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Black in Business: Black-Owned Exotic Car Dealership Predicts Revenues To Exceed $2 Million By 2021

Posted by Abeiku Ebo on

Black in Business: Black-Owned Exotic Car Dealership Predicts Revenues To Exceed $2 Million By 2021

The dire blow of COVID-19 — causing over 40% of Black-owned businesses to close this year — has not blocked Omar McGee from expanding his luxury car dealership in Los Angeles. In fact, McGee is proceeding with fresh bold strategic moves that include building up clientele, expanding into new business via partnerships, and positioning his company for future revenue growth.

The CEO of Posh Luxury Imports, McGee runs the only Black-owned exotic vehicle sales and rental dealership in the nation’s second-largest city. It offers everything from Honda Accord to Rolls Royce. Vehicle prices run from $30,000 to $330,000 and sometimes higher.

Yet, keeping his enterprise running has not been easy. McGee was forced to apply some creativity and business acumen in March 2020 after scheduling the grand opening of a new $700,000 showroom with many L.A. celebrities, athletes, and influencers committed to attend. McGee had to cancel the gathering as the pandemic spread and Los Angeles was abruptly shut down on the day of the event.

Driven to get a return on his investment, McGee developed a plan to sell cars amid the crisis. Leveraging a strong clientele of medical professionals and corporate workers, he informed them he was still open and explained why they might need his services.

He found a niche in demonstrating to his core clientele that, includes doctors, celebrities, athletes, and other high-income individuals, why now is an ideal time to buy their next luxury vehicle despite the pandemic. That move allowed those customers to transition from renting vehicles from Posh to making an additional purchase of its luxury vehicles. That pivot not only uplifted the exotic sales business to the forefront temporarily, it also provided an opportunity for the dealership’s core exotic rental business to endure and even expand amid the crisis.

The moves paid off, allowing McGee to realize a 30% increase in sales largely from new and existing clients during the crisis.

Another game-changer came this summer. Meeting a new customer need and demand, McGee in July 2020 formed a strategic partnership with Amalfi Jets, providing exotic vehicles to the private jet company’s clients landing in Los Angeles.

He says the jet deal will boost car rentals, not necessarily the sales. “The exotic car rental and jets will be a package offering.” For all the jet clients that fly into LA, the exotic vehicles will be waiting for them at the hangar as they leave their jet, he says.

Plus, McGee this year captured other significant partnerships. They included deals with LA Lounge, a high-income, members-only cigar lounge, and Gauntlet Private Investments, a real estate private equity firm.

McGee is reaching out to others for potential partnerships. They include record companies, liquor brands, sports brands, jet rental companies, hotel chains. boutique properties, and general concierge services. He noted that many of these potential conversations and deals are in the works.

“I have been able to flourish as a result of the strategic business moves, we’ve consistently made in the face of the global crisis,” McGee says.

Still, he is uncertain how much the new expanded moves will contribute to the bottom line. He says while 2019 revenue was 60% higher than in 2018, 2020 was a rough year though there were a lot of successes. He says revenue for this year will not be known until next year.

“We are just grateful to not only be open and surviving but thriving!” McGee says. “Whatever number that looks like, we are grateful.”

A seasoned entrepreneur and financial literacy advocate, McGee learned the business from his father who owned an auto body collision shop in Flint, Michigan. Omar McGee became his own boss in 2017 when he launched Posh Luxury Imports. His regular customers include actors, actresses, athletes and other celeb and VIP clients. He offers them luxury car rentals as well as concierge services among his offerings.

Further, McGee counts his wife, Teresa, as a credit to his success. “I enjoy running new strategies by her before I launch them and she always shares her honest opinions about my creative offerings and ideas.”

Now, Omar McGee wants to take Posh Luxury Imports to another level. And McGee is confident his business is well equipped for future growth. He projects sales and rentals will top $2 million for 2021. He expects the revenue to come from his exotic rental business exploding once the pandemic is lifted and LA opens back up. He expects to pick up new business from rivals who unfortunately failed during the crisis. He expects other revenue contributions from such as the jet business. tourism and award shows.

 


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