When Mercedes-Benz first offered 24-hour roadside assistance as"standard equipment" on its vehicles more than a decade ago, thegeneral reaction was, "Sure," but who's going to make those roadcalls on a nice summer Sunday afternoon or, even worse, at 2 a.m. ona snowy winter's night.
Say hello to Tom Bacon.
Last year, he got an award from Mercedes.It was a jacket, a distinctive leather jacket you can't buy.That jacket signified that he had answered every roadsideassistance call over a four-year period. Four years. 1461 days andnights (including a Leap Year).He wears the jacket proudly because he earned it the hard way.He was called away from New Hampshire International Speedway,where he was working as part of a racing team. He was called onChristmas Eve . . . three times. He misses supper at home a coupleof times a week.Bad enough if that were his main job, but it's not: he's shopforeman at Dreher Holloway Mercedes in Exeter, N.H."Roadside assistance was part of the Mercedes-Benz program," saidBacon. "And they needed someone to cover it."Which he's done . . . and done.Paul Holloway, Bacon's boss, also has been chairman of theNational Automobile Dealers Assn. for the past year.Last month, he spent an evening with the New England Motor PressAssn., sharing a dealer's view on his industry. He talked franklyabout how the internet is affecting sales, about the overcapacity forproduction that's plaguing the industry, the impending mergers ofautomakers, and the trend to bigger and more factory-dealerpartnerships . . . but in the end it came down to why employees likeTom Bacon are so important."Programs such as guaranteed roadside assistance are called apromise of the brand," said Holloway."But they're {programs} only as strong as the smallestindependent dealer of that brand," he said.As an example, Holloway cites an industry problem -- the plightof the small dealerships that have been targeted by the manufactureras "not viable.""They've basically put that dealer in limbo. He can't afford toretire, and he can't sell his franchise because the banks won't lendto a buyer if the manufacturer doesn't consider the businessviable.""Do you think that dealer is going to have someone available forroadside assistance 24 hours a day?" Holloway asked, then answeredhis own question. "I don't."So when a customer breaks down in his area and doesn't get theassistance, what does he do? He tells everyone he knows that thesystem is a crock, and those negative feelings cost you customersyou're never going to regain."To Holloway, the Mercedes roadside program has been the mostsuccessful one of its kind in the industry because it's run byMercedes and not subcontracted.So there's little wonder why Mercedes was as proud to present Mr.Bacon with that jacket as he was to receive it?Clearly dealerships have come a long way since the horse 'n buggydays.But, according to Holloway, those horse 'n buggy days still have amajor impact on how we in the Northeast buy our cars and have themserviced.Before the automobile, every neighborhood had a stable."Around here, those stables all became auto dealers," saidHolloway."As a result some areas of the country -- notably the Northeast --are overdealered."As an example, he noted that the Boston advertising ADI (area ofdominant interest) has more than 40 Pontiac dealerships while theGreater Dallas area has four.What does it mean?For one thing that your Globe is filled with auto ads by dealersbashing each others' bumpers over a $50 difference in price.And, for another, that the dealer isn't going to make a whole lotof profit selling you a new car."Nationally, dealers made 1.4% profit on $508 billion in carsales in 1997" That's $200-$300 per car, hardly enough to keep adealership rolling.So how do dealerships survive?"They adapt . . . or they're gone," he said."This {auto dealership} is a service industry. It's aboutbuilding relationships."He should know. He's been a successful dealer for more than 30years, starting with the acquisition of Dreher Buick in 1967 and nowholding Buick, Pontiac, Oldsmobile, Chevrolet, Chevy Truck,Mercedes-Benz and BMW franchises."It starts with the new car sale. Then, you work like hell toservice it {new car}."With luck, you'll sell a used car to one of the family'schildren."And, if you've treated the family well over this time, hopefullythey've been telling their friends, neighbors, family and coworkersand sending you referrals."This is the value of a customer over a lifetime. It's what thisbusiness is about now.'It includes millions invested in equipment and people.For his service department, he exclusively and aggressivelyrecruits people with AA degrees from Voc Tech colleges. "Anoutstanding technician is worth their weight in gold," he says.Which is why the president of the NADA mentions his man Tom Baconin speeches all across the country.
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