Quick Clips | Shawn Foster | EP 22

Quick Clips today with  Shawn Foster,  the Chief Operating Officer of Autosmart Chevrolet - Autosmart LLC.

Shawn has been an Automotive Executive and Vice President with 20+ years of expertise in dealership startups, business turnaround, software sales, and revenue growth.

Shawn possesses strong skillsets in assessing the current business state, understanding the market, and managing all dealership resources, as well as mentoring leadership teams in sales, operations, and training. Additionally, Shawn is adept at developing strategic direction and creating process efficiencies for strong ROI and $MM bottom line impact. Shawn's proven operations experience and documented success in the automotive retail arena bring a level of expert skill that enhances the operational process at the quality, efficiency, and financial levels.

Shawn's career passion is blending my financial acumen, dealership retail expertise, and leadership skills to drive successful operations.

Click the link below to listen for the full episode 22:
https://www.buzzsprout.com/1895628/11122668

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Transcript

 Hey guys, this is Adam from the podcast and you are listening to Quick Clips. Quick Clips are condensed versions from one of our previous podcast episodes featuring some of the interesting things our guests had to say. If you want to hear the full episode, we'll have it in the show notes below. And with that, let's start the show. 

Being a working in the automotive field, I'm guessing you mean when you say, so. When you say fixed, you know, let's just use a mechanic as an. , well, something that was a, um, looked up to role. It was a respected role and everything like that. And what's interesting is I've actually kind of heard the opposite, which, so would you mind, uh, kind of diving into that a little bit like Yeah, absolutely. 

Um, what, what, what people were saying or talking about back then versus now. Yeah. So, uh, you know, at the time,  a technician's position in the auto industry back in 1986. Uh, that was typically somebody that'd gone to high school, turned worked, worked on cars, and then they moved right into a dealership that didn't have to be that tech savvy. 

And, and they certainly didn't have to understand computers. Whereas a guy that was selling cars, he was considered to be much more, he, he had to be professional. You know, that whole adage of, especially in the franchise business, uh, even at that time, they were doing their best to avoid stereotypes. So what seemed like not the most appealing job, still had quality candidates. 

When I look back at, at the types of people that were working alongside me in the auto industry at the entry level, you know, in, in sales positions, and, and when I say variable, I'm talking about sales and finance. Uh, the quality of the person at that time was different than it is today. You know, there was a reckoning in the two thousands when dealers got cheap and they started, as I say, you know, all the good talent either got up or got. 

And, and we were left holding the scraps. Now in today's world, it's just the opposite. Okay? So we've got people walking in that virtually anybody could get a job selling car today. Just about anybody could walk into a dealership and, and unless they've got some sort of criminal background, could talk somebody and they let 'em sell cars. 

But you couldn't do that as a technician, you know, just because you've been working as a technician turning wrenches in your uh, house as a high school guy, that doesn't make you qualified to fix today's. So the, so the whole dynamics have changed in that regard. So what did, what did hard work look like for you back then? 

Oh, uh, and, um, you were a salesman, correct? Um, that was working your way up through the ranks to gm. Yeah. So what did that, what did that hard work look like back then? Um,  making sure that was someone, when someone walked in through the door, you were closing a deal right then and there, or you did excellent follow up. 

Or what did, what did that process look like? It's all good down as a com to communication. You know, in the car business, you're talking to people and if you can't learn how to look people in the eye and communicate, have empathy and help them understand that you understand them, you're not gonna. . You know, there's all kinds of slick talking salespeople that can talk people into buying things, but none of those things last over a period of time. 

If you want to thrive in the car business, if you want to get promoted into the, into the upper levels of management, you've gotta be honest, you've gotta be trustworthy, and you've gotta be dependable. You gotta show up to work every single day. You know, I, I worked 70, 80 hours a week, week in, week out for the first 25 years of my life in the business. 

That's what it takes. Don't. That somebody else isn't out willing to work you, because there's all kinds of people who are willing to outwork you. You've got to be one step ahead of all of 'em. In today's world, it doesn't matter if you have a degree, if you have, everybody has a master's. In today's world, as stupid as it sounds, it used to be a college degree with something special. 

That's nothing. Now, if you don't have a master's, you're wasting your time in college. So what I would tell you is forget about all that. Be the hardest worker, be the most honest, and put people in the face. And if you can do those things, people will. And when they start buying from you, then you'll start succeeding. 

Leadership comes with that when you're doing the right things, when you're being moral, when you're making the right decisions, when you're not taking the shortcuts because that's what's best for you rather than what's best for the company. Those are the things people recognize when they begin to look up to and that's how you move forward. 

You're the finance director, um, leading a couple of f and i departments. Uh, where do you move on from there? Yeah, so, uh, so I was the f and I director for years. Then I became, uh, well for a, for a short st. I ran the budget group out of Indianapolis when they were publicly owned. But, uh, I, uh, went back to Penske. 

Actually, Dan Young at the time, took over as a general manager. I ran the store through the late nineties and early two thousands, and in two, let's see, in 2003, um, yeah, Penske bought this 4 0 1 oh. Uh, I left Penske and went back to Lafayette, my hometown and opened up my own independent stores. So I had two stores for 10 years. 

I developed some software in that time that, uh, ultimately went into an, an appraisal product during the whole tech number one, iPhones were just coming out and mobile apps and all that. So I was in that rush. So I, uh, developed some software at the, uh, research park at Purdue University. I met some. Taught 'em the car business. 

And, and I used that to launch into my consulting business where I began to travel the country, uh, basically as a turnaround guy going inside stores and helping them get better or, or come, come up from the bottom or, or hire from the top. And, uh, so I've, I have gotten the chance to spend lots of time, gotten to know some great operators around the country, uh, both franchise and independence. 

And, uh, because of that, I, uh, over a period of time through some clients,  met my current partner and that's what brought me to Ohio. Is the software that you were referring to, lane Champ, is that correct? Originally it was Lane Champ. We, it was originally Bids spin and then moved into Lane Champ. That is correct. 

So it was an appraisal tool that helped dealers buy cars in the auction lane. Hmm, interesting. And the consulting business, um, is that, uh, dealer Strong? Is that the, is that the consulting. Dealer strong as well as a 20 group moderator. So Vision Advantage was the consulting business. Uh, when I worked for Dealer Strong, uh, as a 20 group moderator, I did just that as an independent contractor. 

And, uh, but they were the coordinator. Think of, uh, N I A D A. Dior Strong is a similar type organization for used car dealer and, and franchise dealerships around the country. Hey guys. Adam from the podcast. I hope you are enjoying today's episode. Just wanted to ask you a quick favor. If the show has brought you value in some way, would you mind giving us a review and sharing the show? 

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All right, let's get back to the show. Vision Advantage is something I'd, I'd really like to spend a little bit of time on. Um, consulting is an interesting world. Yeah. What were some of the most common problems that you saw in, um, any of the dealership groups or, uh, dealerships or anything like that, that you went into? 

Yeah. Um, I would tell you my story is different. The customers are different here. No, they're not. Okay. , whether you're in New York or Hawaii or anywhere in between, the customers are the same. The process is the same. Don't try and tell me that things are different where you are because they're not. I'm sure a lot of. 

Dealerships and, and maybe even the dealership dealer group that you're a part of right now has some collision repair and mm-hmm.  auto body repair. What is the process that you think is the thing that most, most body shops need to improve on or that that took the longest for you to overcome as a problem? 

I think for us right now, we've got a couple different co, a couple different problems that I don't know if, whether dealers experience or not, but one of 'em is, car is getting into the body. Either too late or too soon. Okay. In the initial acquisition process for us, uh, you know, we talk about procedures and when, when you acquire a car, a car comes to the dealership, at what point does it go to the body shop? 

Does it go before mechanical or after? And sometimes that can be a push, push or pull, you know, cuz if you fix the car first and then it goes to the body shop, well you find out you spent too much in the, in the mechanical and now you got nothing left in the body. And vice versa. And then the other challenge we're running into is parts, you know, we're having a major challenge with parts right now. 

Yeah. Uh, so we we're having a big backup. And I don't know how dealers are solving that other than all the various third party sites that are out there, whether it's, uh, you know, um, LKQ or all the people that are out there that, that are, they're doing parts. I think that those two things, I would say are our biggest challenges. 

Where do you.  the automotive industry and or you know, let's just go with the automotive industry. I don't wanna try and pin you too much to the autobody field, but where do you kind of see, uh, actually, uh, I really want to throw you this way. It looks like you guys are, uh, well you are a Chevy dealership group, right? 

You? That's correct. Ford just announced that they're gonna be moving away from the dealership model. What is your thoughts on that? , uh, I'm not sure how successful they'll be. You know, they try, for those of you that have been in around the business for a while, they tried this in the nineties actually, in Indianapolis. 

Okay. Uh, there was a big push at the time and a lot of the dealers fought it. So, you know, I thought you were gonna ask me about, uh, and what electric vehicles, Adam. 'em, I figured that was the next thing outta your mouth, . So, I dunno. I mean, I have a pretty, I have a pretty good opinion about electric vehicles, uh, which I mean, we can certainly talk about it. 

Well, it's crazy. I just sold my, just sold a good friend of mine, a 2022 Tesla ex plaid last weekend. Mm-hmm. , uh, you know, unbelievable car. But, uh, of course scary, fast drives incredible. But, but it's a different thing. Something's gonna change our industry, you know, as far as what's gonna happen with Ford and how are they gonna approach the model. 

The dealers are pretty powerful group, you know? Mm-hmm. , uh, I can tell you this, in the early nineties when the internet first came, . They started saying, I'll buy 2000. Nobody would be buying cars in a franchise. Nobody would be buying cars at brick and mortar. Well, here we are 20 years later, you know, we're still buying cars at brick and mortar. 

The internet has changed the industry. , uh, but it's not gonna put the dealers outta business. They're gonna adapt. You know, Ford's gonna try and figure out a way to take business. And it's not just Ford. If you think about it, there are so many different third party vendors out there that are trying to take the customer away from the dealer. 

And those of you on the fixed operation side might not be aware of that. But when you're online tonight and you're looking at cards every time you click on cars, uh, you know, whether it's, uh, um, , all the different cars.com and, and all these different lead generators, all these sites, all they're doing is using spiders to capture your information, to try and grab you as a customer before you ever get inside a dealership. 

So all Ford's doing is what everybody else is trying to do, and that's trying to get the customer before they get to the showroom. I don't think they'll succeed because sooner or they people eventually still come to the showroom no matter what. When I got in the car business, they went to a store four times before they bought a. 

they now go to a dealership 1.2 times, so less than two visits. So what that means is, is when a guy walks in your dealership, as I tell all my clients and, and employees, if you don't sell 'em a car, screwed it up. Plain and simple. Mm-hmm. , they picked you. They're coming in already kind of knowing what they want to buy. 

They'd already decided that they're coming to buy a car from you. And if they leave without one, you screwed it up. Says there's nobody to blame but yourself. Go back and look at what went wrong. Okay? Because people don't shop for the. Anymore, they'd shop 'em at home online, and then they walk in the dealership. 

The same thing will happen with Ford. Yeah, they'll be able to figure out a way to get people to order cars, but I'm not sure in my lifetime, only electronic cars or only electric cars will be on the road. I just don't think it's gonna happen that fast. I've seen some GM studies, you know, they're talking about 40, 50 years out from now. 

Uh, combustion engine cars are still on the road, so, so there's gonna be a lot of time for most likely everybody on this call.  to make sure they still drink a good living, uh, before the electronic cars come around. And before Ford puts everybody out of business with a factory to consumer approach. I'm just not convinced it's gonna vehicle. 

Uh, I have one last question or observation about the, um, I really like that, uh, term that's used factory to consumer FTC and I, I want. Ask you something about that, but then I actually do want to go to electric vehicles, um, because I think that would make for a fun conversation . Um, the, do you think that Ford is in a little bit of a different situation now than they were in the nineties? 

Because Tesla's kind of proved out that, um, FTC model where, you know, they, you order it online, um, and then it just gets basically shipped to you at some point in time. Do you think there's a little bit more of a backing and to be. I, I agree with you. I don't think that Ford is gonna eliminate all the dealers in the nation. 

It, it, we have, we've never really seen that proved doubt, um, in real life. It's something that I think gets said, but it hasn't really been proved out. As an example, you've been ordered, you've been able to order books and sneakers online for cheese, what, 10, 15 years? There's still shoe stores, there's still bookstores because there's. 

there's something about that customer interaction. There's something about that tangible feeling of touching the thing before you actually buy it. So, but do you think Ford is in a stronger position now than what they have been because of Tesla? I think it's fair to assume, you know, uh, I think it's fair to say that Tesla has proven that that. 

It is possible to get out there. Now, the, the irony of this whole Tesla deal is, uh, I told you I just sold one. I live three hours from my dealership group. It took me seven hours to get home the other night because I had to drive two hours outta my way to get to a charging station to get home. You know, I've been buying up a Tesla stock, but I'm just not a big fan of, of the electric car yet. 

Uh, I, I will tell you, like I said, I drove this Texas that's it's unbelievable car. Scary. Pulls the front end, literally off the front of the, feels like you're doing a wheelie. I think it's the fastest car in the country right now. Uh, and I can see the appeal. You know, there's no, there's no shifting of the gears. 

There's no transmission. It is zero to fast instantly. So I understand the appeal. But I also think that, again, like we talked about, you know, there's gonna be combustion engine around for a long, long time. I'm in a town of 350 people right now. Half of 'em can't even spell electric vehicle, you know, , we're not gonna have, we're not gonna have any electric stations here for a long time. 

So the whole thought, I think the infrastructure is what's gonna keep the electric cars off as a, I think the infrastructure.  that they may have in California, they may have on the East coast, but we don't have in South Dakota or North Dakota or Indiana or Ohio, is what's gonna keep those cars from really taking hold for the next 30, 40 years at least. 

So, uh, any final, any final thoughts on electrification of America or anything like that? Well, what I would say is I think electric vehicles are here to stay. You know, they are gonna be around, uh, I don't think they're gonna dominate the roads in my lifetime, but I do think they'll be here. I think there's some quality stuff out there. 

I, I understand the appeal. Uh, but you, what I would tell anybody who's looking at one is make sure you're in a market that that has an infrastructure. Because if you're in the Midwest, unless you're in a big city, Indianapolis, St. Louis, Chicago, something like that, it might not be. Alright. That does it for today's Quick Clips. 

If this episode has brought you value, would you mind giving us a review? Also, if you would like to learn more about Clarity Coat and what it can do for your business, please visit us@claritycoat.com. See you on the next one.