Tuesday 27 January 2009

Johnston Motors - a Colborne fixture

Johnston Motors has had a long and successful 54-year history in Colborne.

George Johnston, Dana’s father, started the family business in 1944 when he saw an ad in the Toronto Star and put down $10 on an option to buy Colborne Garage. Born on January 17, 1925 and only 19 years old, George had to have his dad's signature on the paperwork. It was March 15, 1944.

George always had an interest in automobiles. While growing up he pumped gas, did the books and was a general handyman in the garage business of his next door neighbour in Mildmay.

The purchase of the garage in Colborne meant a move for the young entrepreneur.

It was not long before he met and married Barbara Branigan, beginning a 60-year marriage that brought the couple two children and two grandchildren.

A surprise visit by a representative of General Motors resulted in George becoming a GM dealer in 1955. It was the beginning of a 54-year relationship that was carried on by his son, Dana until GM began its downsizing this year.

Early in 1956 George sold his first GM car, a Chev Impala that remains one of the family's prized possessions. That first car off the truck was bought second hand about a year later by Miss Jean Kernaghan's father. Jean drove it around in the warmer months until the 1980s, selling it back to Dana with about 65,000 miles on it.

Dana guesses it wasn't the first car they ever sold. It had a premium of about $300 over the base price of $1,700. It is now worth much more than that both sentimentally and financially.

The new cars of that era had one year warranties. Maintenance schedules were tighter. Owners accepted that they would have to add a quart of oil every thousand miles. The cars weren't as durable as those driven off the lot today, and few of the comforts we now expect.

The business continued to grow and expand under George's hand. Many in the community knew him through the purchase and service of cars he sold.

In 2005 George made one of his last public appearances, cutting the cake for his 80th birthday in the showroom of Johnston Motors.

But the business had long before been passed on to Dana. Some things have remained the same, despite the passage of time. Dana still does business with a handshake - an anachronism in the modern world of detailed contracts. Perhaps it's a legacy of a small town business.

On the other side of the equation, Dana points to the long term customers, some of whom are the third generation dealing with the local dealership. With some of them he does business on a phone call. It's part of a mutual trust earned over five decades.

Car buying has changed to some extent.

While looks continue to be important, potential buyers are looking for other values too. One is reliable service, when most dealers purchase their cars from General Motors for about the same cost, quality service has been a selling point for one dealer over another.

When the business opened a sale would be handwritten, probably in duplicate. Now a sales contract when completed will have many pages. It will be stored in hard copy and on computer files.

The Johnston staff has remained remarkably loyal and constant over the years.

In 1955, Dana guesses there was a staff of 10 to 12. Dana's wife, Janice, has worked in the business alongside him for 20 years. It's obvious in conversation with the couple that there is a deep and meaningful working partnership. Their current staff numbers 10. Longest serving staffer over the years is Brian Hadwen with over 40 years in the firm. Dana recalls that Brian started before he could even drive.

When Brian started a mechanic could get by with a set of wrenches. Now he would need tools worth more than $10,000. And the necessary company-owned equipment dwarfs that cost.

Fifty years ago some of those staff members would have manned the gas pump from early morning until late, and sometimes on Sundays. Dana estimates that there were 15 nozzles within five miles of the village of Colborne when he was a kid. There still are, but they are concentrated at a few distribution points.

Fifty years ago many general stores would have a pump out front. In all likelihood it would have been carrying White Rose, Texaco, Shell or BP leaded gas. The rule of thumb at that time was that 13 families was a big enough customer base to operate a store. Most of those little stores are long gone in a world where people travel to shop.

The growth in new car sales in the past 15 years has been in the leasing market. Interestingly, Johnston Motors was way ahead of the game in introducing that alternative.

His first lease was made in 1968 when a customer approached the dealer with the proposal that would provide him with a better tax alternative. It avoided repair bills and cut depreciation risks. Dana had to figure out how to do it.

In recent years much of their business has been in leased vehicles which are cheaper on a month-to-month payment basis and involve a shorter commitment on the part of the owner.

The company changed hands in 1998, but Dana says there was little change in business philosophy. He's been the go-to guy since the eighties. That continued as the company grew with the community.

Since he took over the company the Johnston staff provided sales and service that has made it the first and second-ranked dealer of its size in Canada in those areas.

It's not a complex approach. Dana recognizes he has to prove every time out that he should get the business, to make it an enjoyable experience. He takes nothing for granted, even when those customers are his friends. It is vital that customers be treated fairly and well. That approach has brought him customers from as far away as Brampton. He admits he hasn't gotten rich monetarily but his work has made him rich in experience.

Dana and the company have earned more than its share of local awards.

In 2006 Johnston Motors was Rotary’s Colborne Business of the Year.

In 2007 Johnston Motors was named top business in the Brighton and District Chamber of Commerce based on having repeatedly ranked in the top 10 dealerships in the province.

In 2008 he was nominated as one of Northumberland’s businessmen of the year.
It was a testimony to the growth his company has made and the excellent service it provided to the community.

It was smalltown Colborne, giving small-town service with local staff and all the intangibles you don't get when you enter the rah-rah land of the big box store.

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