Welcome to another edition of the Car Dealership Guy Podcast Recap newsletter—the key lessons from top operators, founders, and execs shaping the future of auto retail.
Today’s guest is Todd Blue, Dealer Principal of Mercedes-Benz of Northern Arizona and CEO of LAPIS
We break down how luxury dealerships can truly differentiate in a crowded market and why direct customer engagement still drives outsized loyalty.
Choosing luxury over volume created space for Todd to add genuine value.
Todd’s early career buying and selling post-war European sports cars taught him how affluent customers think, what they expect, and how to make them feel understood.
"What I learned was… how to deal with wealthy people. That was my number one point of differentiation from my competitors and what I offered my customers."
For him, luxury was the arena where his background, instincts, and service philosophy aligned to create something customers couldn’t get elsewhere.
Letting consumers choose powertrains, not forcing them, creates competitive advantage.
Mercedes is moving toward offering ICE, hybrid, and electric options across its lineup, allowing customers to decide what fits their lifestyle rather than being boxed into one technology.
“You're gonna be able to buy a vehicle… and have any powertrain you want, which I love, because I think the consumer should make the decision.”
Adapting to customer preferences, not dictating them, is how Todd sees Mercedes winning in a fractured market.
Hiring OEM leaders with retail scars improves every decision they make.
Todd credits Mercedes' CEO Adam Chamberlain for genuinely understanding dealer realities because he's sat on both sides of the table, manufacturing and retail, across multiple brands.
"He has sat in both chairs… he's been in multiple manufacturers; he's been in retail… he's smart and he's hungry and he has something to prove."
When OEM leaders have carried the weight of a showroom, their strategies land differently because they've lived the consequences firsthand.
Offering access, not just amenities, builds loyalty advertising can't buy.
For ultra-high-end buyers, the differentiator is the exclusive connections, behind-the-scenes experiences, and access to events that money alone can't secure.
"They want access… to the coolest, neatest, most unique auto and other events… things that can't be purchased."
Dealers who can authentically create these moments build relationships that transcend transactions and resist commoditization.
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Delivering luxury without living luxury creates execution that feels off.
Todd argues that operations must reflect lived experience with high-end service, because you can't authentically replicate what you've never personally encountered or valued.
"It's tough to give or get a Four Seasons Hotel experience if you've only stayed in a Holiday Inn."
In luxury retail, credibility and consistency come from knowing the world your customers inhabit, not just studying it.
Mastering blocking and tackling, not just big ideas, keeps premium brands alive.
Although Todd excels at vision and relationship-driven leadership, he's quick to emphasize that operational discipline and countless small daily decisions are what actually make stores work.
"Blocking and tackling and a lot of small decisions are critical. Retail is detail. And if you forget that, then you're out."
Even the most premium brands depend on daily operational excellence that can't be delegated or ignored.
Surrounding yourself with specialists, not clones, turns vision into scalable business.
Todd is transparent about his strengths and equally clear that he needs operators with complementary skill sets, people who can execute the details he can't.
"I need to surround myself with good people because I don't have those skill sets… they've got to walk with me hand-in-hand and do the things I can't do."
The right team elevates a dealer's vision into something that actually scales, rather than staying dependent on one person.
Selling his group came from fear of leverage, not falling out of love with the work.
In 2020, Todd sold his 18-store group because he was uncomfortable with his debt load and thought the market was peaking, not because he wanted to exit the business.
"Selling was quite frankly out of fear in my vulnerability… I thought we were at the end of a cycle."
He later realized the sale removed the one thing he had underestimated on his decision matrix, which is that he genuinely loved the work.
Getting back in was driven by loving the craft, not chasing another outcome.
After selling, COVID gave Todd time to reflect, and he realized what he missed most was the daily work of building dealerships, not the financial upside.
"I'm getting back in because I love it and I missed it… it's not scientific… it's just in my heart."
True longevity in retail comes from operators who genuinely enjoy the craft, not those grinding toward an exit.
Believing niche operators can thrive, even as macro headwinds build, shapes his strategy.
Todd worries about an overdue recession and overleveraged competitors, but he's confident that specialized, disciplined independent groups will not just survive but outperform.
"I strongly believe that niche auto dealers… if they're doing something very special, not only will exist, but they'll thrive."
Because focused operators with low leverage and high specialization can win even when broader market conditions tighten.
