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- Average is the enemy: How hospitality became this dealer's strategy for standing out
Average is the enemy: How hospitality became this dealer's strategy for standing out
Featuring Michael Wood, GM at Jaguar and Land Rover of Virginia Beach
Welcome to another edition of the Car Dealership Guy Podcast Recap newsletter.
From timeshares to Teslas, today’s guest has sold it all. But it’s his approach to hospitality that’s redefining luxury retail.
In this episode, Michael Wood, General Manager of Jaguar Land Rover of Virginia Beach, shares how he’s building legendary customer experiences, gives us the inside scoop on JLR’s Goodwill Empowerment program, and explains why the franchise model is at an inflection point.
1. There is no biz like the car biz.
Michael started his sales career selling timeshares, then orthopedic surgical sales, before shifting into automotive.
“…I was hanging out with my best friend and his brother was in the industry and he pulls up in his brand new three convertible with this nice flashy suit on. And I was just like, you know what? I'm going to give this car thing a try.”
In his first full month, he sold 17 cars, making the most money he’d ever made in a month, and he was hooked.
2. Being with a brand you love is important.
Michael worked with Chrysler, Dodge, Jeep, Ram (CDJR), and BMW, but found his sweet spot at JLR (Jaguar Land Rover).
“I've always been a big fan of Range Rover…And so to have that opportunity was really cool…I've been here ever since, and I absolutely love it.”
3. Success in high-end luxury requires a different approach.
The difference between whether you're running a volume store, a luxury volume store, or a high-end luxury store like JLR is the expectation from the client.
“At the end of the day, hospitality is exceeding their expectations…This client base...(is)… more affluent…six and a half times more likely to be a business owner or an entrepreneur. You have to take that stuff into mind when you're considering the process in which you're going to make them go through.”
There are a lot of factors to consider when catering to high-end luxury buyers that might not apply to those shopping for mainstream vehicles.
4. There’s no substitute for the fundamentals.
There are elements of the sales process that everyone needs to adhere to regardless of the segment.
“…If you submit a lead on the internet…we're gonna actually answer the question of the lead. But more importantly, we're gonna give you videos of the vehicle…telling you about our unique selling proposition. Then we're gonna...reduce the effort as much as we possibly can.”
However, the next step of the process—which includes doing a deeper dive into a potential buyer’s interests—can be the most critical in high-end luxury sales.
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5. Transparency is absolute in a “negotiation-free” sales model.
The vast majority of Jaguar Land Rover Virginia Beach’s clientele appreciate that the dealership can save them time by not having to negotiate, but transparency is key.
“You can't just say, ‘Hey, we're non-negotiable and this is our price,’ because they're going to walk away. They need to be explained to how we arrived at the price, how often we chopped the market.”
JLR Virginia Beach makes it a point to provide clients with key sales information such as the invoice.
6. High-end luxury is more than vehicle sales.
Service is a big part of the JLR dealership model—and a significant part of Jaguar Land Rover Virginia Beach’s revenue.
“We operate typically around 91 to 93 % fixed absorption. We're really, really, happy with that because at the end of the day, anything we sell typically is just going straight to the bottom line.”
That requires JLR Virginia to run extremely tight—with a goal of $16,500 gross per employee, constantly looking at the size of the dealership, and focusing on individual improvements among the team.
7. Think beyond the typical transaction experience.
JLR Virginia Beach focuses on catering to the personal interests of its clientele.
For example, for one client, who lives about 45 minutes from the dealership, Michael’s team scheduled a first-service luxury weekend at the Historic Cavalier Hotel (a luxury property in Virginia Beach) and purchased tickets for the client to take his kids to Virginia Aquarium.
“That is a bespoke experience for that client that is going to add value to their ownership experience…It's getting away from the transactional points and looking holistically at the ownership experience.”
The experience was paid for entirely by JLR, which speaks to the company’s commitment to ensure that dealerships like Michael’s store can provide the kind of experience that builds brand loyalty.
8. The luxury approach would be the ultimate play in a D2C world.
A brand like JLR could have an advantage if traditional dealerships were to ever adopt some aspects of a direct-to-consumer business model.
“Name one D2C business right now that has a good robust after-sales process. And I think that our aftersales and our experience side of things, that's how we win…It's not about the cost of the item that you're doing for the customer or the value of the item that you're giving to the customer…It's how it makes them feel.”
Leveraging some of Carvana’s mojo in luxury could have major benefits.
9. Don’t be beholden to tech.
Jaguar Land Rover Virginia Beach takes a different approach to digital tech—one that is more tempered.
“I'm not on Cars.com. I'm not on AutoTrader. I personally do not believe in spending money to send somebody to another website. I would rather spend... The only listing I'm on is CarGurus, and that's because we are as a platform.”
The dealership encourages its team to use AI in areas like CRM, but in a more strategic manner to correct verbiage and tonality.
10. Don’t count Jaguar out.
Despite all the naysayers, Michael believes in JLR’s rebranding strategy for Jaguar.
“I personally believe that Jaguar is…going back to where it actually came from…Sitting in my showroom, I've got a 1951 XK 120. That's the car that actually started all of Checkered Flag. But if you think about that car when it came out…or the E-Type, they were always pushing the envelope, not just in what they could do as far as powertrains, but more importantly, in design cues.”
Some people are going to hate it, and some people are going to love it, which is fine. The intention is not to build a car that everybody will want to own.
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