Six months after acquiring Cherokee Mitsubishi, dealer principal Jonathan Dawson is candid about both progress and missteps as he transitions from industry consultant to retail operator. During the latest Mind Your Own Business segment, Dawson draws on his experience to underscore a broader lesson for dealers: disciplined execution, not rapid change, is key to sustainable growth.
Dawson, who purchased the store in June while it was losing $100,000 per month, says the dealership has since reached key milestones and is moving in a positive direction. However, he acknowledges that early decisions, like around vendor adoption and operational execution, created avoidable challenges.
Early missteps
Dawson said one of his biggest mistakes was implementing tools and services before the dealership was operationally ready. He noted that introducing new systems without a clear rollout strategy or accountability framework can lead to confusion and reduced team buy-in. Over time, repeated missteps risk conditioning employees to disengage from future initiatives.
“I have made some mistakes when it came to trying to grow too fast in certain areas without having, again, the foundation properly set.”
This experience has fundamentally altered Dawson’s strategy. Instead of immediately adopting new technologies or responding to vendor solicitations, he now prioritizes preparedness, strong operational frameworks, and a clear, quantifiable return on investment before implementing any changes.
Despite early challenges, Dawson credits several strategic partners for helping stabilize and grow the business, particularly in CRM, inventory sourcing, website performance, and training. He highlighted the importance of aligning vendor capabilities with dealership readiness, noting that even strong solutions can fail without proper execution at the store level.
The lesson, he said, is not to avoid innovation, but to ensure that both the dealership and the vendor are prepared to succeed together.
Accountability proves more complex in practice
Dawson also pointed to personnel management as a key learning curve. While he previously advised dealers on accountability, he said applying those principles as an owner has been more difficult than expected. Balancing business performance with the real-world impact on employees and their families has required a more nuanced approach.
To address this, Dawson implemented what he calls the “Viox Principle,” a structured evaluation process that asks whether each employee would be rehired today for their current role.
The exercise led to direct conversations with staff about performance expectations, skill gaps, and alignment with the dealership’s core values. While difficult, Dawson said the process is essential to maintaining clarity and long-term performance.
Regarding marketing, Dawson’s approach was distinct. Instead of using conventional methods such as third-party lead providers or digital advertising, he focused on internal sourcing, social media, and client referrals. To date, the strategy has yielded strong per-person sales performance, but he acknowledged it may have limited overall volume.
Despite this, the dealership’s customer acquisition cost is remarkably low, at around $27 per sale, considerably less than the industry average, which typically exceeds $500.
Shifting investment
For 2026, Dawson’s strategy is shifting focus to significantly increase investment in customer retention while simultaneously minimizing acquisition costs, a highly differentiated approach. While his model aims to invert the traditional dealership approach, instead of spending heavily to acquire customers and minimally to retain them, Dawson plans to spend modestly on acquisition and up to $500 per customer on retention and loyalty initiatives.
This includes:
- Co-branded merchandise funded through OEM co-op programs
- Personalized customer gifts produced in-house
- A dealership-specific rewards system called “Cherokee Cash,” which customers can use for service, merchandise, or future purchases
The goal is to create long-term engagement while turning customers into brand advocates.
Dawson’s approach also reflects a broader shift away from traditional dealership models. The store generates minimal internet leads and phone traffic, instead focusing on community engagement and referral-driven business.
While acknowledging gaps in areas such as phone and lead handling training, Dawson said the dealership is prioritizing strategies that align with its unique operating model.
