Thomas Dowd, Dealer Principal at Lamborghini Melbourne.

Lamborghini Melbourne Dealer Principal Thomas Dowd discusses the excitement of representing a brand that continues to redefine the term ‘world class quality’ in the sports car sector and how listening, learning and hard work have been keys to his success.

 

 

 

 

 

How is Lamborghini represented across Australia?

We are the importer for Lamborghini in Australia and currently have outlets in Melbourne and Sydney and hopefully Brisbane by the end of the year. The plan is to have outlets right down the east coast of Australia.

I am based in Melbourne where we have a sales team and I also oversee the sales team in Sydney.

We have had the importation on Lamborghini for about 14 years in Australia and over that time Melbourne and Sydney have emerged as our biggest markets. Sydney has been very good to us in the last two years and Melbourne has always been very strong as our head office is here and most of our contacts are here in Melbourne.

What is the history of Lamborghini?

Lamborghini has been around in Australia since 1964. In Australia the first cars that were privately imported were in the late 1960’s early 70’s. Back then there was a local businessman Peter Mitchell who was importing them and he had some of the earlier cars that were fairly rare and they probably sold two or three of those every year. 

In the last ten years Lamborghini has grown worldwide and has become a very serious competitor in the sports car market. From manufacturing around 200 cars a year in the 70’s, Lamborghini now produces around 2,500 cars a year. Lamborghini were bought out by the Volkswagen group in 1998.

I believe Lamborghini is a fantastic Italian product which is capable of capturing everyone’s imagination. It was originally designed by Ferrucio Lamborghini who was a tractor manufacturer. In the 60’s he had a Ferrari, and as the story goes he decided he was not happy with the way it ran so took it back to Ferrari. Ferrari claimed there was nothing wrong with the car, so he decided he would go and produce his own car. So Ferrari by not looking after their customer created a competitor!

How did you come to be associated with Lamborghini?

I have been associated with the car for probably 25 years. I actually worked for a company that had a Lamborghini franchise when I first started out in the car industry.

Throughout my career I have been involved with other premium brands such as BMW and Mercedes Benz, however three years ago I decided to come back to Lamborghini as I was offered an opportunity to run the retail side of Lamborghini. It was a product I could not say no to and I love it like every other red blooded male. In Australia and around the world, Lamborghini while a niche product is a respected brand. After a time selling high volume type prestige cars like BMW and Mercedes it was a definite change of scenery.

It was interesting to see that the sales principles are relatively similar however the numbers a little bit bigger so you are dealing with fewer people so more time is spent building and nurturing relationships with customers.

People buy these cars to reward themselves after working for 20 or 30 years. They may have had a Lamborghini poster on their wall since they were a kid. And when they reach whatever age they are they say to themselves ‘okay I think I can afford and deserve to buy of these now.’

What are some of the characteristics of your customers?

Our customers are an interesting group as they come from a diverse range of backgrounds: from property developers, builders, real estate agents to stock brokers and doctors. Surprisingly age also ranges where fairly young guys find themselves in a position to buy a car or they may have help from a family member. However generally they are self made businessmen where perhaps they could not have afforded it 10 or 15 years ago but they can now. They want to reward themselves for their years of hard work. They have usually been pushed by their teenage or adult kids to go buy a car! They are not buying the car to make a statement on the road; they are doing it for themselves.

Are there any familiar identities you can you tell us about who are customers of Lamborghini?

Well overseas, David Beckam and Nicholas Cage come to mind and in Australia there also a number of personalities who own a Lamborghini. I think everyone has probably seen Sam Newman driving his on the set of the Footy Show. He has had three Lamborghini’s and he really enjoys the product. Shane Warne is also another customer. But obviously I can’t tell you about most of our customers. We like to protect our customer’s privacy

On average, how long does it take to close a deal?

 

The sales process can take anywhere from one week to 12 months. Last year I sold a car to a person who I was speaking with for two years - he wanted to make sure he had the right car for him. Then we have people who walk in here on a Monday and are very excited and passionate about the car and drive away with a Lamborghini by the Friday. But generally it is about a two to three month process.

It is a big decision. People take time to buy a house or an apartment and these cars are in that sort of price range. It is one thing to talk about buying one and it is another thing to write a cheque out for $474,000 and commit to buying one of these cars.

 

Do you get a lot of repeat custom?

 

Yes most of our customer who own a Lamborghini either keep them or trade them up. When they buy a new car they are usually planning for the next purchase asking me what is coming out next year and the year after that.

What is the price range of a Lamborghini?

V10 starts at around $475,000, LP 560 is $500,000 and the V12 around $750.000 to $850.000. Generally you are talking about half a million to three quarters of a million dollars for one of these cars. Second hand cars are around $250,000 to $400.000. The dollar amounts are high but you are talking about hand built, super cars. You are probably buying one of the best built driving sports car on the road today. It is not meant to be a practical car although in the next few years we are bringing out a family car that will probably compete with the likes of Bentley.

Who is your biggest competitor?

It is probably Ferrari, Maserati and Aston Martin. Most of our customers do not have only one car they have a combination of these cars.

Was it a decision of yours to go into Prestige car sales?

Yes I think so. When I first got involved in the industry I thought you have to start somewhere; you don’t walk straight into a Lamborghini showroom and necessarily get a job in your 20’s. So I worked my way through by starting at GM then moving onto a dealership that sold Jaguars where they also had a Lamborghini franchise.

I was always drawn to that type of market. Most of my childhood my father was a bit of a car enthusiast and he played with all sorts of cars like Ferraris and Mercedes Benz. So I was surrounded by those sorts of cars from an early age and had a natural interest in them. It started off us a hobby and led to my profession. Looking back I have not moved around too much; I like to stick with a product and watch it grow and develop.

How do you think the economy is affecting the automotive business currently?

Well obviously the local car market is going through tough times but I have seen that before in the early 90’s and it gets tough. However it goes around in cycles and we have had a very good run for the last 10 years with the Australian economy and a lot of people have made a lot of money. People have splurged on cars and boats and property and it has to slow down at some stage and that’s what is happening now.

 

But hopefully with the Australian economy in pretty good shape and as long as we don’t get dragged into what is happening overseas, the Australian car industry will survive. “I would rather be at the pointy end of the market where we are not looking for thousands of customers every year; rather we are looking at 50 to 60 a year”. This end of the market is always tough so we have not noticed it as much, if anything we are seeing signs of it improving.

 

Do you find your clients are more demanding?

 

Yes I think so. However you always get demanding clients selling any prestige product. When you a paying a certain price for a car you expect it to be perfect and get the right sort of attention. The expectations are higher at this end of the market as they should be. No matter what side of business you are on, you have to look after your clients otherwise they leave you and they just go buy something else. They are educated buyers, we are basically there to help them and make it an enjoyable experience. It’s a people business not a car business.

 

What are some of the perks of selling the cars?

 

Going overseas for the launches. Generally everyone wants to know about the product so that is always exciting. Whether it be fashion shows, openings of restaurants or the Grand Prix etc, that all stimulates sales later on. Also another perk is just seeing peoples’ reactions to the product - you ring them a week later to see how they are going and that is always very satisfying.

 

What do you look forward to when coming to work each day?

 

Being around his product naturally gives you a lift.

 

If money was not an option what car would you buy?

 

You mean what cars would I buy? I would like a selection. I do like some of the classic cars. But in terms of today’s cars I would have the Lamborghini LP 560 as an every day car. It really is a hard question to pin point as there is not one car that I would just alone be happy with, as I have experienced so many. So I will also say maybe the Lamborghini LP 640, a classic Mercedes Benz and one of the older Ferrari’s from the 60’s.

  

What do you suggest to anyone wanting to get into the prestige car industry?

It is not an easy business but it’s a business that once you are involved in it, it is hard to get out of. There is something about it that once you have some success in it you seem to stick to it. It’s hard to pin point what makes people good at it, it’s a natural thing. I never had formal training, I simply listened and watched others do it and then did it my way.