Interviewer- Randy, let us start at the beginning. How did you get here from Marion, Ohio to own a dealership here in Rochester?
Randy – I started my automobile business over 30 years ago. At first, I had no thought, interest or desire to get into it. It was truly one of those times when God directed me, and at the same time, He opened up doors for me that I wasn’t looking to walk through. It ended up being a blessing for over several decades. In Rochester, just to give a little bit of perspective – my first time here, I was still not really convinced that this was the right market, based on my perception with some of the people I came in contact with. After almost a year of contemplating and looking at the market, I decided to sell our business. That was in 1997. In December of that year, we moved here to Rochester and eventually took over Webster Chrysler Jeep in January of 1998.
Interviewer – I understand that philanthropy is quite important to you. Where did that come from? Is that based upon your parents and how they used to do things or is something that just came to you one day?
Randy – I think with all of us, our parents ingrained various things in us at a very young age. One thing still rings in my head, my mother would quite frequently say, “it is better to give rather than to receive”, so I came up with that philosophy. It was something that started back 30 plus years ago with Tiny, and developed in to how we can give back to the community both personally and as a business. Since moving to Rochester, God has blessed us with many opportunities, to participate personally through a non-profit that we formed a number of years ago supporting various community endeavors. We have been blessed to have an endowments through the Rochester Area Community Foundation and Robert Wesleyan College for scholarships. There are various other things that we also participate in, not the least to which is our church. We are members of Church of Love in Rochester and that’s the short version of it.
Interviewer – Well that’s very impressive! Randy, is there a specific topic or are there several targeted efforts that you cover through your generosity? I am asking if your interest lies with youth, or maybe is it specific to entrepreneurship.
Randy – That’s a good question. It does have a little bit of diversity but our main focus are local youth. Since 2005, I have personally spent a lot of time in a jail ministry with youth that are incarcerated, and that has really been a blessing. We have had probably over 600 young men to give their lives to Christ in the last eight and half years or so. A lot of youth, whom we support are connected with various local nonprofit organizations, some faith based others are community based. We also do some things with Young Entrepreneurs Academy (YEA) this is an entity that was started locally. This program helps young people start businesses, develop business plans, gets them connected with attorneys, accountants and various mentors that come and work with them to layout their business plan. That’s what we supported over a couple of years.
Interviewer – This is good information and YEA sounds too exciting to be another one of our city’s best kept secrets. Might you share how other interested youth can get involved in that process?
Randy – Well there are a couple of different places in the city and there are probably some that I may not be aware of. I do know that the Boys and Girls Club of Rochester is one of the locations where they have meetings and work with young people on developing businesses. I think Hillside is also one of the places where they offer this information. We also participated pretty consistently with a program in Webster. Making a call to Gayle Jagel at YEA would be the best way to look for a connection with this effort.
Interviewer – Thank you very much, this kind of information can make a huge difference in the life of a young person.
Changing the focus, Randy, can you share your thoughts on politics here in Monroe County.
Randy – Yes, I can and it can be real quick. (laughs) That is something that while being a businessperson we sell vehicles to Republicans, Democrats, independents and none of the above. So we don’t really take any political stance per se, although we certainly support candidates who are pro-business, pro-community. One of the things that I have been actively involved with while here in Rochester is Action for a Better Community. I was on ABC’s board, finance committee, vice-chair for over 11 years so we realized that there are issues regarding poverty in the county, so wherever we can and however any way that we have been able to impact that we have done that. We don’t have an interest that sways in one direction.
We do see some value in many spectrums so that would be above the extent. I will say, that the one thing that troubles me, is not just a Rochester issue (unfortunately it’s a national problem), is the negative campaigning. I believe that in the political arena as in the business arena that we should talk our positive proposition and what we can bring to the table. I think far too much time is spent throwing stones and negatively portraying other candidates to the point that I typically tune that out cause quite honestly think that whatever arena that’s in when you’re being slanderous then it is just kind of disgusting.
Interviewer – I appreciate you sharing your position. Now share with us, who is the team behind Randy Henderson. Who and what helps you stay balanced and makes your life easier- Is it your family, your staff?
Randy – Well, I really think that’s a very interesting question. What’s really kept me moving and alive has been God, and my faith in Jesus. Just knowing that I’m being watched over, no matter how things look, or how things challenge me. My knowing that He will never leave me, nor forsake me. Knowing that He is always present, is something which keeps me very grounded, humble and confident at the same. I don’t really let things, unnerve me I had a dinner interview for Rochester’s Business Journal, and a lady asked me “Just tell me about some things that keep you up at night”. I said that there is absolutely nothing because I just have the peace and joy that comes from the Lord. So it just doesn’t matter what I am seeing or what may be going on you know if there is an issue which needs to be dealt with somehow. It’s like okay, I’ll pray about it, get direction and just move on.
That’s where this foundation started. Certainly my wife has been a key element in our business and we have been married for 29 years, celebrating 30th next year. We have 3 kids, 7 grandchildren and number 8 due in August. So they are certainly motivating force of my life. I try to adjust my time as much as I can. Our staff is great, we’ve got a great staff of managers and professionals in all departments. We’ve just this year, this is, maybe not directly related to this question but, we have been blessed this year to be awarded a New York State Office of General Services contract for quite a few vehicles.
Interviewer – Congratulations
Randy – Thank you very much, it will probably double our volume this year over last year with the addition to that, so that’s been something that has been a blessing. The team includes all the entities that I mentioned from God to my family to my church you know my pastor, Bishop Paris, has been very supportive, we have a board, of some very professional individuals in the community that give us feedback on various things, and the community overall has been very supportive of our business. Rochester and Webster and surrounding areas.
Interviewer – Okay. Great! With the contract that you have just received, it is needless to say that business is good! So give us some car facts. How many cars do you have to see and sell a month to keep your doors open? Give us an idea.
Randy – Well, we’ve averaged somewhere in the hundreds, a little better over our average. Over the last few years it has been as high as 150 or so. With the Fleet Account, we’ve got some months that we could be looking at several hundred this year with the additions of those vehicles. So, how many it takes to keep the doors open is not a number that we would want to focus on (laughing).
Interviewer – Ok. I understand that. Thank you, Randy, what do you drive?
Randy – I drive a number of things. My favorite machine is a Harley. I got a Harley Trike and that‘s really fun. But in the Ford line I typically drive Lincolns. But, my wife has a flex that I will probably be driving pretty soon. I am driving a Fusion today and this week which is a very very nice car. The new Fusion, the new redesigned Fusion is a gorgeous car nice lines, nice handling and good space. So I drive different things. I use to drive a truck. I used to be a trucker before I got into car business and over road as an eighteen wheel operator, so I am very comfortable, even in pickup trucks.
Interviewer – Oh my goodness! So that’s how you roll. Tell us, when it comes to family members Randy, do you recommend they buy new or used cars?
Randy – This is an excellent question. It really depends on their individual situation. If someone, anyone likes to keep a new vehicle and likes to change vehicles on a regular basis. We typically would recommend they look at new leasing because they just drive them into trade cycle. They always have a new vehicle, always under warranty never really think beyond minimum maintenance cost.
Our slogan which is “Driven By You”, expresses our efforts, which are to be driven by our customers. Everyone’s situation is different so we really look more at individual needs, family needs, personal needs, business needs and how we can tailor to best meet those. So when there is someone who wants to get a vehicle and wants to buy and keep it forever, if they don’t mind a few miles, we suggest they buy a used late model, because the vehicles offer handsome depreciation and it would suit them from there on. It’s going to serve them 5-10 years or more and that would not be a bad thing for them.
Interviewer – Can we talk about the best way to talk down a price of the car or is it even possible to talk down the price?
Randy – Well, you know from what I understand from the history is that a lot of early entrepreneurs that wanted the automobile business, and their former carriage makers, or that developed into carriages, their horses, horse transportation and horse trading was certainly something negotiating business, so it carried over into the automobile business from the beginning of the 20th century. It has been something to a large degree that has stuck with them you know, much of the buying public has gotten accustomed to the negotiating. We negotiate because many people expect to negotiate. There are dealers now that have stopped negotiating and say no this is the price and if you want it this is the price. We have not chosen to adopt this business model because we know there are a certain percentage of the market likes to do a little bit of horse trading or negotiating. So I can’t say there is any one best way to approach for the talk down price of the car. But one way is to approach the best way would be of mutual respect. We always respect every customer that walks in the door and treat them that way and let them know that they are important to us. We would ask and hope that those people who come to do business with us, respect us as business professionals. It does not have to be antagonistic. We would like to have the whole experience to be enjoyable.
Interviewer – You put that quite well Randy, and I am thinking that more people would consider their experience “enjoyable” if they knew the best time to shop for best deal on a vehicle. Is there a “Best” time? at the end of the month or at the end of the quarter.
Randy – That’s a good question too. A lot of things have changed over the years as relates to give us motivation for meeting to move the cars at different points One time it was maybe at the end of the year because of the taxes and yes that’s still a consideration but probably not to the extent to the previous years. But there are times when there would be various manufactures incentives and that could be at the end of the year, could be at the end of the quarter and conceivably could be at the end of the month. Our position is that anytime is a good time. We don’t do anything differently on the last day of the month than we will do the first day of the month. If someone has the need for the vehicle or desire for vehicle, we will sit down with them and to work on structuring a fair transaction and something that meets their needs and is comfortable to them. We will do that, you pick the day and we will do it. But then there are times when a given manufacture may have some special incentive that goes through, at a particular time but that’s not a constant. You can’t say that. It’s always best on the 29th day of the month, it’s always best on the end of the 2nd quarter because that varies. What I can you tell you, is that the way we do business, is that we will work a good deal with someone whatever they want to or need to.
Interviewer – Okay, I have heard that more money is made at dealerships by servicing cars than by selling them. Is there truth to that statement?
Randy – The problem is it’s a competitive industry. The margins in car sales are extremely thin. Contrary to popular belief, a lot of people think that car dealers makes tens of thousands of dollars when they sell cars. It’s not and never has been that way except for very high end cars. So the transactions in service are smaller but the margins are wider. So from that standpoint, Yes. Do most dealerships actually bring in more dollars in service than in sales, No. Based on the dollars brought in the margins at a different levels of service, than is sales, absolutely.
Interviewer – Let me ask you, if a person finances a car or pays in cash. Which one is the better deal?
Randy – This is another great question, because there are lot of questions surrounding that. There was a time when dealers possessed their own cars, carried their own floor plans, so in those days it might take a while for either of them to get money from a customer own financing ability or from a bank, if they were doing the financing. That’s here the idea, I will pay you an extra hundred dollars cash, it would have been an incentive for
a dealer because now the cars is going today and cash is going to bank today, it’s an easy transaction that waiting for some number of days or weeks for cash to arrive from whatever source it was coming from. That changed so much over the years. Now the banking transactions are electronic transactions. So whether you bring me pennies, dollars or a check tomorrow or we go through a bank. Tomorrow in most cases funds will be deposited. So it’s not that case that cash type of incentive that it was at one point. So I would say that regardless of whether the person is financing or paying cash we will work a very competitive deal for them.
Interviewer – That is good to know. Now let us talk about how fast things can change. There is talk of electrical drive engineering and there is also the concern that our oil reserves are draining. So I am asking, where do you see the future in this industry?
Randy – I think the oil issue, international market and the fact that demand is increasing in China and India are certainly impacting our economy and the cost we pay for fossil fuels. We need to be ever watchful for alternatives and options that will not: 1) have us depending on so many volatile areas of the world, for that which is very essential to our transportation and mobility; then 2) what are some other and more environmental friendly kinds of ways to accomplish what we need have accomplished from a mobility standpoint. We are a certified electric dealer with Ford. There’s only 3 in upstate New York. We do electric vehicles, we sell electric hybrid vehicles, we sell plug and hybrid vehicles. So we have a variety of alternatives. One of the lines that we are getting ready to carry has an option for compressed natural gas (CNG) is another option that is there is much cleaner fuel. I think we absolutely need to continue looking for ways to be in control of the cost of whatever power for transportation as well as be mindful about environmental issues that relates to vehicle transportation.
Interviewer – What would be your conversation for the excited and anxious young adult that has just earned his/her college degree or has recently landed their first job? They need transportation but they have not yet established credit.
Randy – A couple of things, I would hope that prior to graduation from college that somewhere they have sought out, some professional financial direction on how to establish their credit. One of the things I often see is young adults get to college, loaded up with credit cards, given too easy or they have managed to get a loan of some type with bad advice, about waiting to pay them off. So from the start, they are sent in a wrong direction. To make them aware we would try to counsel young people on the best way to not just get credit but maintain it at a level that will keep them at good position financially because it pays dividends. They need to understand, that when credit scores are higher, then the cost of money is lower. Conversely if credit scores are lower than cost of money increases then they are positioned to explore options for a car or mortgage or credit card, anything.
Interviewer – That is good information Randy, and I am sure a lot of people have never heard it put quite that way.
Randy – A lot of conversation would be around determining a budget. We would help them determine what overall part of the budget that could comfortably be allocated to the car. We know they are excited, but don’t want them to get into trouble and get a major blemish when they are not able to maintain payments and on and on. We want to make sure that it works for their budget.
Interviewer – What might be their next steps?
Randy – Well let me share this, Ford has cost control programs which provides additional rebates to recent college grad students or college students. We also offer special financing to get people started in cr
edit. So those are good things. Another thing we always try to do, is to encourage college grads and people that are looking for a career to consider working in the automobile business. There are many opportunities for growth and good solid career and good solid earnings for someone that would look into the automotive industry.
Interviewer – Randy I have enjoyed this conversation. You are held in high regard and I thank you for your contribution to Upstate NY Gospel Magazine.
Randy – Not a problem Cookie and I, thank you!
