"You have to stay price competitive, provide top-notch service, and treat every customer with dignity and respect," he said.  "That's in our mission statement, and it's pretty much the business model we've always lived by around here."

Smythe European is a member of AutoNation, the largest automotive dealership group in the world, with 245 dealership locations and 323 new-vehicle franchise dealerships across 16 states.  AutoNation employs more than 25,000 people and is currently No. 138 on the Fortune 500.

Figueira said he believes that by doing the little things right, Smythe European has been able to thrive and compete with the aftermarket during rocky economic times.

"The aftermarket is always a huge threat, there's no doubt about it," he said.  "Someone will always have lower prices, and that's a reality in this business, so we need to sell superior service, including free delivery, product expertise, service and parts specials, and prompt delivery.  Aftermarket parts companies will never be able to offer genuine Mercedes-Benz parts, so we have that advantage."

Wholesale Parts Manager Laura Eaton said she has been with Smythe for 21 years and has more than 29 years of experience in the automotive parts industry.  She cited Smythe's experience and product knowledge as the main reasons for the dealership's stellar reputation.

"Just in our parts department, we have more than 160 years of combined experience," she said.  "Most of our counterpeople have been with us for more than 15 years.  So, needless to say, we know our product quite well.  All of our people are required to participate in ongoing training and get recertified with Mercedes-Benz every year."

The parts department at Smythe European occupies 12,000 square feet and carries an inventory of $1.6 million, Figueira said.  The department employs 21 people, he said: 10 counterpeople who run the retail, wholesale, and back counters; three drivers; three shipping/receiving clerks; two parts runners who transport parts from the parts department to the service department; one assistant manager; and two stock people.

The wholesale parts department is also supported by an outside sales rep, Mike Delaney, who calls on shops throughout the bay area to promote Smythe European, Eaton said.

"Mike's hard work has proven to be very beneficial to our wholesale efforts," she said.  "Our shop customers really seem to appreciate the personal contact.  They'll tell Mike things they won't tell us, and he can help us deal with their concerns and any issues that might come up." 

Seventy percent of the wholesale parts sold by the dealership are collision components, Figueira said.

"Crash parts have always been a big segment of what we sell," he said.  "But, the collision industry has changed dramatically over the past few years.  Cars are going overseas to be repaired, and a lot of customers are now keeping their insurance checks and driving damaged cars, but we're making the best of a bad situation by working harder and smarter."

In the service department, Smythe operates out of a 40,000-square-foot facility with 105 bays, and employs 67 technicians, 41 of whom are Masters, Figueira said.  The department also employs 14 service advisers and more than 35 support personnel, made up primarily of car detailers and valets, he said.

With a shaky economy, the service department at Smythe is doing more promotions than ever, many of them focusing on fuel economy and OE quality, Figueira said.

"We're doing some menu specials right now that are very popular," he said.  "We're stressing things that will save our clients money down the line, like checking their tire pressure, tire rotations, fuel filter replacements, and fresh-air filter replacements."
 Smythe is also offering special prices on Bluetooth hands-free products so that its customers can comply with the new cell phone laws that took effect in California this summer, Figueira said.

Figueira said menu pricing and price matching in the service department have helped the bottom line at Smythe European.  "We check the competition and come up with a comparable menu price," he said.  "And our value guarantee means that we'll match or beat any Mercedes-Benz specials or coupons.  People are more likely to come in to take advantage of the specials when money it tight, so the response has been good."