Small Town Boasts World's Largest Dodge Dealer

Small Town Boasts World's Largest Dodge Dealer AG WORLD 28-6-24 The town of Kellogg, Idaho, is full to the brim of cars, trucks, and sport-utility vehicles. Almost every lot in town is overflowing with them. That's because the small community of just 2,800 people is home to Dave Smith Motors, the largest Dodge truck dealer in the world. The dealership generally has about 1,200 new and about 400 used vehicles in inventory at 12 different lots around town. Besides Dodge trucks, it's also the seventh largest GM dealer in the world, and proudly emphasizes its "No Hassle Buying" policy. This is borne out by the fact that they have one of the highest rankings available for customer satisfaction. The dealership sells more than 400 vehicles a month, and over $600,000 worth of accessories. In all, it's a $330 million business, annually. Thanks to its customer satisfaction guarantee, one-price selling, and multiple dealerships under one roof, the dealership has grown in leaps and bounds since the early 1980's. This, despite the fact that the entire county population totals just 14,000 people. Ken Smith, 42, is head of the family operation. His dad Dave, who passed away in 1994, started the business in 1965. The dealership is unique in that it sells the complete GM line (Chevy, Oldsmobile, Pontiac, Buick, Cadillac, GMC), as well as Chrysler, Jeep and Dodge, all under the same roof. Sales over the internet are another reason for the dealership's success. "I believe we're the largest accessory dealer in the country," Smith says. "We first decided to build up our accessory business in the 1980s, after noticing that we were selling a lot of trucks but somebody else was accessorizing them. We knew there was good money to be made in accessories and that they also help to sell trucks because the buyer that drives a truck or car fitted with $8,000 to $10,000 in accessories makes a statement, prompting others ask where they bought the truck." While Ken is president, CEO and majority stock holder, his brother, sister, and other family members are all involved in the business. The nearest cities of any size are Missoula to the east with 100,000 people and Spokane to the west with 200,000 people. The dealership attracts the majority of its customers from throughout the northwest, including Alaska, Washington, Oregon, Idaho, and Montana, but also make sales into practically every other state. A big part of the success is thanks to one of Ken's brother's computer programming skills because technology plays a large role in this business's overall efficiency. They developed their own extensive computerized pricing system, allowing their salespeople the ability to give customers an immediate, automated price. Also, thanks to the computer software they developed, staff are able to monitor their own and colleagues' sales figures, providing incentive to outdo each other. A special phone system allows call monitoring, so management can make sure staff are properly handling their clients. Another angle the Smith family has used to their advantage is that the Kellogg area is a tourist destination. They urge clients to come for a holiday when purchasing their vehicle. "With the money you'll save on your vehicle purchase, take the whole family on vacation," they say. The company offers a free shuttle service to buyers flying into the Spokane airport., and with a ski area just a couple blocks from the dealership where the world's longest gondola takes passenger four miles up, an 80 mile mountain biking trail that runs a block from the dealership, and concerts offered by the community, it's not hard to find takers. Each potential car buyer at Smith's gets a copy of the vehicle invoice that the dealership receives directly from the factory. They handle negotiations in a very up front, transparent way, pointing out that they will get their share of the profits, thanks to a three per cent kickback from General Motors and Chrysler for every car sold. Salespeople get 20 percent of the kickback amount, or a minimum of $150 per vehicle sold. Conta

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