Brett Morgan makes 2013 Automotive News 40 Under 40

Brett Morgan owes his career in auto sales to the fact that his father was restless in retirement.

In 2004, Morgan had a radio-programming job in Virginia when his father offered him a different path.

Larry Morgan had sold his Tires Plus chain of 600 stores a few years earlier but decided he wanted back in the auto industry.

"He just called me up one day and said, 'Have you ever thought about selling cars?'" Brett Morgan says.

Brett Morgan at his home office in Tampa: Toyota of Tampa Bay

Since then, the father-son pair has expanded what began as a minority interest in a Honda and Volkswagen dealership into Morgan Auto Group, which has 11 stores and is ranked 78th onAutomotive News' list of the Top 125 Dealership Groups.

Larry Morgan is CEO of the Tampa-based group, and his son has had a variety of management jobs at its dealerships, including taking over an unprofitable Buick-GMC store in 2009 at age 30. At the time, General Motors had just shut down Pontiac and the store had lost $800,000 the previous year as the recession dried up sales.

Under Brett Morgan's leadership, Gainesville Buick-GMC swung to a $500,000 profit the following year. He attributes the quick turnaround to "thoughtful expense control" and persuading his father to let him hire people into key positions at a time when most dealerships were cutting staff.

Now, as variable operations director for the dealership group, Morgan says he applies sales and marketing strategies that succeed at individual stores throughout the group without taking a "cookie-cutter" approach. He also works to increase customer engagement and retention through social media.

Morgan also is involved with administering the group's Helping Hand Fund, which provides gifts and loans to employees in need.

Morgan says of his unusual business start with his father: "We've learned at the same time. We have an unusually great dynamic. I'm lucky that he was bored and failed at retirement."

-Nick Bunkley (Automotive News) 

For more on Automotive News "40 Under 40" follow this link: http://www.autonews.com/section/under40

What Best Buy Can Learn From Chick-Fil-A

When I am on the road a bit there is one business that seems to have a tractor beam on me. I can't get away no matter how hard I try. And that place is Chick-fil-A. In fact if you've seen me lately I am beginning to show signs of my affection for their original chicken sandwiches (around my waist). 

Their restaurants are always clean and employees polite. No matter how long the line is it always seems to move more efficiently than any other fast-food place I've ever been to. I love how when I say thank you they say "My pleasure," as if it was a computer program that had no other ability then to give you a polite smile and a Ritz Carlton reply rather than the typical nod or "your welcome." Watch their eyes while they work. Their employees are always paying attention. And not just to the customer from their line --- but to ALL GUESTS. 

Steve Hoggle (Honda of Ocala) and I recently attended the Automotive Leadership Roundtable in Miami, FL where a guest speaker (a real DEALER!) relayed his recent retail experience at Best Buy:

And I paraphrase: "It was time to buy my teenage daughter a laptop for school. We had some time before an evening commitment so we all agreed to head to Best Buy to purchase the laptop and then head somewhere for a fun sit-down dinner. At Best Buy it took forever to get anyone's attention. When we were finally waited upon I found the associate knew little about his product let alone the competitors products. Our decision became instantly less clear but finally after about an hour we purchased the laptop that we had actually initially come into purchase. Since our Best Buy experience ($1400 dollars for a new laptop) had dragged on we no longer had time for our sit-down dinner. We headed to Chick-fil-A for food to meet our time crunch." 

"The line was super long and I figured a frustrating evening was about to get more so. There was a young blonde women approaching our car so before I could get out of line I rolled down my window:"

Associate: "Sir we apologize for the wait this evening but we would like for you to enjoy a free sample while you wait to place your order" 

Me: "Thank You – Sure"

Associate: "My pleasure" 

"The line moved quickly and we checked our bags when we arrived at the delivery window. Everything that we had ordered was accounted for and in our bag."

Me: "Can I speak to your manager" 

Associate: "Sure is their something Wrong?"

Me: "No I'd just like to pay them a compliment" 

A minute later up walks the same young blonde girl from before (the one with the free samples, the one who was walking outside of the store in the drive thru). 

Me: "I get it. I get it. I get it. I just spent $1400 dollars on a laptop at Best Buy and $16.89 with your restaurant and I received a better experience HERE. Thank You" 

Manager: "My Pleasure." 

Lesson Learned: Culture is built through process but also by example. Never ask your associate to do something that you yourself wouldn't do. Lead by example. 

Larry Morgan Sits Down with Automotive News

Larry Morgan recently spoke to Automotive News. This article has been re-printed without their permission. 

THE DEALER SPEAKS: LARRY MORGAN, CEO, MORGAN AUTO GROUP

Larry Morgan built Tires Plus, now builds a dealership empire

Diana T. Kurylko
Automotive News -- June 18, 2012 - 12:01 am ET

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20120618/OEM02/306189993/1179#ixzz2OrVAtg2C 

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Larry Morgan, CEO of Morgan Auto Group in Tampa, Fla., became a car dealer seven years ago after selling his 600-store tire and auto-service business.

He is building an automotive empire in Florida and grooming his 32-year-old son, Brett, to take over the business.

Morgan's operation ranks No. 102 on the Automotive News list of the top 125 U.S. dealership groups, with retail sales at 10 stores in 2011 of 6,749 new vehicles and 5,160 used. After adding an 11th store, he targets sales of 12,000 new and 10,000 used vehicles in 2012. He wants to buy more dealerships but they have to be within driving distance of his current stores.

Morgan, 68, was interviewed by Staff Reporter Diana T. Kurylko.

Q. You got into the automotive business after running a successful tire business, right?

A. I built a company called Tires Plus from 35 tire centers to 600 all around the United States. We did $1 billion in sales annually, had 8,500 employees. I was Bridgestone's largest customer in North America, and they bought my business in 2000. I got bored being retired so I got into the car business with my son.

Why did you decide to become a car dealer?

I had planned to be a silent partner in a Honda-Volkswagen store in Tampa. One morning I decided to drop in on a sales meeting, and I was not very impressed with what I saw and heard. I thought maybe this was just a bad day for the management team. I went back a couple weeks later and saw the same thing. Not having direct hands-on knowledge about the sales process and vehicles and things of that nature, I realized that I might not be able to deal with all the nitty-gritty things, but I certainly had enough common sense and general knowledge of business to know that there was a better way. That is how I got smitten into the car business.

When was this? Did you buy the Honda-VW store?

This was in 2004. To make a long story short, my son worked for a big national company out of college for a couple of years. He and I had always planned to be in business together. The plan was he would join the tire and auto center business, but we sold it. He came and started selling cars, and consequently we went out on our own. I sold my 50 percent interest in the Honda and Volkswagen store. We bought a Toyota store and have been building our network ever since.

Where was your first Toyota store, and how is it doing?

In 2005 we bought Precision Toyota in Tampa and changed the name immediately to Toyota Tampa Bay. Business was rocking for several years -- we were selling 450 to 550 new Toyotas a month and 250 used cars. When the recession hit, we took a hit -- as well as in 2009, 2010 and 2011. The store has always done very well, and it has a good market.

What is your formula for success?

In the tire business going from 30 stores to 600, I certainly had experience in growing a business, and I found a lot of similarities between the tire and the car business. I am not a hands-on car guy that has a lot of practical day-to-day knowledge about selling cars. I have always been involved in the people side and getting people around me that know what they are doing and have good business practices. We have a very strong organization with very little turnover. We have more people standing in line to work for our company than we have places.

How is your son, Brett, involved?

He went through every chair that you can in a dealership. He has worked in the fixed side. He sold cars. He was an F&I manager. We were very disciplined and agreed that he had to stay in those positions long enough to truly know what he was doing and be good at it, not just a short-term tenure.

How old is your son? Are you grooming him to take over the business?

He is 32 and absolutely. He is very mature for his age, so we have that part behind us. He has a reputation in our company that he just didn't inherit the position; he earned it. He works well with all of the people in our company. I still do the acquisitions and the new-store development and oversee most of the financial aspects. But he is participating and growing and is part of every decision we make. He brings a lot to the table that we don't have elsewhere in the company.

For instance?

A big thing is the Internet and social media and all of those new ways of marketing and doing business. He is light-years ahead of all the rest of us. He brings that ingredient to our company along with all the more traditional abilities that go with running a car store. He loves the business, and he understands how important people are -- our customers and employees. He is obsessed with building a business for the long term and doing things the right way. He works very hard. He is a 24/7 guy and takes great pride in our organization. I am very proud of him.

Is there a long-term plan for turning over the business?

Yes, there is. I have several nonautomotive businesses. I am not the retiring type. I love to get up in the morning and go to work. I look forward to the day where I can spend less time working and more time relaxing. We do not have a definite date. We are constantly moving things from my plate to his.

How did you decide what stores you were going to buy? You have Toyota, BMW and Mini -- some very profitable brands.

It was a plan of attack. It didn't accidentally happen. Not being an automotive or a car guy, I spent a lot of time analyzing brands that I thought were not only good brands but had a good life to them. I paid a very fair price for a number of those stores.

What are your weakest franchises?

Buick, GMC and Mitsubishi in Gainesville. My Buick-GMC store is in a fairly small market, and Buick and GMC have somewhat limited market share. I do not want to give the impression that it is a bad store. The other stores are very high-performing. We sell a lot of cars, and we do a lot of fixed business, and we make a lot of money.

How many Buick and GMC vehicles do you sell annually?

About 450 between the two brands.

Are you shopping for new stores?

I get that question a lot, and my answer is always the same. I have done the airplane thing. I had stores from California to North Dakota to New Jersey and Florida. For many years I was a road warrior visiting my stores and at this stage in my life, I am not prepared to do that. My philosophy is: If I can drive to it, I am interested. My son and I have kept to that philosophy.

Larry Morgan

Age: 68
Company: Morgan Auto Group
Dealer since: 2005
Dealerships: 11 (Buick-GMC, BMW, Ford, Honda, Lamborghini, Mini, Mitsubishi, Toyota) in Florida
Annual total sales: 6,749 new and 5,160 used in 2011
Quote: "I spent a lifetime trying to figure out how to draw customers from car service departments to my Tires Plus stores. Now I'm trying to figure out how to get service customers out of those independent repair facilities back to my car stores."

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20120618/OEM02/306189993/1179#ixzz2OrUvxuyD 
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Morgan Auto Group 2nd Biggest Mover in this year Automotive News Top 125 Dealership Groups

March 18, 2013 

For Immediate Release: 

"Morgan Auto Group 2nd Biggest Mover in 2012 Top 125 Dealership Groups"

[Automotive News March 2013] 

Automotive News's Annual Top 125

The Morgan Auto Group out of Tampa, FL has moved from #102 to #78 in the latest Automotive News Top 125 Dealer Group Survey of the United States. This placed MAG as the second biggest mover in the survey. Morgan Auto Group is a franchised new car dealership group representing over 10 different brands in the Gulf Coast and Central regions of Florida: Honda, Toyota, Scion, Lamborghini, BMW, Buick, GMC, Mitsubishi, MINI and Ford. The group posted new car sales of 9,854 units 7,074 used units respectively with a total of $554 Million Dollars in total dealership revenue.  

The group is relatively new the the Automotive landscape. Larry Morgan purchased his first store Toyota of Tampa Bay in 2005 and has brought the same rate of growth that made him an industry name as the former owner and CEO of Tires Plus. The group's most recent acquisition of volume dealership Brandon Honda and the opening of their open point MINI of Wesley Chapel store aided in their "mover" status for 2012. 

You can read more about Larry Morgan here in the Automotive News article "Larry Morgan built Tires Plus, now builds a dealership empire." 

In order of acquisition (or opening) since 2004: 

Toyota & Scion of Tampa Bay 

Honda of Ocala 

BMW of Sarasota 

Gainesville Buick GMC 

Honda of Gainesville 

Lamborghini Sarasota 

Ford of Port Richey 

Port Richey Mitsubishi 

Gainesville Mitsubishi 

Brandon Honda 

MINI of Wesley Chapel 

You can check out the complete list inside of the Top 125 here: 

5th Annual Morgan Auto Group Charity Basketball Tournament - Success!

On July 15th 2012 the Morgan Auto Group hosted their 5th Annual Charity Basketball Tournament to benefit the Helping Hand Fund (an employee emergency relief fund).

The tournament boasted ten teams from our car stores and affiliated companies: Highway Safety Devices, Brandon Honda, Honda of Ocala, Honda of Gainesville, Wade Raulerson Buick GMC, Ford of Port Richey, Creative Sign Designs, BMW of Sarasota/MINI of Wesley Chapel, Toyota of Tampa Bay and Moore & Scarry Advertising.

Highway Safety Devices overcame a 1st half deficit of 15 points to take the championship, overcoming a very strong Brandon Honda team that had blown past Ford of Port Richey and Honda of Ocala.

Honda of Gainesville fell in the other semi-final game to Highway Safety Devices.

Authorized Free Agent Tanner Boyle was acquired by Ford of Port Richey for a $1000 dollar donation but then sold to Highway Safety Devices (who were playing with only five men) for another $500 dollar donation.

The tournament for the first time was moved from Holy Trinity Greek Orthodox Church in Clearwater, FL to the Long Center where three games could be played simultaneously. Each team was guaranteed at least two games (win or lose) and many teams (those who had play in games) ended up going 3 games.

Award Winners:

Tournament Winner - Highway Safety Devices

Consolation Bracket Winner - Toyota of Tampa Bay

Philanthropy Award (Money Raised) - Toyota of Tampa Bay

"HORSE" Award - John Marazzi (BH) defeated John Gliem (TOTB)

Three Point Competition - Tony Suares (Moore & Scarry)

Tournament Highlights: 


Authorized Free Agent: Tanner Boyle in the "Decision" 

Tournament Highlights: 


http://www.youtube.com/watch?v=7r15o1spry8&feature=plcp

Remove the Speed Bumps from Your Business!

REMOVE THE SPEED BUMPS FROM YOUR BUSINESS / SHORTEN YOUR SALES PROCESS

In the last month I have witnessed presentations from 4 different motivational speakers. One common thread in all of their presentations has been the idea of removing the barriers to conducting business and shortening processes to make them more relative to your customers real wants and needs.

Guy Kawasaki (former Apple Enchanter) and Grant Cardone (Business Expert/Motivational Speaker) deserve credit for harping on these themes. They are both right on the money. We are and have become a society of instant gratification. Technology has given us the uncanny ability to bring people to the precise information they are looking for. Need we look any further than the success of Google for proof of this? People are used to being delivered to exactly what they want, when they want it.

In business I have always been a principled man. I was slow to evolve in some ways --- "how dare you water down a long tested process" I used to think when I'd watch my employees struggle to master every step in our sales process. I would go home after long days of training and reason that maybe some employees just didn't care, lacked the necessary discipline or didn't have the mental acumen to truly become a master at their craft. At some points I even considered that maybe poor results were due to my own inability to communicate desired outcomes and train effectively. Looking back now I realize that the failure wasn't necessarily my people, or myself --- it was a process needing to evolve in a changing world.

Every day in my business (Auto Industry) it seems the life of a sales associate gets more complicated. Compliance and new legislation seems to add a new form and process every month. The OEM's seem to always be fighting for their attention as well. Sitting here in a store I used to run (Wade Raulerson Buick GMC) I can remember countless phone calls tracking OnStar registration, Customer Satisfaction, Vehicle Delivery Quality, and Training percentages. Then you get back from the 20 group meeting and it's on to a full after-market accessories presentation after the closed sale or it's a full wander through a crowded service department. We know why these things are important but the road to accountability is complicated especially with what has become such a time consuming process.

Give time back to your people and to your customers! Simplify your operating strategy --- learn to adjust and evolve based on how your customers ACTUALLY WANT TO CONDUCT BUSINESS.

Thank you Grant & Guy. Transmission accepted and mission chartered. We are on our way!

Walking in the Land of Search and Social

Dope Indeed. 

The phone in my pocket buzzed. I was receiving a text or an “SMS” (if you are talking to a software engineer in Palo Alto). 

“So did u check in AT Facebook ON Facebook? Cuz that’d be pretty dope!”

Google's HQ in Mountain View

I glanced up from the conference room table at Facebook’s headquarters in Menlo Park, California and smiled. My buddy Ryan was being sarcastic --- but he had to know that I was secretly geeking out. I’ve known for quite a while that social media was not a fad. In my college days I was an early adopter of the social site Friendster. Post college I remember sitting at my ABC radio office in Richmond and receiving my first e-vite to try Myspace. I also can still recall the first night that I attempted to login onto Facebook. It might have even still been entitled “THE” Facebook and I do recall that because my University was not associated with the site --- I could not login. 

Facebook has taken over the old Sun-Microsystems Campus

Fast Forward to 2012. In May Facebook reported 901 Million active monthly users. They have changed the course of how we interact, communicate and network with the people we meet. Facebook to me is no longer an efficient way to keep up with old college buddies its a platform that binds the majority of Americans. For me having the opportunity to visit both Facebook and Google felt like a long overdue pilgrimage to Palo Alto. I was a guest of Haystak Digital Marketing who had brought a group of dealership personnel, factory representatives, digital marketing professionals, advertising executives and guest speakers for a two day Digital Summit on the campus of Google. 

Google for many internet users is a diving board to all things web related when consumers search for information on cars they wish to purchase. At the dealership level it's easy to concentrate solely on late game marketing that creates traceable actions related to the sale of a car. What we often don't realize is that our paid search efforts and organic search content are already vying for the opportunity to become a given consumer's dealership of choice --- even long before they have decided which car they are going to purchase. 

In 2011 the Automotive industry meant nearly 2 billion in sales revenue to Google or about 5% of their total revenue. 96% of Google’s revenue comes from paid search revenue such as sponsored links and display. What does that mean? Well it means that Automotive outpaces nearly ever industry outside of travel, general retail and finance and insurance. We are important to Google and Google is becoming more important to our customers and the ways they discover information when they shop. Research has shown that Americans research nearly 18 different sources before they purchase a car --- that’s more than consumers shopping for a new computer or an elective medical procedure. Search drives a great deal of our customers fact finding and we are finding creative ways to talk back. 

E-mail and usage of general web portals are down. Use of search and social networking are up. It’s the next phase of the internet evolution. The goal is arriving there before our competition.  

5 Quick Take Aways from the Google “Digital Summit at Mountain View” for YOUR DEALERSHIP TODAY: 

1. Mobile usage is growing and many dealership websites lack in their mobile capability.
2. The ability to research online is shortening the shopping window. 81% of consumers purchase within 3 months.
3. Customers utilize video in the early shopping stages to decide which vehicle to select.
4. Customers who “like” your dealership on Facebook typically have a higher level of trust with your store and brand.
5. % of Consumers utilizing dealership websites is increasing. Website usage peaks within 30 days from purchase.