How can 2-store minority dealers compete?

In an industry in which how much and how many matter, is there room for dealers who own only one, two or, perhaps, up to four stores? How about dealerships in small towns and rural communities that have planning volumes of 300 new vehicles or fewer a year?

Now, let's say you're a female or a minority dealer -- such dealers' numbers are small to begin with.

How do you compete?

"I think in the next seven to 10 years, if you're a nonluxury brand dealer and don't have more than three to five stores, it's going to be a challenge," said Damon Lester, president of the National Association of Minority Automobile Dealers.

Lester believes that to be the case for any dealer but said it could be particularly hard for minority dealers because many lack the economies of scale and operational efficiencies that dealership groups enjoy. 

NAMAD members, he said, own an average of two stores, each with planning volumes of about 500 to 600 new vehicles annually. 

Amy Cram is dealer principal of Bill Cram Chevrolet in Seneca Falls, N.Y., a community of around 9,000 residents. Sen-eca Falls claims to have been the inspiration for It's a Wonderful Life, Frank Capra's classic holiday movie.

Cram said she and another female dealer in her 20 group have talked about the challenges of having just one dealership in an industry in which consolidation abounds.

But she sees positives. Knowing her customers by name because she is involved with local groups such as the United Cerebral Palsy foundation, the chamber of commerce, the Finger Lakes Chapter of the American Red Cross and a local animal shelter, Cram said, allows her to deliver personalized customer service that "sets us apart." 

"Don't we still want that?" said Cram, who retails about 60 new vehicles a month, a 30 percent increase over sales last year. 

"It's like when we compare it to the restaurant business. Do we always just want to go to the large food chains, or do we want to go to the little mom-and-pop restaurant? 

"I'd like to think we do the right thing by our customers."