After decades of advising dealers on how to run their businesses, John Buelow is now a dealership principal himself. A few months ago, he acquired Flagship Ford in Baldwin, Wisconsin from Andy Lamb.
He aims to use it as the foundation for a growing dealership group.
“I have always advised dealers of all sizes,” Buelow tells Automotive Buy Sell Report. “Finally, I was like, ‘Man, I need to put my money where my mouth is.’”
The acquisition came about unexpectedly. Buelow, who previously was a principal in the dealership practice of CliftonLarsonAllen, was consulting with Lamb on selling the store. They brought the store to market quietly, says Buelow. “At one point I said to him, ‘maybe I’ll just buy it.’”
John and Cole Buelow. Photo by Paul J. Seeling, Gateway News.
Famous last words. They began discussing terms, and the deal closed Aug. 24th. Buelow partnered with a silent investor – a dealer whom he declined to name. Buelow is the operating partner.
He changed the name from River Valley Ford to Flagship Ford, but Buelow has largely kept the same team in place. That was important to retain the good will folks in the small town of Baldwin – population 4,000 – felt towards the dealership and its previous owner.
Buelow had mainly worked with big groups in big cities. “I probably underestimated how important the local angle was,” he admits.
People want to buy from local people in Baldwin, says Buelow. “I have made sure to say it is the same great dealership” under a different name.
He has made changes, though. He added Ford’s Quick Lane service program. And he has moved to market-based pricing, says Buelow, instead of a more cost up, old-school approach.
The website was the Ford Direct design; Buelow changed it to one that is “a little bit cleaner” created by an independent firm. The dealership didn’t really have a business development center or internet business, says Buelow. “We have really jumped into the digital realm,” he says.
He has increased the advertising budget and will do “the vast majority” of advertising online.
Buelow hasn’t yet added sales people but he did hire a service manager – the former shop foreman.
Ford love
Owning a dealership has been on Buelow’s mind for a decade, especially a Ford store. He started consulting with Ford in 2001, says Buelow. “That was my first OEM love.”
Ford’s portfolio of trucks is a good fit for the Flagship Ford market. Some 85 percent of its sales are truck or SUV, says Buelow. Ford is a market leader in the area.
Sales of new cars have been declining at the dealership, says Buelow. He targets a consistent 40 new car sales a month, rising to 60 within a year and a half. He aims to sell about the same number of used cars.
Flagship Ford is just the first of the dealerships he aims to acquire, says Buelow. He is looking to stay regional – he and his wife and four kids live an hour due west of Baldwin.
He likes dealerships in fringe metro or tertiary markets in Minnesota, Wisconsin, Iowa, and North and South Dakota, says Buelow.
Indeed, he is already looking at other stores. “I have a Letter of Intent on one now,” says Buelow.
