- ContributedSolomon McDaniel
Ben Henry, Contributor
SOLOMON McDaniel is unlike many of our wealthy businessmen who find it hard to share some of their successes with the less fortunate in their midst. Mr. McDaniel loves to give and perhaps that is the reason for his continued success as an entrepreneur.
The name McDaniel has become synonymous with the used-car industry in Jamaica. In less than seven years his company, Mack D's, has become one of the most visible companies in the business, and probably the most famous brand name in the used-car business.
A consummate family man, Mr. McDaniel was born in August 1964 in the small town of Trinity near Porus, Manchester. He is the fifth of nine siblings and the third of four sons born to Roy and Kathleen McDaniel. His father died in 1974 when he was 10 years old, and young Solomon grew up with his mother who instilled in him all the values he now holds.
He attended Porus Primary School and then moved on to Porus High School. He then went on to Cornwall College to finish his high school education. After Cornwall College, Mr. McDaniel started working full time at the business of a family friend, Hilton's Bakery in Montego Bay. He was just 15 years old. He managed the bakery for the Hiltons for one year, then he joined Alico as an insurance sales representative. He quit Alico after two years and went to the University of the West Indies (UWI) where he read for the BSc. in Management Studies. After graduating from UWI, Mr. McDaniel joined Cuna Mutual Insurance Company. Two years later, in 1986, at the age of 22 he emigrated to the United States.
Mr. McDaniel's first job in the United States was with Barclay's Bank in New York, in the travellers cheques division. That was where he met his wife, Miguelina Martinez, who was also working at the same bank. It was love at first sight for Mr. McDaniel, and he and Miguelina got married in March 1989. Mrs. McDaniel is an economist by profession and has a BSc. in Economics from Brooklyn College, New York.
While working at Barclays Bank, Mr. McDaniel read for the BBA in Finance at New York University. He later moved from Barclays and joined Chemical Bank in the currency trading division. Mrs. McDaniel remained at Barclays. Mr. McDaniel left Chemical Bank in 1993 and joined New York Life as unit manager. It was not long after that Mr. McDaniel moved back with his young family to Jamaica.
The couple's first child, Solina, was born in 1992. A second daughter, Migon, was born in 1999. Mr. McDaniel's eldest child, Sue-Ann, was born in 1983 and is currently an undergraduate at Hunter's College in New York, where she is reading for a degree in business administration.
The questions and answers below gives you an insight into the man called Solomon McDan-iel and what he is all about.
BH: Mr. McDaniel, why did you enter the used-car business?
SM: When I left the United States in 1994 to come home I started a car rental company called Empire Car Rental at 94B Old Hope Road. We started with six cars but within a year we had 27 cars. In July 1995, the Government announced that it would certify used-car dealers, so I jumped at this opportunity to open a used-car business. Mack D's Auto Sales and Rental was born. We began importing cars from Japan. The demand for used cars was great. Everybody was buying vehicles. People were coming from the country to buy cars in Kingston, but some of them were afraid of coming to Kingston. So I decided to meet these persons halfway. Porus became my first branch, when we opened there in January 1996. We haven't looked back since. That branch is our fastest growing branch, with some 1,000 cars being sold from there annually.
Three months later, March 1996, we opened our second branch in Morant Bay. For a slow parish we are doing well, selling 25 cars per month. In May of 1996, we opened a third branch, this time in Port Antonio. We sell an average of 30 cars per month. In November 1996, our fourth branch was opened in Annotto Bay. We currently sell 18 cars per month at this branch.
As you can see, 1996 was a year of rapid expansion of Mack D's in the country. It was a strategic decision to stop country folks from coming to Kingston by meeting them halfway.
In 1997 we became the first dealer to do its own financing. The slogan "Gone Crazy, Gone Mad" found our competitors calling me mad to be financing cars to inner-city customers. I am proud of what we have done at Mack D's. We have a few firsts that we are proud of. We were the first dealer to do country branches. We were the first dealer to do in-house financing. We were the first dealer to have a warehouse which is not bonded, meaning a customer can go straight to the warehouse, pay for it and drive it away.
We opened our fifth branch in August 1998. It is our Repo Branch. Repos from all the branches and head office go to this branch, located at Shortwood Road. We move an average of about 30 cars per month from this branch.
In May 1999, Mack D's signed a contract with Boulevard Motors, making it an agency selling cars only from Mack D's at a commission. In the first two years, the agency sold over 1,200 vehicles, compared to less than 100 per year previously. With this astounding success, we felt it necessary to purchase Boulevard Motors. This we did in October 2001. We are presently refurbishing that branch. We are setting it up to be one of the classiest used-car centres anywhere in Jamaica. Top of the line vehicles will be a major feature at Boulevard Motors, as we move to broaden the range of vehicles sold throughout the company.
BH: What makes Solomon McDaniel tick? What drives you as an individual?
SM: The ability to help people. That makes me tick more than money. At this point I have no dreams, but pure inspiration. All my dreams have been fulfilled. My inspiration is to continue to help people.
BH: What is the secret of your success?
SM: The ability to see beyond what most people can't see. The vision that I have, and the ability to capitalise on that vision. When the Mack D's Slogan "Gone Crazy, Gone Mad" was unveiled, many people thought that I had gone crazy, but it has become a reality. I am a thinker and a doer. I don't procrastinate. My success has to do with my love for people. For example, I treat my staff very well. I have over 200 staff and I treat everybody equally. The best thing that can happen to my staff is to want to get out of bed in the morning and come to work. I go to the extra mile for them.
BH: Who has been the greatest influence in your success?
SM: The Governor-General of Jamaica, Sir Howard Cooke. He is my godfather... he is so proud of me... he groomed me. My father died when I was 10 years old. Sir Howard groomed me, guided me. Whenever I want spiritual guidance and a morale booster, I would go to Kings House to talk to him. He is my greatest motivator. He is my coach, my cheerleader.
BH: What frustrates you most about your job?
SM: (Smiling) Bureaucratic red tape... and we all know what that means.
BH: Is there an underlying philosophy that guides your activities as CEO?
SM: Helping people, keeping my staff happy, and keeping kids in school.
BH: Where does your strong work ethic come from?
SM: From Wall Street... my association with Wall Street over the years. I was a trader on Wall Street for some years. It gave me the drive to weather storms. It was a lot of pressure working on Wall Street.
BH: What social issues are of foremost concern to you?
SM: Crime is the major issue. It's a big barrier. I could do a lot more if it weren't for crime. I am an investor and I have investments here and abroad, but this is where I stay to manage my investments. There are lots of things I would like to do if it weren't for crime. Enough is not being done in the education arena, especially in the area of early childhood education. I believe that it should be made compulsory. Knowledge is power. We need to penalise parents who do not send their children to school. The growth of this country will be dependent on education. Mack D's is doing its part. Illiteracy has a lot to do with the crime.
BH: What are customers really looking for when they choose one car dealer over another?
SM: Most definitely service. I will never sell a car on cost. It's all service. I have so many customers who come to Mack D's to buy cars when they could get cars cheaper elsewhere. They come to us because of the service. We honour our warranty obligations.
BH: Do you enjoy the competition?
SM: I have no competition!
BH: What changes do you feel are needed in the industry in order to ensure its success?
SM: The amount of Govern-ment departments you have to deal with to bring cars in this country. I would like to see the Trade Board give used-car dealers a blanket licence... one licence to cover all the vehicles you want to bring in. Right now, we have to get an individual licence for every single vehicle. We need to cut down on the paper.
BH: What will the industry look like in the future? Will there be fewer players?
SM: There will be fewer players. At this point our mark-up on the sale of a vehicle is so low that if a dealer is not doing his own in-house financing then it will go bankrupt. Three years ago we had 112 used-car dealers; now it's less than 60. My prediction is that over the next three years we will have less than 30 dealers. There will be more mergers.
Part of our future plans is to acquire more dealerships. We also plan to invest heavily in Government securities and in cambios. We have plans to open a Mack D's merchant bank. Other plans include a branch of Boulevard Motors in the west, and Mack D's branches in Montego Bay, Sav-la-Mar and Ocho Rios.
BH: Do you think that a company has a responsibility to the community in which it does business?
SM: Most definitely, not only in the community, but the entire country. We at Mack D's take this very seriously. We support youth clubs, football clubs, community-based clubs. We hold a gospel concert in Porus once a year. All the proceeds from this concert go to one of my favourite charities - the schools in that community. We have adopted Trinity district near Porus. I was born in Trinity. We treat the children to back-to-school uniforms and books. On the last Saturday in August we do the give outs. The Church of the Living God monitors the funds donated by me to provide school lunches for school children in Porus and its environs. This means that no child should have to stay away from school because of lack of lunch. We also do a lot of things for the Nannyville and Swallowfield communities where Mack D's head office is located. Mack D's is a company that gives. We give a minimum of $10 million a year to charitable activities in Jamaica.
BH: Every leader's biggest problem is time... there isn't enough of it. How do you best manage time?
SM: It is easier for me to manage stress than time.
BH: How do you manage stress, then?
SM: I run away from it. Over the years I have found a formula that works for me. I work hard for three weeks and then take a week off. When I get back I am so rejuvenated that I get more work done.
BH: What advice would you give young people today who want to be successful business executives?
SM: Study hard, go to school, don't listen to anyone who say you can't do it. Stay focused and you can be like Solomon McDaniel.
BH: Your employees have the greatest respect for you. How so?
SM: I treat them well. I pay them very well. Any employee at Mack D's who wants to do a course, any course, is given 50 per cent of the tuition fees. After a year with us, an employee gets an interest-free car loan. They get two meals a day, medical benefits, uniforms, and an annual bonus. They have their own playing field and a sports club. Training is critical and they get lots of that, and they get weekends to Sandals properties throughout Jamaica. Employees are given the opportunity to see me at anytime. In some companies, management isolates itself from their employees, it is not so at Mack D's. My employees are my co-workers. We work for the same company.
BH: I know you spend a lot of money training your staff. What benefits (if any) are you reaping from this investment?
SM: I am reaping the benefits of customer satisfaction. Satisfied Mack D's customers refer other people to us and we are reaping the benefits of those referrals through increased sales. My staff is more aware of the importance of good customer service delivery to the company, to the customer, to them. All of these benefits offset the cost of training.
BH: What are the strengths underlying Mack D's success?
SM: My vision, the quality of the staff, customer satisfaction, the confidence of the general public and the integrity and good name of the company.
BH: Five years from now, what differences do you think we will see at Mack D's?
SM: A Mack D's Tower in New Kingston... between six to eight floors. To have a minimum of 10 separate companies under the group. No less than 14 branches of the used-car division of the group... one in each parish.
BH: Does money motivate you?
SM: At this point in my life, my biggest motivator is seeing people smile because of what my company has done for them... the police; the civil servants who have never dreamed of owning a car; the little man who can now own a car. The pleasure I get from this, money can never give me that. I also feel happy giving. Normally the people receiving are the happy ones. I am so happy that I am successful so that I can help others to live.
BH: At 37, you are young. You have accomplished a great deal as CEO of Mack D's. What do you dream of leaving behind you when you eventually retire?
SM: An empire that continues to serve this nation better than any other private sector company. I pray that my children will be able to carry out the tradition that I started.
Dr. Ben Henry is Group Director of Human Resources Development and Training at Sandals and Beaches Resorts.
