How Did One Car Dealer Succeed When Three Others had Failed at the Same Lot?

Melvin Tuchez worked as an employee in the auto-sales business, and then he purchased his own dealership, Aztec Motors, in San Fernando, California. He believed three other auto-sales companies on the same site had failed due to inferior branding and weak management. He immediately began spending $16,000 per month on print and on-air advertising.

A sign company called upon Tuchez, and he purchased two on-premise, electronic pole signs. He reported an immediate increase of 10 walk-in customers per week, which resulted in six additional sales, and paid for the signs in less than a month. He subsequently reduced his advertising budget to $4,000 per month. Additionally, he began using the logo from his signs on sales and promotional materials.

The two signs cost $15,000. With the additional sales, and the reduction in other advertising costs, an appraiser calculated his savings over a three-year period at $400,000. Tuchez subsequently opened three additional Aztec Motors locations.