It's like I'm playing whack a mole every day. You'll fix a problem and then all of a sudden something else pops up. It's endless. A trip to New Zealand thrust this young CEO into leading one of the nation's most well-known car dealership brands. But now he's taking on the biggest challenge of his career thus far, bringing this 100 year old group into the future. Today I'm speaking with Robert Orisman, Jr., CEO of Orisman Automotive Group, an 18 store outfit based out of the DC metro area. Don't forget to click subscribe so you never miss an episode.
就好像每天我都在玩打地鼠游戏。你解决了一个问题,然后突然又冒出了另一个问题。永无止境。一次去新西兰的旅行让这位年轻的CEO成为了国内最知名汽车经销商品牌之一的领导者。但现在他正在接受自己迄今为止的最大挑战,将这个有着100年历史的集团带入未来。今天我与Orisman汽车集团的CEO,基地位于华盛顿都会地区的18家商店的Robert Orisman, Jr. 进行访谈。别忘了点击订阅,这样您永远不会错过一集。
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I was prepared for the podcast and I got super confused because you're ready for this one. I'm sure you can already guess what happened. I was DMing apparently with, is it your cousin Chris? Yes. All right. So there we go. So I'm DMing with Chris and I'll wait, what is going on here? And I realized I'm like, what the? There's two different orzements and I had no idea. And so I'm dying here. I like 20 minutes before the podcast. I finally hit me because I was looking through my DMS. And anyway, as long story short, this whole thing just happened. So it's funny, funny stuff. And I want to ask you a lot, a lot more about this.
Um, but from what I understood is you two, you and Chris are cousins. Is that right? Yes, that's correct. And there's actually, there's actually three sides to orzement. So it gets more confusing and it's, if it's confusing for you, you know, imagine, imagine people in the DMV, the DC metric area and customers. And I think it's even confusing for those inside each circle. It's, uh, it's not quite clear. Anyone I don't think, but I think this is an important topic, which I didn't even plan on starting with this, but I think about the family dynamic here.
Right. So you are clearly a massive dealer group here and, uh, DC, Maryland, Metro area. We'll talk more about numbers there and whatnot, but give us a little background onto the family dynamic of this dealer group. And I want to, cause I want to double click on this confusion that you're talking about. What does it really means?
Yeah, actually, we're going to talk this out. I think so we're, I'm a, some fourth generation, right? So my, my great grandfather started the business in 1921, uh, in H street, Washington, DC, uh, Northeast, uh, Chevrolet store. My, my grandfather took it over, uh, after my great grandfather passed away and he moved it out to Marlow Heights, Maryland. Again, single single Chevrolet store. Um, I guess that was in the fifties.
And, uh, you know, so that's, you know, second generation and, uh, there was, uh, the grandfather had three sons who were, uh, two sons and a stepson in the business. And that represented Gen three. And I would suggest that's a lot of cooks in one kitchen. And, uh, you know, what was a highly successful, uh, single single store group and dealership that was for a handful of years, the, uh, number one dealership in the country, eventually, uh, uh, dad and two brothers, uh, expanded, sort of got the tentacles out of the single store and, and through Gen three, sort of, um, it grew through Maryland and Virginia.
And, uh, now, um, you know, now I'm Gen four and I have other customers who are involved in the business as well. And so we operate sort of under, you know, the Ours and automotive group is, is sort of an umbrella term for who we are. Um, but there's three, I call them pods within the actual orzeman name and different, different businesses, um, different operators, same name. Uh, but, um, different styles, different philosophies. And so it sort of creates a, it's a, it's confusing. And but, um, you know, it's, we sort of even on my, my group, we've rebranded ourselves to Ours and cars in the last couple of years, somehow, you know, from, from advertising marketing to, you know, even explain to customers, how do we, how do we differentiate ourselves and make it clear, um, you know, to, to who we're serving, who we are. And, you know, the ad money that we spend, uh, the things that we're behind, because it's, again, it's, um, it's, it's in essence, three different dealer groups, uh, under one name.
嗯,现在,你知道,我现在是第四代了,我还有其他与我们业务有关的客户。因此,我们在Ours和汽车集团下运营,这个术语是我们的总称。但在实际的奥兹曼名字里有三个“组”,不同的企业,不同的运营商,但同一个名字。不同的风格,不同的理念。所以这有点复杂。但你知道,我们在我的团队里,最近几年把自己重新打造成“Ours and cars”,不管是从广告营销到向客户解释,我们是如何区别他们并明确我们是谁。我们花在广告上的钱,我们支持的事物,因为实际上,我们是一个名字下面的三个不同的经销商集团。
Explain that further to me, right? You have the, the name, the brand. Is that owned? Like who owns that, the brand, the name Oursman, who owns that? No one, no one owns or no one owes a name or the brand. Because, you know, it's, it's my last name. It's, it's my, you know, cousin's last name. Um, and so we all call our stores, you know, Oursman blank of blank. And it's, it's, uh, you know, it's sort of, it's sort of synonymous with, with who we are as a family, but there is no parent company. There's no, there's no one entity or holding company. It's, it's really a, just a myriad of, of different Oursman stores under, uh, just different leadership.
So give us an overview for just your size, scale economics, like how many stores are you, how many cars do you sell per year service? Yeah. So I've got 18 stores now in, in my pod where, you know, we're hoping to open us all 20,000 new and use cars this year. Pretty, pretty big operation. I don't know if I can give you an exact service or account on, on top of my head, but, you know, we're eight body shops. Um, so we've been growing that segment of the business as well. So yeah, it's a, you know, 2020,000 is our goal for 20,000, 24.
And thinking more about that, right? Clearly a massive operation. What does your team look like? So, so my team, um, I've got a, I've got a COO. I've got a second floor that consists of, you know, a variable ops director, uh, you know, an ops manager, fix ops director. Um, you know, a full, full accounting team, um, a, a service, parts and body, you know, director position and then be sure as they're a general manager. So sort of filter through and operate through a second floor, through, you know, an executive team, uh, and they work directly with the general managers who then they don't, we don't, you know, don't micromanage, don't create, you know, vision or culture for them, but we, you know, we hire, we hire and surround ourselves. People that I think fit our culture, fit our vision. Um, and, uh, you know, and do a, do a pretty good job at it.
What's your dad's current involvement in the business? I mean, it seems like you're, you're the CEO today. It seems like he sort of stepped away. How's that transition been for you? I'll, uh, I'll tell you the story behind it. It's actually, it's, it's sort of a sort of funny. So in 2020, this would have been early March 2020. We all know, we all know what was going on in the world then. He was in New Zealand. Uh, he has, uh, you know, at that point, had a girlfriend who lived in New Zealand. So he was over visiting her. I like your dad already. Yeah, he's a cool dude. He's a cool dude. And, um, you know, a few weeks, a few weeks later, uh, obviously everything, uh, everything went to shit and, uh, and he was stuck in New Zealand and New Zealand.
That's true. I'm retired. Yeah. If you call it, well, if you call it, it wasn't so much that it was more, you know, uh, there was an opportunity where I would say we needed a voice within my group. And that voice was, you know, at a different time zone and a 13 hour cycle away from us. I said, you know what? Is it all right? I'm going to do it. And I sort of threw him out, uh, in a, in a loving way. And, uh, you know, gotten the chair and started, you know, sort of operating through what was an initial, at least in our business, it was a very, a horrible, stressful, you know, six weeks, two months and dealing with that. And, you know, eventually it turned out to be pretty fruitful for our industry.
But the first, first eight weeks were, uh, as we can all recall, we're not pretty. And, um, so yeah. So sort of, uh, again, uh, yeah, say it in a, in a kind way, sort of threw him out. And so when he came back to the US, I want to say, in, uh, in July, so four months later, uh, you know, it's not an exaggeration to say it was completely remade and different group. And we changed on the fly. And that was sort of the theme of COVID was adopting and adapting to new ways of doing business and new ways of looking at opportunities or, you know, the, the era of Zoom, right? And, uh, a lot of change in four months. And, um, so sort of stuck with it. And, uh, that was, you know, to me, uh, to me, it worked out. It worked out well for all of us.
At this point now, he's, so he's the, he's a chairman, uh, you know, my group. And he's to me, um, incredibly influential for, for what I do. And it's the sort of the unique sounding board for someone who has been through a lot of, of similar, we'll say issues or experiences that I may be dealing with. And so I feel very fortunate to have, you know, that relationship and have someone who's, you know, as a father mentor, um, who I can, you know, write ideas by. So. Definitely agree with that. Tell me more about that experience. I mean, you, you kind of stepped into the role here, you know, opportunistically, right? The, the world kind of threw you into it, which is great. What were some of those initial changes? Like what goes through your head and what do you actually do first 30, 60, 90 days? Yeah. I remember first thing we did was sort of. You know, as we started meeting over zoom and, and trying to, trying to unite a group that I would say was, you know, even the, even the pod that, you know, my pod here, I say every store was very independent, operated differently, different strategies, different, different ways of even accounting, right? And so sort of my initial, initial changes that were made were to bring it together and operating as a, you know, a dealer group and not.
You know, a bunch of individual dealerships and so different players sort of stepped up and took on on new sort of ad lib roles and promoted, promoted some, some people pretty quickly from, you know, GSM's to GM's to sort of get through, you know, get through that, that time period. Um, yeah, I would say, you know, I'd say unity and I think it brought. It was the beginning of, you know, of this group and my pod sort of moving in the same direction. I don't want to say it's, you know, I don't like to say it's all becoming corporate or sort of, you know, a corporate blanket, but it created one or has been cars. I'll, I'll put it that way. Well, it seems like it worked out. So I want to, I want to move into brands a little bit. Um, again, you have a pretty good, pretty good pulse here on the economy and on the business given, given your scale. Just starting out very broadly. How do you think about your mix of brands today at, at Orzmann, right? Like brands that, I mean, we could start with what brands are you bullish on? What are you seeing right now?
Yeah, I think we have a, we have a really good mix of brands, you know, so adding Subaru three weeks ago, you know, to me now gives us Honda's Subaru to the representation, which, you know, it's obviously very, very bullish on those three. Um, you know, we are, we have, we have all the imports. We have four, you know, Chrysler, Chevy, you know, Kia Hyundai. Um, and so I think it, I think what also makes my market different is, you know, it's a, it's a, it's a, it's a, it's a transient market. In DC, but with the federal government with sort of that, with that, uh, with that overarching, you know, level of employment that it provides. It's a pretty, it's a pretty predictable market.
And I think it's, um, you know, and so I know the question is about brands and what's, you know, what we're bullish on, but I think we're bullish on everything we sell, I know it's such a political answer and, but the reality is we have a. And listen, no one, no one's recession proof. There's no market that's recession proof, but we have been fortunate sort of as, you know, as remorrahs, you know, with, uh, with the federal government to to, uh, you bank on. Peripherable employment, um, predictable income. And obviously a lot of, uh, a lot of interest in the city and, and, um, you know, a professional hub Amazon obviously is becoming Northern Virginia in the last couple of years.
Um, but you know, I, it to me, you know, to answer sort of more something in your question, um, you love Toyota. Um, love Honda again, you know, new to Subaru, but it's been, it's been hot so far. And in our first three weeks, it's really been a great addition. Yeah, we've seen obviously key has been on a rise now for three or four years, um, you know, to new heights. And so yeah, it's been, it's been great to represent more brands. And also over the last four years, we've, you know, since we'll go back to my talking about 2020, we've grown quite a bit.
Um, we've added, added eight stores in four years. And so at a new franchise is, you know, we added key. We added Toyota, we added Subaru. Um, and this has been great partnerships. You mentioned getting, you mentioned growing to collision business. Tell us more about that, right? I mean, clearly we know that just a table set, right? Affordability, vehicle affordability is at all time lows. People are holding onto their cars longer than ever. I have to imagine that plays a big part into your thinking here.
To condition staffing is still super difficult across the country. Right. But give us, give us some of your thought process. Why getting more into the collision business and why not? You know, I don't think anyone gets into the automobile dealership business industry to. You know, uh, the grow body shops, I think it sort of becomes a, it becomes a, um, a fantastic revenue center. An opportunity that if you have the real estate, you have to have the real estate. If you don't have, you don't have a place to put a body shop and the bill one, you really can't do anything.
But if you have what we call, you know, dead space where maybe you don't need. The parking that you have that's available and you can put a, you know, a, uh, uh, 5,000 foot, 10,000 foot facility and build a body shop. It's a, it's predictable. You know, and one thing we talk about often is. Yeah, with EVs and sort of the, you know, the questions and uncertainty with how it's going to affect, you know, our service business and, and, you know, parts. And there's a lot of questions that remain and there's different ways you can look at it. But the reality is, well, I mean, unfortunately, people will always crash cars and you'll always have demand.
For bodywork and, you know, whether it's, whether it's seasonal or whether it's just human nature. It's a, it's a predictable revenue center. And if you, if you manage it right and manage it tight, it's, uh, it's very profitable. That makes sense. I think, look, we know service is rising right now. Driven by the fact that some of the facts I just mentioned, you know, people simply need to, you know, hold on to the cars longer than ever. But when you think about further out, right, let's not talk about the next two, three years. I mean, when you think about further out and, you know, the EV adoption, does it concern you with respect to service? It does. It's concerning and you can, you can read what you want to read, right? And you can read that the, the dollars per ticket are actually higher on an EV.
And so based on, you know, based on this performance projection, you know, you'll actually make more money there. And your service center, you know, vice versa. You look at, it's not just, it's not just service work and, and the income generated from, from a parent of vehicle. It's, it's maintenance. So, you know, do we make money change the oil? No, but what does it do? It gets someone back into your lane and get someone back, you know, to look at a car or consider a car that maybe they wouldn't have. So you're, to me, you're losing, you're probably losing at least one visit per year, you know, per customer just from EV adoption and, and not having the, the, you know, the set maintenance, oil change schedules that give you, you know, a free lead. And that's what it really is.
That's a very interesting opportunity. I think if I am, if I was building collision centers, I would be approaching, and they're probably doing this, right? I'm Tom, I'm, I'm sure a quarterback in this right now, but I'd be approaching every dealer. That has massive space, you know, in these, in these, just massive lots and dead space and saying, Hey, like, let's build this because you're right. It does totally make sense. There's definitely tailwinds. And I do agree with you that it is, you know, at least one area of the business that realistically will require demand. I think that, you know, to be devil's advocate, what someone who is very progressive or really believes in the robo taxi vision, right? They would say, Oh, well, that's going to be obsolete because these cars will all drive themselves.
And, you know, with them driving themselves, we're going to have 50% fewer accidents. And that's, you know, the rest is history. I think we'll save the speculation. I mean, there's clearly lots of different directions. A lot of it's involved in that, you know, in that thought. Yeah, exactly. And sort of like a third order effect. Exactly. And so we didn't get in the body shop, the collision world has a hedge against, you know, EVs. It's a, again, it's a, it's a profitable and effective way to utilize space. If you do it right, but, you know, you know, you look at it, you think about, you know, the direction we could be headed. And it, um, it's really nice to have that, that hedge.
So I want to ask you a bit of a different question. What are you excited about nowadays? Like anything could be, you know, brands, trends, technology. What, what are you excited about? Well, I'll start with, I got a one year old son that I named after my grandfather. So that's number one. I think it might excite me less, but other than other than that, uh, activity at home, uh, you know, I would say, I think I'm excited. I'm excited for, I think you have brands that are separated themselves from the field. And I'm excited to grow with those particular brands. Um, and I think those, those manufacturers are, are making really smart decisions and are generating a, yep, I think through a, I don't want to say it's a renewed dealer body, but maybe a more engaged dealer body. Wait, wait, I'm sorry. Who are we talking about?
So, you know, I, I think if my mind goes to, you know, say it to you obviously, and that's, that's sort of where I go to first and, and I go to, you know, you know, uh, Kia comes to mind. And, and so to me, I get excited about, about manufacturers that I think are producing great, uh, great product, um, are not committing, uh, entirely to, you know, one segment of vehicle that are, that are, are keeping options open to customers and letting the market demand, when it's going to demand. Um, and who have, I think, figured out the right inventory and allocation systems and have figured out a, a method that, you know, helps dealer profitability, but also, I think it's just, I think there's, it's easy to get excited about those, those, those manufacturers, right?
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So I want to ask you on, on the flip side of that, how are you navigating right now through employee retention at the less exciting brands, right? Like we all know the challenges right now for Stellantis is an example. Christ or Jeep, whatever. And I have to imagine that you're an 18 store group, right? I'm your GM or GSM at the Chrysler store. I see what the buddies are doing over at Air Toyota. I'm jealous, right? It's a real, it's a reality. I mean, you know, we all want to make a living. We all want to get in return on our time. How are you navigating through that? It's funny. We actually, we just had a, let's say we had a general manager opening and one of our general managers who was running a Chrysler store, put his name in the hat immediately and then asked for it. Yeah, it's a trans-ropper too. So just as you said, so that's what I'm here for. So in that case, we actually did exactly what you're suggesting, but it's a real problem. It's a legitimate issue. I think it's isolated to obviously the variable side. And that fixed-op service, they're really not affected by sort of the what's in vogue and what's not in terms of manufacturers.
But on the sales side, the reality is the most important thing, we're talking about work conditions and culture we talked about earlier, but people go to work to generate income and provide your families. So if you can first and foremost, no matter what the circumstances are, provide a even compromise is to make sure they are earning the income that there are costs them to, they need to make to provide for their families, then it just becomes, you're not dealing with financial stress necessarily, you're dealing with what may be whether it's boredom or sort of pessimism about what they're representing.
We're going to make things fun or we're going to get creative. And so whether it's sales spiffs and we have our particular issue, we have one model line that we're, I would say, significantly heavy end. And we've created a new pay plan just on one model line alone. And so forget about the gross is that it may generate, it becomes a, now it's a contest. And what model line is that? The grand Cherokee form by E. So we have our own, we have separate pay plans just for that model. We're trying our best to make it exciting to get one of those leads and work a customer and hopefully, you know, it's fun to say that because it's, that's the only way to, you know, survive and thrive into business, right? It's down to that molecular level, right? Literally creating a new pay plan for one model line.
But like you got to do what you got to do. You got to get that car. It's exciting. Like all of a sudden you get a, you know, you got a contest now and now it's, it's now it's not just ex turning, you know, extra money, but it's now it's bragging rights. Who can sell X amount of, you know, four by eight is in a week or whatever it may be. And so, you know, well, obviously we have, we have comp plans and we're, you know, we, we're, we pay, we're strict with how comp plans read and how we pay out. But we also realize there's things that some folks can't control.
And when you have that, you know, we, write in bonuses often or we, we'll, you know, we'll juice up commissions if they're, they're not sustainable or not realistic. And so we take care of the employee first and, you know, make sure, make sure the financial needs are met. And then we, you know, sort of dive into, you know, having fun with it and sort of, you know, make it chicken, sell how to chicken shit. So.
Yeah, I think that, I think that it's an interesting time. Like we mentioned, still, and this because I'm going to be curious to see how these stores perform over the next three to six months. And it may just make sense to start really looking at these stores. Like even if there's a deal group that's acquisitive and looking to make acquisitions, if these, if these valuations take a meaningful hit, which, you know, to be determined, it will be an interesting opportunity because things just rebound.
This business is cyclical and the company's not going away. It's going to go through a rough patch here. But it may be an interesting opportunity for anyone that cannot weather that storm. Don't get me wrong with, when, when slantuses, you know, the highs are pretty high, right? With, with that manufacturer. So when they, when they're clicking and when, when the, when product is priced appropriately, we'll go with that. We'll say it's, we'll look at inflation as a sort of the measure here. But when it's a, when it makes sense financially for a cost of ours, people love the product. Like there's, they love it. It's, it's financial. Yeah. Yeah. The Jeep brand is especially strong. What's like an operational problem that you wish would be solved or like maybe just a big problem that you're dealing with, a challenge. Again, 18 stores or has to be something. What comes to mind? It's funny. I always, I always use the analogy. It's, you know, it's like I'm playing whack-a-mole every day, right? And so you'll have a, you know, you'll, you'll fix a problem and then all of a sudden something else pops up and it's, it's endless. Um, you know, wish it weren't, but it's sort of a reality. Um, I would say, you know, to me, a lot of, a lot of what we have is consistent, right? But I think the, I think affordability has become the real, you know, affordability and, and rising costs, uh, you know, to a concealer, but also as a, you know, as a business, um, is, is really problematic.
And, you know, uh, where as margins approach sort of, you know, pre-COVID days, uh, and just rates certainly, uh, aren't pre-COVID, uh, you know, floor plan costs or, or through the roof. Um, and even, even a cost for, you know, employees, employees are, you know, it's, the town pool is, you know, you got to pay to retain great employees. And so as our costs have, have risen and margins have, uh, you know, some, some manufacturers, more than others have normalized quicker. Um, you know, it creates, it creates a pressure there and you've got to get creative and find new revenue streams like, you know, like, again, body shots, for example, we're talking about, okay. So let's break it down though. When you say affordability, are you doing anything about it? Like what's leasing penetration? Like are you leasing more? Are you introducing new programs? Are you sort of just letting the herd go to where the cheaper cars are at? Like what's, is there any plan for it?
It's ironic is you would think our market here would, would be a, you know, a high lease penetration market. And we actually had a meeting yesterday. Uh, we got two Volkswagen stores and we were going over, you know, lease penetration for, you know, I've got a store here in Rockville, Maryland, which is, um, you know, it's a, it's an import market. It's a liberal market, a fluent market. And we, we lease, uh, I want to say we were 20ish percent lease penetration, which to me is probably low. Yeah, it should be 50, it should be 50%. Um, and so it's low. And the comments that were, you know, the first question is like, is it, is it us? Are we not promoting leasing? Do we, do we have, do we have a fundamental issue on our side? And you've done some research and it's, um, the lease penetration like in Montgomery County, where I am as, um, it's, it's low compared to other, uh, and even Volkswagen talking about this, you know, we're, you know, the VP is in there with us yesterday and, um, talking about different metro markets throughout the United States and this particular, you know, DC, you know, Baltimore market has always had low lease penetration compared to the field and no one really knows why. That's sort of a long way away of answering your question about how do you, how do you promote, or how do you deal with affordability issues?
To me, it really, hey, you're going to take, you know, easy margin compression, right? So you're going to, you'll discount more of the fact, or needs to, it's to step up and obviously, you know, provide more incentives as well. But the result is lower margins. Um, and also I think it's, you know, when interest rates and 4.0, you could order only one order with minimal risk and, you know, inventory and, and, and that asset has always, you know, for us, it's, you know, been used cars, right? And it's, it's how do you manage a used car inventory, you know, whether it's turn, you know, cost of sale, whatever, but now new car inventory is a new asset base. And it's, it's a, it's a very expensive asset and one that, you know, we don't just, you know, we don't just approve all that are allocated and take what we're given. We got to be particular and very smart and disciplined with what we're accepting, what price points we're accepting. Um, you know, what models are too expensive for our market, what are too expensive in general? I want to talk more about that. I want to back that up for one second. Can you explain for, for those that don't understand, can you explain what you just said about accepting vehicles, like accepting allocation, right? Because I think there's, I think a lot of people maybe don't realize how the relationship works from the automaker manufacturer to the dealer, right? So walk us through a little bit of that dynamic and that relationship and what you mean by accepting versus ordering.
So, you know, you'll give a manufacturer will allocate you let's say, you know, 50 vehicles for your inventory and, you know, in a, in a world where, where cars are fast moving and interest rates are near zero, we would typically take all the vehicles that were offered, stock them inventory them. We'd have minimal flooring costs, minimal, minimal holding costs and eventually find a home for the vehicle. But now, you know, when we're given 50 cars from, you know, manufacturer, a, you look at each, each individual model and you look at, okay, what's your day supply, you know, per model line? What is your, you know, what is your sales history through 90 days on a given model line? What do you project? What do you predict, you know, a model line will do maybe in the summer months? And so you have to, you make decisions based on the past, but also how you perform the future. And, you know, is there a, is there a facelift coming on this model line that's going to slow down, you know, demand for it? And so there's all different decisions that go into what a general manager ultimately will accept or reject in a given, you know, consensus or allocation. And, you know, for the relationships that you asked about, you know, it typically a, you know, if you take all, you know, manufacturers happy and, you know, and in great times, great, it's great that they're happy. But first and foremost, you know, my responsibility, our responsibility is taking care of our shareholders. And we have to make the best business decisions that we think for our particular operation and not the general relationship with us in a manufacturer. And, you know, if you get up, if there's a particular manufacturer that maybe we have a superb relationship with this, hey, you know, Robert, I need you to take these three, you know, XYZs, fine. And there's concessions that we will make because of the relationship. But we've really shifted our discipline and decision making to be rather scientific and what we're taking on and, you know, the liability and the cost that we're taking on.
What's profit like for you for your stores year over year? How have you seen the profit trend? The profit trend is it's down. Like how much? You know, it's a, yeah, I would say 25%. So definitely, yeah, it's meaningful. It's real money. Again, to me, it's looking at what's controllable, what's market-based, and what can we do about it? And so, you know, back to talking about inventory and cost and controllables. You know, we're looking at looking at sort of a new layer now, I think of, of KPIs and cost, you know, within our own businesses and sort of holding firm on, you know, whether it's, you know, add dollars per sale, you know, employee comp or sale. You know, we look at, we even have a cap on, you know, we store it to spits on Saturdays or whatever. They may, they sort of free rein on that, but, you know, we'll monitor that, right? And we'll monitor that over, you know, a month at a time. And we have a hard cap of $25, you know, our delivery as a spit. And so, so we sort of, you know, again, controlling what we can control. But yeah, the profitability is it's, it's it continues to normalize. But it's also, that's sort of a blanket. It's a blanket comment on all the stores. Some, you know, some are not as effective as others.
And I get back to talking about, you know, particularly manufacturers that, you know, we're more bullish otter or excited about versus ones where, you know, it becomes more about, you know, what about day to day grind? So talk to me a little bit about your marketing strategy. I read around a little bit. From what I understood, you, your group was early in, I want to say TV advertising back in a day. But you know, marketing in general seems to get runs through your blood. Yeah. So my, my grandfather was, it sounds weird to say a pioneer with television advertising because we're all accustomed to it. But he, he spent a lot of money advertising his general life store on TV.
And they had a jingle. I'm Googling around. Oh, yeah. Yeah. Look it up. And it's, it's one that every Washingtonian could sing new. And, you know, I still get to this day, you know, if I'm at a restaurant, putting my name down, and someone recognizes they'll start singing that jingle. And I think it's that generation is, you know, the majority of car buyers say you're not that generation, I'll say that. But it's, it was, it was a phenomenal marketing idea. And, you know, when I first got into the business, when I was out of, I saw cars, you know, throughout college or whatnot. But when I was, when I became full time out of college, I had a, I had a period time where I was running a Hyundai store. And, you know, I did local TV and that was, you know, some markets respond better to it than others. But I did my own commercials.
And I, you know, yeah, it's a, I'm probably, I'm putting myself out here to very some, you know, some embarrassment, but some very interesting commercials. And I would say they were very creative. They were original. And yeah, I would take on a persona of, you know, whether it was a, you know, a Pokemon or something, it was like Pokemon Go or Pokemon catch, whatever that, that game was. And I would take on personas and somehow incorporate carbine into it. And, you know, I sort of became a D list, you know, local, local cars, doing that. This was before, it's for the age of, of, of, you know, TikTok and Instagram reels.
And, you know, now you always, you see, you see creative car commercials, seemingly every week, you know, better go viral. But I, I think I was probably about 10 years too early in, in that phase. And if, you know, I'm guessing, you were the original creator before creator was a thing. I'm telling you, you know, it's something about wagging commercials and car dealers go hand in hand together. And so I don't know what it is about being goofy and sort of like letting your car down on TV, but it works.
Well, dude, your YouTube videos, man, these are great. So courage everyone to check these out. So truly my, my, my rehearsal dinner, before my wedding, my, I think it was my dad had a sort of a real plate of a handful of these videos trying to, trying to embarrass me, but I think somebody. Smart. Couldn't get it past me. Yeah. So my dad, I know, listen, I've, I've also had my fair share of videos that went viral. So I've, yeah, I know what you're talking about. This is something that I can really empathize. I love it.
Well, before we wrap up, I want to ask you about your outlook for the industry. And of course, my, my favorite, not, I don't say favorite question, because, you know, it's not the most positive, but I already asked about what you're excited about. So I think we can balance it out with does anything keep you up at night nowadays, or what keeps you up at night, if anything. Everything actually, so everything keeps me up. I think, again, back to, and I have a one year old, so that keeps me up as well. But other than that, it's, you know, it's the, it's the day to day uncertainty that we live in and sort of what has become a stagflation economy, right? And, you know, we've got, you know, we've grown quite a bit over, over, you know, the last couple of years. And, you know, we have, you know, we've got to perform.
And it's, it's, it's up to, it's up to, you know, our executive team here and decisions we make, you know, to make the right decisions. And, you know, it's, those, those keep me up at night. And I don't, I don't ever, I don't second guess myself. I don't second guess decisions. But I think it's, it weighs on me. And I am, you know, I'm obsessed with, I'm obsessed with, with winning and, and I'm obsessed with, legitimating and, and making and growing, you know, this group and to, you know, what I consider to be a, you know, a large group now and eventually, you know, you know, they're, I don't want to give you a number, but, but thinking about ways to grow without compromising what you have today. And I think that that keeps me up. But yeah, I think, you know, the industry, it's, it's a, it's a resilient industry. You know, I always call us cockroaches. You can't, you can't kill us. And what we do.
But it's definitely, it's definitely, you know, more competitive and it's harder. And you have, you know, public companies now who are, you know, making their presence, filled obviously and nationwide, but also, you know, in the DC area, I am the last few months, you've, and they've seen some of those transactions and they have a, it changes, you know, our landscape too. And it, and it, it changes, you know, there's, there's certain, there's certain costs and damages that they have that we don't have. And you know, we have to, we have to overcome it. So we had to be that much better and more focused, you know, to not just compete, but to win. And the thing about growing and, and, and opportunities that, you know, come down the line, it's, you know, there's, there's, there's opportunities that are, you know, you have big dealer groups that are, you know, more appropriate for a public company, then there's sort of the, you know, I would say sort of the mezzanine type deal that, you know, we like to fit in and look for.
So yeah, I just think it's, you know, survival of the fitness as it always has, always will be. But yeah, I couldn't be more confident in, you know, team that we have and things that we're doing. But yeah, no matter what, I don't, I'll, I'll sleep so well. So even the best of time. So there's always more that we can, there was more that I, that we can be doing. And it's, it's recognizing what it is.
Robert, I guess what I want to wrap up with your outlook, really, for, for the industry. As you think about the next 12 months, 12 to 24 months, right? What are you thinking about? What are those opportunities and what's your outlook for the industry? You know, my outlook is positive, right? Again, I think it's, you know, we call it normalization, but what does it really mean? It's just every, every moment of time is a new normal. And so my, I'm optimistic because I believe, I believe what the last couple of years have, have shown us and shown consumers is the necessity for our services, retail and literal service, right? And so I think that was a major threat. I think our, I think our viability longevity was, was under attack in a lot of ways, you know, before the COVID era. And so it's good that I feel, I feel that we are past that now at this point, I think now it's now we're dealing with this, is political decisions. And, you know, without getting into the, you know, the EV sort of conversation and, and, and that sort of direction and maybe forced demands.
Yeah, I'm very, I'm very optimistic. You know, I wouldn't be, I wouldn't want to grow, I wouldn't want to expand our footprint if I wasn't optimistic. And, you know, that to me, it's, you know, began to now to get into a new state and to look at new opportunities in different markets. It's, it sort of shows where my heads are. And, and my optimism and, you know, and what we provide. And that's first and foremost, if you believe in that and you put your heart and soul into it, yeah, it'd be successful.
Robert Orzman, thanks for coming on CDG podcast. Enjoyed it. Yeah, thank you. I appreciate it. Thanks for having me.
Robert Orzman,感谢你参加CDG播客。我很喜欢。是的,谢谢你。我很感激。谢谢你邀请我。
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