"In the car business, the focus has to be on repeat business," he said. "And repeat business only happens if you've got customers who are not just satisfied, but will enthusiastically recommend you to someone else."
Mr Farmer was born and raised in Wellington and got his first taste of the motor trade when he joined the Todd Corporation as an executive cadet after leaving Wellington Boys' College.
It was a comprehensive training scheme involving engagement across a range of the Todd Corperation operations, which included oil and aviation as well as vehicle assembly and sales. He got an opportunity to spend a year with Chrysler UK in 1967, where he met his wife Dianne, before returning and becoming involved in the marketing and public relations side of the business.
By his late 20s he was public affairs manager for Todd Corporation, then became more focused on the motor side of the business as Japanese franchises began to expand their operations in New Zealand. He moved to Auckland to become manager for the marketing side of Todd's Nissan operations in New Zealand.
But after a year he joined forces with another notable figure in the car business, Sir Colin Giltrap, forming a 50-50 joint venture to create the Manukau City dealerships for Toyota, Nissan and Mazda. He worked with Sir Colin for five years, before deciding to relocate to Tauranga, where his parents had been based for many decades.
Now known as Farmer Autovillage, the Farmer Motor Group initially traded as Bay Nissan, adding other franchises as it expanded.
Mr Farmer's son, Michael, joined the business 12 years ago, after a career in finance and, after working his way through the various divisions, assumed the role of managing director nine years ago when his father turned 60. Michael now holds a 50 per cent share of the business under a buyout succession plan.
Peter Farmer and his wife own the land, which has been a key element in the group's growth. After acquiring the business in 1991, Mr Farmer expanded to sites along Cameron Rd over the next decade. Meanwhile, he gradually acquired eight different titles to expand the initial location on the corner of Elizabeth St, creating a prime city block.
In 2006 the decision was made to invest $13 million in relocating and centralising all of the group's operations in Hewlett Rd. The Elizabeth St site was sold, initially to an Auckland developer, but subsequently to another group of largely Tauranga investors which developed the new office block on the corner, with ANZ taking the naming rights and the Elizabeth Cafe taking up the ground floor. "We opened the doors in Hewletts Rd in 2008 and that was about the stage the financial world was collapsing," he said.
"But the timing was probably right in that we sold the land in town, and that allowed the city to develop a massive building there."
Starting out with 12 staff 24 years ago, the business now employs close to 100, selling more than 2000 new and used vehicles every year, with 200 sold in March alone.
Mr Farmer said the Hewletts Rd site and buildings had been designed so they could host community and fundraising events, which are held every two months at no cost.
Gary Dawson, chief executive of Bay Venues, who has worked with Mr Farmer in his role as chairman of the council-controlled organisation, described Mr Farmer as incredibly passionate about Tauranga as a city and its future.
"His leadership as chairman of Bay Venues has been outstanding, going through the whole amalgamation process, from a whole governance point of view setting us on the right track to go forward," said Mr Dawson. "And he's a very astute businessman.
"He brings that business acumen to all the activities he's involved in."
Tight rein on system
The car business requires a massive investment in bricks and mortar as well as in stock, posing specific challenges, says Peter Farmer.
"We, and the bank, own all the stock. We're talking about quite large amounts of money. We have to buy the new stock before they leave the factory."
He said one of the lessons he learned from working with Colin Giltrap during the 1980s was the importance of tight financial controls and systems, as well as inventory management.
"One of the hallmarks of our business is we have very tight admin systems and controls so that it's relatively stress-free to operate the divisions."
Selling cars was not rocket science. "We tell our salesmen to sell themselves first," he said.
"Fundamentally they are there to earn the customer's trust. Then sell the business. Then get to the product. Listen to what the customer wants and not what you think you'd like to sell them. The answer to every question should always be yes."
Subsequent sales were much more relevant than the first one, he added.
"We hope the customer will entrust us with selling cars to his wider family and friends. It's particularly important in a city like Tauranga, which is a word-of-mouth town."
Devoting time to boosting Tauranga
Since stepping down from day-to-day involvement in the car business, Peter Farmer has increased a career-long commitment to a range of community and business activities.
His roles include serving as chairman and director of Bay Venues, as a trustee, board member and deputy chairman of the Waipuna Hospice, a founder and trustee of the Compass Community Trust that runs the Historic Village, a founder and life member of Priority One, a founder and trustee of the Acorn Foundation, and as a trustee of Riding for the Disabled.
He and his wife were the primary initiators and funders of the civic flagpole at the Elizabeth St roundabout, and also organised the Gate Pa anniversary flagpole. Mr Farmer served on the first board for the Bay of Plenty branch of the Institute of Directors, and has just stepped down as a director of the Motor Trade Association. He remains a director and chairman of Bay Venues.
"He's invested a huge amount of his time, energy and investment into making Tauranga a better city," said Bay Venues chief executive Gary Dawson.
Mr Farmer said he was as proud of the community projects he had been involved in as he was of the success of the motor business.
He and his wife have two children, Michael, who now runs Farmer Motor Group, and Stephanie.
They have been holidaying at a house in Taupo for decades and have a boat there for occasional trout fishing. They recently sold a 5.5ha avocado orchard so he could free up more time for other activities.
And, fittingly for a man in the motor trade, Mr Farmer is a petrol head. His cars include a classic 1973 Chrysler Valiant 360 V8 and a 12-cylinder Bentley. His wife has an Audi SUV. "But these days, I mostly drive an all-electric Nissan LEAF," he said.
Peter Farmer
Role - Founder and chairman Farmer Motor Group, chairman Bay Venues
Born - Wellington, New Zealand
Age - 69
First job - Executive cadet
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