There’s something in the water at Carworks in Ballarat, an X-factor which seems to score them dealer awards and industry recognition, but it’s people power closing the deals, not apps.
Taking out the VACC’s Industry Award for Best New Car Dealer in 2019, dealer principal Carl Morandi’s business was also nominated for the same title in 2018, won the 2017 Provincial Dealer of the Year award and scooped the 2016 Renault Dealer Brilliance Award ahead of the brand’s network of 51 other dealers.
Yet Renault Ballarat, aka Carworks, only began its tenure with the French brand in 2014 and has since become something of a thorn in the side of more established brands in the old goldmining region of central Victoria.
Located in Wendouree, which shares its name with the lake on the north side of town, Carworks, also a major used dealer, locks horns with a broad church of ownership with all the big brands – Ballarat Audi, Skoda, Volkswagen, Mazda, BMW, Skoda, Holden, Eclipse Ford, Kings Cars Suzuki, Peter Stevens Nissan, Bedggoods Motor Group (Kia, LDV, SsangYong, Citroen and Peugeot), Isuzu Ute, Ballarat City Subaru, and of course, Toyota.
Morandi tells AutoTalk it’s a challenging market with so many brands in a provincial city of a growing 101,500 people, less than an hour-and-a-half from Melbourne.
“Ballarat is growing rapidly, with lots of affordable housing going up on blocks of land people can kick a footy on with their kids,” he says.
“We now have the biggest Bunnings in Australia, it’s a desirable location with a commute time similar to people living much closer to Melbourne, so that’s bringing new potential customers to the region,” Morandi explains.
Having also begun – and nearly completed – renovations as part new franchise with Fiat Chrysler Jeep, Carworks itself is mirroring the town itself.
But Morandi reveals times are quite tough at the forecourt level, especially in the current economical climate, as sales continue to droop and consumer spending tightens.
“You sell a lot and make a little, and people refer their friends and family, especially in the light commercial side,” he says.
“We do well off the referral business; as soon as you get the ‘good bloke’ stamp on you, because a mate or family member has worked with you, that’s really good for business,” he explains.
“Social media doesn’t sell cars, all it does is give you brand familiarity, brand awareness,” he continues.
Morandi says getting cut-through is tricky with a French marque in an area built on farming, primary produce and resources – where tourism is a growing but arguably quiet industry for Ballarat.
“Ninety-nine people out of a 100 in Ballarat would think a Renault is knocking down a wall in a house – we brought the brand to town five years ago and it’s a slog because we’re not at the front of everyone’s minds or on top of their shopping lists,” Morandi concedes.
“When customers do come to us we have to give them something they won’t get at the other brands; the product doesn’t sell, it’s the people that make the difference and we’re very hands-on,” he says.
“I’m involved in every deal we do, meeting and greeting every single customer to make sure they get the best
experience at every stage.”
The challenges continue to Carworks’ used car business, not only because buyers often go to the respective franchised dealer of the used car they seek a bargain for, but also due to the hamstrung financial sector.
Restrictions placed on dealers as a result of changes brought down by the Hayne Royal Commission is forcing business owners like Morandi to walk a tightrope.
Where used cars often become a dealer’s go-to strategy in tough new-car times, Morandi says the second-hand trade is equally soggy.
“Used has had a shake-up too with the change in finance structure; we’ve had to change our business model slightly there as well – Melbourne’s Cheapest Cars is no longer Melbourne’s cheapest cars these days,” he says.
“We’re nimble enough to adapt if there is further dramatic change, where 70% of our customers were once finance, now we’re back to industry standards, the volume’s not there, and I think it’s going to affect a lot of dealers,” he explains.
As the new car retailing business evolves and grows like Ballarat itself, it’s a given the changes and challenges facing Carworks will be overcome or navigated.
Morandi certainly isn’t sitting still.
Just this week the new Carworks Fiat Chrysler Jeep pilon branding is going up, perhaps as a sign of the times.
“When there’s a change in the industry you have to change with it, or you won’t be around,” Morandi concludes.
