John Capps explains how he brought the big box retail concept to the automotive industry with a multi-franchise auto mall.

Thirty years ago, if you wanted a television, you’d go to the local mom-and-pop store and choose from a limited selection, but by the 1990s, big-box retail stores had changed the shopping experience. Today, customers can browse aisles full of televisions from any and all manufacturers in a variety of sizes and price points. When John Capps founded Plaza Motors in 1981, he wanted to bring the same concept to the auto industry.

Capps graduated from college in 1972 and began filling out applications to law school. To earn some extra money during the summer, he started selling cars at a local dealership. “I made so much money and had so much fun that I blew off law school,” he said. “I’ve never looked back on that decision with regret.”

Capps spent several years learning the retail and wholesale ropes of the auto industry before starting Plaza Motors in 1981 with a single Mercedes Benz franchise, and within a few weeks, he purchased a Porsche and Audi franchise. Between 1986 and 1989, he added BMW, Cadillac, Infiniti, Land Rover, and Lexus dealerships to the now 18-acre site in Creve Coeur, Mo.

John Capps

But Capps, who describes himself as a worker bee, stayed active in the business. “I was only 47 at the time and still had lots of energy. Asbury offered me the opportunity to take some of my chips off the table and do things I couldn’t have done on my own—like bring the company public.”

Plaza Motors recently underwent a $23 million renovation, which included erecting a 45,000-square-foot Lexus facility, complete with a four-story parking garage and a car wash. The old Lexus facility was destroyed and replaced by a state-of-the-art BMW show room. The Mercedes facility has received a face lift, and the company replaced its service center, adding 60 service bays for a total of 115. For the near future, Capps has a few minor projects in mind for the Cadillac and Audi facilities.

To supplement its show rooms, Plaza Motors has developed a user-friendly Web site that showcases every new and used car—as well as accessories—in inventory. Currently, Plaza customers can log into the Web site to schedule and/or confirm a service appointment and pay any outstanding charges.

According to Capps, about 20% of sales originate on the Web, and Plaza Motors is attempting to increase that number by creating a customized home page for each customer. “Customers will soon be able to pull up their own welcome screens that tells them when their next service is due, tidbits about their car, and what their car would be worth if they traded it in today,” he said.

But technology is helping the dealership do more than increase sales. Capps explained that building lasting customer relationships is the number one priority. “If I sell you one car, I have failed. At Plaza, we create life-long relationships.” And those relationships are backed by Plaza Motors’ CRM software. Sales consultants collect customer information, including the basics such as e-mail addresses and phone numbers, as well as more personal data, such as birthdays, hobbies, children, and favorite vacation destinations, allowing for more personal interactions.

Those interactions extend far beyond the sales point. “We have an old saying: you sell your first car out of your showroom and your next 10 out of your service department. That is true, so we try to excel with after-sales service.” Plaza picks up and delivers customers’ cars for service, offers a free loaner car, and washes each car being serviced. In addition, customers can sip some java at the coffee bar while they wait for an oil change or tune up.

To take the intimidation out of the car buying process, Plaza Motors is engaging customers in various recreational activities. For instance, the company sponsors financial speakers, recruits experts from Napa Valley to host wine seminars, and organizes all-day off-roading events for Land Rover owners. For those who feel the need for speed, Plaza also hosts a day at the track during which customers can receive driving lessons from professional race car drivers.

“We want to create a buying experience that goes beyond just selling you a car. We have lots of competitors with beautiful facilities selling the same cars at the same prices. We have to differentiate ourselves some how, and we do that through technology, events, and relationship marketing.” And it’s working: more than 70% of Plaza Motors’ business is repeat.

According to Capps, today’s car buyers aren’t as brand loyal as they used to be. “Once my mom bought a Cadillac in the 1960s, her next 10 cars were Cadillacs. Today, someone in their 40s or 50s will buy a BMW and love it, but when it is time to trade it in, the new hot car is a Mercedes, and they will happily switch brands. When I started this business, I figured that if people weren’t going to be brand loyal, I wanted to make them Plaza Motors loyal.”