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St. Albert car dealership trumps competition

It's not just that the hammers, drills and other tools are almost put away as renovations to the Ron Hodgson dealership near completion that has put a little extra bounce into the steps of employees at the St.

It's not just that the hammers, drills and other tools are almost put away as renovations to the Ron Hodgson dealership near completion that has put a little extra bounce into the steps of employees at the St. Albert car dealership

While the newly renovated digs are great, it's being recognized for selling the most vehicles in 2011 compared to other General Motors dealerships in the greater Edmonton area that has employees and management smiling.

Roughly 10 dealerships in the region compete for the Number One Volume Dealer title, which is handed out annually.

"It's pretty important. It's what everyone strives for," said Jeff Hodgson, general manager. "Every month that goes by, you check your rankings and see where you place and as the year goes by, it's a huge race."

What makes it extra special is he didn't expect to win the award this year, mainly because the business has been under heavy construction for the last five months.

Staying put

Before renovations began, the Ron Hodgson management considered packing up and relocating to a location in north St. Albert. Instead, they decided to expand at the current location.

"We've invested in this facility quite a bit over the years and it was a great foundation and it's a great spot for us," Hodgson said.

The business, located just off St. Albert Trail as you enter the city from the south, has stood in place for roughly 35 years.

Despite the renovations, the dealership was able to increase sales by roughly 30 per cent to sell more than 700 vehicles — a number he said could have been even higher in the absence of construction.

"It was really, really impressive that we could do that while basically having no showroom and having sandpaper and jackhammers going off everywhere," Hodgson said, adding there were some days employees couldn't even make phone calls due to the noise.

This is the second time the dealership won the award, with the first win coming roughly five years ago. Between successes, the business experimented with different techniques to attract customers.

The techniques that have brought the most fruition recently are online campaigning and Internet marketing. In conjunction with an online presence, he said it is important to remain focused on what made the business a success in the first place: the customers.

"We try to look after the family customers we have and encourage them to come back. That's really key for us," he said.

Big announcements

The renovations are in the final stages and will be revealed at a grand opening in May. Hodgson said he plans to not only unveil the improved appearance, but also announce an improved business model.

The dealership is cutting out price haggling and commissioned sales staff.

"It's pretty huge for a General Motors dealership to do that in a market where everyone else isn't," he said, adding Ron Hodgson will be the first area dealership to undertake this kind of approach.

Hodgson said the motivation behind this decision was the fact that buyers are tired of negotiating the price of a vehicle and dealing with commissioned sales staff.

"If you're a customer and you go to a dealership, typically that sales person makes his living off of how much income he can generate off you. It's totally backwards," he said. "The staff's main focus is going to be on helping the customer as opposed to making the sale, which is going to be paramount for us."

Every vehicle will have a designated price, which is aimed at removing the negotiating process. This "one-price" idea ensures sales associates spend more time focusing on the needs of the buyer instead of haggling the price, he said, adding this decision will benefit both groups.

"At the end of the day, (staff) are excited because they don't like the peaks and valleys of this business either," he said. "Some months are busy and some months are slow … so they're super excited."

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