SEWELLS’ BUSINESSMAN OF 2015 IS A SELF-MADE MAN

SEWELLS’ BUSINESSMAN OF 2015 IS A SELF-MADE MAN

Johann Snyman, winner of the Sewells SA Businessman of the Year award for large dealers in 2015 – based on the return on operating assets – is a self-made man in every respect. He has managed to reach the heights in the highly competitive business of automotive retailing without having a tertiary education or other formal qualification.

Snyman, a born and bred Rustenburger, says he has benefitted from the many lessons and experiences – often challenging – that life has thrown up at him in his 40 years in the motor business.

He has been in his current position of dealer principal of the thriving Rustenburg Toyota dealership since 1999 when he joined forces with Botswana business tycoon Satar Dada. The two of them subsequently bought Lichtenburg Toyota in 2003, which Snyman continues to manage, and which is profitable despite tough times for the farming community in that area where drought it taking its toll.

The likeable dealer principal gives a great deal of credit to Toyota SA for his success. He fully supports Toyota’s corporate values and principles and says that Toyota still operates with its dealers as an extended family. Snyman adds that Toyota also provides outstanding training in all aspects of his business and Snyman says he makes maximum use of these training opportunities for himself and his staff.

Snyman has served on the Toyota National Dealer Advisory Council (NDAC) for the past 15 years, having been chairman in 2012 and 2014. He is now the NDAC secretary and continues to serve as chairman of the Toyota North West Dealer Council, a position he has held since 2002.

Snyman is an enthusiastic supporter of Sewells and has submitted his monthly financial returns since 2011. He was runner-up for Businessman of the Year in 2014 and says he was both surprised and very proud to get the ultimate accolade in the Businessman of the Year competition for 2015. The Rustenburg Toyota DP is particularly supportive of the stress Sewells puts on dealership management keeping their eyes on all five income streams – new car sales, used car sales, parts, service and F&I – to ensure that each one is profitable.

“What was very satisfying is that I was runner-up for this prestigious Sewells award in 2014 which was the year in which the Rustenburg area endured a five-month miners’ strike. Then I was adjudged the winner in 2015 when I was involved with building a new dealership facility for Rustenburg Toyota as well as a new shopping mall while still overseeing the motor businesses in Rustenburg and Lichtenburg,” explained Snyman.

“I am fortunate to have the support of excellent teams of loyal and enthusiastic employees at both dealerships and I am particularly proud that they are basically home-grown and then trained in-house and through the Toyota Academy of Learning. We have not yet won the Toyota Dealer of the Year award, but have earned numerous category awards over the years.”

Snyman is a petrolhead through and through and he said once he had matriculated and completed his National Service he knew his future career path would be in the retail motor industry.

He started working as a junior sales representative at the Leon’s MMI dealership in Rustenburg in 1976. His managerial skills saw him appointed dealer principal of Leon’s Motorcycles within two years. The young Snyman made a great success of this business as it was a boom time for motorcycle sales and in one month alone he sold 167 new and used motorcycles countrywide. He says this is where he learned the benefits that could flow from providing top rate after sales service and building relationships with customers.

In 1982 he decided it was time for a change and the opportunity to take on new challenges so he joined Muhl’s Motors, the Mercedes-Benz franchise in Rustenburg. He was a shareholder within two years and appointed managing director of the company the following year. He held this position until 1994 when he sold his shares and opened his own dealership for pre-owned vehicles, trading as EML Motors.

He sold that business in 1999 and made a sizeable profit. While sitting at home contemplating his next business move he received a call from Satar Dada, who proposed he became dealer principal at Rustenburg Toyota.

Snyman accepted the offer but said he was not keen on working in a corporate environment and would only take a two year contract. However, Dada gave him a free hand and the business flourished,. The relationship continues to work exceptionally well and Snyman is still at the helm of Rustenburg Toyota 17 years later!

Snyman is of the opinion that motor dealers in South Africa need to be cautious if they are to survive the next couple of years in tough economic conditions. “I know what it was like in 1985 and 2008 but we came through these tough periods stronger than before,” he commented.

“My advice to dealers is to consolidate the business and ensure your overhead structure is in line with your sales volumes and profitability. Concentrate on after-sales as this is an important profit generator now and going forward. Cost absorption will be crucial in future.

“Pre-owned vehicles are increasingly important as the consumers come under more and more economic pressure and will replace their vehicles less often and increasingly with well-priced pre-owned models. New vehicle sales will be under enormous pressure and will remain so until the economy begins an upswing. Satisfying a customer’s needs in the after-sales division means you will at least have a chance of selling this person a new or pre-owned vehicle in the future.

“Remember ‘Cash is King’ and you need not work harder as long as you work smarter!”