Owner and Dealer Principal of Ringwood Mazda,  Geoff Sammons, Master Dealer of the Year 1997-1999 and 2001-2007, speaks about how hard work and a passion for the industry have driven his success.  Geoff provides an insight into how he is approaching the current economic climate and why his long serving, loyal staff know they are here to stay. 
 
What is the history of Ringwood Mazda?

I have owned the dealership since 1994 which I reopened after it had ceased to trade as an existing business in 1993. 

How did you come to work in the industry?

I started in the motor industry at 20 years of age in the late 1960’s.  My first job was with Stillwell Ford in Kew, which was very much an iconic site in Melbourne because it had held Holden for many years and then in 1966 he swapped to Ford.  That was a huge thing in the motor industry.  Prior to that whatever franchise you started with you stayed with until you went to the big car yard up in the sky!

I started as a used car salesman and when I left a few years later I was a used car manager.  In those days the volumes were very high and we were selling 100 cars a week so it was a huge business with 5 or 6 dealerships spread over Melbourne.  Then some years later I went into a small dealership in Surrey Hills, followed by some wholesaling which I did for years and years until I ended up here in 1994.

Why did you pursue a career in the motor industry?

I have always loved selling - I’ve always liked being with people who I consider successful.  The industry back then was full of contrasts. There were people who were fabulous, difficult, hard working, intelligent and astute operators and they did very well.  However there was still an element of the preconsumer stereotype older car salesman and they of course have been weeded out in the last couple of decades.

I went into the industry primarily because I loved motor cars and it was a lucrative business.  Not long after I started I was earning more money than my father who was the personal manager for a large oil company.  It has always been an industry if you work hard you will do well and it does reward hard work.  I would never do anything else.

 
When did you know it was time to go out on your own?

I went out on my own in November 1982 over in Surrey Hills.  I would buy, clean and sell the cars which I loved.  And the hard work of self employment paid dividends.  I sorted out my priorities and now I could never work for someone else.  I would be very happy to drive a cab at night if that’s what it took to survive, however let’s hope it doesn’t come to that as I love doing what I’m doing.

What has been the secret to your success?

Recently the industry has become a lot tougher in terms of the consumer who now has greater access to information.  So in that sense it has changed, however it has become easier to increase customer retention than in the past.  Now if you give them the total package - selling the car, servicing the car and generally placing an emphasis on customer service and competitive pricing they are more likely to keep dealing with you.  Price is very important as sometimes you come up against the non franchise service and they are often significantly dearer than ours and yet they also don’t have the benefit of being factory trained. We are able to complete the service more thoroughly and quickly and that reflects in the prices. If you sell a car to a customer and treat them well, then it may come a time when they need a car for their daughter so they come back as they trust you.

From that point of you, it is very important to understand and appreciate your customer’s needs.  If you look to the future, Gen Y who are very astute and savvy, they are looking to be involved in businesses that are green, who are very competitive and consumer wise. When they find those places they are very loyal too. Hopefully you then end up building relationships. That is what I love about it and the Mazda brand is very good at helping you build these relationships.

We also listen to our customer.  During the drought, which is ongoing, we stopped washing cars during a service.  But obviously our customers still wanted their cars cleaned so we put in a water tank so we could minimise our impact on the environment.

I am very passionate about the industry and about the Mazda product and when you are passionate about something you will always be successful no matter what it is.

What would you say the culture of the company is?

We are very big on stability, but having said that it has to be a two way street as the culture has to be respected.  When you have staff who understand the franchise, my life is a lot easier.  There are no negotiations in terms of the way we do things.  If we make a mistake we cop it on the chin and we fix it.  We have some maturity on our side now that we certainly did not have a few years ago. The General Sales Manager has been here 12 of the 14 years and another sales woman who has been here for the entire 14 years. We have seven technicians who have been here well over a decade and they appreciate that they have job security.  If things do get a bit tighter this year, the people here are not at any risk because we have fine tuned our staff over the years. We have 50 plus people who are very experienced and understand if they don’t look after the customer, they don’t have a job. It’s not rocket science. Therefore I would like to think the culture is based on stability and respect.

What are you doing at the moment to deal with the current economic situation?

We were with one of the two financiers that exited the industry and had a wonderful relationship with them for 14 years. But because we had a very strong balance sheet and we run a straight, tight dealership we were picked up by another financer in a matter of days.
Were you worried at the time?

Very much so because it was a lack of faith in the industry. But I think when you scratch the service it is more than that.  It is changes in the cost of money that is very much noticeable in American based companies.   I have a lot of respect for GE but they just could not work in this present environment.  So it did concern us for a couple of days but dealers with good balance sheets should have no problems.  Still, as with other industries there will be some who will exit the industry, but the well structured businesses will always survive.  Any dealer who has used the last few profitable years to reduce debt and make a strong balance sheet will have no problem finding a financier.

Did your staff come to you during this time?

Yes, you could actually sense it.  They had been bombarded with bad media every day.  If it’s not the share market the real estate industry is down and if it’s not that, a major corporation is sacking people.  Everybody needed some good news. One area may shrink a little while another grows. Our used car area has picked up and our service area is a little busier. So at the end of the day while we may be down we certainly are not in a disastrous position.  I always give them my personal assurance that we won’t be putting off good people.  We never have and we never will.

 
Did you see it coming?

I love the Share Market, I play it hard but I felt it was far too dear. Did I feel there was a correction due? Yes. Did I pick the timing? No.

When did you last sell a car?

I last sold a car a few weeks back to a chap who used to play Father Christmas in the street I grew up in, so he came into see me. I tend to look after past or repeat clients who still like to deal with me. To really look after a sophisticated client today you need to be a professional sales person doing it all the time.  Our newest sales person would have been selling cars for at least 18 months.  She is very astute, computer literate, very willing to adapt and has a deep understanding of customer satisfaction.  I miss it, but I would hate to be the dealer who stays too long.  I now leave selling to the professionals.
What do you suggest to anyone wanting to come and work at Ringwood MAZDA?

We insist on a police check. We are very big on working on the process and deciding on weather they are a good fit because I just hate staff turnover. So that usually takes several interviews with several of our staff because if we make a mistake we are wasting their time too.  So when we do put someone on, the success of them staying is higher because they know what they are in for.  We have been very successful with the way we run things so we don’t change the rules for anyone. We are harder to get in to but once you are in, given you have the right attitude, you’re here to stay.

We are the highest ranked dealership in Australia in terms of customer satisfaction and that is a testament to our staff and I am really proud of that.

A happy employee-

My Name is Eleonora and I have worked here since April this year as the Receptionist Mon – Frid from 10am – 4pm.  From the very moment I started work here the staff and management welcomed me on board with open arms and made me feel at home.  I love my job and working for Geoff is great, he is such a generous man to all of his staff and he always has something nice or funny to say. I am looking forward to a long working relationship with everyone here.     

Kind Regards,

Eleonora
Reception