Moussa said that the streamlined organizational structure benefits the dealership, its employees and customers.
“Our payroll expense is about half the average dealership,” he said. “So that means higher profitability.”
Moussa said the average return on investment per Carnamic store is about 9.5 percent — more than double that of a typical dealership in the Bay Area.
And unlike a typical dealership, where the shopper is shuffled from one department to another, Carnamic buyers have just two touch points — the product specialist and the sales manager.
“You have fewer people touching the deal, shorter turnaround time and less pressure,” Moussa said. “That results in a better customer experience.”
Carnamic’s fixed-price business model also reduces the time shoppers spend at the dealership haggling over the deal.
Moussa said the average time a car shopper spends at a Carnamic store is about 90 minutes, which includes the test drive.
“We are a true one-price store for new and used vehicles — literally, we would not move $5 off the price,” he said. “That cuts down on an hour of back-and-forth.”
The business model has lifted customer satisfaction and loyalty. “About 50 percent of our sales are repeat business,” Moussa said.
