It is ironic that Berge Ford in Mesa is one of the dying breed of new-car dealers going it alone, because it hoped to do just the opposite when it moved to its current location.
The dealer, which has been open since 1944, set up shop at Mesa Drive and the Superstition Freeway anticipating other sellers to join it on a street named Auto Center Drive. But just one, Fiesta Lincoln-Mercury, moved nearby, as others gravitated to auto malls in such places as Tempe, Chandler and east Mesa.
“We thought we would be in the forefront of starting our own auto mall,” said Jim Crutcher, Berge Ford’s general manager. “But a lot of the dealers left Mesa. It never caught on here. We made the decision that we know what we’re doing, that’s all that really matters, so we’ll just do it on our own. It’s been good for us.”
As such giant chain stores as Walmart have helped put smaller shops out of business, and 24-screen, stadium-seating megatheaters were the end for many smaller cinemas, the era of auto malls has severely limited the presence of corner dealers. But a handful in the East Valley — Berge Ford, Chapman Chevrolet in Tempe, Brown & Brown Chevrolet in Mesa and Thorobred Chevrolet in Chandler are among them — are holding on.
“That fraternity is pretty small these days,” Crutcher said.
With auto manufacturers increasingly wanting dealers to locate in malls, and municipalities’ zoning space limited, it would be hard for a new dealer to operate outside of a mall, said Bobbi Sparrow, president of the Arizona Automobile Dealers Association. She added that dealers have grown to like the one-stop shopping atmosphere, providing customers the ability to quickly get from one lot to the other.
The dealers that have stayed on a corner are well-entrenched, she said.
“You have dealers who have been in existence for so long in the Valley,” Sparrow said. “Those dealerships that have wanted to stay in their areas have. They are really comfortable in the neighborhood they’re in, and they have loyal customer bases.”
Service and parts are a major portion of a dealer’s profits, and research by the National Automotive Dealers Association indicates that customers are most likely to buy a new vehicle from a dealer that they typically use for service. That kind of customer loyalty has been a big part of Berge’s success, Crutcher said.
“Most of our customers are past customers who heard about us through word of mouth,” Crutcher said. “Since we’re not in an auto mall that attracts hundreds of people per day, we have to rely on customers who are loyal to us.”
Dealers have found that moving to a mall is not worth the relocation expense and, in some cases, additional overhead.
Crutcher said that the close presence of a competitor — which could make it more challenging to close a sale on a hedging customer — is not a deterrent to joining an auto mall. He said that most customers arrive on a lot ready to buy.
“With the Internet, so many people do shopping before stepping foot on the premises,” Crutcher said. “They know what they want. In the old days, people went car shopping on Saturday and went to six or seven different places.”
Berge Ford has typically been one of Ford’s more successful dealers, but the economic downturn impacted the business. It has reduced staff by about 100 since 2006.
Still, “the dealer under the big flag,” as Crutcher calls it, plans to continue doing business solo.
“I’m about to go clean the men’s bathroom; everybody pitches in on everything here,” Crutcher said.
“If we were an average dealership, we would have to be in an auto mall to survive. But we don’t consider ourselves an average dealer.”
• Contact writer: (480) 898-6301 or dzeiger@evtrib.com
peteacherarizona posted at 8:17 am on Sun, Jun 12, 2011.
I would never buy from any BERGE dealership ever. The head person at each dealer, Berge Mazda especially, doesn't know how to treat their customers with respect. They were upset that I came with my friend and helped them negotiate the deal when the dealership "thought they had a deal in place" without outside help. Maybe these dealerships are dying because the people who "run" these dealerships think they can be like in was in 1980's and 1990's......egotistical!
Suelee posted at 5:23 pm on Sun, Jun 12, 2011.
ALL (new and used) vehicles appear to be about $10,000 overpriced at this time. Cash-for-clunkers and a lack of vehicles coming off lease seem to have resulted in a shortage of used vehicles. Dealers need to be aware that the higher the cost of their vehicles, the longer customers need to drive their current vehicle. I use the "rule of 2,000." I need to keep a new vehicle for a year for every $2,000 I spend. In the 1970's, when vehicles were $4,000, I would keep them for 2 years. When vehicles were $10,000, I would drive them for 5 years. My most recent vehicle was purchased in 2004 for $16,000, so I planned to drive it for 8 years--but new comparable vehicles are now $28,000, so I will drive this vehicle for 2 more years and when I buy my next car it will need to last for 14-15 years.
janicedwells posted at 1:10 am on Mon, Jun 13, 2011.
"Auto Insurance Clearance" will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company.
PeacefulCat posted at 7:17 am on Mon, Jun 13, 2011.
They might as well be in a mall since they act like a big corporation. Customer service is weak at best and prices as high as possible. Wish it was a local business who cared about the locals.
Found out it is less expensive and you get more for your dollar if you go to an auction. Bought 2 cars for the price of 1 at Berge. Would love to have given some of the money to a hard working salesman but you put your money where is gets you the most-especially these days!