Traditional car dealerships are a thing of the past

Car dealerships.

What comes to mind when you hear that phrase? To me, I think of pesky salesmen, cheap linoleum flooring, fluorescent lighting, and the smell of rubber. And everybody has a story about the painful process of buying a car. I can't imagine being the only person to have the same feelings to the typical car dealerships as I do. That's part of the reason why I was so confused when Chevrolet came out with an ad campaign last year that was shot entirely inside a dealership.

In fact, several of the commercials in this campaign began with a faint loudspeaker of the receptionist calling in a salesperson from outside. The campaign did a great job of making you feel like you were there, including the throngs of lonely salespeople standing around. But is that really a good thing?

Even Toyota got in on the action recently, running their own campaign of commercials shot on the set of a car dealership.

I might be more attuned to the subpar experience of the stereotypical car dealership than most (since I seem to complain about more things than most), but there's something about a dealership that defies these norms that flips the typical visit to the car dealership around from being a dreaded experience to one that is looked forward to.

Tesla is one example of a company trying something different. Rather than building dealerships in normal places like auto centers, they've focused on being where you already go. Here in Orange County, Tesla has a store in Fashion Island, one of our upscale, outdoor shopping malls. They've got another dealership a few miles away on Pacific Coast Highway amidst other boutique shops. But even when you visit one of their locations, it doesn't feel like a car dealership. They've got one or two cars out on display, and you can't take them for a test drive. The purpose of these stores is to inform you about their vehicles and show you what's coming.

Of course, this model doesn't work for all car companies. Tesla (currently) offers two models and sells to a high end market. Car makers like Chevy have quite a few more cars than that.

But still, not all dealership experiences have to suck in the way that we are used to. The pictures below are of Newport Lexus in Newport Beach, CA.

Newport Lexus is my dealership of choice after I bought my Lexus. It feels nothing like a car dealership, despite having rows and rows of cars out front. When you walk inside, it feels like you're walking into the lobby of a 5-star hotel. The rest of the experience isn't far off from that. The retail areas and coffee shop and lounge make it a place you want to visit on a regular basis. The free car washes are nice, and I try to make it in at least once a week to enjoy this perk of getting my car serviced there.

But the beauty of Newport Lexus is more than just the nice building and the perks; it's the people. I have never met such friendly people who really get to know you. Because I visit once a week for my car wash, I've built up friendly relationships with many of the staff members who greet me by name when I arrive. And when it's time to get my car serviced, I look forward to the day I get to drive in and see everybody. And now I can't picture myself buying a car from anywhere else. They've succeeded because they've built a relationship with me and won my loyalty.

Everything about the experience at Newport Lexus is fantastic. When I go through my list of things I hate about the typical car dealership, I realize I find none of them at Newport Lexus, which makes me wonder, why do so many other dealerships not care about the experience of their customers? I think we are slowly seeing a trend toward offering perks at particular dealerships. Some now advertise free washes on weekends or free coffee when you stop by. But are these perks the tipping point to get people to come back?

As we see in nearly every industry, monumental improvements in the norm typically come from the top down. It makes sense why Tesla (as a company) and some other high end dealerships have radically changed the way they sell cars. I'm just looking forward to the day where linoleum floors, endless options packages and packs of salesmen with bad ties are a thing of the past.

How Cory is tired of the media demonizing success: Phil Mickelson edition

It disgusts me how much the media demonizes the wealth of successful people.

Phil Mickelson got flak this week for saying new federal and state tax rates would prevent him from joining in on a deal to be part of the San Diego Padres new ownership group. He explained the new tax code would force him to make "drastic changes".

On Sunday, Mickelson explained, "If you add up all the federal and you look at the disability and the unemployment and the Social Security and the state, my tax rate is 62, 63 percent."

His comments were perceived "insensitive", so he apologized.

"I think that it was insensitive to talk about it publicly to those people who are not able to find a job, that are struggling paycheck to paycheck," Mickelson said. "I think that was insensitive to discuss it in that forum."

Do you mean to tell me that the average golf fan was offended by Mickelson's comments? I find that hard to believe.

It's likely he wouldn't have apologized for his comments if he weren't so demonized by the media. This post written by golf writer Doug Ferguson of the Associated Press is written with an extreme left slant, riddled with sensationalism that I wouldn't even call journalism. (If I gave him a press badge at an event, I'd make sure his badge labeled him a "Blogger".)

The same day, Tami Luhby of CNN published a post titled The truth behind Mickelson's taxes. She leads with the title, "There's no doubt that Phil Mickelson pays a lot in income taxes as a California resident, but it's not as much as he thinks." Her article breaks down what he pays in taxes and guesses he pays a mere 51% instead of Mickelson's quoted "62, 63 percent". Whoop-de-do, Tami.

I think people in the media (not to be confused with journalists) fail to remember what successful people do with their money. Mickelson runs a foundation with his wife called The Phil and Amy Mickelson Foundation that focuses on education and family issues. They partnered with ExxonMobil to develop a curriculum for teachers to help motivate students in math and science. He has also contributed to many other charitable groups, several of which benefit wounded veterans. And yes, he'll get a tax break for that. As he should.

But for the media to demonize Phil Mickelson's success personal opinions on taxes in golf is short-sighted and pathetic. It's disappointing that legitimate news publications feel it's okay to report in such a way where their posts contain a subtext of intentionally derogatory language against someone who voices an opinion contrary to their own, while labeling it as reporting.

Sure, Mickelson has a great job and we're all jealous. I just wish the media would keep in mind that the wealthy don't leach.

Obama, taxes, investors, and capital: Why raising taxes hurts the startup industry

TL;DR: The startup industry largely supports Obama who wants to increase taxes on the wealthy. Raising taxes on the wealthy directly affects the amount of capital available to entrepreneurs because when investors pay more in taxes, they have less money to invest in new startups.

The internet startup "industry" is built off the fact that there are investors who are willing to write checks to entrepreneurs to create new businesses. Startup incubators like Y Combinator and TechStars have been able to fund a large number of businesses because investors have been willing to put their money at risk. In fact, the current total value of companies Y Combinator has funded is around $10 billion. In essence, the startup industry is the perfect example of how investing should work.

It's no secret that most people in the startup space support President Obama, and here's why I'm baffled by this: Obama wants to significantly raise taxes on everyone making over $250,000/year, and not just raise income tax but drastically increase taxes on investment returns. The problem with taking more money from this group is that it takes away money that would otherwise be invested in startups. Why does the startup community want to increase taxes on their own investors? What could have been used to fund a startup now goes to paying more taxes.

I don't think this correlation is made very often. When people in the startup space think about rich people paying more in taxes, I don't think it's associated with the very same people who are funding their startups and paying their salaries.

I'm thankful to the people who have invested in my startup. Because of the capital we've received, we are not only able to start a business, but actually hire people and create jobs! (Politicians says that the government can create jobs, but in reality, more available capital helps fund more startups who are able to create jobs.)

The shortsightedness of wanting to tax the rich to solve our problems needs to stop. Government is wildly inefficient at most of what it sets out to do, and it's not the answer to most of our problems today. I hope more people in the startup space will wake up to the fact that higher taxes on successful people (namely, our very own investors) is completely counterproductive and will do nothing but hurt our industry and future innovation in the long run.