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- Owning 11 dealerships was just the start: The dealer-built solution generating $55M/year
Owning 11 dealerships was just the start: The dealer-built solution generating $55M/year
Featuring Sam Mahrouq, Chairman and CEO at ikon Technologies
Welcome to another episode of the Car Dealership Guy Podcast.
In this episode, Sam Mahrouq, Chairman and CEO at Ikon Technologies, discusses how advancements in GPS technology and dealer-branded apps are boosting customer retention like never before. Sam is a long-time entrepreneur and dealer who today runs an 11-store dealership group and a tech company with $55 million in annual revenue.
1. Getting the ‘entrepreneur bug.’
Sam shares his upbringing in Amman, Jordan, where his entrepreneurial spirit was sparked by observing his father dabble in the stock market. A defining moment came when he realized the potential to make significant money without clocking hours, which fueled his passion for buying and selling. His first venture into cars came during college, flipping a VW Rabbit for a $1,000 profit. This hands-on experience would be his first taste of the automotive world.
2. Entry into the car business.
During college, Sam began flipping cars on a small scale, selling through magazine ads. A visit to Saudi Arabia revealed the high demand for American cars in the Middle East, leading him to launch a car export business. By graduation, he was shipping 20-30 cars monthly, generating $1,000 profit per car.
“Back then, there was a big market for used cars shipped to the Middle East. In fact, to other parts of the world. I shipped cars to China, to Russia, to Africa, but primarily, I was shipping them to the Middle East.”
While he exited this export business quickly after leaving college, the experience lay a critical foundation for his eventual transition into automotive retail in the U.S.
3. Building a dealership empire.
Starting with one independent dealership, Sam gradually expanded to 11 locations, focusing on subprime retail. Initially, he sold trade-ins as a financing option for customers who couldn’t secure loans elsewhere.
“Lo and behold, within a few months, six months, I had $200,000, $300,000 worth of notes that I would take almost what I have in the car as a down payment, and then the rest is profit.”
This evolved into a full-fledged in-house financing model, allowing him to manage a portfolio of notes while focusing on $6,000–$10,000 vehicles. Today, his dealerships sell around 700 cars monthly.
4. Diversifying into tech.
Beyond dealerships, Sam has branched into ancillary businesses like car rentals and technology. He emphasizes leveraging synergies across businesses while maintaining their independence, noting that success relies heavily on not just retaining top talent but also empowering them.
“The key part is to hire the right people, give them the vision, and then trust them to continue with it without constantly breathing down their necks…”
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5. Launching Ikon Technologies.
Sam’s foray into tech began with a practical problem: tracking inventory across dealerships. While GPS devices were traditionally used by dealers solely for asset recovery, he realized their broader potential in inventory management and customer engagement. This led to the creation of Ikon Technologies, a solution tailored to dealership needs that also enhances customer retention.
6. Boosting customer retention through tech.
Ikon Technologies has now evolved into a multi-faceted platform, maximizing its use of GPS technology. Dealers can use white-labeled apps with their own branding to maintain contact with customers post-sale, schedule service appointments, and track vehicle health. This approach not only boosts retention but also generates revenue through aftermarket products.
“Our technology is collecting data on the consumer…Every time a car needs an oil change we know that because we we know the mileage and we know the information with OBD. So we will send an offer coming from the dealer to the customer with a discount and an ability to set that appointment to the dealership.”
7. Solutions for dealers by dealers.
Sam underscores the need for dealer-driven innovation. Rather than urging customers to use OEM-connected apps that withhold data from dealers, retailers are better empowered by keeping customer data within their ecosystem.
“Why should you, as a dealer, promote OnStar or FordPass or any other third party to steal that data away from you? Why shouldn't that data remain to the dealer themselves and create a platform to send that customer back to the dealer that sold the car?”
This ensures dealers maintain direct relationships with customers while leveraging technology for added value.
8. Scaling Ikon’s reach.
Since its full launch in 2020, Ikon Technologies’ products have grown to be used in nearly 500 dealerships across the U.S., including locations in Hawaii and Alaska. The company has doubled its sales annually, reaching $55 million in 2023, with a goal of breaking $100 million in 2024.
9. Innovating for the future.
Sam plans to integrate AI and data analytics into his platform to predict customer needs in real-time. For example, technology could soon be used to predict when vehicles are in need of service and offering repair estimates immediately.
“The idea is to create several sources of layer AI to understand when a customer needs the dealer, and then put the dealer in a more proactive way by sending a message to them that if you encounter this situation, schedule this appointment so I can come, so I can help you.”
These proactive solutions will streamline dealership operations and improve customer experiences.
10. Lessons for entrepreneurs.
Sam emphasizes the importance of obtaining hands-on experience in the dealership. From washing cars as a porter to scaling a multi-location business, every role is crucial to informing one’s approach.
“A lot of my information comes from the fact that I performed every aspect of a dealership…I kind of took every single role from being at auction and buying cars to sometimes, on Thursday, as soon as the cars come in from the auction, taking off my shirts and going with the porters to clean these cars so I can get them ready for the weekend for the Friday, Saturday sale.”
He urges dealers and other entrepreneurs to identify gaps in their industries so that they can leverage their expertise to create solutions that benefit both their business and customers.
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