Digital Dealer - November 2017 - 35

...LET'S SAY, WE'RE LEASING OUT OUR USED
CARS TO UBER DRIVERS, ON A NIGHTLY BASIS.
SUDDENLY, MY USED-CAR INVENTORY IS MAKING
ME MONEY, INSTEAD OF JUST SITTING THERE..."
then we also use a company out of
Florida. They help with our Facebook strategy quite a bit. They'll do
more of our broad campaigns, like
on specific models and that sort of
thing, and I'll do the really targeted
stuff, such as a quick message out
to people for the day. They do the
more sophisticated campaigns and
do a great job.

I'D LIKE TO GO BACK TO
YOUR COMMENT ABOUT
YOUR TIME WITH OPRAH AND
CHARITY. IN WHAT WAYS
DOES MAGIC CITY FORD
GIVE BACK TO THE LOCAL
COMMUNITY?

When people know your name
and they know how charitable you
have been or can be, you get asked
by everybody. A lot of our stuff that
we sponsor we consider advertising. It's something we promote and
sponsor as a charity, like an ad in
a program or whatever. That's one
thing, but our charitable giving we
usually do it silently. For instance,
last Christmas we sponsored a
"breakfast with Santa" and they
had over 200 kids. These are kids
that otherwise would have not been
able to have breakfast with Santa.
We sponsored that event at a local
hotel. We didn't promote it ourselves, though. We privately gave
the donation that enabled them to
do that. There's a big telethon here
that raises about $150,000-plus
for cancer charities in this area. We
sponsor the telethon lines. Obviously, we do a lot of youth donations to
local baseball and softball teams. I
do a lot with the school systems.
Ironically, even though I didn't
graduate from college, I've been
on the board of our school system
for five years, specializing in career
and technical education. It's near

and dear to my heart, because I saw
friends graduate from college and a)
not be able to get a job, and b) have
$50,000 in student loan debt. From
a society standpoint, we've shamed
all these people into going to college
and they feel like they're nobodies
if they don't graduate. We also need
mechanics and all of those type positions, your plumbers, your electricians. I was on the board of another
non-profit and one of the other
members was CEO of a huge power
company, and he told me he has
10,000 linemen-you know the guys
who fix it when your power goes
off-that will be retiring in the next
five years and he didn't know where
he was going to find replacements.
So, you've got crazy problems with
society. Our top car mechanics
can make almost $100,000 a year.
There are mechanics now that don't
even get dirty, because everything is
software and updates.

WHAT CHANGES OR
CHALLENGES DO YOU SEE
FOR THE INDUSTRY AS A
WHOLE, OVER, SAY, THE NEXT
FIVE TO 10 YEARS?

You know, that question would
have been a lot easier five or ten
years ago. We're heading into,
I wouldn't say challenging, but
certainly interesting times. Obviously, Tesla is the hot thing. They
talk about the direct-selling model
Tesla follows. As a board member of
the Virginia Auto Dealers Association, we're still in a lawsuit battling
Tesla on the franchise model versus
selling direct. And it's not because
of Tesla. Ford does not compete for
the same customer with Tesla and
probably never will. But if the laws
are changed, then you're talking
about the tens of millions, or collectively billions, of dollars that dealer

families have invested over decades
based on the franchise law system.
I think the real challenge is going to
be the consolidation of dealerships.
Profit margins are already small for
dealers and they are getting smaller
by the day. On the other hand, new
mandates by the factory almost go
up by the day. And you're going
to see dealer principals whose
property might be worth more
than the business, so they're going
to sell the property and retire. I
think you'll see more situations
like that than you will see electric
cars everywhere or self-driving cars
everywhere. Certainly, in big city
markets, Uber and Lyft are going to
give us a run for our money on the
benefits of car ownership.

LET'S TALK CLOSER TO
HOME. WHAT'S AHEAD FOR
MAGIC CITY FORD?

Well, hopefully, another 80
years. That's obviously Ford-dependent as well. We want to continue
growing. If that means we enter
into a business agreement, let's say,
we're leasing out our used cars to
Uber drivers, on a nightly basis.
Suddenly, my used-car inventory
is making me money, instead of
just sitting there until it is sold.
That sort of business model, when
you've got inventory levels that are
crazy high, I think that might be
something that changes. I think
we'll still be called Magic City but
we might be in a lot of different
businesses. Just like our advertising has become so fragmented, I
could see a couple of businesses
being spun off, taking advantage
of the capital that sits on a dealer's
lot. We definitely want to still be in
the transportation business and do
what we do best, which is taking
care of our customers. ■

D I G I TA L D E A L E R . C O M

NOVEMBER 2017

35


http://www.DIGITALDEALER.COM

Table of Contents for the Digital Edition of Digital Dealer - November 2017

Digital Dealer - November 2017
Contents
A Letter from the Show Director
Don’t Be a “Management Jerk” and Steps for Handling Them!
Attempting a No-Huddle Offense? How’s That Working for You?
Is a Financial Partnership in Your Future?
Fallacy
You Can't Take a Train 500 Miles on 400 Miles of Track
4 Tech Tools That Decrease Employee Turnover
Organize for 2018 – Expect Greater Efficiencies and Profitability, Fewer Surprises
Retail Warranty Reimbursement: Leveling the Playing Field
Cracking the Car Code on Selling to the #1 Buyer: Women
Professional Voice-Over Secrets!
CAMERON JOHNSON Dealer Principal, Magic City Ford Lincoln
When It Comes to Social Media... Don't Step on a Rake
The Online Shopping Experience Has Radically Changed. Your Dealership Can Reap the Benefits.
The New Car Manager's Modern Guide to Merchandising
Top 3 Information Technology (IT) Recommendations for Stability and Increased Productivity at Your Dealership
That’ll Bee $128 Forda Tech Ta Lookatit - Ouchie
Only 5 ½ Cents- Per-Mile to Maintain a $50K Machine! Wow!
Digital Dealer - November 2017 - Digital Dealer - November 2017
Digital Dealer - November 2017 - Cover2
Digital Dealer - November 2017 - Contents
Digital Dealer - November 2017 - A Letter from the Show Director
Digital Dealer - November 2017 - 3
Digital Dealer - November 2017 - Don’t Be a “Management Jerk” and Steps for Handling Them!
Digital Dealer - November 2017 - 5
Digital Dealer - November 2017 - Attempting a No-Huddle Offense? How’s That Working for You?
Digital Dealer - November 2017 - 7
Digital Dealer - November 2017 - 8
Digital Dealer - November 2017 - Is a Financial Partnership in Your Future?
Digital Dealer - November 2017 - 10
Digital Dealer - November 2017 - 11
Digital Dealer - November 2017 - 12
Digital Dealer - November 2017 - Fallacy
Digital Dealer - November 2017 - 14
Digital Dealer - November 2017 - 15
Digital Dealer - November 2017 - You Can't Take a Train 500 Miles on 400 Miles of Track
Digital Dealer - November 2017 - 17
Digital Dealer - November 2017 - 18
Digital Dealer - November 2017 - 19
Digital Dealer - November 2017 - 4 Tech Tools That Decrease Employee Turnover
Digital Dealer - November 2017 - 21
Digital Dealer - November 2017 - Organize for 2018 – Expect Greater Efficiencies and Profitability, Fewer Surprises
Digital Dealer - November 2017 - 23
Digital Dealer - November 2017 - 24
Digital Dealer - November 2017 - Retail Warranty Reimbursement: Leveling the Playing Field
Digital Dealer - November 2017 - Cracking the Car Code on Selling to the #1 Buyer: Women
Digital Dealer - November 2017 - 27
Digital Dealer - November 2017 - Professional Voice-Over Secrets!
Digital Dealer - November 2017 - 29
Digital Dealer - November 2017 - CAMERON JOHNSON Dealer Principal, Magic City Ford Lincoln
Digital Dealer - November 2017 - 31
Digital Dealer - November 2017 - 32
Digital Dealer - November 2017 - 33
Digital Dealer - November 2017 - 34
Digital Dealer - November 2017 - 35
Digital Dealer - November 2017 - When It Comes to Social Media... Don't Step on a Rake
Digital Dealer - November 2017 - 37
Digital Dealer - November 2017 - The Online Shopping Experience Has Radically Changed. Your Dealership Can Reap the Benefits.
Digital Dealer - November 2017 - 39
Digital Dealer - November 2017 - The New Car Manager's Modern Guide to Merchandising
Digital Dealer - November 2017 - 41
Digital Dealer - November 2017 - Top 3 Information Technology (IT) Recommendations for Stability and Increased Productivity at Your Dealership
Digital Dealer - November 2017 - 43
Digital Dealer - November 2017 - That’ll Bee $128 Forda Tech Ta Lookatit - Ouchie
Digital Dealer - November 2017 - 45
Digital Dealer - November 2017 - Only 5 ½ Cents- Per-Mile to Maintain a $50K Machine! Wow!
Digital Dealer - November 2017 - 47
Digital Dealer - November 2017 - 48
Digital Dealer - November 2017 - Cover3
Digital Dealer - November 2017 - Cover4
https://www.nxtbook.com/nxtbooks/digitaldealer/202004
https://www.nxtbook.com/nxtbooks/digitaldealer/202003
https://www.nxtbook.com/nxtbooks/digitaldealer/202002
https://www.nxtbook.com/nxtbooks/digitaldealer/202001
https://www.nxtbook.com/nxtbooks/digitaldealer/201912
https://www.nxtbook.com/nxtbooks/digitaldealer/201911
https://www.nxtbook.com/nxtbooks/digitaldealer/201910
https://www.nxtbook.com/nxtbooks/digitaldealer/201909
https://www.nxtbook.com/nxtbooks/digitaldealer/201908
https://www.nxtbook.com/nxtbooks/digitaldealer/201907
https://www.nxtbook.com/nxtbooks/digitaldealer/201906
https://www.nxtbook.com/nxtbooks/digitaldealer/201905
https://www.nxtbook.com/nxtbooks/digitaldealer/dd26showdirectory_042019
https://www.nxtbook.com/nxtbooks/digitaldealer/201904
https://www.nxtbook.com/nxtbooks/digitaldealer/201903
https://www.nxtbook.com/nxtbooks/digitaldealer/201902
https://www.nxtbook.com/nxtbooks/digitaldealer/201901
https://www.nxtbook.com/nxtbooks/digitaldealer/201812
https://www.nxtbook.com/nxtbooks/digitaldealer/201811
https://www.nxtbook.com/nxtbooks/digitaldealer/201810
https://www.nxtbook.com/nxtbooks/digitaldealer/201809
https://www.nxtbook.com/nxtbooks/digitaldealer/201808
https://www.nxtbook.com/nxtbooks/digitaldealer/201807
https://www.nxtbook.com/nxtbooks/digitaldealer/201806
https://www.nxtbook.com/nxtbooks/digitaldealer/201805
https://www.nxtbook.com/nxtbooks/digitaldealer/201804
https://www.nxtbook.com/nxtbooks/digitaldealer/201803
https://www.nxtbook.com/nxtbooks/digitaldealer/201802
https://www.nxtbook.com/nxtbooks/digitaldealer/201801
https://www.nxtbook.com/nxtbooks/digitaldealer/201712
https://www.nxtbook.com/nxtbooks/digitaldealer/201711
https://www.nxtbook.com/nxtbooks/digitaldealer/201710
https://www.nxtbook.com/nxtbooks/digitaldealer/201709
https://www.nxtbook.com/nxtbooks/digitaldealer/201708
https://www.nxtbookmedia.com