Boosting Sales and Employee Retention: The Success of Co-General Managers
Introduction
Bob Nouri, co-owner of Nouri/Shaver Automotive Group, had a brilliant idea to boost sales and fill an opening for a general manager at his Van Nuys Chrysler-Dodge-Jeep-Ram dealership in California. Inspired by a mentor, Nouri appointed two co-general managers instead of hiring externally. This decision not only led to increased sales but also improved employee retention rates.
The Benefits of Co-General Managers
In 2020, the dealership experienced a high turnover rate of 35 percent. However, since Raed Malaeb and Jonathan Schwartz were promoted as co-general managers in January 2021, the turnover rate dropped to around 10 percent. The success of this decision was evident in the significant increase in sales and net income. The store sold 5,914 new and used cars in 2021, earning $17.2 million in net income, compared to 5,224 cars and $11 million in net income in 2020.
One of the reasons Nouri wanted two managers was to ensure coverage on weekends. With at least one manager always present, they can address customer issues and make on-the-spot decisions. The co-general managers’ collaboration and lack of ego contribute to their success. They work as a cohesive unit, supporting each other and finding the best solutions for the store.
Training and Support
Nouri invested approximately 90 days in training Schwartz and Malaeb, emphasizing the equal importance of their roles. He treated them like celebrities, providing equal pay, bonuses, and responsibilities. By having control over various aspects of the dealership, the managers can solve problems faster and implement new processes efficiently. They also foster a positive culture that prioritizes customer and employee satisfaction, resulting in increased sales and a competitive edge in the market.
Expansion and Future Plans
The success of the co-general manager approach has led Nouri to consider implementing it in other stores within the Nouri/Shaver group. The group’s recent acquisitions, including a Buick-GMC-Cadillac store and Cal Worthington’s iconic Ford dealership, have provided opportunities for expansion. Nouri recognizes the value of mentorship and credits his own mentor for the genius idea that continues to drive their success.
