CarMax 1999 Annual Report Download - page 22

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20 CIRCUIT CITY STORES, INC. 1999 ANNUAL REPORT
Quality. Consumers want a good price, but they also want a high-
quality vehicle for that price. At CarMax, quality is guaranteed by the
comprehensive CarMax Certified Quality InspectionSM that every
used vehicle must pass. All CarMax vehicles are thoroughly recondi-
tioned to meet the high mechanical, electrical, safety and cosmetic
standards this inspection demands. ValuMax vehicles pass the same
mechanical, electrical and safety standards, providing a quality vehicle
at an economical price.
Every used car also is backed by a five-day, 250-mile return guar-
antee and a limited warranty. CarMax’s MaxCare®extended warranty
programs provide comprehensive mechanical protection with flexible
terms up to 72 months. All locations provide warranty service and
factory-authorized service is available at all new-vehicle franchises.
Integrity. Our selection; low, no-haggle prices; and quality commit-
ment are the first steps to gaining the consumer’s trust. With these
components of the offer in place, the sales consultant can focus solely
on the customer’s needs. The consultant assists throughout the
buying process. He or she provides vehicle information, accompa-
nies the customer on test drives, explains extended warranty avail-
ability and pricing, arranges for appraisals, submits an on-line
financing application, completes paperwork and delivers the vehicle
to the customer.
DELIVERING THE DIFFERENCES
Since we opened the first CarMax superstore, many competitors have
tried to duplicate our offer. But, the high volumes generated by our
stores clearly indicate that we are delivering a combination of selection,
pricing, quality and service that exceeds our competitors. Our leader-
ship lies in the people and the systems that back up our offer.
People. At CarMax, we have a great team of Associates who are com-
mitted to “The CarMax Way.” “The CarMax Way” training program
helps ensure that all Associates, whether they are sales consultants, buy-
ers or technicians, are focused on our mission: to provide customers
with great quality cars at great prices with exceptional customer service.
In addition, we invest significant funds in job-specific training.
CarMax buyers, for example, undergo a 12-to-24 month training
period, working side-by-side with experienced buyers. Because of the
volume at CarMax superstores, buyers-in-training are able to appraise
thousands of vehicles before making their first independent purchase.
Management Information Systems. Behind the scenes, sophisticated
information systems work to streamline customer transactions, ensure
appropriate inventory at each location, support buying decisions and
track operating efficiency.
AutoMation is far more than an in-store inventory selection sys-
tem. It also monitors test drives for each vehicle and each sales consul-
tant, enabling us to identify issues related to specific inventory or
needs for additional training. AutoMation tracks each vehicle through
every stage of its CarMax life, from reconditioning through sale. It
captures critical cost data that is used to help set the retail price and as
a component of future purchase decisions. It also is used to identify
opportunities for process improvement.
CONCLUSION
The CarMax consumer offer seems to truly meet the consumer’s
definition of an outstanding buying experience. Nevertheless, in many
stores we have not met our sales and profit targets. We continue to
refine our marketing and operating plans as we work hard to achieve
our return on investment objectives.
CARMAX Committed to “The CarMax Way”