Toyota ends tumultuous year on high note
BAXTER - Bob Ebert spent Christmas night at his new Lake Country Toyota dealership - behind a plow.
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The hands-on owner wanted the lot to be ready before his employees began arriving after the holiday. He stayed up all night to get the job done. When the option came to be a partner in the Baxter dealership with Paul Walser, Ebert said it offered everything he was looking for and the only place he'd want to leave the metro for with his young family.
Ebert said his partner thought it may take a year to overcome the issues left with the former owner - the now infamous Denny Hecker. Ebert thought it would take a lot less time with consumer reluctance departing along with Hecker's name.
If December numbers are any indication, he was right.
New owners of the Lake Country Toyota dealership in Baxter brought in new vehicles to the lot for the first time in a year.
Brainerd Dispatch/Steve Kohls
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The dealership re-opened the day after Thanksgiving. The new ownership was so committed to the deal, and had Toyota's backing, they took a gamble and began installing technology and renovating the offices before the court gave its final blessing to the deal. They invested $80,000 before the purchase. The new ownership bought the franchise, the two-year-old facility and the inventory.
It was a way to let the employees know they were serious and a way to hit the ground running.
Josh Miles, Lake Country Toyota business manager, started working for Hecker in August of 2008 just as things were becoming newsworthy in the crumbling Hecker empire. About 60 days later dealerships were being sold. But it was in June when the State Patrol searched Hecker's Crosslake property during a criminal investigation when things really slowed down at the Baxter dealership, Miles said.
Payroll for employees was spotty. Insurance was interrupted. The phones were shut off. Miles said the remaining employees were a tight-knit group who were determined to ride out the next six to eight months in order to be there when things turned around.
"We wanted to stay on because we believed in the product," Miles said. "We had to have foresight to ride it out."
Miles was without work for about three months. He said he never had an employment gap like that in his adult life. Being able to put the turbulence in the past was welcome.
"It's been great," Miles said of the new ownership. "And it's nice to be back to work."
Bob Ebert (left), partner and general manager at Lake Country Toyota, spoke with employee Shawn Henderson at the dealership Wednesday. Ebert said the dealership expects to make a profit in December and has had a good reception. Brainerd Dispatch/Steve Kohls
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Randy Miltimore, used car manager, recalled working without phones or computers and handwriting contracts. Days were stressful. Customers didn't know if they were open or closed and employees were unsure of the future.
"It's good to be back and have some stability," Miltimore said.
New employee Brian Salisbury, sales consultant, never worked in a car dealership before. Salisbury's job at the Waterford Wedgewood crystal outlet store in Albertville ended when the store closed at the end of March. The dealership encourages people from other backgrounds to apply for jobs.
"When one door closes another one opens up," Salisbury said.
Salisbury enjoyed working with people and the dealership's pricing philosophy along with the company's outlook made it possible to begin a new chapter. For those out of work, Salisbury said his advice is not to give up.
Randy Miltimore, used car manager, shared a laugh with Bob Ebert, partner and general manager of the Lake Country Toyota dealership in Baxter. The dealership opened under new ownership the day after Thanksgiving. Brainerd Dispatch/Steve Kohls
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Lake Country Toyota follows the one-price philosophy. For consumers, that means the lowest offered price is listed and people don't have to negotiate or fear they are leaving money on the table, Ebert said. Employees are paid, not on commission, but on the number of vehicles sold and customer satisfaction. Ebert said that means there isn't an incentive to move a customer from a good price on an older car to one that promises them a bigger commission.
Ebert said trade-ins are considered as a separate transaction and vehicle worth is determined without considering the vehicle a consumer is looking to purchase - or the potential to alter the trade-in value based on the new car buy.
Customer satisfaction translates to a consumer who will bring in a vehicle to trade, get financing through the dealership and seek service for the vehicle they purchased, Ebert said.
Remodeling inside the building took out private offices and replaced it with a glass-sided conference room. Outside of personal financial discussions, customers meet with sales representatives at tables in the dealership showroom. Since comparable vehicles are all offered to each customer for the same price, Ebert said there was no reason to meet behind closed doors.
If a customer's interest in a vehicle is visible or one with obvious means walked in the door, Ebert said the listed price doesn't change.
The dealership has sold 50 vehicles, new and used, since it opened a little more than a month ago. Ebert said the dealership here gets more traffic than some of the metro lots and the quality of customers is remarkable for good credit scores and good people.
Ebert said they expect to make a profit for year's end in a traditionally difficult month in a definitely difficult economy making him feel positive about the dealership's future in 2010.
RENEE RICHARDSON may be reached at renee.richardson@brainerddispatch.com or 855-5852.