SlideShare uma empresa Scribd logo
1 de 9
Baixar para ler offline
Massachusetts




                 DEALER
             AUTODEALER
      The official publication of the Massachusetts State Automobile Dealers Association, Inc.




 APPETITE
  for Opportunity




                                                                          InsideCOVER: Herb Chambers - Dealer of the Year
                                                                                Take the * Out of Advertising: The Attorney General
                                                                                may be just getting started
 PERMIT NO. 216                                                                 Guarding Yourself From Safeguards: The rule is here to
   BOSTON, MA                                                                   stay, ignore it at your peril.
US POSTAGE PAID
FIRST-CLASS MAIL      MSADA, 59 Temple Place, Ste 505, Boston, MA 02111
                                                                          F E B R UA RY 2 0 0 8   VO L U M E 2 1   N O. 1
INSIDE



                                      on the cover
                                                                                                  table of contents
                                      Herb Chambers is the
                                      Dealer of the Year
                                                                                                           ‘You have to                                                   ‘Expect 2008
                                      PHOTO CREDIT: ANTHONY                                                 work it –                       ‘The AG will                                                        ‘You could be
                                                                                                                                                                           light vehicle
                                      SCARPETTA PHOTOGRAPHY                                        6        really live               8    not stop with             9     sales to fall                10      unwinding
                                                                                                          and breathe                        these eight                                                       EVERY deal
       Massachusetts




                                                                                                                                                                               about                         since May 2003’


              AUTODEALER                                                                                      KIA .’                           dealers.’
                                                                                                                                                                          2.5 percent’


       The official publication of the Massachusetts State Automobile Dealers Association, Inc.

                                                                                                  6 IN THE NEWS: Silko Kia joins nine other Kia dealerships that have closed their doors over the past
                               EDITORIAL STAFF                                                          18 months. But others, including Kia Sports Auto World in Bourne, are going strong. Bedard Brothers
                         Lee Goodwin David L. Williams                                                  takes over Gateway Chevrolet. Hassan Brothers settles its termination lawsuit with Jeep. Lowell Chrysler
                               PRINTING & LAYOUT                                                        Dodge closes its doors. Lia Toyota begins expansion. Ira donates to Danvers diversity. Dealers report that
                                  Blanchard Press                                                       Massachusetts customers are finding loans for autos despite the credit crunch. Dealers – furious about
                       25 Drydock Avenue, Boston, MA 02210
                                                                                                        anonymous online consumer gripes criticizing their stores – fight back. And more.
                     SUBSCRIPTIONS
         Provided annually to Massachusetts dealers.
       All address changes should be submitted to:                                                8 POLITICAL ACTION: Attorney General Martha Coakley handed down nearly $300,000 worth of
                           MSADA                                                                        fines to state dealers. Could your advertising end up costing you?
      59 Temple Place, Ste. 505 Boston, MA 02111
        Phone 617.451.1051 Fax 617.451.9309
               e-mail: lgoodwin@msada.org                                                         10 KEEP YOUR GUARD UP: The Safeguards Rule has caused expensive headaches since its
    Auto Dealer is published by the Massachusetts State
                                                                                                        inception. If the FTC doesn’t get you, plaintiffs’ attorneys will. How to navigate the rules and keep your
    Automobile Dealers Association to provide information                                               dealership out of trouble.
     about the Bay State auto retail industry and news of
                MSADA and its membership.
                                                                                                  12 COVER STORY: Dealer of the Year An outsider who made his mark in the office copier
           Application to mail at Periodical-Class                                                      business, Herb Chambers turned to cars 25 years ago. Today he’s an empire builder with an eye for
        Postage rates pending at Boston, MA 02205
              and additional mailing offices.                                                           opportunity, and he’s the Time Magazine Dealer of the Year nominee.
        Postmaster: Send address changes to:
        Massachusetts Auto Dealer c/o MSADA
                                                                                                  20 CONTRIBUTORS: NCDPAC Supporters Thanks to those who gave generously to the New Car
     59 Temple Place, Ste. 505 Boston, MA 02111                                                         Dealer PAC: Your voice on Beacon Hill. And to the Dealers Election Action Committee: Your voice in
                                STAFF DIRECTORY                                                         Washington.
                         David Williams
                   Executive Vice President                                                       21 POLITICAL ACTION: All The President’s Men                      Massachusetts members of the DEAC
                     dwilliams@msada.org                                                                President’s Club say the PAC is the best investment a dealer can make. Isn’t it time to join the club?
                      Robert O’Koniewski
            Director of Legal & Government Affairs
                   rokoniewski@msada.org                                                          22 NADA UPDATE: The EPA decision to deny California's waiver request will face opposition. NADA
                          Lee Goodwin                                                                   supports the national CAFE increase recently signed into law, and argues that a patchwork of state
          Director of Communications & Marketing
                                                                                                        environmental regulations will cause confusion and harm.
                     lgoodwin@msada.org
                           Irene Varao
                   Director of Administration
                       ivarao@msada.org
                           Tricia White
            Accounting and Membership Manager
                       twhite@msada.org
                           Mike Nixon
                      AYES State Manager
                                                                                                  advertisersdirectory
                    MassAYES@msada.org                                                                 Please note the following advertisers who have invested in this magazine and directly support the
                           Sam Poikail                                                                 MSADA. Thank you for supporting the MSADA.
    Information Technology & Member Information Manager
                      spoikail@msada.org                                                               ADVERTISER                                         PAGE       ADVERTISER ........................................PAGE
                        Carina Gonzalez
                    Foundation Coordinator                                                             The Boston Globe ........................................2    McCarter & English, LLP ..............................5
                    cgonzalez@msada.org
                          Starr Cooper
                                                                                                       Boston Herald............................................24   Murtha Cullina, LLP ....................................7
                  Administrative Coordinator                                                           GW Marketing Services..............................15         Nancy Phillips Associates, Inc.....................11
                      scooper@msada.org
                       Meredith Spencer                                                                Kirker-Perry Construction Co. ......................5         O’Connor & Drew PC ................................23
                        Editorial Assistant
                      editorial@msada.org                                                              Leader Auto Resources (LAR) ....................18            Southern Auto Auction ................................5
                           Jeffrey Mui
                                                                                                       Lynnway Auto Auction ..................................9      Zurich ........................................................3page
                                                                                                                                                                                                           continued on next
                    Administrative Assistant
                        jmui@msada.org

4                      february 2008 massachusetts auto dealer www.msada.org
COVER STORY: DEALER OF THE YEAR


Empire Builder                                       by Lee Goodwin and Meredith Spencer
When people look at Herb Chambers, they see the accoutrements of wealth and a stable
of dealerships. So why would a guy at the top of his game give a damn if the mechanics’
bathrooms are clean? When you understand that, you’ll begin to understand Herb
Chambers.
       You know the jingle.               “We’ve got it. At Herb Chambers we’ve got it.”
It could just as easily apply to the man. Herb        the largest independent distributor of office               he says, the key to sales is simply being nice to
Chambers has got it.                                  equipment in the United States. And they always             people.
                                                      include how Chambers went looking for a
He’s got the 40-odd dealerships including his
                                                      Cadillac and ended up buying a dealership.                  A-Copy Becomes Ikon-ic
palatial Lexus store in Sharon (see side story).
He’s got homes in Boston and Connecticut, and                                                                     The office world was moving from mimeograph
                                                      The Central Question
he’s got a helicopter to commute between the                                                                      and carbon paper to photocopy. In 1965 he
two. For long distance commuting he owns a            None of those stories asks the central question.            founded his own company with just $500
new Gulfstream 450 Jet. He’s got a rotating           How did an outsider with no automotive                      borrowed from his mother. He named it A-Copy,
collection of 15 to 20 exotic and collectible cars    experience build such a formidable organization?            so it would be listed first in the phone book.
in his garage, and he’s got a 188-foot yacht if       What keeps Herb Chambers – the man and the                  Chambers used his savvy as both technician and
dry land becomes dull.                                organization – going, and growing?                          salesman to purchase used copiers, then fix and
                                                                                                                  resell them.
And now he has the 2008 Time Magazine Dealer          Following his time in the Navy, Chambers began
of the Year nomination and he’s the state’s           working for a copy machine company, first as a           His success snowballed. His competitors
dealer of the year.                                   technician and later as leader of its #1 sales           guaranteed repair in 24-hours. A-Copy promised
                                                      team.                                                                         to fill service requests in
When the press writes about Chambers, they
                                                                                                                                    eight hours – and in the
follow a tight narrative. How as a youngster          He made the transition to
                                                                                                                                    early days Chambers
growing up in Dorchester, he thought the local        sales by selling extended
                                                      warranties while servicing the                  “The first time               himself made the service
dealer possessed untold wealth. With his nose
                                                                                                        I met him,                  call.
pressed up against the showroom window, he            machines – so many
marveled at how many cars the businessman             warranties that management                   I said to myself,                      Chambers      sold    his
“owned.”                                              took notice and expanded his               ‘This guy is electric’”                  business in 1983 to Ikon,
                                                      territory. Speaking to people                      recalls                          then known as Alco-
How, following a four-year stint in the Navy, he
                                                      in a sales context was difficult,                                                   Standard, which was
opted for a paycheck instead of school. He never                                                      John Covell
                                                      but a Dale Carnegie course                                                          attempting to consolidate
attended college. How he founded a copy
                                                      boosted his confidence. Today,                                                      independents like A-Copy.
machine company that would go on to become

                                                                   Herb Chambers Lexus in Sharon opened in fall 2007. Chambers and his team toured the country seeking
                                                                  design ideas to incorporate into the 110,000,000 square-foot dealership.
COVER STORY: DEALER OF THE YEAR

Empire Builder...continued from page 12

Chambers had become the largest Canon                        He wanted a business involved in distribution,                Keeping Up Morale
distributor in the world.                                    a mix of new and used products, and something
                                                                                                                           Adopting the mindset of a customer is just one
                                                             service intensive. What he didn’t want was
                                                                                                                           key to his success. (Chambers’ service
How to Buy Companies                                         to compete any longer against the likes of IBM
                                                                                                                           departments wash and vacuum every car that
The addition of A-Copy represented “a big                    and Xerox.
                                                                                                                           rolls through).
feather in the cap” of Alco-Standard, lending its
                                                                                                                                                    His ability to inspire and
                                                                                                                                                    turn over management
                                                                                                                                                    control to others is also
                                                                                                                                                    key. He expects his GMs –
                                                                                                                                                    he refers to them as his
                                                                                                                                                    “partners” – to fix their
                                                                                                                                                    own problems and run
                                                                                                                                                    their dealerships as
                                                                                                                                                    independently as
                                                                                                                                                    possible. He has a saying:
                                                                                                                                                    “We lead people and
                                                                                                                                                    manage information.”
                                                                                                                                                       He also subscribes to the
                                                                                                                                                       adage: Trust but verify. For
                                                                                                                                                       example, he demands
                                                                                                                                                       that his technician
                                                                                                                                                       bathrooms be inspected
                                                                                                                                                       once a month. When he
                                                                                                                                                       discovered one recently
The 40-Group: Chambers (center) with his 40-plus GMs. They gather every month to present detailed results and toss around ideas. Chambers dissects the
numbers and exhorts his managers to find where opportunities exist.                                                                                    that was a mess, he hit
                                                                                                                                                       the roof. “People may
                                                                                                                                                       wonder why that's
                                                               No Pre-Conceived Notions
consolidation strategy “instant credibility” and                                                                               important. The restrooms aren’t public and the
helping the Fortune 500 company grow into one                  Not long after he purchased the first dealership                techs spend more time with cars than
of the dominate players in the office equipment                in New London, Connecticut – where he walked                    customers. I ask, ‘What about morale?’ If they
industry worldwide. Alco became a $20 billion                  in looking for an El Dorado and walked away                     don’t enjoy good morale, they may not fix the
dollar company and Chambers its largest single                 owning the business – he set his sights on                      car right.’”
shareholder.                                                   expansion. By 1997, just 10 years later,
                                                                                                                               On the sales side, new sales people spend two
                                                               Chambers had 15 dealerships spread over
“The first time I met him, I said to myself, ‘This                                                                             weeks with Covell. He likes to point out that new
                                                               Rhode Island and Massachusetts and sold
guy is electric,’” recalls John Covell, director                                                                               sales consultants win MVP honors every month
                                                               24,000 cars.
of Marketing and Training. He first joined                                                                                     along with seasoned employees at a monthly
Chambers at A-Copy in 1981 from Xerox. “He                     From day one Chambers generated ideas of how                    motivational breakfast. Every year Chambers
was so exciting and intense about what he                      to conduct business differently. A confirmed car                hosts an elaborate gala, rewarding top
was doing. There was this [atmosphere of]                      nut, he began buying and selling cars in the                    performers with Rolex watches and cash. Top
entrepreneurship.”                                             Navy; nine in one year. “Automobiles became                     sales figures won’t win at either event unless
                                                               beautiful to me,” he recalls.                                   accompanied by high customer service marks to
Chambers stayed on for a while at Alco-
                                                                                                                               match. For managers, overall management
Standard, in charge of mergers and acquisitions.               At A-Copy, he once purchased 16 in a year. He
                                                                                                                               combined with low turnover is a must.
He gained valuable experience in buying                        frequently says that he understands the business
companies. He also learned how to delegate to                  from the consumer side.                                         “He’s concerned with the total overall objective,”
others, and to trust others while holding them                                                                                 says Quirk. “He has confidence in his ability and
                                                               “He had no pre-conceived notions of what he
accountable.                                                                                                                   in his people’s ability. He absolutely, positively
                                                               could or couldn’t do,” says Quincy-based dealer
                                                                                                                               loves the business.”
After completing a number of acquisitions, he                  Dan Quirk. “He put A-Copy on the map. He
started to shop around for a company of his                    focused on customers. He brought the same
own….in a different industry.                                  principals to the car business.”

                                                                                              www.msada.org massachusetts auto dealer february 2008                            13
COVER STORY: DEALER OF THE YEAR



 The ‘40-Group’ Review                                                                      Turning ‘Accessories’
                                                                                            into Profit Centers
                                                                                            Does Chambers take more pleasure in the rewards of his success, or the
                                                                                            fact that he found a way to turn some of those “accessories” into profit
                                                                                            centers?
                                                                                            In addition to his legion of dealerships, he has amassed a collection of
                                                                                            real estate and exotic cars. He is quick to acknowledge that he has been
                                                                                            very fortunate in business.
                                                                                            His properties include a country estate in Old Lyme, Connecticut and a
                                                                                            spot at the new Mandarin on Boylston Street, slated for completion in
                                                                                            2008. Last year, he placed his Back Bay residence – a rare Beaux-Arts
 ‘There’s no question that he’s a big picture guy,’ says John Covell, who has worked for    style home – on the market for $14.95 million, breaking Boston’s single
 Chambers since 1981 and followed him from the copier industry to the auto industry.        home sales record by $4 million. Chambers spent two years renovating
 ‘He was so exciting and intense about what he was doing.’
                                                                                            the house before its sale, and says that it’s an “insane” property for
                                                                                            someone without a family.
 Every month the company’s 40-plus GMs gather together for a                                In Old Lyme, Chambers keeps a stunning collection of cars – 15 to 20
 detailed review of their stores.                                                           exotics and vintage autos. The collection, featured in The Boston Globe
 Chambers lavishes praise on those who bring good numbers as well                           and Chronicle television news program, includes a McLaren F1, a Mile
 as good ideas to the meeting.                                                              Miglia tested 1955 Mercedes-Benz Gullwing, a 1959 Cadillac Biarritz
                                                                                            Convertible Eldorado, a 1932 Ford Coupe and 4 Ferrari Daytonas. Even
 The managers are expected to dig into minutiae at these meetings.                          car nut Jay Leno has asked Chambers for a spin.
 They present their financials one manager after the other: units new
 and used, gross profit and per vehicle, F & I, service, parts, expenses                    By Sea and Sky
 by category, aging receivables, asset management and customer
                                                                                            And if tooling around the Connecticut countryside becomes tiresome,
 service.
                                                                                            Chambers can head to the sky in his jet, take his helicopter for a spin,
 Chambers, who has pored over the numbers earlier, sits ready to                            or board the Excellence III, his 188-foot yacht. Chambers was
 pounce: “What happened here? How about here?”                                              “intricately” involved in the design and building of the ship, traveling to
 “He zeroes in. He finds where the opportunities exist,” John Covell                        Europe to personally meet with shipbuilders Abeking & Rasmussen.
 says. “There’s no question that he’s a big picture guy. But he believes                    He has built and sold several yachts – and leases the Excellence for
 in looking at the numbers and dissecting the numbers.”                                     much of the year (at $500,000+ per week). The plane also spends most
                                                                                            of its time in the hands of others.
 Constant Improvement
                                                                                            In the words of longtime associate John Covell, Chambers is “driven,
 The discussion is designed to provide the type of focus they miss when                     driven, driven.” Another associate, Jim Xaros, contends that the most
 dealing with day-to-day issues and questions. It also provides a forum                     difficult aspect of working for Chambers is keeping pace with him. No
 for implementing changes swiftly among the entire group. For                               matter where in the world his boss may be, Xaros quips, his phone will
 instance, while examining credit card expenses, someone discovered                         ring at the end of the work day, everyday, and Chambers will be asking,
 that taking a credit card number over the phone nearly doubles the                         “How’d we do today?”
 service fee compared to swiping a card. Pennies, perhaps, but multiply
 the fee by hundreds of thousands of service customers, and costs                          PHOTO: CAMPER & NICHOLSONS

 quickly mount.
 It is an example of the Japanese concept of kaizen, or constant
 improvement, that Covell tirelessly advocates. “If we didn’t have these
 meetings we wouldn’t be as successful as we are,” Covell says.
 Chambers prods everyone, constantly, to find new avenues to
 improvement. “I’m trying to convince each and every one of you how
 you can be better,” he tells his employees. “As a company, we can be                       Chambers, a Navy veteran, was ‘intricately’ involved in the design and construction of his
 so much better.”                                                                           188-foot yacht. Always on the lookout for opportunity, he leases it for much of the year, at
                                                                                            nearly a half-million dollars per week.


14     february 2008 massachusetts auto dealer www.msada.org
COVER STORY: DEALER OF THE YEAR


THE EVIL EMPIRE
Asked about Chambers’ expansion plans – specifically           ability to share existing advertising cuts costs
Central Massachusetts – John Covell calls Worcester and        and has allowed him to pay a premium for
surrounding towns “a great market.” Metro Boston may           subsequent dealerships of the same brand.
boast great demographics and high density population,                                                                  ‘It’s price.
                                                               Still, he never allows the upside of a potential
but it suffers from a severe lack of space. However, that      purchase to cloud his critical thinking. “I think
                                                                                                                      How bad do
space is plentiful further from the Hub, and Chambers is       long term. I think about things more. I                  I want it,
missing a few brands from his 40-plus points – which run       consider 'what's the worst thing that can
the gamut from Vespa scooters to Bentley. There’s no                                                                  and how bad
                                                               happen? How bad will it be?’”
Nissan. No VW. No Volvo.                                                                                              do they want
                                                               And what if he were to throw aside his
Chambers is always looking for new opportunities, and if the   organization and return to just one or two
                                                                                                                       to sell it?’
location is right, and the deal makes sense, he’ll buy.        dealerships. Where would he focus?
What’s the hardest aspect of putting together a deal?                                    continued on page 18
“It’s price,” Chambers says. “How bad do I want it, and how
bad do they want to sell it?
I’m not a fire sale buyer. I’ve dealt with some very good
negotiators. I wasn’t the best negotiator, but I’ve gotten
better.”

Patience and Persistence Pay Off
Occasionally, Chambers will invest himself in a deal but
walk away from it. “Even at the 11th hour, because
someone tried to change the deal,” Covell says.
Nor is Chambers afraid of a fight. He once pursued a
lawsuit for nine years against Audi when the manufacturer
cancelled his franchise “for personal reasons” that
Chambers deemed unfair. A million dollars and a decade
later, he vindicated himself.
One recent acquisition required extraordinary patience and
persistence. Foreign Motors West, which Chambers picked
up last year, was a dealership group that Chambers had
wanted forever. “Herb was told repeatedly they wouldn’t sell
it,” Covell said.
Finally, the winds shifted. After two attempts by other
suitors, including Penske Automotive Group went nowhere,
it was Chambers’ turn.
From the beginning, workers at the employee-owned FMW
store regarded Chambers, a competitor, as “the evil
empire.” Covell and Chambers met with small groups of
employees over several weeks, dispelling misconceptions
and reassuring employees about their jobs. Chambers’
willingness to listen, combined with his self-effacing
manner and geniality, eventually won them over, and he
secured employee approval by a near-unanimous vote.

Stay Visible in Showroom
Controlling a large dealer group provides cost efficiencies.
When he purchased his first Honda dealership on
Commonwealth Ave 20 years ago, the “blue sky” was $4
million, “an unheard-of amount,” he recalls. However, his

                                                                                    www.msada.org massachusetts auto dealer february 2008   15
DEALER OF THE YEAR


The Jewel in the Crown




At the espresso bar in Chambers’ Lexus store, customers can enjoy lattes, even a sandwich, all gratis.   The lounge and espresso bar at Herb Chambers Lexus also provide a friendly
                                                                                                         atmosphere for customers and sales people to chat.


Herb Chambers Lexus in Sharon, the crown jewel                   As soon as customers arrive at the service
in the crown of the Herb Chambers empire, took                   entrance, German-engineered doors zip up and                        BY THE NUMBERS:
nearly three years to build and sprawls across 11                then down in seconds. Either a personal service                     3 years to complete
acres. Its 110,000 square-foot showroom                          advisor familiar with their history, or valet, greets
                                                                                                                                     11 acres of land in Sharon
features vaulted cathedral ceilings and abundant                 them. Behind the scenes, the service area
                                                                                                                                     110,000 square-foot showroom
natural light. Customers are treated to                          accommodates 60 bays.
complimentary espresso and sandwiches as they                                                                                        40 cars fit into the showroom
                                                                 Chambers scoured the country with an architect
wait for their car in the dealership’s luxe lounge,                                                                                  50-foot cathedral windows
                                                                 and a photographer, traveling to Texas, Las
complete with marble fireplace. Or perhaps                                                                                           $500,000 cost of showroom skylight
                                                                 Vegas, South Carolina and Georgia to pluck the
they’d prefer to stroll the Zen garden. If that’s too                                                                                140 staff members, including sales and
                                                                 best elements from existing Lexus dealerships.
slow paced, the dealership also offers a WiFi-                                                                                       service department
                                                                 He estimates he’ll enjoy bragging rights for two
equipped business center for customers.                                                                                              5 lunch rooms for staff
                                                                 years before someone outdoes him.
                                                                                                                                     $30 million: estimated cost


The customer service desk is designed to resemble a hotel reception area. Every car that rolls through
a Chambers service department is washed and vacuumed. Lexus customers are assigned a personal It took three years to build and features 50-foot cathedral windows, marble floors, a floor
service advisor familiar with their history.                                                           to ceiling fireplace and can house 40 cars in its showroom.




16       february 2008 massachusetts auto dealer www.msada.org
DEALER OF THE YEAR

A (Reluctant) Public Face
Like many dealers before him, Chambers has become the public face for
his dealerships. Despite his ads, Chambers is a reluctant spokesman; a
commanding presence in small groups, but not someone known for leading
the PR offensive. He feels nervous in front of the cameras, and he's critical
of the results.
His eye-catching – some would say, provocative – ad campaign is built
around the theme that his sales people won’t try to “sell” you a car, they’ll help
you to buy one. That line originated with Chambers as he addressed his                                                                                                                                                  [ Herb Chambers,“ We don’t sell cars. We help you buy them.” ]

managers one day. Boston ad agency Modernista enlarged the concept,
painting Chambers as an “undealer;” a theme adapted by several other local
dealers over the past year or two.
                                                                                                                                                                                                                 Here comes
The idea is to play upon, and dispel, the public perception of dealerships in
                                                                                                                                                                                                                a car salesman:
general, and sales people in particular. One ad in the series, entitled “Here Comes                                                                                                                          a.) panic b.) vomit c.) punch him
a Car Salesman,” angered a few local dealers when it first ran.                                                                                                                                     Everyone has a gut-level response to car salesmen. The moment we see one, we hold
                                                                                                                                                                               onto our wallets. We bolt for the door. It’s a survival instinct. But it’s one you won’t need at

Covell acknowledged that he was “personally concerned” about those ads. “I                                                                                                     Herb Chambers. Because we’re different. Our company is founded upon providing the highest
                                                                                                                                                                               possible level of customer service. Which means our showrooms are pressure-free zones, our

don’t want our competitors to think that we’re disparaging them,” he said. “I                                                                                                  prices aren’t artificially low, and our associates are only there to help. If you want help, that is.
                                                                                                                                                                               Hey, it’s all about you. All we want is to be the good guys in this business. And we’re committed
respect our competitors….even if I want to beat them.”                                                                                                                         to doing whatever it takes to achieve that.
                                                                                                                                                                                                    So, next time you’re considering buying a car, stop by. And relax. We won’t bite.


Pursuing Opportunity Online
It takes more than a clever ad campaign to beat your competitor, of course.
                                                                                                                                                                               Visit us online at herbchambers.com                                                                                                                 Herb Chambers
People still shop the aggressively-priced store, as well as location, selection
and other key factors. But level the playing field, and who you buy
from can become a factor in attracting customers. Just ask Frank
Perdue.
                                                                                                                           AUDI             BMW           BENTLEY            BUICK              CADILLAC              CHEVROLET                       CHRYSLER               DODGE                FORD        HONDA           HUMMER       HYUNDAI      INFINITI    JEEP   LAND ROVER


Despite the success of the ads, and the enduring draw that                                                                                                      LEXUS       MERCEDES-BENZ                      MINI                PONTIAC                 PORSCHE            ROLLS ROYCE                   SAAB        SATURN     SMART       TOYOTA       VESPA




newspapers hold for auto customers, Chambers continues to                                                                                                                 [ Herb Cham
                                                                                                                                                                                      bers, “ We         don’t sell cars.
                                                                                                                                                                                                                          We help you
                                                                                                                                                                                                                                                                                                                                        This ad (top), part of
                                                                                                                                                                                                                                      buy them.” ]

expand his online presence. He was an early adopter of the                                                                                                     This is an ad                                                                                                                                                           Chambers’ eye-catching
                                                                                                                                                           a car dealer,      from
Internet, and with the help of in-house Internet guru Jay Gubala,                                                                                                         written by                                                                                                                                                   – some would say,
                                                                                                                                                                  an ad agen                                                                                                                                                          provocative – campaign,
Chambers continues to mine online data with the same penchant                                                                                              approved by cy,                                                                                                                                                            angered a few local
                                                                                                                                                                          a lawyer.
for dissection that he brings to his stores’ financials.                                                                                                    [ Now, if           we still have
                                                                                                                                                                                                             your attention.
                                                                                                                                                                                                                                                                                                                                     dealers when it first
                                                                                                                                                                                                                                               .. ]
                                                                                                                                                 People have
                                                                                                                                       Pushy, slick
                                                                                                                                                               a horrible perc
                                                                                                                                                                               eption of car                                                                                                                                         appeared. Chambers is a
With its seemingly limitless ability to adapt and evolve,                                                                                           and blinded                                dealers. And
                                                                                                                                                                  by commission                              on the whole,
                                                                                                                                                                                                                               that perceptio
                                                                                                                                                Well, at Herb
                                                                                                                                      providing the
                                                                                                                                                                Chambers, we’r
                                                                                                                                                      highest poss
                                                                                                                                                                                    dollars, car sales
                                                                                                                                                                                 e different. Our
                                                                                                                                                                                                       men can spoi
                                                                                                                                                                                                    company is
                                                                                                                                                                                                                      l the enjoyme
                                                                                                                                                                                                                                              n is correct.
                                                                                                                                                                                                                                       nt of buying
                                                                                                                                                                                                                                                      a car.
                                                                                                                                                                                                                                                                                                                                    reluctant spokesman. He
                                                                                                                                                                   ible level of                                 founded upon
combined with a profound capacity for measurement, the                                                                               trust in the com
                                                                                                                                                       munity, and
                                                                                                                                              Yes, we have
                                                                                                                                                                                  customer serv
                                                                                                                                                                     ultimately, repe
                                                                                                                                                             an ad agency.
                                                                                                                                                                                      at business.
                                                                                                                                                                                                  ice. We belie
                                                                                                                                                                                                                ve it creates
                                                                                                                                                                                                                                    the philosoph
                                                                                                                                                                                                                                 great word of
                                                                                                                                                                                                                                                   y of
                                                                                                                                                                                                                                                 mouth,
                                                                                                                                                                                                                                                                                                                                   prefers speaking to small
online world presents the perfect environment for Herb
                                                                                                                                    business. But
                                                                                                                                   is your happ
                                                                                                                                                    we’re trying
                                                                                                                                                                 to change it
                                                                                                                                                                             Yes, we have
                                                                                                                                                                               for the bette
                                                                                                                                                                                             lawyers. We’r
                                                                                                                                                                                             r. We want to
                                                                                                                                                                                                            e not a char
                                                                                                                                                                                                                           ity. We’re still
                                                                                                                                                                                                                                            in the car
                                                                                                                                                                                                                                                                                                                                   groups, and shuns
                                                                                                                                                  iness. And we’r                                            be the good
                                                                                                                                             So, next time
                                                                                                                                                                  e committed
                                                                                                                                                            you’re consideri
                                                                                                                                                                                 to doing wha
                                                                                                                                                                                                tever it takes
                                                                                                                                                                                                                             guys, whose
                                                                                                                                                                                                               to achieve that.
                                                                                                                                                                                                                                           ultimate aim                                                                           performing before cameras,
Chambers. He remains, despite enormous wealth and                                                                                                                             ng buying a
                                                                                                                                                                                            car, stop by.
                                                                                                                                                                                                           We think you’
                                                                                                                                                                                                                            ll notice a big
                                                                                                                                                                                                                                             difference.                                                                          often critical of the results.
success, a man on a ceaseless search for opportunity – be it                                                                Visit us onlin
                                                                                                                                               e at herbchamb
                                                                                                                                                                ers.com

buried in numbers or just over the horizon.                            AUDI
                                                                              BMW
                                                                                    BUICK
                                                                                            CADILLA
                                                                                                      C   CHEVRO
                                                                                                                   LET
                                                                                                                         CHRYSLE
                                                                                                                                   R   DODGE
                                                                                                                                                                                                                                                          Herb Chambe
                                                                                                                                                                                                                                                                        rs
                                                                                                                                                FORD
                                                                                                                                                        HONDA
                                                                                                                                                                 HUMMER
                                                                                                                                                                            HYUNDA
                                                                                                                                                                                     I   INFINITI
                                                                                                                                                                                                      JEEP
                                                                                                                                                                                                             LEXUS
                                                                                                                                                                                                                      MAYBAC
                                                                                                                                                                                                                               H     MERCED
                                                                                                                                                                                                                                              ES - BENZ
                                                                                                                                                                                                                                                            MINI
                                                                                                                                                                                                                                                                   PONTIAC
                                                                                                                                                                                                                                                                              PORSCH
                                                                                                                                                                                                                                                                                       E   SAAB
                                                                                                                                                                                                                                                                                                   SATURN
                                                                                                                                                                                                                                                                                                             TOYOTA
                                                                                                                                                                                                                                                                                                                      VESPA




    LOW KEY CHARITABLE WORK
    Can there be too much opportunity?                                                                                   because he wants assurance that the funds will find their way to those
                                                                                                                         who truly need them. “We don't have a policy about giving,” he said.
    Herb Chambers would likely say no. But for nearly all dealers, including
                                                                                                                         “We do it on a case by case basis.” He acknowledges an aversion to
    Chambers, one aspect of their business dictates “yes.”
                                                                                                                         professional fundraisers.
    Every day, dealers are asked to donate money, new cars, and used cars
                                                                                                                         His most recent visible charitable work has been on behalf of the 200
    to groups and individuals in need. If only business were as steady and
                                                                                                                         Foundation, which honored Chambers as its Man of the Year last year.
    reliable as requests for charitable contributions.
                                                                                                                         The Metrowest charity donates all of the money it raises directly to food
    Chambers prefers to keep his considerable charitable works low key.                                                  pantries, counseling centers, respite homes and other organizations.
    He responds most often to pleas from people he knows already,


                                                                                                                                       www.msada.org massachusetts auto dealer february 2008                                                                                                                                                                                  17
DEALER OF THE YEAR


                                                             Keeping Up with
                                                             Building Operations
                                                             Jim Xaros practically
                                                             grew up in the
                                                             automobile business. He

           Why should                                        joined the Chambers
                                                             organization 16 years
                                                             ago, and oversees
     I buy from other                                        dealership operations.
                                                             For Xaros, keeping his
     suppliers when I can                                    arms around the
                                                             accelerated growth and

     actually buy from                                       construction presents
                                                             one of his biggest
                                                             challenges. Even with
     myself?                                                 two fulltime staffers
                                                             dedicated to con-
                                                             struction, the Lexus
                                                             store gobbled up much
                                                             of his life for three years.
                                                                                            Chambers Vice President Jim Xaros oversees
                                                             Not to mention major           dealership operations. But keeping his arms
                                                             projects ongoing or            around the accelerated growth and construction
                                                                                            takes up much of his time.
                                                             about to commence:
                                                                • a new Porche-Audi dealership in Burlington (a point
                                                                  purchased from Pass & Weisz)
                                                                • a new BMW in Sudbury
                                                                • a new Infiniti on Route 9 in Westboro
                                                                • a new home for the Providence Cadillac dealership
                                                                • a Mercedes-Benz expansion (doubling the size) in Lynnfield
                                                                • a complete renovation for Mercedes-Benz in Natick
                                                                • completion of 2 new Smart Car centers
                                                             Asked for his view of the broader picture, Xaros said he expects the
                                                             trend to continue for domestics, adding that the local landscape
                                                             remains “over-dealered.” Long term, he predicted it will take more
                                                             than a year or two for things to “right-size” themselves.




                                                             Evil Empire...continued from page 15
                                                             “I'd try to stay very visible on the showroom floor, and meet as many
                                                             customers as possible – both service and sales customers. Plus you
                                                             set an example for everyone else.”
                                                             Chambers’ Vice President Jim Xaros concurs, adding, “I’d pay a lot
                                                             of attention to Service reception. You have an opportunity to reach 50
                                                             to 100 people there every day.”
                                                             Chambers still walks downstairs to meet customers in the Mercedes-
                                                             Benz showroom below his corporate offices. “It takes me 5 minutes,”
                                                             he insists. “Nobody is that busy that they can’t take 5 minutes.”
18   february 2008 massachusetts auto dealer www.msada.org

Mais conteúdo relacionado

Mais de Herb Chambers Automotive

Herb Chambers Tech Snapshot Features Prius Doe
Herb Chambers Tech Snapshot Features Prius DoeHerb Chambers Tech Snapshot Features Prius Doe
Herb Chambers Tech Snapshot Features Prius DoeHerb Chambers Automotive
 
Herb Chambers 2010 Toyota Highlander Ebrochure
Herb Chambers 2010 Toyota Highlander EbrochureHerb Chambers 2010 Toyota Highlander Ebrochure
Herb Chambers 2010 Toyota Highlander EbrochureHerb Chambers Automotive
 
Herb Chambers 2009 Honda Civic Hybrid Brochure
Herb Chambers 2009 Honda Civic Hybrid BrochureHerb Chambers 2009 Honda Civic Hybrid Brochure
Herb Chambers 2009 Honda Civic Hybrid BrochureHerb Chambers Automotive
 
Herb Chambers Honda 2008 Accord Coupe Factsheet
Herb Chambers Honda 2008 Accord Coupe FactsheetHerb Chambers Honda 2008 Accord Coupe Factsheet
Herb Chambers Honda 2008 Accord Coupe FactsheetHerb Chambers Automotive
 
Herb Chambers 2009 Honda Accord Sedan Brochure
Herb Chambers 2009 Honda Accord Sedan BrochureHerb Chambers 2009 Honda Accord Sedan Brochure
Herb Chambers 2009 Honda Accord Sedan BrochureHerb Chambers Automotive
 
Herb Chambers 2010 Honda Civic Hybrid Brochure
Herb Chambers 2010 Honda Civic Hybrid BrochureHerb Chambers 2010 Honda Civic Hybrid Brochure
Herb Chambers 2010 Honda Civic Hybrid BrochureHerb Chambers Automotive
 
Herb Chambers 2010 Honda Civic GX Brochure
Herb Chambers 2010 Honda Civic GX BrochureHerb Chambers 2010 Honda Civic GX Brochure
Herb Chambers 2010 Honda Civic GX BrochureHerb Chambers Automotive
 
Herb Chambers 2009 Honda Full Line Brochure
Herb Chambers 2009 Honda Full Line BrochureHerb Chambers 2009 Honda Full Line Brochure
Herb Chambers 2009 Honda Full Line BrochureHerb Chambers Automotive
 

Mais de Herb Chambers Automotive (20)

Herb Chambers Toyota Sienna Le
Herb Chambers Toyota Sienna LeHerb Chambers Toyota Sienna Le
Herb Chambers Toyota Sienna Le
 
Herb Chambers Toyota Special Reports
Herb Chambers Toyota Special ReportsHerb Chambers Toyota Special Reports
Herb Chambers Toyota Special Reports
 
Herb Chambers 2010 Toyota Camry Brochure
Herb Chambers 2010 Toyota Camry BrochureHerb Chambers 2010 Toyota Camry Brochure
Herb Chambers 2010 Toyota Camry Brochure
 
Herb Chambers Tech Snapshot Features Prius Doe
Herb Chambers Tech Snapshot Features Prius DoeHerb Chambers Tech Snapshot Features Prius Doe
Herb Chambers Tech Snapshot Features Prius Doe
 
Herb Chambers 2010 Toyota Camry Ebrochure
Herb Chambers 2010 Toyota Camry EbrochureHerb Chambers 2010 Toyota Camry Ebrochure
Herb Chambers 2010 Toyota Camry Ebrochure
 
Herb Chambers 2010 Toyota Prius Ebrochure
Herb Chambers 2010 Toyota Prius EbrochureHerb Chambers 2010 Toyota Prius Ebrochure
Herb Chambers 2010 Toyota Prius Ebrochure
 
Herb Chambers 2010 Toyota Highlander Ebrochure
Herb Chambers 2010 Toyota Highlander EbrochureHerb Chambers 2010 Toyota Highlander Ebrochure
Herb Chambers 2010 Toyota Highlander Ebrochure
 
Herb Chambers 2009 Honda Civic Hybrid Brochure
Herb Chambers 2009 Honda Civic Hybrid BrochureHerb Chambers 2009 Honda Civic Hybrid Brochure
Herb Chambers 2009 Honda Civic Hybrid Brochure
 
Herb Chambers Honda 2008 Accord Coupe Factsheet
Herb Chambers Honda 2008 Accord Coupe FactsheetHerb Chambers Honda 2008 Accord Coupe Factsheet
Herb Chambers Honda 2008 Accord Coupe Factsheet
 
Herb Chambers 2009 Honda Accord Sedan Brochure
Herb Chambers 2009 Honda Accord Sedan BrochureHerb Chambers 2009 Honda Accord Sedan Brochure
Herb Chambers 2009 Honda Accord Sedan Brochure
 
Herb Chambers 2010 Honda Civic Hybrid Brochure
Herb Chambers 2010 Honda Civic Hybrid BrochureHerb Chambers 2010 Honda Civic Hybrid Brochure
Herb Chambers 2010 Honda Civic Hybrid Brochure
 
Herb Chambers 2010 Honda Civic GX Brochure
Herb Chambers 2010 Honda Civic GX BrochureHerb Chambers 2010 Honda Civic GX Brochure
Herb Chambers 2010 Honda Civic GX Brochure
 
Civic1500 Turbocharging
Civic1500 TurbochargingCivic1500 Turbocharging
Civic1500 Turbocharging
 
Herb Chambers 2009 Honda Full Line Brochure
Herb Chambers 2009 Honda Full Line BrochureHerb Chambers 2009 Honda Full Line Brochure
Herb Chambers 2009 Honda Full Line Brochure
 
2009 Civic Coupe Online Brochure
2009 Civic Coupe Online Brochure2009 Civic Coupe Online Brochure
2009 Civic Coupe Online Brochure
 
Honda Car Brochure
Honda Car BrochureHonda Car Brochure
Honda Car Brochure
 
Quaife Honda Differentials Brochure
Quaife Honda Differentials BrochureQuaife Honda Differentials Brochure
Quaife Honda Differentials Brochure
 
Honda Civic Brochure
Honda Civic BrochureHonda Civic Brochure
Honda Civic Brochure
 
Clean Cities Car Buying Guide
Clean Cities Car Buying GuideClean Cities Car Buying Guide
Clean Cities Car Buying Guide
 
2009 Honda Pilot Brochure
2009 Honda Pilot Brochure2009 Honda Pilot Brochure
2009 Honda Pilot Brochure
 

Último

Lighting the Way Understanding Jaguar Car Check Engine Light Service
Lighting the Way Understanding Jaguar Car Check Engine Light ServiceLighting the Way Understanding Jaguar Car Check Engine Light Service
Lighting the Way Understanding Jaguar Car Check Engine Light ServiceImport Car Center
 
Mastering Mercedes Engine Care Top Tips for Rowlett, TX Residents
Mastering Mercedes Engine Care Top Tips for Rowlett, TX ResidentsMastering Mercedes Engine Care Top Tips for Rowlett, TX Residents
Mastering Mercedes Engine Care Top Tips for Rowlett, TX ResidentsRowlett Motorwerks
 
Can't Roll Up Your Audi A4 Power Window Let's Uncover the Issue!
Can't Roll Up Your Audi A4 Power Window Let's Uncover the Issue!Can't Roll Up Your Audi A4 Power Window Let's Uncover the Issue!
Can't Roll Up Your Audi A4 Power Window Let's Uncover the Issue!Mint Automotive
 
Pros and cons of buying used fleet vehicles.pptx
Pros and cons of buying used fleet vehicles.pptxPros and cons of buying used fleet vehicles.pptx
Pros and cons of buying used fleet vehicles.pptxjennifermiller8137
 
怎么办理美国UCONN毕业证康涅狄格大学学位证书一手渠道
怎么办理美国UCONN毕业证康涅狄格大学学位证书一手渠道怎么办理美国UCONN毕业证康涅狄格大学学位证书一手渠道
怎么办理美国UCONN毕业证康涅狄格大学学位证书一手渠道7283h7lh
 
ABOUT REGENERATIVE BRAKING SYSTEM ON AUTOMOBILES
ABOUT REGENERATIVE BRAKING SYSTEM ON AUTOMOBILESABOUT REGENERATIVE BRAKING SYSTEM ON AUTOMOBILES
ABOUT REGENERATIVE BRAKING SYSTEM ON AUTOMOBILESsriharshaganjam1
 
A Comprehensive Exploration of the Components and Parts Found in Diesel Engines
A Comprehensive Exploration of the Components and Parts Found in Diesel EnginesA Comprehensive Exploration of the Components and Parts Found in Diesel Engines
A Comprehensive Exploration of the Components and Parts Found in Diesel EnginesROJANE BERNAS, PhD.
 
Control-Plan-Training.pptx for the Automotive standard AIAG
Control-Plan-Training.pptx for the Automotive standard AIAGControl-Plan-Training.pptx for the Automotive standard AIAG
Control-Plan-Training.pptx for the Automotive standard AIAGVikrantPawar37
 
Welcome to Auto Know University Orientation
Welcome to Auto Know University OrientationWelcome to Auto Know University Orientation
Welcome to Auto Know University Orientationxlr8sales
 
Human Resource Practices TATA MOTORS.pdf
Human Resource Practices TATA MOTORS.pdfHuman Resource Practices TATA MOTORS.pdf
Human Resource Practices TATA MOTORS.pdfAditiMishra247289
 

Último (10)

Lighting the Way Understanding Jaguar Car Check Engine Light Service
Lighting the Way Understanding Jaguar Car Check Engine Light ServiceLighting the Way Understanding Jaguar Car Check Engine Light Service
Lighting the Way Understanding Jaguar Car Check Engine Light Service
 
Mastering Mercedes Engine Care Top Tips for Rowlett, TX Residents
Mastering Mercedes Engine Care Top Tips for Rowlett, TX ResidentsMastering Mercedes Engine Care Top Tips for Rowlett, TX Residents
Mastering Mercedes Engine Care Top Tips for Rowlett, TX Residents
 
Can't Roll Up Your Audi A4 Power Window Let's Uncover the Issue!
Can't Roll Up Your Audi A4 Power Window Let's Uncover the Issue!Can't Roll Up Your Audi A4 Power Window Let's Uncover the Issue!
Can't Roll Up Your Audi A4 Power Window Let's Uncover the Issue!
 
Pros and cons of buying used fleet vehicles.pptx
Pros and cons of buying used fleet vehicles.pptxPros and cons of buying used fleet vehicles.pptx
Pros and cons of buying used fleet vehicles.pptx
 
怎么办理美国UCONN毕业证康涅狄格大学学位证书一手渠道
怎么办理美国UCONN毕业证康涅狄格大学学位证书一手渠道怎么办理美国UCONN毕业证康涅狄格大学学位证书一手渠道
怎么办理美国UCONN毕业证康涅狄格大学学位证书一手渠道
 
ABOUT REGENERATIVE BRAKING SYSTEM ON AUTOMOBILES
ABOUT REGENERATIVE BRAKING SYSTEM ON AUTOMOBILESABOUT REGENERATIVE BRAKING SYSTEM ON AUTOMOBILES
ABOUT REGENERATIVE BRAKING SYSTEM ON AUTOMOBILES
 
A Comprehensive Exploration of the Components and Parts Found in Diesel Engines
A Comprehensive Exploration of the Components and Parts Found in Diesel EnginesA Comprehensive Exploration of the Components and Parts Found in Diesel Engines
A Comprehensive Exploration of the Components and Parts Found in Diesel Engines
 
Control-Plan-Training.pptx for the Automotive standard AIAG
Control-Plan-Training.pptx for the Automotive standard AIAGControl-Plan-Training.pptx for the Automotive standard AIAG
Control-Plan-Training.pptx for the Automotive standard AIAG
 
Welcome to Auto Know University Orientation
Welcome to Auto Know University OrientationWelcome to Auto Know University Orientation
Welcome to Auto Know University Orientation
 
Human Resource Practices TATA MOTORS.pdf
Human Resource Practices TATA MOTORS.pdfHuman Resource Practices TATA MOTORS.pdf
Human Resource Practices TATA MOTORS.pdf
 

Herb Chambers, the Auto Dealer and Empire Builder Opens Another Dealership

  • 1. Massachusetts DEALER AUTODEALER The official publication of the Massachusetts State Automobile Dealers Association, Inc. APPETITE for Opportunity InsideCOVER: Herb Chambers - Dealer of the Year Take the * Out of Advertising: The Attorney General may be just getting started PERMIT NO. 216 Guarding Yourself From Safeguards: The rule is here to BOSTON, MA stay, ignore it at your peril. US POSTAGE PAID FIRST-CLASS MAIL MSADA, 59 Temple Place, Ste 505, Boston, MA 02111 F E B R UA RY 2 0 0 8 VO L U M E 2 1 N O. 1
  • 2. INSIDE on the cover table of contents Herb Chambers is the Dealer of the Year ‘You have to ‘Expect 2008 PHOTO CREDIT: ANTHONY work it – ‘The AG will ‘You could be light vehicle SCARPETTA PHOTOGRAPHY 6 really live 8 not stop with 9 sales to fall 10 unwinding and breathe these eight EVERY deal Massachusetts about since May 2003’ AUTODEALER KIA .’ dealers.’ 2.5 percent’ The official publication of the Massachusetts State Automobile Dealers Association, Inc. 6 IN THE NEWS: Silko Kia joins nine other Kia dealerships that have closed their doors over the past EDITORIAL STAFF 18 months. But others, including Kia Sports Auto World in Bourne, are going strong. Bedard Brothers Lee Goodwin David L. Williams takes over Gateway Chevrolet. Hassan Brothers settles its termination lawsuit with Jeep. Lowell Chrysler PRINTING & LAYOUT Dodge closes its doors. Lia Toyota begins expansion. Ira donates to Danvers diversity. Dealers report that Blanchard Press Massachusetts customers are finding loans for autos despite the credit crunch. Dealers – furious about 25 Drydock Avenue, Boston, MA 02210 anonymous online consumer gripes criticizing their stores – fight back. And more. SUBSCRIPTIONS Provided annually to Massachusetts dealers. All address changes should be submitted to: 8 POLITICAL ACTION: Attorney General Martha Coakley handed down nearly $300,000 worth of MSADA fines to state dealers. Could your advertising end up costing you? 59 Temple Place, Ste. 505 Boston, MA 02111 Phone 617.451.1051 Fax 617.451.9309 e-mail: lgoodwin@msada.org 10 KEEP YOUR GUARD UP: The Safeguards Rule has caused expensive headaches since its Auto Dealer is published by the Massachusetts State inception. If the FTC doesn’t get you, plaintiffs’ attorneys will. How to navigate the rules and keep your Automobile Dealers Association to provide information dealership out of trouble. about the Bay State auto retail industry and news of MSADA and its membership. 12 COVER STORY: Dealer of the Year An outsider who made his mark in the office copier Application to mail at Periodical-Class business, Herb Chambers turned to cars 25 years ago. Today he’s an empire builder with an eye for Postage rates pending at Boston, MA 02205 and additional mailing offices. opportunity, and he’s the Time Magazine Dealer of the Year nominee. Postmaster: Send address changes to: Massachusetts Auto Dealer c/o MSADA 20 CONTRIBUTORS: NCDPAC Supporters Thanks to those who gave generously to the New Car 59 Temple Place, Ste. 505 Boston, MA 02111 Dealer PAC: Your voice on Beacon Hill. And to the Dealers Election Action Committee: Your voice in STAFF DIRECTORY Washington. David Williams Executive Vice President 21 POLITICAL ACTION: All The President’s Men Massachusetts members of the DEAC dwilliams@msada.org President’s Club say the PAC is the best investment a dealer can make. Isn’t it time to join the club? Robert O’Koniewski Director of Legal & Government Affairs rokoniewski@msada.org 22 NADA UPDATE: The EPA decision to deny California's waiver request will face opposition. NADA Lee Goodwin supports the national CAFE increase recently signed into law, and argues that a patchwork of state Director of Communications & Marketing environmental regulations will cause confusion and harm. lgoodwin@msada.org Irene Varao Director of Administration ivarao@msada.org Tricia White Accounting and Membership Manager twhite@msada.org Mike Nixon AYES State Manager advertisersdirectory MassAYES@msada.org Please note the following advertisers who have invested in this magazine and directly support the Sam Poikail MSADA. Thank you for supporting the MSADA. Information Technology & Member Information Manager spoikail@msada.org ADVERTISER PAGE ADVERTISER ........................................PAGE Carina Gonzalez Foundation Coordinator The Boston Globe ........................................2 McCarter & English, LLP ..............................5 cgonzalez@msada.org Starr Cooper Boston Herald............................................24 Murtha Cullina, LLP ....................................7 Administrative Coordinator GW Marketing Services..............................15 Nancy Phillips Associates, Inc.....................11 scooper@msada.org Meredith Spencer Kirker-Perry Construction Co. ......................5 O’Connor & Drew PC ................................23 Editorial Assistant editorial@msada.org Leader Auto Resources (LAR) ....................18 Southern Auto Auction ................................5 Jeffrey Mui Lynnway Auto Auction ..................................9 Zurich ........................................................3page continued on next Administrative Assistant jmui@msada.org 4 february 2008 massachusetts auto dealer www.msada.org
  • 3. COVER STORY: DEALER OF THE YEAR Empire Builder by Lee Goodwin and Meredith Spencer When people look at Herb Chambers, they see the accoutrements of wealth and a stable of dealerships. So why would a guy at the top of his game give a damn if the mechanics’ bathrooms are clean? When you understand that, you’ll begin to understand Herb Chambers. You know the jingle. “We’ve got it. At Herb Chambers we’ve got it.” It could just as easily apply to the man. Herb the largest independent distributor of office he says, the key to sales is simply being nice to Chambers has got it. equipment in the United States. And they always people. include how Chambers went looking for a He’s got the 40-odd dealerships including his Cadillac and ended up buying a dealership. A-Copy Becomes Ikon-ic palatial Lexus store in Sharon (see side story). He’s got homes in Boston and Connecticut, and The office world was moving from mimeograph The Central Question he’s got a helicopter to commute between the and carbon paper to photocopy. In 1965 he two. For long distance commuting he owns a None of those stories asks the central question. founded his own company with just $500 new Gulfstream 450 Jet. He’s got a rotating How did an outsider with no automotive borrowed from his mother. He named it A-Copy, collection of 15 to 20 exotic and collectible cars experience build such a formidable organization? so it would be listed first in the phone book. in his garage, and he’s got a 188-foot yacht if What keeps Herb Chambers – the man and the Chambers used his savvy as both technician and dry land becomes dull. organization – going, and growing? salesman to purchase used copiers, then fix and resell them. And now he has the 2008 Time Magazine Dealer Following his time in the Navy, Chambers began of the Year nomination and he’s the state’s working for a copy machine company, first as a His success snowballed. His competitors dealer of the year. technician and later as leader of its #1 sales guaranteed repair in 24-hours. A-Copy promised team. to fill service requests in When the press writes about Chambers, they eight hours – and in the follow a tight narrative. How as a youngster He made the transition to early days Chambers growing up in Dorchester, he thought the local sales by selling extended warranties while servicing the “The first time himself made the service dealer possessed untold wealth. With his nose I met him, call. pressed up against the showroom window, he machines – so many marveled at how many cars the businessman warranties that management I said to myself, Chambers sold his “owned.” took notice and expanded his ‘This guy is electric’” business in 1983 to Ikon, territory. Speaking to people recalls then known as Alco- How, following a four-year stint in the Navy, he in a sales context was difficult, Standard, which was opted for a paycheck instead of school. He never John Covell but a Dale Carnegie course attempting to consolidate attended college. How he founded a copy boosted his confidence. Today, independents like A-Copy. machine company that would go on to become Herb Chambers Lexus in Sharon opened in fall 2007. Chambers and his team toured the country seeking design ideas to incorporate into the 110,000,000 square-foot dealership.
  • 4. COVER STORY: DEALER OF THE YEAR Empire Builder...continued from page 12 Chambers had become the largest Canon He wanted a business involved in distribution, Keeping Up Morale distributor in the world. a mix of new and used products, and something Adopting the mindset of a customer is just one service intensive. What he didn’t want was key to his success. (Chambers’ service How to Buy Companies to compete any longer against the likes of IBM departments wash and vacuum every car that The addition of A-Copy represented “a big and Xerox. rolls through). feather in the cap” of Alco-Standard, lending its His ability to inspire and turn over management control to others is also key. He expects his GMs – he refers to them as his “partners” – to fix their own problems and run their dealerships as independently as possible. He has a saying: “We lead people and manage information.” He also subscribes to the adage: Trust but verify. For example, he demands that his technician bathrooms be inspected once a month. When he discovered one recently The 40-Group: Chambers (center) with his 40-plus GMs. They gather every month to present detailed results and toss around ideas. Chambers dissects the numbers and exhorts his managers to find where opportunities exist. that was a mess, he hit the roof. “People may wonder why that's No Pre-Conceived Notions consolidation strategy “instant credibility” and important. The restrooms aren’t public and the helping the Fortune 500 company grow into one Not long after he purchased the first dealership techs spend more time with cars than of the dominate players in the office equipment in New London, Connecticut – where he walked customers. I ask, ‘What about morale?’ If they industry worldwide. Alco became a $20 billion in looking for an El Dorado and walked away don’t enjoy good morale, they may not fix the dollar company and Chambers its largest single owning the business – he set his sights on car right.’” shareholder. expansion. By 1997, just 10 years later, On the sales side, new sales people spend two Chambers had 15 dealerships spread over “The first time I met him, I said to myself, ‘This weeks with Covell. He likes to point out that new Rhode Island and Massachusetts and sold guy is electric,’” recalls John Covell, director sales consultants win MVP honors every month 24,000 cars. of Marketing and Training. He first joined along with seasoned employees at a monthly Chambers at A-Copy in 1981 from Xerox. “He From day one Chambers generated ideas of how motivational breakfast. Every year Chambers was so exciting and intense about what he to conduct business differently. A confirmed car hosts an elaborate gala, rewarding top was doing. There was this [atmosphere of] nut, he began buying and selling cars in the performers with Rolex watches and cash. Top entrepreneurship.” Navy; nine in one year. “Automobiles became sales figures won’t win at either event unless beautiful to me,” he recalls. accompanied by high customer service marks to Chambers stayed on for a while at Alco- match. For managers, overall management Standard, in charge of mergers and acquisitions. At A-Copy, he once purchased 16 in a year. He combined with low turnover is a must. He gained valuable experience in buying frequently says that he understands the business companies. He also learned how to delegate to from the consumer side. “He’s concerned with the total overall objective,” others, and to trust others while holding them says Quirk. “He has confidence in his ability and “He had no pre-conceived notions of what he accountable. in his people’s ability. He absolutely, positively could or couldn’t do,” says Quincy-based dealer loves the business.” After completing a number of acquisitions, he Dan Quirk. “He put A-Copy on the map. He started to shop around for a company of his focused on customers. He brought the same own….in a different industry. principals to the car business.” www.msada.org massachusetts auto dealer february 2008 13
  • 5. COVER STORY: DEALER OF THE YEAR The ‘40-Group’ Review Turning ‘Accessories’ into Profit Centers Does Chambers take more pleasure in the rewards of his success, or the fact that he found a way to turn some of those “accessories” into profit centers? In addition to his legion of dealerships, he has amassed a collection of real estate and exotic cars. He is quick to acknowledge that he has been very fortunate in business. His properties include a country estate in Old Lyme, Connecticut and a spot at the new Mandarin on Boylston Street, slated for completion in 2008. Last year, he placed his Back Bay residence – a rare Beaux-Arts ‘There’s no question that he’s a big picture guy,’ says John Covell, who has worked for style home – on the market for $14.95 million, breaking Boston’s single Chambers since 1981 and followed him from the copier industry to the auto industry. home sales record by $4 million. Chambers spent two years renovating ‘He was so exciting and intense about what he was doing.’ the house before its sale, and says that it’s an “insane” property for someone without a family. Every month the company’s 40-plus GMs gather together for a In Old Lyme, Chambers keeps a stunning collection of cars – 15 to 20 detailed review of their stores. exotics and vintage autos. The collection, featured in The Boston Globe Chambers lavishes praise on those who bring good numbers as well and Chronicle television news program, includes a McLaren F1, a Mile as good ideas to the meeting. Miglia tested 1955 Mercedes-Benz Gullwing, a 1959 Cadillac Biarritz Convertible Eldorado, a 1932 Ford Coupe and 4 Ferrari Daytonas. Even The managers are expected to dig into minutiae at these meetings. car nut Jay Leno has asked Chambers for a spin. They present their financials one manager after the other: units new and used, gross profit and per vehicle, F & I, service, parts, expenses By Sea and Sky by category, aging receivables, asset management and customer And if tooling around the Connecticut countryside becomes tiresome, service. Chambers can head to the sky in his jet, take his helicopter for a spin, Chambers, who has pored over the numbers earlier, sits ready to or board the Excellence III, his 188-foot yacht. Chambers was pounce: “What happened here? How about here?” “intricately” involved in the design and building of the ship, traveling to “He zeroes in. He finds where the opportunities exist,” John Covell Europe to personally meet with shipbuilders Abeking & Rasmussen. says. “There’s no question that he’s a big picture guy. But he believes He has built and sold several yachts – and leases the Excellence for in looking at the numbers and dissecting the numbers.” much of the year (at $500,000+ per week). The plane also spends most of its time in the hands of others. Constant Improvement In the words of longtime associate John Covell, Chambers is “driven, The discussion is designed to provide the type of focus they miss when driven, driven.” Another associate, Jim Xaros, contends that the most dealing with day-to-day issues and questions. It also provides a forum difficult aspect of working for Chambers is keeping pace with him. No for implementing changes swiftly among the entire group. For matter where in the world his boss may be, Xaros quips, his phone will instance, while examining credit card expenses, someone discovered ring at the end of the work day, everyday, and Chambers will be asking, that taking a credit card number over the phone nearly doubles the “How’d we do today?” service fee compared to swiping a card. Pennies, perhaps, but multiply the fee by hundreds of thousands of service customers, and costs PHOTO: CAMPER & NICHOLSONS quickly mount. It is an example of the Japanese concept of kaizen, or constant improvement, that Covell tirelessly advocates. “If we didn’t have these meetings we wouldn’t be as successful as we are,” Covell says. Chambers prods everyone, constantly, to find new avenues to improvement. “I’m trying to convince each and every one of you how you can be better,” he tells his employees. “As a company, we can be Chambers, a Navy veteran, was ‘intricately’ involved in the design and construction of his so much better.” 188-foot yacht. Always on the lookout for opportunity, he leases it for much of the year, at nearly a half-million dollars per week. 14 february 2008 massachusetts auto dealer www.msada.org
  • 6. COVER STORY: DEALER OF THE YEAR THE EVIL EMPIRE Asked about Chambers’ expansion plans – specifically ability to share existing advertising cuts costs Central Massachusetts – John Covell calls Worcester and and has allowed him to pay a premium for surrounding towns “a great market.” Metro Boston may subsequent dealerships of the same brand. boast great demographics and high density population, ‘It’s price. Still, he never allows the upside of a potential but it suffers from a severe lack of space. However, that purchase to cloud his critical thinking. “I think How bad do space is plentiful further from the Hub, and Chambers is long term. I think about things more. I I want it, missing a few brands from his 40-plus points – which run consider 'what's the worst thing that can the gamut from Vespa scooters to Bentley. There’s no and how bad happen? How bad will it be?’” Nissan. No VW. No Volvo. do they want And what if he were to throw aside his Chambers is always looking for new opportunities, and if the organization and return to just one or two to sell it?’ location is right, and the deal makes sense, he’ll buy. dealerships. Where would he focus? What’s the hardest aspect of putting together a deal? continued on page 18 “It’s price,” Chambers says. “How bad do I want it, and how bad do they want to sell it? I’m not a fire sale buyer. I’ve dealt with some very good negotiators. I wasn’t the best negotiator, but I’ve gotten better.” Patience and Persistence Pay Off Occasionally, Chambers will invest himself in a deal but walk away from it. “Even at the 11th hour, because someone tried to change the deal,” Covell says. Nor is Chambers afraid of a fight. He once pursued a lawsuit for nine years against Audi when the manufacturer cancelled his franchise “for personal reasons” that Chambers deemed unfair. A million dollars and a decade later, he vindicated himself. One recent acquisition required extraordinary patience and persistence. Foreign Motors West, which Chambers picked up last year, was a dealership group that Chambers had wanted forever. “Herb was told repeatedly they wouldn’t sell it,” Covell said. Finally, the winds shifted. After two attempts by other suitors, including Penske Automotive Group went nowhere, it was Chambers’ turn. From the beginning, workers at the employee-owned FMW store regarded Chambers, a competitor, as “the evil empire.” Covell and Chambers met with small groups of employees over several weeks, dispelling misconceptions and reassuring employees about their jobs. Chambers’ willingness to listen, combined with his self-effacing manner and geniality, eventually won them over, and he secured employee approval by a near-unanimous vote. Stay Visible in Showroom Controlling a large dealer group provides cost efficiencies. When he purchased his first Honda dealership on Commonwealth Ave 20 years ago, the “blue sky” was $4 million, “an unheard-of amount,” he recalls. However, his www.msada.org massachusetts auto dealer february 2008 15
  • 7. DEALER OF THE YEAR The Jewel in the Crown At the espresso bar in Chambers’ Lexus store, customers can enjoy lattes, even a sandwich, all gratis. The lounge and espresso bar at Herb Chambers Lexus also provide a friendly atmosphere for customers and sales people to chat. Herb Chambers Lexus in Sharon, the crown jewel As soon as customers arrive at the service in the crown of the Herb Chambers empire, took entrance, German-engineered doors zip up and BY THE NUMBERS: nearly three years to build and sprawls across 11 then down in seconds. Either a personal service 3 years to complete acres. Its 110,000 square-foot showroom advisor familiar with their history, or valet, greets 11 acres of land in Sharon features vaulted cathedral ceilings and abundant them. Behind the scenes, the service area 110,000 square-foot showroom natural light. Customers are treated to accommodates 60 bays. complimentary espresso and sandwiches as they 40 cars fit into the showroom Chambers scoured the country with an architect wait for their car in the dealership’s luxe lounge, 50-foot cathedral windows and a photographer, traveling to Texas, Las complete with marble fireplace. Or perhaps $500,000 cost of showroom skylight Vegas, South Carolina and Georgia to pluck the they’d prefer to stroll the Zen garden. If that’s too 140 staff members, including sales and best elements from existing Lexus dealerships. slow paced, the dealership also offers a WiFi- service department He estimates he’ll enjoy bragging rights for two equipped business center for customers. 5 lunch rooms for staff years before someone outdoes him. $30 million: estimated cost The customer service desk is designed to resemble a hotel reception area. Every car that rolls through a Chambers service department is washed and vacuumed. Lexus customers are assigned a personal It took three years to build and features 50-foot cathedral windows, marble floors, a floor service advisor familiar with their history. to ceiling fireplace and can house 40 cars in its showroom. 16 february 2008 massachusetts auto dealer www.msada.org
  • 8. DEALER OF THE YEAR A (Reluctant) Public Face Like many dealers before him, Chambers has become the public face for his dealerships. Despite his ads, Chambers is a reluctant spokesman; a commanding presence in small groups, but not someone known for leading the PR offensive. He feels nervous in front of the cameras, and he's critical of the results. His eye-catching – some would say, provocative – ad campaign is built around the theme that his sales people won’t try to “sell” you a car, they’ll help you to buy one. That line originated with Chambers as he addressed his [ Herb Chambers,“ We don’t sell cars. We help you buy them.” ] managers one day. Boston ad agency Modernista enlarged the concept, painting Chambers as an “undealer;” a theme adapted by several other local dealers over the past year or two. Here comes The idea is to play upon, and dispel, the public perception of dealerships in a car salesman: general, and sales people in particular. One ad in the series, entitled “Here Comes a.) panic b.) vomit c.) punch him a Car Salesman,” angered a few local dealers when it first ran. Everyone has a gut-level response to car salesmen. The moment we see one, we hold onto our wallets. We bolt for the door. It’s a survival instinct. But it’s one you won’t need at Covell acknowledged that he was “personally concerned” about those ads. “I Herb Chambers. Because we’re different. Our company is founded upon providing the highest possible level of customer service. Which means our showrooms are pressure-free zones, our don’t want our competitors to think that we’re disparaging them,” he said. “I prices aren’t artificially low, and our associates are only there to help. If you want help, that is. Hey, it’s all about you. All we want is to be the good guys in this business. And we’re committed respect our competitors….even if I want to beat them.” to doing whatever it takes to achieve that. So, next time you’re considering buying a car, stop by. And relax. We won’t bite. Pursuing Opportunity Online It takes more than a clever ad campaign to beat your competitor, of course. Visit us online at herbchambers.com Herb Chambers People still shop the aggressively-priced store, as well as location, selection and other key factors. But level the playing field, and who you buy from can become a factor in attracting customers. Just ask Frank Perdue. AUDI BMW BENTLEY BUICK CADILLAC CHEVROLET CHRYSLER DODGE FORD HONDA HUMMER HYUNDAI INFINITI JEEP LAND ROVER Despite the success of the ads, and the enduring draw that LEXUS MERCEDES-BENZ MINI PONTIAC PORSCHE ROLLS ROYCE SAAB SATURN SMART TOYOTA VESPA newspapers hold for auto customers, Chambers continues to [ Herb Cham bers, “ We don’t sell cars. We help you This ad (top), part of buy them.” ] expand his online presence. He was an early adopter of the This is an ad Chambers’ eye-catching a car dealer, from Internet, and with the help of in-house Internet guru Jay Gubala, written by – some would say, an ad agen provocative – campaign, Chambers continues to mine online data with the same penchant approved by cy, angered a few local a lawyer. for dissection that he brings to his stores’ financials. [ Now, if we still have your attention. dealers when it first .. ] People have Pushy, slick a horrible perc eption of car appeared. Chambers is a With its seemingly limitless ability to adapt and evolve, and blinded dealers. And by commission on the whole, that perceptio Well, at Herb providing the Chambers, we’r highest poss dollars, car sales e different. Our men can spoi company is l the enjoyme n is correct. nt of buying a car. reluctant spokesman. He ible level of founded upon combined with a profound capacity for measurement, the trust in the com munity, and Yes, we have customer serv ultimately, repe an ad agency. at business. ice. We belie ve it creates the philosoph great word of y of mouth, prefers speaking to small online world presents the perfect environment for Herb business. But is your happ we’re trying to change it Yes, we have for the bette lawyers. We’r r. We want to e not a char ity. We’re still in the car groups, and shuns iness. And we’r be the good So, next time e committed you’re consideri to doing wha tever it takes guys, whose to achieve that. ultimate aim performing before cameras, Chambers. He remains, despite enormous wealth and ng buying a car, stop by. We think you’ ll notice a big difference. often critical of the results. success, a man on a ceaseless search for opportunity – be it Visit us onlin e at herbchamb ers.com buried in numbers or just over the horizon. AUDI BMW BUICK CADILLA C CHEVRO LET CHRYSLE R DODGE Herb Chambe rs FORD HONDA HUMMER HYUNDA I INFINITI JEEP LEXUS MAYBAC H MERCED ES - BENZ MINI PONTIAC PORSCH E SAAB SATURN TOYOTA VESPA LOW KEY CHARITABLE WORK Can there be too much opportunity? because he wants assurance that the funds will find their way to those who truly need them. “We don't have a policy about giving,” he said. Herb Chambers would likely say no. But for nearly all dealers, including “We do it on a case by case basis.” He acknowledges an aversion to Chambers, one aspect of their business dictates “yes.” professional fundraisers. Every day, dealers are asked to donate money, new cars, and used cars His most recent visible charitable work has been on behalf of the 200 to groups and individuals in need. If only business were as steady and Foundation, which honored Chambers as its Man of the Year last year. reliable as requests for charitable contributions. The Metrowest charity donates all of the money it raises directly to food Chambers prefers to keep his considerable charitable works low key. pantries, counseling centers, respite homes and other organizations. He responds most often to pleas from people he knows already, www.msada.org massachusetts auto dealer february 2008 17
  • 9. DEALER OF THE YEAR Keeping Up with Building Operations Jim Xaros practically grew up in the automobile business. He Why should joined the Chambers organization 16 years ago, and oversees I buy from other dealership operations. For Xaros, keeping his suppliers when I can arms around the accelerated growth and actually buy from construction presents one of his biggest challenges. Even with myself? two fulltime staffers dedicated to con- struction, the Lexus store gobbled up much of his life for three years. Chambers Vice President Jim Xaros oversees Not to mention major dealership operations. But keeping his arms projects ongoing or around the accelerated growth and construction takes up much of his time. about to commence: • a new Porche-Audi dealership in Burlington (a point purchased from Pass & Weisz) • a new BMW in Sudbury • a new Infiniti on Route 9 in Westboro • a new home for the Providence Cadillac dealership • a Mercedes-Benz expansion (doubling the size) in Lynnfield • a complete renovation for Mercedes-Benz in Natick • completion of 2 new Smart Car centers Asked for his view of the broader picture, Xaros said he expects the trend to continue for domestics, adding that the local landscape remains “over-dealered.” Long term, he predicted it will take more than a year or two for things to “right-size” themselves. Evil Empire...continued from page 15 “I'd try to stay very visible on the showroom floor, and meet as many customers as possible – both service and sales customers. Plus you set an example for everyone else.” Chambers’ Vice President Jim Xaros concurs, adding, “I’d pay a lot of attention to Service reception. You have an opportunity to reach 50 to 100 people there every day.” Chambers still walks downstairs to meet customers in the Mercedes- Benz showroom below his corporate offices. “It takes me 5 minutes,” he insists. “Nobody is that busy that they can’t take 5 minutes.” 18 february 2008 massachusetts auto dealer www.msada.org