For nearly a century, Helms Brothers Mercedes Benz has stood as a beacon of automotive excellence in Long Island, New York. From its humble beginnings as a Studebaker franchise in 1934 to its current status as one of the nation’s most successful Mercedes Benz dealerships, the story of Helms Brothers is one of continuous adaptation, unwavering commitment to customer satisfaction, and a deep-rooted connection to its community. This enduring legacy is a testament to the entrepreneurial spirit of franchise dealers and their vital role in the automotive landscape.
Doug Callahan, the current owner of Helms Brothers Mercedes Benz and Volkswagen, alongside Suzanne Cochrane, his General Manager since 2000, recently shared insights into the dealership’s remarkable journey. Their narrative, originally featured in Dealer magazine, offers a valuable perspective on the evolution of the automotive industry and the keys to thriving in a fiercely competitive market.
From Studebaker to Success: The Helms Brothers Story
The foundation of Helms Brothers was laid by brothers Charlie and Frank Helms, who established the dealership as a Studebaker franchise. Interestingly, Studebaker, in its early days, also served as an importer for Mercedes Benz, marking an early, albeit indirect, link to the luxury brand that would eventually define Helms Brothers’ future.
Doug Callahan’s connection to Helms Brothers began in his youth, working at the dealership while growing up. “I started working at the dealership washing cars when I was 14,” Doug recounts. This early immersion in the business allowed him to learn the ropes from the ground up, experiencing virtually every role within the dealership. His father, who served as General Manager under the Helms brothers, further solidified the family’s ties to the business.
A Pivotal Acquisition and a Bet on Mercedes Benz
In the late 1970s, Doug faced a career crossroads. Presented with an opportunity to become a dealer principal in a New Jersey store, he consulted his father. This conversation sparked a significant turning point. Instead of venturing to a new location, Doug and his father approached Charlie Helms, as Frank had already retired, about a potential buyout.
“He [Charlie] flew up the next morning and they told instead of going through with moving to another store, we could buy them out,” Doug explains. In 1977, the deal was finalized, marking the Callahan family’s acquisition of Helms Brothers Mercedes Benz.
This transition occurred during a challenging economic period characterized by high interest rates. Doug acknowledges the crucial role the Helms brothers played in facilitating the financing, highlighting the trust and established relationship between the families. “Frank and Charlie helped us with the financing. We probably wouldn’t have been able to do it otherwise,” he states.
By 1984, Doug assumed sole ownership, buying out his father and steering Helms Brothers towards an increasingly Mercedes-centric future. Recognizing the growing prominence of the Mercedes Benz brand, Helms Brothers made a strategic decision to divest from their Dodge and Volvo franchises by 1980, placing their full focus on luxury automotive excellence. “You bet on the right horse,” Suzanne aptly remarks, reflecting on this prescient decision.
Adapting to Change: Technology, Employees, and Customer Experience
Suzanne Cochrane’s journey with Helms Brothers began in 1982, joining the billing department. Her long tenure provides a unique vantage point on the dealership’s evolution. When asked about the most significant changes, both Doug and Suzanne point to technological advancements and a heightened focus on employee engagement.
“Aside from the product, which obviously is so much better today, the technology has changed the business the most over the last 10 years,” Doug observes. He emphasizes the transformative impact of the internet, CRM software, and data analytics, forcing the industry to become more customer-centric.
Suzanne echoes this sentiment, highlighting a crucial shift in internal priorities. “The focus and redirection on the employees and the human side of the business is the biggest change for me,” she states. While sales and service remained core functions, the dealership recognized the critical importance of employee morale, culture, and overall team experience.
This realization was partly spurred by Mercedes Benz’s employee engagement surveys in 2012. These surveys served as a “real eye opener” for Doug and Suzanne, revealing areas for improvement in employee relations. The feedback prompted tangible changes, including reduced healthcare premiums, employee incentives, an Employee Advocacy Group, charitable event support, and team-building activities.
These initiatives fostered a stronger connection between management and employees, leading to increased engagement and improved communication. Quarterly meetings became a platform for employees to contribute ideas and action plans, fostering a sense of ownership and shared purpose. This enhanced internal culture directly translated to improved customer interactions, with Helms Brothers achieving some of the highest CSI (Customer Satisfaction Index) scores in the country.
Growth and Market Leadership in a Competitive Landscape
Helms Brothers’ commitment to excellence has fueled significant growth. Starting with just 35 employees, the dealership now boasts a team of over 180. Strategic investments, such as a 52,000 sq. ft. off-site service facility and expanded showroom capacity, have further solidified their market position.
Operating in Long Island, one of the most competitive and diverse automotive markets in the US, Helms Brothers faces considerable challenges. With eleven Mercedes Benz dealerships in the vicinity, differentiation and customer loyalty are paramount. Doug acknowledges the intense competition, noting the proximity of other Mercedes dealerships on Northern Boulevard and beyond.
Suzanne emphasizes the importance of embracing diversity in this market. Helms Brothers’ team reflects this diversity, with saleswomen and managers from various cultural backgrounds, including Chinese, Korean, Polish, and Latino team members. This inclusive approach ensures customers feel comfortable and understood, further enhancing the dealership’s customer-centric ethos.
Navigating the Future: Electric Vehicles and Digital Transformation
Looking ahead, Doug and Suzanne are keenly aware of the evolving automotive landscape, particularly the rise of electric vehicles. Doug acknowledges the uncertainty surrounding the pace of EV adoption but recognizes the potential for significant changes in dealership operations.
Suzanne emphasizes the need for proactive planning and adaptation. While Helms Brothers celebrated record sales in November 2014, she stresses the importance of balancing daily operations with strategic future planning. Mercedes Benz’s increasing focus on volume and digital initiatives necessitates adjustments in marketing strategies and customer engagement approaches.
Despite the growing trend towards digital transactions, Suzanne notes an interesting “reversal toward the phone call.” Utilizing tools like Call Source to analyze phone interactions, Helms Brothers recognized the continued importance of phone communication in the customer journey. This insight led to a renewed focus on phone training and improved call handling techniques.
Profitability with Purpose: The Helms Brothers Philosophy
While ambitious volume targets are important, Doug emphasizes that Helms Brothers’ core philosophy centers on profitability and delivering exceptional value. “Our philosophy has always been that we don’t have to be the biggest in volume, but we do want to be one of the most profitable,” he asserts.
Suzanne underscores the importance of communicating a strong value proposition to customers. “You have to believe in your value story,” she explains. Helms Brothers focuses on the entire customer experience, going beyond just the vehicle itself. Their commitment to training, cohesive management, and a customer-centric culture allows them to build lasting relationships and justify their value.
Ultimately, for Helms Brothers Mercedes Benz, profitability is not just a financial metric; it’s a means to a greater end. It enables them to positively impact the lives of their employees, foster a thriving workplace, and contribute meaningfully to their Long Island community. This holistic approach to business, rooted in a legacy of family values and forward-thinking adaptation, positions Helms Brothers for continued success in the ever-evolving automotive world.
