Learn How Daniel Schmitt’s Passion For Classic Cars Turned Into A Global Business
by Steve Turner
Daniel Schmitt’s entrepreneurial story is a true “classic”.
The owner of Daniel Schmitt & Co Classic Car Gallery, Schmitt built what is now a $30 million business from scratch.
The company, located on North Lindbergh Blvd. in Bridgeton, MO, has clients worldwide.
Exquisite automobiles are part of Schmitt’s DNA.
In fact, he grew up in the business.
His father, Charles Schmitt, ran a dealership in St. Louis and Beverly Hills, CA. He sold Rolls-Royce and other high-end vehicles, many of which were sold to celebrities.
The young Schmitt tried to work in the family business but his relationship with his dad became a bit too bumpy.
“It dates back to the early 1970s. I was in fifth grade and wanted a minibike, but my dad didn’t want to just hand over the money.”
“It was around $375. He said work 37 Saturdays in a row for me and I’ll give you the money.”
Daniel worked some odd jobs in the detail department. He eventually got the money and the minibike. It inspired him to take some initiative on his own, a good lesson learned for the future.
Fast forward a few years to the 1980s. His education now behind him, Daniel worked full-time in his father’s business.
He was involved in the backend, serving on the mechanical side of the company.
“I learned a lot about various automobiles and how they function. Unfortunately, my dad and I weren’t on the best of terms.”
Schmitt was soon fired by his father.
“There was a lot of tension. Family business can be tough. We never got on the same page.”
Daniel loved cars and wanted to stay in the business. Only this time, be his own boss.
“I had the entrepreneur’s spirit. I needed to get out from my father’s shadow and do something on my own.”
In 1989 he launched Daniel Schmitt & Co selling a variety of classic cars.
“The demand for those vehicles was booming and I wanted to be part of it.”
A major issue, though, was the cost of office space.
Like most entrepreneurs launching their first company, he was cash-strapped and needed money for rent.
“I secured around $10,000, a nice amount of money at that time. But the landlord wanted a two-month deposit and then there was insurance. Hardly anything left for operations.”
The lack of funds caused Schmitt some sleepless nights.
“It was coming down to the wire and the money was just about gone.
Fortunately, I was able to work a deal on several consignment cars and keep the doors open.”
Four months later he secured a line of credit and his business was in full gear.
Still there were challenges.
“Think the late 80s and 90s. There was no Internet or eBay. Cars were bought and sold slowly through ads in magazines. You had to wait for them to publish. It had a big impact on our cash flow.”
“Today cars can be speedily displayed online and sold quickly.”
In 1994 Schmitt moved the company across the street. It included a larger showroom to display vehicles as well as office space.
As business grew, he purchased two more buildings. Later he would purchase two more.
While several dealers sell classic cars in St. Louis and nationwide, Schmitt says several factors have contributed to the company’s dynamic growth.
One was the decision to sell high-end foreign automobiles as well as American.
“Some dealers are just focused on vehicles made in the US. Adding Ferraris,
Jaguars, Porsches, Rolls-Royce and rare automobiles to the inventory, with a focus on high-end investment grade cars, elevated the company in the eyes of potential buyers and helped us build an international clientele.”
Another differentiator is Schmitt pays cash for vehicles rather than consign them.
“Many businesses will take a car on consignment hoping it sells quickly. The idea is to make a fast commission and provide a return for the owner.
Unfortunately, some cars take months to sell, many even go down in value.”
“We offered to pay them fair value for their vehicle now.”
Growth and profitability were also boosted when Schmitt received his pilot’s license.
“Most classics are bought at car auctions. At the time I was paying someone to attend each event, pay for air travel, hotel and receive a commission on purchases. As we started growing and buying more cars it became expensive.”
“Owning my own plane enabled me to fly directly to the site, inspect them, buy them, and fly home the same day. A real cost savings.”
Over time he has upgraded his planes and now flies a 2023 type Vision jet.
Schmitt employs a team of 16. An inventory on a typical day includes 100 vehicles, many are rare or one-of-a-kind automobiles, and must check all the boxes for authenticity, appearance, and condition.
A team of mechanics and specialists details and updates each vehicle to make them showroom ready.
Schmitt utilizes online ads in targeted publications, the company website and a newsletter that reaches thousands of current and potential customers to help sell his cars.
Buyers include business owners, doctors, entrepreneurs, and high-end individuals. Some are celebrities. Vehicles can range in price from about $50,000 to over $1 million.
Some notable purchasers include Drew Barrymore, Brian Bell from the rock group Weezer, and a member of the Kardashian family.
Schmitt has sold many cars owned by celebrities and even used in movies. He secured a Mercedes driven and used by Madonna, purchased for her by Sean Penn and used in a music video. He purchased a Stutz Bearcat driven by Elvis, and one owned by Tom Cruise and Nicole Kidman.
In Beverly Hills, Schmitt’s father sold many vehicles to what was then the Hollywood A-list. Daniel Schmitt reacquired and sold several, and even penned a photo enriched book about their celebrity dealings in Cars of Stars. Originally published in 2017 a revised edition is due out this summer.
Schmitt has steered company growth by consistently finding the right automobile for each demanding client. Many buyers are repeat customers. Several have bought 10-20 cars, one has purchased 54 vehicles in the last five years.
He advises other would-be entrepreneurs to follow their dreams and trust their knowledge.
“Have faith and believe in yourself. Do your homework and trust your gut. Don’t be afraid to make tough decisions or take a risk when necessary.”
As for the future, Schmitt doesn’t envision the market for classic vehicles to hit the brakes anytime soon.
“Research indicates the value of these cars has appreciated faster than the growth of the S&P 500. Buyers realize the right car is a great long-term investment. Our clients have the resources to purchase any automobile provided it’s the right car and at the right price. I don’t see that changing.”
Steve Turner is a Principal of Solomon Turner PR in St. Louis, a graduate of the University of Missouri-Columbia, and journalist specializing in the writing of memoirs, nonfiction books and feature articles. Steve can be contacted at https://solomontur