be best for the consumer as we will need to make our decision based around that.
“What that will do is change the servicing and warranty of vehicles and as a result change the cost of ownership experience for the consumer.”
And with the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC) spotlight on finance and insurance, Kurtz says most dealers act ethically.
“I believe 99% of dealerships deliberately seek to ensure that under no circumstances are their customers ever put in a position where unethical behaviour is taking place.
“Ultimately, dealerships are already doing as much as they can to try and look after their customers because they know if they do the wrong thing by their clients, they simply won’t come back.”
One of the challenges ASIC faces is ensuring the jobs of staff who man finance departments are not negatively affected, he says.
“F&I staff are a vital part of the whole car sales ecosystem.
“There is a big chance that dealer profits and sales will be affected on a case by case basis. It’s a question of how the OEMs, financiers and ASIC work together to ensure that we in no way put the industry in a position where its moving backwards as that will cost jobs and affect the customer’s ownership experience.
“Despite acknowledging that now is the most challenging time that dealers have had since the global financial crisis, the dealer networks will need to ask themselves what environment do we need to operate in? And how do we change our structures to ensure our business still can move forward?
“Invariably, that is what good dealers always find a way to do.”
Future goals
Coastline BMW is looking forward to the launch of the 5 Series and the new BMW X3.
“We will be focussing this year on transferring our marketing CRM processes to be far more digitally focused,” Kurtz says.
And it’s getting ready to build a new 4000 square metre aftersales centre.
“It’s a big undertaking for us but it will be vital to providing the customers the level of service and experience they are going to require in the future.”
The centre is expected to be finished in 2018 and will act as a delivery hub for customers picking up their new cars.
“People will be able to come in and be welcomed to an area catered for them on that big day when they pick up their new BMW.”
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