Courtesy of: Boston Business Journal

Herb Chambers’ name is synonymous with his car dealership empire ­— ­as well as his ubiquitous commercial jingle.

Herb Chambers MINI of Boston has donated a two year (24 month) lease of a MINI Cooper, including 10,000 miles per year allowance! The specifications of the prize are: 2006 MINI Cooper Hardtop (5 speed manual transmission), Solar Red / Silver Roof,, Cold Weather Package, Anthracite Trim, 15? alloy wheels, 5-star rocket, Rear Spoiler, Silver Stripes, Moonroof, Sport Seats.

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For Herb Chambers Pledge to Excellence in Customer Service and No Complaints – CLICK HERE

Once again for the third year running, Herb Chambers MINI of Boston will donate a two year lease of a brand new 2007 MINI Cooper, with MINIsOnTop selling raffle tickets to raise money for our selected charity, Rosie’s Place!

As in previous years, the donation from Herb Chambers MINI of Boston is of a two year (24 month), 10,000 miles/year lease, and does not include insurance, tax, title, or license fees. The winner must execute and terminate the lease at the Herb Chambers MINI of Boston location.

For Herb Chambers Pledge to Excellence in Customer Service and No Complaints – CLICK HERE

Herb Chambers is MR OPPORTUNITY!

Herb Chambers Companies are the innovators and definitive cutting edge of Automobile Dealership advancements in the World!

Herb Chambers excels in its hiring screening, training and most of all advancing committed, creative and innovative driven people ONGOING!

In short by all accounts if you are interested in a career in the automobile industry, in sales, service, customer retention and loyalty building or the growing online auto sales and customer service department – you want a career Call Herb Chambers!

Herb Chambers Companies continues to Increase its reach to individuals searching for careers in the car dealership and automotive industry. Using online social networking sites and online classifieds across a variety of interest categories Herb Chambers is casting a wider net to capture the best potential candidates to grow with the class of the auto and car industries – The Herb Chambers Company!

Whether it’s a response to the mini feed on the Herb Chambers Help Wanted Face Book Account or the Indeed.com account or even online classifieds like Monster and Boston.coms – Herb Chambers wants to talk to you!

Training and opportunity at the Herb Chambers Companies is outstanding and unmatched in Boston, RI , NH or for that matter the Herb Chambers Training programs is an industry leader! The training facility at the Herb Chambers Lexus Dealership in Sharon is led by Jay Gubala, whom has tremendous experience and expertise in assessing skills sets to hone in on an individual basis.

Indeed.com

“Simply a one-stop shop for job seekers.”
Walter Mossberg, Wall Street Journal, March 31, 2005

About Indeed
Indeed is a search engine for jobs – with a radically different approach to job search. In one simple search, Indeed gives job seekers free access to millions of employment opportunities from thousands of websites. Indeed.com includes all the job listings from major job boards, newspapers, associations and company career pages – and we continue to add new sites every day.

Herb Chambers Mercedes Benz Jobs Forum – Indeed.com

Herb Chambers Mercedes Benz Salaries, Bonuses and Benefits.

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More Herb Chambers Mercedes Benz discussions

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Herb Chambers is going to make sure you succeed – if you like what your doing your success will be part of the communal success of the Herb Chambers Companies.

Service – No Complaints! Got a Complaint or issue – Complete Customer resolution and satisfaction is the number one priority EVERDAY at Herb Chambers!

In fact, Herb Chambers Companies has received more JD Power awards than any other automobile dealer in the industry! JD Power sets the bar high when deciding who gets these awards! The Herb Chambers Group prides itself on excellence in customer service and satisfaction!

A LETTER FROM HERB CHAMBERS

Bentley Boston…A Herb Chambers Company

Whoever said, “go west” was right. Actually it’s something I’ve had on my mind for quite sometime. Out in Natick, Sudbury & Wayland is a fantastic display of some of the finest luxury rolling stock you’ve ever seen. BMW’s, Mercedes-Benz, Land Rovers, Bentleys and even Rolls Royce! For years they have regally existed… happy employees, happy customers (including me), a fantastic inventory with an amazingly skilled vehicle service and body shop facility…or should I say “carriage works”. And, it’s one of the few Bentley dealerships in the United States…it’s Foreign Motors West!

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Herb Chambers 24/7 Online Sales Department!

Herb Chambers No Complaints

Herb Chambers Customer Feedback

Mercedes Dealers Boston brings you Mercedes News, Reviews, Photos, and the best deals on new and used Mercedes – Benz automobiles in the Metro Boston area.

Mercedes Dealers Boston editors find the best luxury car service, Foreign and luxury car parts and after market sales. We welcome your comments and suggestions.

Mercedes Dealers Boston are automobile enthusiasts as well and will feature galleries of some of the best car collections in the area!

Enjoy!

Mercedes-Benz Boston

Mercedes-Benz Boston

Herb Chambers “NO COMPLAINTS”

Herb Chambers Luxury Cars

Herb Chambers TV

The following is a summary of a case study on Herb Chambers.

2009 Toyota Matrix

Herb Chambers sells approximately 600 units per month from their Internet department alone. Digital marketing strategy generates the majority of their phone traffic to their dealership. Herb Chambers drives more revenue to the service and parts department through eMarketing.

1. The strategy:

Herb Chambers began by getting together with their leadership team to create an eCRM business plan that outlined their goals and strategy. This strategy boot camp was facilitated by their digital marketing vendor, and it helped them create a detailed blueprint and action plan that outlined everything they needed to do to reach their goals. Some parts of the strategy they created and what you may want to customize for your dealership are listed.

2. Technology:

Herb Chambers implemented a complete digital marketing system which included a custom website that promotes all of their profit centers and drives more foot, phone and Internet traffic. The system includes a prospect management tool that automates a lot of the email activity so their team has more time to use the phone and to sell cars. The most important dynamic technology they use are the multi-media buzzmails that help drive traffic through bulk email marketing and selling new prospects and by automating the follow-up of their customers throughout their ownership cycle. Lastly, they have offices equipped with a PC, printer and digital camera for taking pictures of inventory.

3. They purchased website addresses (URL/ISP):
They purchased the URLs and purchased all of the names they thought customers might type into their browser to find them.

Boston Scion – Herb Chambers

4. Marketing their website:

Herb Chambers conducts bulk multi-media email campaigns, and they are ahead of their competitors on the search engines. They also add their URL to all traditional media. They put it everywhere their name is, including their current documents, TV, radio, print ads, dealership collateral material, business cards, repair orders, license plate brackets, billboards, etc.

5. Referral service:

Herb Chambers goal was to reduce their expenses for third party lead providers and increase their leads/ sales from their own site which costs less and have a higher closing percentage. They eliminated the providers that were not effective and replaced them by increasing their leads from their own site. In the end, they have more leads and sales and the majority are from their site, so they cost a lot less and the closing percentage is three times higher.

2009 Toyota Matrix

6. People:
Herb Chambers has dedicated Internet sales people at every dealership who sell the appointment and vehicle. They recruited people with previous automotive sales experience and with great phone and follow-up skills. They are on the same pay plan as the other traditional sales people.

7. Process:

Herb Chambers defined their Internet process for handling opportunities by mapping out their process for turning leads into appointments and sales. They are selling approximately 600 additional units per month at a higher gross profit than some of their showrooms because they do not sell price, they build value in the dealership, people and product, and, at the same time, they highlight the advantages

of doing business with them rather than the competition.

8. Pricing:

Herb Chambers realizes that selling cars on the Internet is not about giving cars away. “The mistake some dealers make is that they sell the price rather than building value…in the end, if we do not ask for a fair profit it is impossible to get one,” said Jay Gubala. “We put together a pricing philosophy that is competitive but that also preserves our gross profit.”

9. Training:

They partnered with a company that initially trained everyone in the department on the phone, follow-up and sales skills they needed to increase appointments, sales, gross profit, CSI and loyalty. “The key to the training was to develop their skill and confi dence and this is accomplished through repetitive practice, videos and hands on experience.” In addition, Herb Chambers has a very successful nine-day training program for new hires.

10. Measure/manage:

“You cannot manage what you cannot measure. We measure everything and hold regular meetings to discuss our progress and ways to improve. Reports give us the information we need, the number of leads by source, response rate and time, appointment percentage, show percentage, closing percentage, cost per lead, cost per sale, etc,” said Gubala.

After reading that It’s obvious why Herb Chambers continues to lead the automotive industry in innovation, sales, and customer service! The Herb Chambers group stay educated and up to date on ways to improve sales, service and the overall customer experience !

Herb Chambers continues to find more ways to engage car shoppers; be they well schooled, casual or simply window shopping. The amount of care every visitor recieves online or in the showroom is unequaled in the automotive or for that matter any industry!

If you haven’t seen Herbs hilarious, informative and well produced vids – CLICK HERE to view all the Herb Chambers vids!

Herb Chambers is customercentric!

2009 Toyota Matrix – Herb Chambers Toyota

Empire Builder

by Lee Goodwin and Meredith Spencer

When people look at Herb Chambers, they see the accoutrements of wealth and a stable of dealerships. So why would a guy at the top of his game give a damn if the mechanics’ bathrooms are clean?

When you understand that, you’ll begin to understand Herb Chambers.

You know the jingle. “We’ve got it. At Herb Chambers we’ve got it.” Herb Chambers

It could just as easily apply to the man. Herb Chambers has got it. He’s got the 40-odd dealerships including his palatial Lexus store in Sharon. He’s got homes in Boston and Connecticut, and he’s got a helicopter to commute between the two. For long distance commuting he owns a new Gulfstream 450 Jet. He’s got a rotating collection of 15 to 20 exotic and collectible cars in his garage, and he’s got a 188-foot yacht if dry land becomes dull. And now he has the 2008 Time Magazine Dealer of the Year nomination and he’s the state’s dealer of the year. When the press writes about Chambers, they follow a tight narrative. How as a youngster growing up in Dorchester, he thought the local dealer possessed untold wealth. With his nose pressed up against the showroom window, he marveled at how many cars the businessman “owned.” How, following a four-year stint in the Navy, he opted for a paycheck instead of school. He never attended college. How he founded a copy machine company that would go on to become the largest independent distributor of office equipment in the United States. And they always include how Chambers went looking for a Cadillac and ended up buying a dealership.

The Central Question

None of those stories asks the central question.

How did an outsider with no automotive experience build such a formidable organization? What keeps Herb Chambers – the man and the organization – going, and growing? Following his time in the Navy,

Chambers began working for a copy machine company, first as a technician and later as leader of its #1 sales team. He made the transition to sales by selling extended warranties while servicing the machines – so many warranties that management took notice and expanded his territory. Speaking to people in a sales context was difficult, but a Dale Carnegie course boosted his confidence. Today, he says, the key to sales is simply being nice to people.

A-Copy Becomes Ikon-ic

The office world was moving from mimeograph and carbon paper to photocopy. In 1965 he founded his own company with just $500 borrowed from his mother. He named it A-Copy, so it would be listed first in the phone book. Chambers used his savvy as both technician and salesman to purchase used copiers, then fix and resell them. His success snowballed. His competitors guaranteed repair in 24-hours. A-Copy promised to fill service requests in eight hours – and in the early days Chambers himself made the service call. Chambers sold his business in 1983 to Ikon, then known as Alco- Standard, which was attempting to consolidate independents like A-Copy. Chambers had become the largest Canon distributor in the world.

How to Buy Companies

The addition of A-Copy represented “a big feather in the cap” of Alco-Standard, lending its consolidation strategy “instant credibility” and helping the Fortune 500 company grow into one of the dominate players in the office equipment industry worldwide. Alco became a $20 billion dollar company and Chambers its largest single shareholder. “The first time I met him, I said to myself, ‘This guy is electric,’” recalls John Covell, director of Marketing and Training. He first joined Chambers at A-Copy in 1981 from Xerox. “He was so exciting and intense about what he was doing. There was this [atmosphere of] entrepreneurship.” Chambers stayed on for a while at Alco- Standard, in charge of mergers and acquisitions. He gained valuable experience in buying companies. He also learned how to delegate to others, and to trust others while holding them accountable. After completing a number of acquisitions, he started to shop around for a company of his own….in a different industry. He wanted a business involved in distribution, a mix of new and used products, and something service intensive. What he didn’t want was to compete any longer against the likes of IBM and Xerox.

No Pre-Conceived Notions

Not long after he purchased the first dealership in New London, Connecticut – where he walked in looking for an El Dorado and walked away owning the business – he set his sights on expansion. By 1997, just 10 years later, Chambers had 15 dealerships spread over Rhode Island and Massachusetts and sold 24,000 cars. From day one Chambers generated ideas of how to conduct business differently. A confirmed car nut, he began buying and selling cars in the Navy; nine in one year. “Automobiles became beautiful to me,” he recalls. At A-Copy, he once purchased 16 in a year. He frequently says that he understands the business from the consumer side. “He had no pre- conceived notions of what he could or couldn’t do,” says Quincy-based dealer Dan Quirk. “He put A-Copy on the map. He focused on customers. He brought the same principals to the car business.”

Keeping Up Morale

Adopting the mindset of a customer is just one key to his success. (Chambers’ service departments wash and vacuum every car that rolls through). His ability to inspire and turn over management control to others is also key. He expects his GMs – he refers to them as his “partners” – to fix their own problems and run their dealerships as i n d e p e n d e n t l y a s possible. He has a saying: “We lead people and manage information.” He also subscribes to the adage: Trust but verify. For example, he demands that

his technician bathrooms be inspected once a month. When he discovered one recently that was a mess, he hit the roof. “People may wonder why that’s important. The restrooms aren’t public and the techs spend more time with cars than customers. I ask, ‘What about morale?’ If they don’t enjoy good

morale, they may not fix the car right.’” On the sales side, new sales people spend two weeks with Covell. He likes to point out that new sales consultants win MVP honors every month along with seasoned employees at a monthly motivational breakfast. Every year Chambers hosts an elaborate

gala, rewarding top performers with Rolex watches and cash. Top sales figures won’t win at either event unless accompanied by high customer service marks to match. For managers, overall management combined with low turnover is a must. “He’s concerned with the total overall objective,” says Quirk.

“He has confidence in his ability and in his people’s ability. He absolutely, positively loves the business.”

The 40 Group Review

Every month the company’s 40-plus GMs gather together for a detailed review of their stores. Chambers lavishes praise on those who bring good numbers as well as good ideas to the meeting. The managers are expected to dig into minutiae at these meetings. They present their financials one manager after the other: units new and used, gross profit and per vehicle, F & I, service, parts, expenses by category, aging receivables, asset management and customer service.

Chambers, who has pored over the numbers earlier, sits ready to pounce: “What happened here? How about here?”

“He zeroes in. He finds where the opportunities exist,” John Covell says.

“There’s no question that he’s a big picture guy. But he believes in looking at the numbers and dissecting the numbers.” Constant Improvement. The discussion is designed to provide the type of focus they miss when dealing with day-to-day issues and questions. It also provides a forum for implementing changes swiftly among the entire group. For instance, while examining credit card expenses, someone discovered that taking a credit card number over the phone nearly doubles the service fee compared to swiping a card. Pennies, perhaps, but multiply the fee by hundreds of thousands of service customers, and costs quickly mount. It is an example of the Japanese concept of kaizen, or constant improvement, that Covell tirelessly advocates.

“If we didn’t have these meetings we wouldn’t be as successful as we are,” Covell says.

Chambers prods everyone, constantly, to find new avenues to improvement.

“I’m trying to convince each and every one of you how you can be better,” he tells his employees. “As a company, we can be so much better.”

Turning ‘Accessories’ into Profit Centers

Does Chambers take more pleasure in the rewards of his success, or the fact that he found a way to turn some of those “accessories” into profit centers? In addition to his legion of dealerships, he has amassed a collection of

real estate and exotic cars. He is quick to acknowledge that he has been very fortunate in business.

His properties include a country estate in Old Lyme, Connecticut and a spot at the new Mandarin on Boylston Street, slated for completion in 2008. Last year, he placed his Back Bay residence – a rare Beaux-Arts

style home – on the market for $14.95 million, breaking Boston’s single home sales record by $4 million. Chambers spent two years renovating he house before its sale, and says that it’s an “insane” property for someone without a family. In Old Lyme, Chambers keeps a stunning collection of cars – 15 to 20 exotics and vintage autos. The collection, featured in The Boston Globe and Chronicle television news program, includes a McLaren F1, a Mile Miglia tested 1955 Mercedes-Benz Gullwing, a 1959 Cadillac Biarritz Convertible Eldorado, a 1932 Ford Coupe and 4 Ferrari Daytonas. Even car nut Jay Leno has asked Chambers for a spin.

By Sea and Sky

And if tooling around the Connecticut countryside becomes tiresome, Chambers can head to the sky in his jet, take his helicopter for a spin, or board the Excellence III, his 188-foot yacht. Chambers was “intricately” involved in the design and building of the ship, traveling to Europe to personally meet with shipbuilders Abeking & Rasmussen.

He has built and sold several yachts – and leases the Excellence for much of the year (at $500,000+ per week). The plane also spends most of its time in the hands of others. In the words of longtime associate John Covell, Chambers is “driven, driven, driven.” Another associate, Jim Xaros, contends that the most difficult aspect of working for Chambers is keeping pace with him. No matter where in the world his boss may be, Xaros quips, his phone will ring at the end of the work day, everyday, and Chambers will be asking, “How’d we do today?”

The Evil Empire

Asked about Chambers’ expansion plans – specifically Central Massachusetts – John Covell calls Worcester and surrounding towns “a great market.”

Metro Boston may boast great demographics and high density population, but it suffers from a severe lack of space. However, that space is plentiful further from the Hub, and Chambers is missing a few brands from his 40-plus points – which run the gamut from Vespa scooters to Bentley.

There’s no Nissan. No VW. No Volvo.

Chambers is always looking for new opportunities, and if the location is right, and the deal makes sense, he’ll buy. What’s the hardest aspect of putting together a deal?

“It’s price,” Chambers says. “How bad do I want it, and how bad do they want to sell it? I’m not a

fire sale buyer. I’ve dealt with some very good negotiators. I wasn’t the best negotiator, but I’ve gotten better. ” Patience and Persistence Pay Off “

Occasionally, Chambers will invest himself in a deal but walk away from it. “Even at the 11th hour, because someone tried to change the deal,” Covell says.

Nor is Chambers afraid of a fight. He once pursued a lawsuit for nine years against Audi when the manufacturer cancelled his franchise “for personal reasons” that Chambers deemed unfair. A million dollars and a decade later, he vindicated himself.

One recent acquisition required extraordinary patience and persistence. Foreign Motors West, which Chambers picked up last year, was a dealership group that Chambers had wanted forever. “Herb was told repeatedly they wouldn’t sell it,” Covell said. Finally, the winds shifted. After two attempts by other suitors, including Penske Automotive Group went nowhere, it was Chambers’ turn. From the beginning, workers at the employee-owned FMW store regarded Chambers, a competitor, as “the evil empire.” Covell and Chambers met with small groups of employees over several weeks, dispelling misconceptions and reassuring employees about their jobs. Chambers’ willingness to listen, combined with his self-effacing manner and geniality, eventually won them over, and he secured employee approval by a near-unanimous vote.

Stay Visible in Showroom Controlling a large dealer group provides cost efficiencies. When he

purchased his first Honda dealership on Commonwealth Ave 20 years ago, the “blue sky” was $4 million, “an unheard-of amount,” he recalls. However, his ability to share existing advertising cuts costs and has allowed him to pay a premium for subsequent dealerships of the same brand. Still, he never allows the upside of a potential purchase to cloud his critical thinking. “I think long term. I think about things more. I consider ‘what’s the worst thing that can happen? How bad will it be?’”

And what if he were to throw aside his organization and return to just one or two dealerships.

Where would he focus? “I’d try to stay very visible on the showroom floor, and meet as many customers as possible – both service and sales customers. Plus you set an example for everyone else.”

Chambers’ Vice President Jim Xaros concurs, adding, “I’d pay a lot of attention to Service reception. You

have an opportunity to reach 50 to 100 people there every day.” Chambers still walks downstairs to meet customers in the Mercedes- Benz showroom below his corporate offices.

“It takes me 5 minutes,” he insists. “Nobody is that busy that they can’t take 5 minutes.”

The Jewel in the Crown

Herb Chambers Lexus in Sharon, the crown jewel in the crown of the Herb Chambers empire, took nearly three years to build and sprawls across 11 acres. Its 110,000 square-foot showroom features vaulted cathedral ceilings and abundant natural light. Customers are treated to complimentary espresso and sandwiches as they wait for their car in the dealership’s luxe lounge, complete with marble fireplace. Or perhaps they’d prefer to stroll the Zen garden. If that’s too slow paced, the dealership also offers a Wi-Fi equipped business center for customers. As soon as customers arrive at the service entrance, German-engineered doors zip up and then down in seconds. Either a personal service advisor familiar with their history, or valet, greets them. Behind the scenes, the service area accommodates 60 bays. Chambers scoured the country with an architect and a photographer, traveling to Texas, Las Vegas, South Carolina and Georgia to pluck the best elements from existing Lexus dealerships. He estimates

he’ll enjoy bragging rights for two years before someone outdoes him.

BY THE NUMBERS:

· 3 years to complete 11 acres of land in Sharon 1

· 10,000 square-foot showroom

· 40 cars fit into the showroom

· 50-foot cathedral windows

· $500,000 cost of showroom skylight

· 140 staff members, including sales and service department

· 5 lunch rooms for staff

· $30 million: estimated cost

A (Reluctant) Public Face Like many dealers before him, Chambers has become the public face for his dealerships. Despite his ads, Chambers is a reluctant spokesman; a commanding presence in small groups, but not someone known for leading the PR offensive. He feels nervous in front of the cameras, and he’s critical of the results. His eye-catching – some would say, provocative – ad campaign is built around the theme that his sales people won’t try to “sell” you a car, they’ll help you to buy one. That line originated with Chambers as he addressed his managers one day.

Boston ad agency Modernista enlarged the concept, painting Chambers as an “undealer;” a theme adapted by several other local dealers over the past year or two.

The idea is to play upon, and dispel, the public perception of dealerships in general, and sales people in particular. One ad in the series, entitled “Here Comes a Car Salesman,” angered a few local dealers when it first ran. Covell acknowledged that he was “personally concerned” about those ads.

“I don’t want our competitors to think that we’re disparaging them,” he said. “I respect our competitors….even if I want to beat them.”

Pursuing Opportunity Online

It takes more than a clever ad campaign to beat your competitor, of course. People still shop the aggressively-priced store, as well as location, selection and other key factors. But level the playing field, and who you buy from can become a factor in attracting customers.

Just ask Frank Perdue. Despite the success of the ads, and the enduring draw that newspapers hold for auto customers, Chambers continues to expand his online presence. He was an early adopter of the Internet, and with the help of in-house Internet guru Jay Gubala, Chambers continues to mine

online data with the same penchant for dissection that he brings to his stores’ financials. With its seemingly limitless ability to adapt and evolve, combined with a profound capacity for measurement, the online world presents the perfect environment for Herb Chambers. He remains, despite enormous

wealth and success, a man on a ceaseless search for opportunity – be it buried in numbers or just over the horizon.

LOW KEY CHARITABLE WORK

Can there be too much opportunity?

Herb Chambers would likely say no. But for nearly all dealers, including Chambers, one aspect of their business dictates “yes.” Every day, dealers are asked to donate money, new cars, and used cars to groups and individuals in need. If only business were as steady and reliable as requests for charitable contributions. Chambers prefers to keep his considerable charitable works low key. He responds most often to pleas from people he knows already, because he wants assurance that the funds will find their way to those who truly need them. “We don’t have a policy about giving,” he said. “We do it on a case by case basis.” He acknowledges an aversion to professional fundraisers. His most recent visible charitable work has been on behalf of the 200 Foundation, which honored Chambers as its Man of the Year last year. The Metrowest charity donates all of the money it raises directly to food pantries, counseling centers, respite homes and other organizations.

Keeping Up with Building Operations

Jim Xaros practically g r e w u p i n t h e automobile business. He joined the Chambers organization 16 years ago, and oversees dealership operations. For Xaros, keeping his a r m s a r o u n d t h e accelerated growth and construction presents one of his biggest challenges. Even with two fulltime staffers dedicated to construction, the Lexus store gobbled up much of his life for three years. Not to mention major projects ongoing or about to commence:

• A new Porche-Audi dealership in Burlington (a point purchased from Pass & Weisz)

• A new BMW in Sudbury

• A new Infiniti on Route 9 in Westboro

• A new home for the Providence Cadillac dealership

• A Mercedes-Benz expansion (doubling the size) in Lynnfield

• A complete renovation for Mercedes-Benz in Natick

• Completion of 2 new Smart Car centers

Asked for his view of the broader picture, Xaros said he expects the trend to continue for domestics, adding that the local landscape remains “over-dealered.” Long term, he predicted it will take more than

a year or two for things to “right-size” themselves.

18 february 2008 Massachusetts auto dealer www.msada.org

But then it’s hard to imagine New England’s top auto dealer sitting still for very long. Chambers is a whirlwind of enthusiasm, his open charm tempering marketing savvy, an eye for good deals and the moxie to make them.

His business modus operandi seems to be more opportunistic than planned out. But that just applies to his deal making, which has resulted in the Herb Chambers Group acquiring 38 dealerships in Southern New England in just over 20 years. He said he would be acquiring more dealerships in the next 12 to 15 months.

When it comes to running his business, nothing is more thought out. Chambers strongly believes in a corporate culture that is service oriented, and he sees attracting good employees and keeping them happy as the key to the success of his companies.

His most recent acquisitions — just this month — reflect the catholic range of marques under his umbrella: one is a Dodge-Jeep dealership while the other sells a range of exotics, including Audi, Bentley, BMW, Mercedes-Benz, Porsche and Rolls-Royce.

And he is building a new Cadillac dealership on Route 2 in West Warwick — construction due to start this summer and last about a year — and is about to open the doors of a $30-million Lexus dealership in Sharon, Mass. No expense has been spared on the 110,000-square-foot Xanadu of that dealership, which he calls “the craziest thing I’ve ever done.”

“It’s been one step at a time, there was no plan of having a company like we have,” Chambers said last week at his Cadillac dealership in Providence. “We bought two more (dealerships) in the last 30 days. The guys here call me a deal junkie.”

The bottom line — his company will report $1.8 billion in sales this year — speaks for Chambers’ business acumen and ability to inspire his workforce.

“You can’t have a happy customer without happy employees,” he added. “How do you get people to perform and stay? There’s never enough money. If you’re great, why work for me? People have to feel appreciated. I try to develop a culture within the company.”

“I’ve been very fortunate in attracting great people. I’m not an expert in the automobile business, but I do consider myself an expert in the people business,” he said. “I hire people with auto experience, but I hire for attitude. I want people with big smiles, outgoing personalities, good eye contact, (people who are) sincere. We can teach a skill.”

Chambers, who lives in Boston and Old Lyme, Conn., was born and raised in Dorchester, Mass., and joined the Navy after high school. “I was in the Navy for four years, and I loved it,” he said. “I almost stayed.”

After his discharge, Chambers’ first career was in copying machines. He worked for American Photocopy Equipment Company in Cambridge and in 1965, with $1,000 from his mother, he started his own company in Hartford. “I started (A-Copy America) when I was 22, knocking on doors, selling supplies for copying machines,” he said. He said the company became the largest independent distributor of office equipment in the U.S. before he sold it to Alco Standard in 1983 and joined their mergers and acquisitions department. He got started in the automobile business “by accident in 1984 or 1985” when he went to a dealership in New London to buy a Cadillac Eldorado. At the time, the long hours and nights away from home working for Alco were getting to him. Besides, he missed running his own company.

“I was looking for a little business of my own and I’ve always been a car nut,” he said. Indeed, he currently has a collection of about 15 exotics, including a rare McLaren F1, one of the fastest road cars ever built.

Looking around, he said he quickly realized the dealership was for sale. The sales force was listless and “the place was dirty, the windows dusty, weeds outside, it looked like hell,” he said, adding, “When a business is for sale, it might not say it’s for sale.”

The owner returned from lunch and did not initially want to sell. Chambers asked him what he wanted to do,

“He said play golf, but said there’s never enough time to play golf. I said: ‘Tell you what, I’ll buy the dealership and you can play golf.’ ”

They discussed the price, Chambers looked over the company’s financial statement, which revealed it was in the red, and “we got out pen and paper and 45 minutes later we had a bill of sale.”

“As it turned out it was not so simple, as GM insisted I get a partner because I did not have any experience in the automobile business,” Chambers said. He brought in an old colleague from his days in the copying business to run the business.

“I bought him out two years later, and he was a very good partner,” he said. “I’ve had some general managers who have not been good, and if he had not been good it might have soured me to the business.”

The comment is typical of Chambers, who is very quick to deflect attention away from his own skills and ply appreciation onto his partners and employees.

“I’m one of the most fortunate people I’ve ever met,” he said, spreading out his arms, his charming egotism overcoming his logic. “I’ve never had an original idea in my life, but I can recognize other people’s good ones. I learn from everyone I’ve ever met.”

After New London, he started expanding, starting with a Hyundai dealership in Hartford. “We could not get them fast enough,” he said referring to the early Hyundais.

He went on to buy further dealerships, and now has 38 in Southern New England covering a very wide range of marques, including all the domestic brands (“I’m very bullish on domestics,”) as well as Audi, Bentley, BMW, Honda, Hyundai, Infiniti, Mercedes-Benz, Mini, Porsche, Rolls-Royce, Saab, Scion, Toyota and Vespa scooters.

“What’s the significance (of having so many different brands)?” he asked rhetorically. “Market penetration. I want to have whatever people want. It’s like Howard Johnson had 28 flavors. If someone wants to upgrade to a Cadillac from a Honda, it helps if they have bought the Honda from us and had a good experience.”

To ensure that good experience, Chambers closely cultivates his employees. Every month, he meets with his entire sales force — some 400 strong — in Randolph, Mass., from 7 to 9 a.m. for a general meeting to discuss everything from sales goals to sales tips. Once a year, he hosts a black-tie affair for his sales team where awards are given out, including big money awards for sales masters — staff who have hit sales targets combined with good customer satisfaction reports.

Three years of ranking as a sales master results in the most coveted award of all: the Herb Chambers ring, a Super Bowl-sized beauty with the letters HC inscribed on it. Chambers wears one himself.

“This is the Herb Chambers ring,” said Lawrence Skinner, general manager of Chambers’ Cadillac dealership, showing his own. He turned it round his finger. “This is what people want, more than the money.”

Top general mangers are awarded $20,000 gold Rolex watches, and again the award is given not just for the level of sales but also for good customer satisfaction and low turnover.

At the same time, many of the functions are purely social events, with the emphasis on having a good time, ranging from trips to Bermuda to dinner dances on his yacht (Excellence III, a 188-foot motor yacht; Excellence IV, a 257-footer that will have a crew of 22, is currently being built in Germany) and other venues.

Chambers wants to know his employees and their families, and much of the emphasis on socializing is a chance to impart what he calls the Chambers philosophy.

“I get to know all the wives and husbands and significant others on a first-name basis,” he said. “How important is that? I think it’s really important.”

Apart from his car collection and his yachts, Chambers, who is divorced and has a 40-year-old son and a niece who runs one of his BMW dealerships, has his own company jet and helicopter. It was in the latter that he showed off his new Lexus dealership in Sharon that is scheduled to open around July 1. He claims it will be “the best dealership in world for about six months – when someone will build a better one.”

He said got the idea of pulling design elements from other Lexus dealerships following a dinner celebrating the opening of a wing at UMass Memorial Health Center in Worcester. He was impressed with the design and was told it incorporated elements from various other hospitals.

A week later, he was on the company plane with an architect, photographer and assistant visiting top Lexus dealerships in Atlanta, Las Vegas, South Carolina and Texas in one day. “We (started) from Boston early, early, early, and (arrived) back that night late, late, late,” he said. “I wanted the best of the best of the best.”

He joked that the dealership is so big, someone suggested he could build the cars as well as sell them. The showroom, which is capable of holding 40 cars, has 50-foot windows, including a $500,000 skylight. Behind are 50 service bays immaculately laid out in a light, spacious hall. “It’s the United Auto model on steroids,” he said. He expects to have a sales staff of about 50 with an additional 50 to 60 in the service department.

“There are four or five lunchrooms,” he said. Upstairs, the customer waiting area is equipped with a complimentary coffee and food bar, flat-screen TVs, a fireplace and children’s play area. The bathrooms look like they belong in a luxury hotel and even the staircase is extra wide.

“Space, space. Space is luxury,” he said passing through the half-finished rooms and pointing at this and that. He said his current Lexus dealership up the road – which he has sold – sells about 400 cars a month. “We’re going to have to sell 600 here on a pretty regular basis,” he said.

“See those doors,” he said, pointing enthusiastically at the service bay doors. “I wish you could see them work. They go up and down in seconds. I saw them in Germany.”

The casino-like entrance features a vast canopy leading out to a rounded space that is currently empty. “I want to put a waterfall in there,” Chambers said. “And keep it running through the winter by running antifreeze in it. My architect says I’m crazy.”

Returning to Providence in the helicopter, Chambers outlines his business philosophy. “No one wants to be taken advantage of,” he said. “But they do want to be taken care of, and that (service) costs money.”

But he said people are willing to pay for service so long as they feel it is not being sold to them.

“If someone asks you, ‘Where did you get that?’ ” he said, referring to a watch, “And you say, ‘Somebody sold it to me,’ it means you don’t like it, that maybe you were taken advantage of. But if you say, ‘Oh, I bought it over there,’ it means the opposite, you made the decision to buy it.”

“So, I don’t want my sales people to sell cars; I want them to help people buy cars.”