The Rise From Porter to Dealer w/ John Taylor | SDR #232

Welcome everybody to this episode of Service Drive Revolution.

Today we're going to talk about why Christian is muted. You can see him there if you're watching, but you can't hear him because he's muted. So he's going to be doing a lot of sign language in this show and I'll interpret for you. But we're going to talk about some things in the news, some interesting insights into books that we love, human behavior because we have a special guest today, John Taylor, who is a Honda dealer that went from washing cars all the way to owning his own dealership and what he's learned about people and business and everything else. So that and much more coming up on this edition of Service Drive Revolution.

Okay, so Christian, should we tell everybody why I'm filming in my living room on my computer?

We should just keep in mind though, that I may have to spontaneously mute.

Our office has been closed this week and I don't know what we're going to do next week because they're supposed to be fixing the roof but now the drain got backed up and it flooded the place and so now we have rain coming so they're not going to be able to do finish the roof and we can't really do much until.

Yeah, I'm, I'm under fire here at the office, everyone. I'll make it through, but I definitely.

The only one there and I don't why are you you. How can you function? It sounds like a war zone.

It does a little bit.

Well.

Well, first, it's a really good conversation piece. Second is I really like the setup that I have in my office. Like I love my office.

And so the building's burning down and you're like, nope, I want my loving it.

I'm playing Tetris in the background. I can switch cameras. Like there's a lot of fun stuff that happens in my office. So I'm going down with the ship. I'm going down with the ship.

What else has been going on? You've been on the road you the week you're on the road.

So it doesn't happen very often, but it is nice to get back out there. So I did one and I do this thing where I'm doing like two day trips, which I think is better because when I travel way too much, I miss what we're doing at the office. And like, I mean literally, if so if something's going to spring a leak, I want to be here for that. And so I'll do like these little two day things and My first week I was out one of our, one of Chris and my favorite groups that we work with, we did because it's been a few years since they've signed up with us. We did what we called a reboot camp. So I thought that was, it was a ton of fun. It was a really nice mixture. Every general manager, service manager, parts manager was in the reboot camp and we just had a lot of fun, kind of like reconnecting and at the end of the day, you know, everyone kind of agreed that it's so much about like that how we execute and how we do anything is how we do everything. And it was just really, really fun to get back into that. And then the very next weekend I was down in Florida doing some advisor training, which was.

Which was the most I've ever trained. In two days you probably have trained more, but it was over 102 days, which I thought was, that was a lot of, a lot of people to touch. And it was really sweet to see how many of the advisors in that group were their fans. Like they're really big fans. So shout out to Brett and Foster, by the way. I told them I'd do that. But you know, then we just really talked for, for two days about, you know, connecting with the customers and it was all about conversations with the customers and how to make that experience better. And they were super receptive. But it was fun to get back into the, get, get back into the classroom a little bit. So I had a good time.

That's good stuff. Okay, let's, let's get to what's in the news.

GM just, just announced that they're going to be axing hundreds of jobs. They say it's not about cutting costs, but essentially they're kind of saying it was performance based and everything like that. I would, I would beg to differ.

That, you know, if you're, if you're cutting hundreds and hundreds of jobs and they have 58,000 employees salaried, especially in the United States, so it's a decent percentage of the workforce that they're getting to. I think this is probably just the start. I think for pr, they're saying it's not about cutting costs. I think that at the end of the day, I think people are, the manufacturers are looking and seeing what can we do to, to make this a little bit more efficient with a little bit less people. So just be really, really aware of that. Everyone that, that could be a little bit of a signal things to come.

There's a big focus on productivity Per employee in every industry.

Yeah.

My friends at Ford, they have applied for a patent on a technology that, that can make your air conditioning and radio shut down if you miss a car payment. So, and that says. And the car could even drive away on its own. I, I think it's hilarious. But essentially what the article suggests is that Ford's filed for that patent. One, if it's a self driving car that it could leave. The second is it could lock you out of your vehicle or make it not stop and then the car could start beeping at you like, you know, when you don't do your seatbelt and there's that terrible noise, you're going to get like a no, I didn't pay my payment noise. So I thought that was absolutely hilarious.

We got an exciting guest next that, that we are going to talk to. His name is John Taylor. He's Honda dealer friend of the show. And what's great about him is he's, he's a fan of books, he's a fan of human behavior and business performance and all that. But he started off as a porter and worked his way up to a dealer. He has a fascinating story and so we want to share him with you right now. So John, welcome to the big show. We, we've teased that you are a porter that's gone from the very, very, you know, entry level position all the way to owning your own dealership, which is something that does not happen that often and a true tribute to you. Could you just start off maybe by just giving us a little background on how you got into our industry and the, you know, the Reader's Digest version of the progression.

I went to visit a buddy of mine who was cleaning cars at a local car dealership and I was out there just kind of, you know, BSing with them and the guy came up, he was a little guy that had a, he was Irish is exactly what he was named was Jim Pendergast and he was Irish and he had an Irish accent. He stood about probably five, five, probably weighed about 200 pounds, but he was kind of a bigger guy, stocky. And he asked me what I was doing there and I just told him I was hanging out, talking to my buddy and he said if you're going to hang out and talk to a friend of yours, you better. He reached in a bucket and grabbed one of those big sponges out and threw it at me and hit me with it. He says if they're going to be hanging around you, you need to start cleaning cars. And I Started cleaning cars. He put me in a room. I went, I went and asked him if, you know, for a job and he said, go back there and wait for me. Never, never asked me to fill out any paperwork or anything. And it was 9:00am because that's when they opened up at 9 and.

He made me wait. So by, by 12:00 clock, it was noon. And I'm thinking, okay, you know, what's going on here? And I walked out that little door because you're sitting in a little, little customer waiting lounge with the 90 degree chair where it used to be. I walked out that door and he was standing there waiting for me and he just told me, he pointed to get back in there, get back in there. And I was like, okay. So I turned around, I got back in there and then it was about 5:55, maybe, maybe 6:00'. Clock, he come walking and he says, okay, you're hired. And that was, that was the, that was the end of it. Ironically.

That'S the guy, I mean, that's the guy that, you know, really took me underneath his wing and he showed me, you know, he showed me how to work. He put the dream in me is what he did. He put the desire in the, in the goal. And I think that's when I put my, my blinders on, you know, the, the, the, this is what I'm going to do because that's what I'm supposed to do now. And I just, I let the passion overrule the work in the linear.

Starting where you started to where you are now owning, Owning a dealership. You have made some observations about human behavior, mindsets, people's approach to things. What is it in you? That was that thing that made you think you were capable of more, you.

Know, 35 years later, 40 years later, you know, going through all the different layers, you know, from sales manager to, well, finance, you know, finance, sales, finance, sales manager, used car manager, general sales manager. All the way through those ranks.

I just kept learning and growing and pushing and I just never quit. I don't know, maybe I wasn't.

Maybe I didn't see the fact that it wasn't. Or maybe I just felt like it was something that I could do if I just really never quit. I never quit. I just kept going. But I will say one thing and I forget what year it was, but it was. I started reading books and once I started reading book and you know, I thought about this, if you're interested enough, which I, that's what I really like about you guys. You Guys are interested in what you do. You're not just doing it. You're even interested. You really like. I mean, I listen to you guys and you're interested in what you're talking about and you're looking for ways, you're pulling out that and information. And I was also very interested, like, you know, how did these people do this? How do these people lead? You know, so there was only one way I was going to get that, and that was to go get it myself. And the only way I was going to get it was I had to go, you know, figure out how to get it. So I literally forgot about 20 years. I specifically on purpose, worked at least 45 minutes away from where I live. And I started listening to Book on Tape and I just never quit. And I've been doing it for 30 years.

What are some of the books that had an effect on you?

The very best book I think that I ever read was how to Win Friends and Influence People. And that was actually the very first book that I read. And I read it six times. And then there's a lot of other great books. You know, the Joy of Work. I mean, I could go on and on and on and on. Good to great. The Academy of Leadership. There's a lot of, there's a lot of great books. But I definitely took a lot of time to learn how to. I learned how to sell too, by the way. Learning how to sell was a skill, wasn't just something that, you know, it's not a. You have to be a natural born salesperson to be a good salesperson. You can learn how to sell, you can, you know, you can learn how to prospect, you can learn how to do all those things. But meeting people was the real thing that motivated me the most. And the reason was because I felt like, again, I started in this business when I was 17. I never went to college, and I felt like I was undereducated and therefore didn't deserve the right to lead. So I had to go and get it myself.

I think what John's hitting on though, is, haven't you noticed, Chris, that we are all kind of attracted to each other? Like when you catch someone else, it's like the student and seeking the knowledge. Like, I want to know what they're doing that's different than what I'm doing. And then can I get a leg up by kind of incorporating whatever it is on there on their journey to, to go get that? The only, the only part of that that I haven't really like, adopted is driving. Right. So like John, I don't know if you know this about me, but I'm a terrible driver and.

Legendarily terrible driver. Yeah.

So. So yesterday I had to go and get. Do the driver's test. Now I'm one of those ones. Like, I can't just go get my picture taken. I have to actually take the test. And there's a person that sits next to me and I don't know if you guys have done a driving test in a while, but like, I'm going down the road and like they're asking me questions and, and I'm trying to give the answers but not crash, which is a challenge in itself.

And.

The guy asks me this question, he's like, what do you do at a red line? So I stop and I think, I'm like, well, I usually check my emails and look at Facebook and see if there's any updates. Uh, and, and I didn't pass the driver's test. So I mean, as much as I'm trying to learn, I can't learn about driving, apparently.

Kind of back, John, to what, what are you looking for in people now that you've had this experience and you know, you've, you've had a ton of people work for you, you've seen success and failures. What are, what are the main things and what are your questions that you ask? Like, how do you figure out if they're, if they're the person or do you just leave it to chance? And we had somebody the other day, tell me. Well, I just throw it at the side of the barn and see if it sticks. So I just hire everybody.

So I'm looking for people that are. I don't want people to have to come to work. I want people that want to come to work. I want people that want, that are, you know, know, if I could hire. We don't want to all have like, you know, Chris Cobb, you know, because that'd be, that, that, that might be a little bit of a difficult arena. If everybody was, you know, as talented as Chris Cobb was or, or maybe Christian, you know, if we had everybody like that, it might be a difficult arena. So we want people that are learning, new people. We want people that have been there. But ultimately most importantly is I want to engage people. I want, I want them. And we actually do. I'm sure you're probably aware of the Toyota Production System TPS. I was with Toyota for 20 plus years. Yeah. The manufacturer, but the different dealerships. And I learned about continuous improvement, development and I actually, fortunately, I got to work with a guy named Dr. Jeffrey Leiker for many years who is all about lean management development. And so our systems are to build. Everything we try to do is from the bottom up. We like to learn from the floor and the whole leadership team. We don't have that mentality that they work for us. We have the mentality that we work for them. And my responsibility is to take away all excuses and to make sure that they have the right tool and that they're safe. And then they get the opportunity to tell us how we can get better. So when they learn and trust us now, before you know it, now you really have something that starts to build and grow.

What sort of questions do you ask?

Type of questions are, what have you done in the past? You know, what is your goals in the future? Because usually a lot of times they'll tell you what they've been successful at. And if you can find out what they've been successful at, then you can find out what they'll be successful at. And that tells me a lot there. Their goals, you know, things that turn them on are their alignments, the core values. Those are always good things to know also. And the reason why they're doing what they're doing, you know, what motivates them. Do they have a family? You know, are they just trying to make their last, you know, their next payment? And again, that comes. The hiring process is more important than anything. There's no. There's. For whoever, you know, wants to get in leadership or management, the biggest responsibility is the hiring. Because once you hire somebody, the truth is, now you have that responsibility. You know, it's your responsibility that that person becomes successful. And if you take hiring with a grain of salt, then you're probably not the best of leaders.

Yeah, I think. I think that the measurement of leadership is misunderstood in the sense that where you measure leadership is in the behavior of others, not the leader.

And when you have managers that complain about their people. Right. That always blows my mind.

They're your people.

Yeah.

Jordan Peterson has a great chapter on that in his book. His second book, 12 Rules for Life, where the. I think the chapter is called Don't Raise.

Don't Raise Children. I don't like.

But he says in there, like, you control what they eat, what they think, where they go. And it's same thing with the. With the manager.

Right.

When a service manager says, oh, well, you know my people, and you're like, you make their schedule, you control where they sit. I've got People to quit just by moving their desk. It's not, you know, it's not real hard to figure out who's on and who's off. Right?

But don't you think it all really boils down to that. Exactly that. When you're not talking about the whole entire dealership, not just necessarily a service department, but a service department, the backbone of any dealership. And in my opinion, it always boils down. In all these years that I've been doing this, when I look back, it always, always boils down to that leader. It always goes right back to that soul that's leading that group.

And you see it all the time in sports and in business. Like, look, I was thinking about this yesterday.

Bob.

Bob Igner comes back to Disney.

It'Ll be fixed right away. Whatever that guy did in two years or whatever. Bob's got it going already, but he'll have it. I'm in again and better than ever. And it's one guy out of, you know, how many employees, 100,000 or whatever. Disney is a huge company, right? He'll have it going. And it's one leader. That's the only difference.

And I bet you if you ask him how he did it, he'd probably have to pause and think his way through that too, because there is no specific silver pill or bullet. It just depends on the situation. And you have to learn how to, you know, get the best out of whatever it is that you have in front of you. Sometimes you have to be patient and sometimes you, you gotta be reactive.

I watched his masterclass, actually, and I thought it was terrible. So just like, you know, it's just one of those.

You know, you gotta take care of your people. Just none of it is real advice. It's just the, the Hallmark card of it because it's all way harder. People wouldn't want to watch the, the real video of what it's like, right?

Yeah. Yeah. Which leads me to something, you know, it's like I had. I've had people working with me, you know, obviously over the years and all the different arenas that I've been in. It is. I want to be a manager, you know, now my general manager at the time. And I've got people that want to be managers. So they go from sales to management and. And then all of a sudden, now, wait a minute. That's a little harder than it, than it. Than it looked. Because they used to think that the manager was the guy that was just sitting there telling everybody what to do, but they forgot about what the manager was doing in between all of the things that they were doing, between asking people to do what they were supposed to be doing. So it's always, you know, when you and I think Tris that it changes at each level. At least it did for me that job. You had to be prepared. To be a sales manager, you had to be prepared, right? To be a general manager, you had to be prepared. You had to have those experiences if you went from basic salesperson to owner. And I'm not trying to, you know, pat any owners on the back. And I don't think owners, all owners are really great leaders of people. I think some owners are just in fact just owners. But there's, but there's some great owners.

But I think you have to have that experience. That's just in my opinion, you know, if you don't, if you haven't, you know, I don't know what they say if you haven't done the work, how do you get other people to do the same thing? The thing that you need them to do gave it locks to missions.

I don't know if, if this happened to you, but it happens frequently that you will become a manager and then you have a couple sales people or a couple advisors making more than you.

Great. Thank God they don't see it.

They don't see it that way. They think they're entitled. You know, the idea is you're coming in now as a Manager, you got 12 people to make better. Two of them are outperforming everybody else. But your pay is contingent on the the group rising. Not comparing yourself to your top salesperson. Right?

Absolutely. I mean, and I tell you to a great manager, if you ask me what their people to make more money than them.

I mean let's face it, the more money they make, the more money you make. And by the way, I also learned the more money they make, the less they what they'll most are likely to leave you. So radical. That works too, right? Now you get longevity, you get the development, the training and it gets the stick. And now all of a sudden what happens is the dealership starts to grow and then everybody wins when that happens.

That's an interesting point too because we run into this all the time where let's say we have a service department that's underperforming and let's say they're just losing a little bit of money like they're losing five grand a month. And so you know, when we come in, we're going to redo the pay plan so we're going to do the advisor's pay plan and we redo the manager's pay plan. And so, you know, you, you look at this department that was losing money. Now the manager is going to hire eight technicians and all this stuff's going to happen and we're going to go from making five to making over 100 and parts is going to come along. So now we got a fixed ops operation that's making a couple hundred thousand a month and the manager is now making, let's say they're making 20,000 or something. What will happen is a lot of these horse traders, and I've never understood this, but a lot of these guys will go, well, service manager only makes 10 grand. Like if we pay them well and they're a part of the success, we're, we're much more apt to keep them. Now if they leave, they're going to take people with them because they know, you know, and so I've never understood that, you know, an advisor doesn't make more than 5,000.

It's so old school.

It's, but it's still very prominent. We run into it all the time.

Well, I, you know, I'm sure you all, both you guys have had your pay cut before, right? I know I have. I worked for a guy, cut my pay three times and, and then when I finally got a phone call from another dealership that said, hey, come work for me and I'll double your income, the question was, well, why are you leaving? And I, to this day, I've never told them. I just let it, I just let it go, you know, and I, you know what? And Chris, if you do the right job, putting a pay plan together in the beginning, setting it up properly, you should never have to cut anybody.

Yeah. And I think to the other point, John, is if you would have told them what would they have probably blamed that on, they would have said, oh, well, all these public company or all these other dealers are ruining the market because they're paying too much. And they never would reflect on it being their decision making and their approach to it that caused, you know, you to take a better deal. They would still deflect and say, you know, well, everybody's ruining the market. We run into that with hiring technicians. There's just, there's certain people out there like, well, tech can't make more than 30 an hour. And you're like, we got text making 80 in some markets, like, I don't, the customer's paying for it. You're not paying for it and NADA.

Does a guideline that helps guys like me understand what the right compensation should be for those guys, at least for our market. Right. And then on top of that, more importantly, they'll let you know, too.

Yeah.

And also keep in mind those NADA guides are on low perform. You know, the average dealership performs at a very, you know, subpar level when you start performing. All of those things are guides, but they don't. They don't start to make sense anymore when you're really, you know, hitting your full potential or trying to. I don't know that we ever do, but.

Because it is. When you look at those averages, it's pretty, you know, the average service departments.

Yeah, average. Exactly. That's average. Yeah. It gives you a guideline, and that's, you know, guideline is a guideline, but.

It also means that the average service department's losing money then. Right. If that's 50%, yeah, that's bad.

I don't want to risk money.

It's great. Well, this. This was fun. John, anything else you want to. You want to talk about or kind of leave us on?

No, I. You know what, guys? All I can say is, man, just keep doing what you're doing. Because, you know, I've read your books, and I think you're, you know, the only. One last thing, and I meant to say this a little bit earlier, is, correct me if I'm wrong, but you guys, you guys are motivated by helping other people. It sounds to me like the driving force behind what it is that you're doing, which ultimately, once you do get to the level that you're at, becomes more powerful than why you started to do what you do anyway. It becomes a driving force. And that's what. Again, that's what I saw. I can only tell you to keep doing what you're doing. I think it's super cool, super awesome. And if I can ever do anything to help you guys or do anything at all, hey, you know, I'm gonna keep watching, listening, and, you know, I'm always available.

We.

Great. Good job. That was awesome.

Thanks so much for watching this episode of Service Job Revolution. We're uploading new stuff every day, so make sure you subscribe and click the bell icon so you don't miss out. If you have a question you'd like us to answer on the show, call 8333 Ask SD and we'll answer your question on the show. That's 8333 Ask SDR for special deals on our books and training. Head over to offers.chriscollinsinc.com now that's offers.chriscollinsInc.com I'm Chris Collins, and I'll see you.

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