Situated on the outskirts of the city it shares the Cribbs Causeway business park with other dealerships serving the area. Mercedes has had a presence in Bristol for over 20 years across two other sites. But two years ago the Sytner Group took the decision to sell those sites and redevelop Cribbs Causeway. “We needed to redevelop from scratch at Cribbs Causeway. It's about capacity now – the vehicle parc has grown, the market has grown. Space is crucial in this environment,” said Mike Fellows, dealer principal at Mercedes-Benz Bristol. The new purpose-built five-acre site is spacious, with a modern design, giving a near- airport terminal feel to it. It has a capacity for 20 new cars, up to 65 approved used cars, around 25 demonstrators and other management cars. There is also a Smart showroom within the building. With 130 staff, the dealership has ambitious plans to sell 800 new and 900 used cars this year, with a long-term target of 2,000 units per year. Pointing out the Sytner Group was recognised by The Sunday Times as one of the top 100 companies to work for, Fellows is keen to demonstrate the dealership's 20 per cent staff turnover shows the business is a congenial environment for employees to progress in. “Retaining people is what we try to do,” he said. The dealership recruits staff through a number of avenues, but management encourages existing staff to recommend friends. “There is a bounty for introducing staff. We try to get people who do have motor trade background but it's not essential.” He explained that some staff had been recruited with a retail background. He also disclosed the company was keen to take on apprentices in the workshop and was always keen to groom young staff in sales and customer service. Additionally, the dealership advertises vacancies on its own website as well as in the local press and through recruitment agencies. It occasionally head-hunts for key roles. When new employees join the dealership they are given Sytner Group induction courses, with key figures such as the managing director hosting the events to introduce the company and the culture of the business. Mercedes also provides training and test driving programmes to give staff a feel for the product. Additionally, regular probationary and performance reviews are carried out, as well as further training according to the needs of the dealership and the individual. There is a half-yearly “viewpoint” where staff give feedback to managers on how they feel about the job and their requirements. “Clearly we are doing some things right for us to retain staff but also hopefully to encourage new people to start with us,” said Fellows. Mass marketing Sytner Group in Bristol is using a number of different avenues to market Mercedes locally. Fellows explained that while the carmaker supports the brand with national advertising, the dealership has to give itself a regional spin. The company advertises in the local press through the Bristol Evening Post, Western Daily Press and local lifestyle magazines, but is also focussed on marketing on the internet. Fellows said: “Its absolutely crucial that cars are kept up to date on the website – with full description and good photos. We review prices and stock regularly to make sure market conditions are considered.” There are internet links from the Mercedes website to the Sytner site in Bristol. The dealership also markets the Smart brand for its environmental credentials, believing there is a market for eco-conscious buyers. Fellows has been heavily involved in direct mail-shots to existing and prospective customers, as well as other traditional routes such as radio advertising – through sponsoring weather updates. Additionally, the dealership has invested in marketing and sponsorship of top local rugby teams Bath, Cheltenham, Gloucester and Bristol. “We have advertising pitch side and link up with some players who endorse our business. For example Bristol and England scrum-half Sean Perry often attends our promotional events and signs shirts and merchandising. He is an ambassador for the Sytner Group,” said Fellows. Finance levels The dealership sees finance sales as a crucial revenue earner. “It is a key part of how we approach the sale.” Sales executives initially meet and greet customers and demonstrate cars, one of the three business managers introduces finance at an early stage. “While there is a margin on selling the metal, we also sell many finance products too. Finance penetration is at 54 per cent.” Part-exchange and used cars The site has a strong used car business with retail sales generating a 70 per cent part-exchange rate. “We'll always take the car and work the deal around it. We are always keen to value people's existing car in the deal,” said Fellows. Only a small minority of Mercedes part-exchange cars are prepared and retailed at the showroom as they must fit the manufacturer-led specification on age, mileage and condition. If non-Mercedes part-exchange cars are in retailable condition they are offered for sale to a Sytner dealership which stocks the marque. The site does not stock other brands. The remainder are put on to Sytner's own online closed auction for traders, or to a local auction. Fellows said the group was always keen to dispose of cars through the Sytner online auction. Acquisition of used vehicles was both through Mercedes directly and from various sources within the industry. “We need to get as many cars as we can within the group. We have our buyers out there in the market buying cars privately to feed us, we'll buy some from Mercedes and the remainder will be part-exchanges. We basically have to fill the shelves!” Service revenues Sytner has invested heavily in the service part of the business, with a two-lane format designed to accommodate six cars at a time. There are also 30 ramps with a team of staff including six team managers, 27 apprentices and technicians, costing clerks and reservationists The dealership sells 3,000 hours of labour per month, equating to a monthly turnover of £200,000. A customer waiting area features a coffee shop serving free drinks with a full view of the service bays. “I want the place to emulate a Formula 1 pit, where you can almost eat your breakfast off the floor,” said Fellows. There is a collect and delivery service, as well as a drop-off service through which customers are dropped off at the various shopping stores on the business park and picked up at a pre-determined time. So far the dealership has stuck to servicing only Mercedes cars, believing every customer is a potential future sale. “If we look after the customers well, and get them on board at Mercedes Bristol, there is potential for future business with them.” Model success Fellows insisted there was a car for every type of buyer. “We have niche products such as the SLS and SLK, so there is something for everybody out there – from wealthy entrepreneurs who want a sports car and mums who want a car for driving around town with the children.” Mercedes relationship Fellows said he was pleased with the support from Mercedes and its interaction with the dealership. “We have a good partnership. They have strict guidelines, but it's not too onerous or draconian. Mercedes product quality and aftersales have focussed on supporting dealerships over the last few years. “They want us to sell lots of cars and we obviously share those objectives!” He said that at the end of each quarter, particularly at key registration months, contact could be hourly, but generally there were regular conversations with Mercedes through quarterly briefings and frequent visits by the regional Mercedes team. Fellows said he was delighted at the Sytner Group winning the Dealer Group Award at the Motor Trader Awards earlier this year. “It's a huge recognition to be given that accolade. We are very proud of being part of that winning team. It was a real feather in the cap for us.”