Monday Q&A: Forget cosmetics, ladies. Sell cars.

November 9, 2009 by Aaron Kremer 

crownacuraTheodora Stratos wonders why more women don’t ditch the makeup section at department stores for the much better pay at car dealers. Stratos, 50, is the general manager at Crown Acura in Richmond and says that despite the sluggish economy, her company is predicting a 30 percent rebound in sales for 2010. Part of that approach is positive thinking.

This week BizSense chats with Stratos about cars, the future of the American consumer and the power of mind over matter.

Below is an edited transcript.

Richmond BizSense: You are a female general manager in an industry that has a reputation for being dominated by males. How have you moved ahead?

Theodora Stratos: I am not afraid to get bruises and scuff up my knees. I just brush myself off and get back up. I sort of had a lot of desire to succeed.

RBS: Is the industry harder for women?

TS: Absolutely not. I don’t know why women are willing to work at Nordstrom in cosmetics in high heels making hourly wage when in the auto industry you earn whatever you put in. Most dealerships are commission-based.

Plus, women tend to be more sensitive to clients’ needs, and so clients like dealing with women. We [women] have a bit of an edge. We’re not pushy, and we don’t come across as shyster that’s going to rip their head off or lie to them. Women have a preconceived notion that because so many men work in the industry, they just don’t want to deal with it.



RBS: How is business overall?

TS: October was a little slower, actually the slowest of the year. But now things seem busier. We have steady traffic in the door, and the service business is booming. November has a strong feel.

RBS: Why the difference?

TS: Quite frankly, I think slightly warmer weather. It’s not the norm for us in November. So people are out milling around. And the stock market has been improving. I think that’s doing something as well.

RBS:
Did you guys do more business with Cash for Clunkers?

TS: We didn’t do that many sales — not as many as Toyota and Honda. But it did get people out.

RBS: As the sellers of a high-priced item, how do you think consumers’ newfound focus on thrift will affect sales?

TS: What’s happening is folks are tightening. But that doesn’t mean they aren’t coming into showroom. We are telling them about Acura as smart luxury. Acura is not going in the direction of BMW, Mercedes, Lexus. It’s all about holding strong resale value.

RBS:
Do you think the decline of GM and Chrysler will boost sales? It seems natural that if there were fewer competitors in the marketplace, then everyone who remains would at least gain a little.

TS: I can’t comment on that. We’re a publicly traded company, and I’m not sure they want me to get into that direction. I don’t want to get too political.

RBS: Sales are down at all car dealers, and with salespeople getting paid mostly if not completely on commission, how are you managing morale?

TS: A year and a half ago, we partnered with a firm called the Pacific Institute and put every employee in a program called Investment in Excellent. It has proven to be phenomenal. What we do is use affirmations, and we use those affirmations to create energy in the dealership. When our salespeople are having a down day, we encourage them to use affirmations for change and expand comfort zones.

It’s only natural for clients to come in asking you, how is business? The clients are wanting to know: Are you going to go out of business? Should I buy from you? Are you going to be here next year? What we do is have these tools to remain positive.

RBS: Have you had to cut employees?

TS: No. We haven’t had to eliminate one employee at this dealership. I’m obsessed about our image and client satisfaction and treat this business as my own. We’ve always been lean.

RBS: How long have you been at Crown?

TS: Since November 2001, so it’s my eight-year anniversary. I’ve been in the business since 1985. I started out in Southern California at a huge Mercedes Benz dealership. I moved back to Virginia in 2000.

RBS: Do you think the recession will scar consumers and change buying patterns, which could lower demand for a high-end automobile?

TS: We’re a strong nation, and I just don’t see how everybody can just decide, “Well, I can’t go and buy that iPod.” Acura is forecasting a 30 percent increase in sales for next year.

RBS: What do you drive?

TS: An Acura RL; top-of-the-line vehicle.

Aaron Kremer is the BizSense editor. Please send news tips to Editor@richmondbizsense.com.


Comments

Please use your real name to foster a more civil discussion.

We encourage active participation in our online community, but we reserve the right to remove any off topic or inappropriate comments.