Hillcrest Volkswagen at Robie Street, Halifax, has been a family-driven business since 1979 and it has no qualms about sharing its formula for success...
General manager Mike Velemirovich makes a wicked Americano!
Service, though, has been the real corner stone of the business since the dealership was formed by Mike’s father, Roy, who in 1979 was a chartered accountant with Peat, Marwick, Mitchell & Co.
It’s a story Mike loves to tell. His father’s entrepreneurial spirit needed an outlet so he went looking for a business. One of the ventures he looked at was a place selling coffee and donuts on the corner of Robie and Young Streets.
"Back in those days it was not a big business and so Hillcrest VW was born," Mike says.
Within 18 months of taking over the recession of the early 1980s hit. Interest rates soared to 20 per cent. Car sales fell dramatically and it was difficult to retain sales staff.
"My sister and I were in high school. My British-born mother came in to sell cars and my sister, Kim, came in to act as receptionist and office clerk. I washed cars and changed tires and was the janitor," he says.
"It was a job I hated. On Friday nights when my friends were out having fun I was sloshing Varsol around the service area floors."
Mike says that back in the early 80s the service and repair side of the business was seen as a necessary evil. His father recognized that if you take care of customers they’ll come back.
"It’s so obvious it sounds silly." he says.
Most of the company’s growth has come from the vehicle servicing side. In 1979 it had 18 employees. Today it has 62 full and part time people on its books.
After high school Mike went to the University of Toronto where he majored in Physics.
"At the age of 21 I looked at my professors and saw they were very poor. I started selling in 1984 and took the role of general manager in 1995."
He attributes his success to his father’s mentoring.
"I had no business training. What better way was there to learn about the business than working shoulder-to-shoulder with him?"
The dealership runs a shuttle service to pick up and deliver customers. In addition, it has a comfortable waiting room with a children’s play area, large screen TV, the newspaper, magazines and a Wi-Fi service.
"The TV is not often on. People prefer their smart phones or computers," Mike says.
"And besides coffee we have a selection of dog biscuits. Don’t know what it is about dogs, but the place goes ga-ga when a dog visits."
He says sales are buoyant. Halifax traditionally has twice the VW national average share of sales volume.
Hillcrest is still a family-run business. Father, Roy, at 71 is still active and takes care of the financial side.
Sister Kim is HR manager, and her husband, Mahad Mussa, manages the detailing plant. Daughter Taylor (18), who is a Political Science student at Dalhousie, helps out on the reception desk. And stepson Victor (16) helps sales staff with the electronic wizardry.
The dealership’s advertising and marketing is deliberately restrained.
"We don’t go in for balloons and loud tactical advertising. We concentrate on brand advertising. People have told us they appreciate not being yelled at," he says.
"It’s all about talking to people. When ‘Das Auto’ was launched we took photos of the customer contact staff who we called ‘Das People.’ The technicians are ‘Das Experts.’
"It is difficult to go anywhere in this city without bumping into someone who owns a VW or knows someone who does."
Mike says the future is bright.
Volkswagen has been known as the leader in diesel cars for over 30 years.
The marque will launch a Jetta hybrid in 2012 and will have a full plug-in electric in 2015.
Charles Myhill is a freelance journo who loves an Americano and lives in Halifax. Story idea?
