30 Days In: How Phil Pecoraro’s 26 Years Are Powering His First Store Launch + Hard Lessons Learned | Phil Pecoraro, Operating Partner of Murdock Chrysler Dodge Jeep Ram
About this episode
Phil Pecoraro shares insights from his first month as an operating partner at Murdoch Chrysler Dodge Jeep Ram, reflecting on his journey from selling vacuums to dealership ownership. He discusses the challenges of acquiring a store with minimal used car inventory and his strategies for success, including focusing on service and used car sales. Phil emphasizes the importance of community involvement and personal accountability in dealership operations, while also addressing the competitive landscape with online retailers. His experiences provide valuable lessons for aspiring dealership owners.
OEMs
"...you go approach OEMs or brokers and it's tough to get a serious audience unless you've got that financial backing."
OEM means Original Equipment Manufacturer. It's a term used for companies that make parts for cars, like the engines or the body, which are then used by car brands to build their vehicles.
OEM stands for Original Equipment Manufacturer, which refers to companies that produce parts and equipment that may be marketed by another manufacturer. In the automotive context, it often refers to car manufacturers that produce vehicles and their components.
Ford
"...when I left to take an opportunity to Fordshore. So you've bought back into Stellantis..."
Ford is a popular car company in the United States, known for making cars, trucks, and SUVs.
Ford is a well-known American automotive manufacturer, famous for its trucks, SUVs, and performance vehicles like the Mustang.
Stellantis
"...So you've bought back into Stellantis. Stellantis is a brand that has challenges..."
Stellantis is a large car company that makes many different brands of cars, like Jeep and Chrysler.
Stellantis is a multinational automotive manufacturer formed from the merger of Fiat Chrysler Automobiles and PSA Group, producing a wide range of vehicles under various brands.
Jeep Cherokee
"...irection for Stellantis. I think stuff is the new Cherokee is going to be great. I just got my first Hemi 1..."
The Jeep Cherokee is a type of vehicle called an SUV, which stands for Sport Utility Vehicle. It's designed to handle rough terrain and is great for outdoor activities, but it also has comfortable seating and modern features for everyday driving.
The Jeep Cherokee is a compact SUV that has been a staple in the Jeep lineup since its introduction in 1974. Known for its off-road capability and rugged design, the Cherokee has evolved over the years to include modern technology and comfort features, making it a popular choice for both adventure seekers and daily commuters.
Hemi
"I just got my first Hemi 1500 that people were excited about. Customers were excited. Salespeople are excited."
Hemi is a type of engine shape that helps cars run better and faster. It makes the engine more powerful by allowing air and fuel to mix more efficiently.
Hemi refers to a type of engine design characterized by a hemispherical combustion chamber. This design allows for more efficient airflow and combustion, resulting in increased power and performance.
Toyota
"...but Toyota, Honda, Subaru, some of those franchises have large multipliers."
Toyota is a major car manufacturer that makes many reliable cars. They are known for making vehicles that last a long time and are good on gas.
Toyota is a leading global automotive manufacturer known for its reliable and fuel-efficient vehicles. The brand is particularly recognized for models like the Camry, Corolla, and RAV4.
Honda
"...but Toyota, Honda, Subaru, some of those franchises have large multipliers."
Honda is a well-known car brand that makes reliable vehicles. They are famous for models like the Civic and Accord, which many people trust to last a long time.
Honda is a prominent Japanese automotive brand known for producing reliable cars and motorcycles. Popular models include the Civic and Accord, which are well-regarded for their performance and longevity.
Subaru
"...but Toyota, Honda, Subaru, some of those franchises have large multipliers."
Subaru is a car brand that makes vehicles known for their ability to handle tough weather and rough roads. They are popular for their safety and reliability.
Subaru is a Japanese automotive manufacturer known for its all-wheel-drive vehicles and rugged performance. Models like the Outback and Forester are popular for their versatility and safety features.
Ram 1500
"but what is a four year old repair order on a Ram 1500 worth? Okay, well, let's go buy those customers right now today."
The Ram 1500 is a big truck that can carry heavy loads and is often used for work or family trips. It's known for being comfortable to drive.
The Ram 1500 is a full-size pickup truck known for its strong towing capabilities and comfortable ride. It's popular among both work and leisure users due to its versatility.
MPI
"make sure we give them great MPIs, make sure we get great video walkarounds, make sure that those things are perfect..."
An MPI is a thorough check of a car to make sure everything is working well. It's like a health check-up for your vehicle.
MPI stands for Multi-Point Inspection, which is a comprehensive check of a vehicle's key components to ensure they are functioning properly. This process helps identify any potential issues before they become serious problems.
video walkarounds
"make sure we get great video walkarounds, make sure that those things are perfect and those green checkups on the MPIs are perfect."
A video walkaround is a video that shows all around a car, helping people see what it looks like and its features, especially when they can't be there in person.
Video walkarounds are visual presentations of a vehicle, often used in sales or service contexts to showcase the car's features or condition. They allow customers to see the vehicle in detail without being physically present.
Carvana
"...you've got Carvana out there buying Chrysler stores, turning them into franchises..."
Carvana is a company where you can buy and sell used cars online, making the process easier without needing to visit a dealership.
Carvana is an online used car retailer that allows customers to buy, sell, and trade vehicles through a digital platform, often featuring car vending machines for pickup.
Amazon Autos
"...You've got Amazon autos..."
Amazon Autos is a part of Amazon where you can shop for cars online, similar to how you would buy other products on Amazon.
Amazon Autos is a service by Amazon that allows customers to buy vehicles online, leveraging Amazon's extensive e-commerce platform to streamline the car buying process.
CarMax
"...You've got CarMax. You've got these large, massive online retailers..."
CarMax is a company where you can buy used cars at fixed prices, making it easier to shop without negotiating.
CarMax is a large used car retailer in the United States known for its no-haggle pricing and a wide selection of vehicles available for purchase online and in-store.
Hyundai
"...I was at the Hyundai store for six months..."
Hyundai is a car brand from South Korea that makes many types of vehicles, known for being affordable and reliable.
Hyundai is a South Korean automotive manufacturer known for producing a range of vehicles, including sedans, SUVs, and electric vehicles, often recognized for their value and warranty offerings.
parts cost
"...what parts cost, what labor costs. I shop door rates or through the roof. Constantly going up..."
Parts cost is how much you have to pay for new pieces to fix your car. This can change based on what kind of car you have and whether you buy original or cheaper parts.
Parts cost refers to the price of replacement components needed to repair or maintain a vehicle. These costs can vary widely depending on the make and model of the car, as well as the type of parts used (original equipment manufacturer vs. aftermarket).
labor costs
"...what parts cost, what labor costs. I shop door rates or through the roof. Constantly going up..."
Labor costs are the fees you pay for the work mechanics do on your car. This can include fixing problems or doing regular maintenance.
Labor costs refer to the expenses associated with the work done by mechanics or technicians to repair or maintain a vehicle. These costs can vary based on the complexity of the job and the hourly rates charged by the service center.
service contract
"...you have a service contract. Let's get that covered for you. So I think that fundamentally you have to believe that you want to make sure that that guest is in a situation..."
A service contract is like an insurance policy for your car that helps pay for repairs. It can save you money if something goes wrong after the regular warranty ends.
A service contract is an agreement that covers the cost of repairs and maintenance for a vehicle after the manufacturer's warranty expires. It provides peace of mind for car owners, especially for those who may face unexpected repair costs.
calibrated windshield
"...$1,200 windshield that needs to be calibrated. It's covered. And they all know that they just have that little bit of peace of mind..."
When a windshield is replaced, it needs to be adjusted so that the car's safety features work properly. This process is called calibration and is important for keeping the car safe.
Calibrating a windshield involves adjusting the sensors and systems that rely on the windshield, such as advanced driver-assistance systems (ADAS). This ensures that features like lane departure warning and automatic emergency braking function correctly after a windshield replacement.
sales efficiency
"...but still not sales efficient. And that's why I got to go to that store. It was 60% sales efficient when I started..."
Sales efficiency is a measure of how well a car dealership sells the cars it has. If a dealership sells most of its cars, it has high sales efficiency.
Sales efficiency refers to how effectively a dealership converts its potential sales opportunities into actual sales. A higher percentage indicates that a dealership is successfully selling a larger proportion of the vehicles it has available.
used car auction
"...if you I talked to a used from any other day and said, Hey, what do you think about buying used cars and me going to the auction knowing that I'm going to buy a car..."
A used car auction is like a big sale where people can bid on cars. Dealers go there to buy cars that they can sell in their own lots.
A used car auction is a marketplace where used vehicles are sold to the highest bidder. Dealers often attend these auctions to purchase inventory at potentially lower prices.
Chrysler 300
"...if we're going to have a Chrysler 300 that we're going to take in on trade this $12,000, I think that you can pay whatever you want for that car because the customer is looking for a payment..."
The Chrysler 300 is a large car that offers a comfortable ride and a lot of space inside. It's known for its stylish look and can come with powerful engines.
The Chrysler 300 is a full-size sedan known for its bold styling and spacious interior. It has been popular for its combination of luxury features and performance options.
payment plan
"...because the customer is looking for a payment a band and you're going to be able to sell that car. But I think when we step back and say,..."
A payment plan lets you pay for a car in smaller amounts over time instead of paying everything at once. This makes it easier to afford a car.
A payment plan is an agreement between a buyer and seller that allows the buyer to pay for a vehicle in installments over time rather than all at once. This is common in car sales to make vehicles more affordable.
transparent pricing
"...they're transparently priced. And they're just moving them through the system..."
Transparent pricing means that the price you see is the price you pay, with no hidden fees or surprises. It helps customers know exactly what they are paying for a car.
Transparent pricing refers to a pricing strategy where the costs are clear and upfront, allowing customers to see the total price without hidden fees. This approach builds trust and simplifies the buying process.
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