Customers As Friends

The automotive industry doesn’t score that well, generally speaking, with consumers.  Most people, particularly those under 40, would happily buy a car on their phone if they could.  Many do just that and buy a Tesla. Servicing your car is at best inconvenient, and at worst expensive and frustrating. There are some significant hurdles to jump over to gain the trust of a vehicle owner, and even higher ones to try to make the experience satisfying.

Yet we all have the need to build relationships, particularly with those who share our interests and values. There are pockets in the car business that do just that where the customers become friends.  In the small circle of car-related businesses that I deal with regularly, I observe this with the following (in no particular order):  Lugnutz, MSC Calgary, Cosmos Collision, Chinook Auto Upholstery/CR Techniques, Valentine Volvo/JLR, Ultimate Auto Protection, Alloy Wheel Repair, Kulu Motorcar and others (sorry if I forgot somebody). Dale Walmsley, who does my mechanical work, I think has made friends with the owner of every car he has ever worked on.

When I look at the cars that have come through my business, most often I can trace the relationship with the owner back decades. When the relationships and trust develop over time, everything becomes easy and the work becomes rewarding because there are meaningful relationships attached to it.

It is not always like this.  I remember restoring my first Land Rover in the late 1990’s.  There was a supplier that was selling parts that were known to be defective. The guy who was restoring the truck for me had a conversation with the owner and questioned how he expected to stay in business. His response was that there were always going to be more customers…

I’ve worked for a car dealership like that too (but not for long). Every transaction was managed to eke out every last cent out of the customer, who were told whatever was the most convenient - with a shocking disregard for the truth. Eventually the customers had enough, got angry and left, and a new group of people would continue the cycle.  COVID and the supply chain issues had the effect clearing inventory off dealer lots - so their sales have gone up!

The shortage of new vehicles, and the decision by some dealerships to load up their Bill Of Sales with a lot of ridiculous extra charges or additional dealer mark ups will really test customer loyalty.  The car business is famous for being short-sighted.  It may very well hasten the transition to on-line shopping.

The most extraordinary example of customer loyalty that I know of came from a business that I once owned.  My University roommate, Poul Bay, and I started the Auburn Saloon in 1993 - we were Calgary’s first Martini Bar, opening a few months before The Mercury on 17th Ave.  We were located in the same building as Teatro, right beside the Centre For Performing Arts, downtown.  Early on we decided to develop our relationship with the theatre community: writers, actors, set design and constructors, administrators etc. We became their ‘home away from home’ and they were all great customers. The staff were trained to pour their drinks as soon as they came through the door - it helped that they were fairly predictable!

Leading up to the 2000 New Year, I found myself in a difficult position.  Expectations for the Millennial celebration were sky high and so were the prices.  None of my staff wanted to work that night. I couldn’t see how we could pull off anything but a disappointment that evening.

So… I told all our regular customers that we were throwing a free party (no admission, no charge for anything) on New Years and that they were invited, but had to pour their own drinks and make their own food as I didn’t have any staff!  I hid the expensive Scotch.  Everybody pitched in; cooked the food, cleaned the tables and took turns bartending. It was like a big house party.  We all had a blast and they even left enough money in the tip jar to cover the expenses. It was a fabulous night that gave us a huge PR benefit.

I sold the business just after that, with only a couple years left on the lease which wasn’t going to get renewed. One of the new owner’s marketing strategies was to give himself a generous promotional budget so he could go around to other bars and ‘promote’ the business - mostly to young women.  They didn’t even make it to the end of the lease before defaulting on the rent. With no money and no lease the business was finished. The partners had a falling out, leaving the remaining guy to figure out what to do. The theatre community was going to lose ‘their’ space.

And then, like the ending scene from “It’s A Wonderful Life”, the community rallied together, found new space, bought the materials, and constructed a new Auburn Saloon in the Tower Centre.  It would have been a six figure bill.  The customers built a new restaurant, no charge, for the owner!

People thought I was crazy offering everybody free party on the 2000 New Year’s Eve.  I would say the investment paid off.

Lawrence Romanosky is a 'Car Guy' operating a Specialty Automoible service, restoration and brokerage business out of Calgary, Canada

Lromanosky@me.com.   403-607-8625