Archive for February 2017

Stay Out Of The Tank

Many of us in the automobile business talk about aged units. For most people an aged unit is one that’s over 60 days old. Some of the more forward thinkers cut it off at 45 days. If you’re one of them, count me as a raving fan of yours.

In my workshops I often talk about aging out. Aging out is a term you should start to include in your thinking tool box.

Aging out happens at about the 30 day mark. In other words the unit is starting to age out because it has seen its most profitable days go by.

For those of you using my 30/30 spreadsheets you know there’s a substantial difference in gross profit in the first 30 days compared to the last 30 days.

Units that are aging out deserve your utmost attention in order to prevent them from aging. Once they have aged it’s too late to do anything except watch your average gross profit go in the tank.

Pay attention to “aging out.” Stay out of the tank. That’s all I’m gonna say, Tommy Gibbs

They Slammed The Door On Me

Back in 2004, I was scrambling to change planes at DFW airport in Dallas, TX. Through no fault of my own, my incoming flight was delayed which caused me to run to the next gate like a madman. When I finally got to the gate they had just closed the door and refused to open it.

The real reason they didn’t want to open the door is they had already given my seat away and the plane was full. I cannot tell you the hopeless feeling I had standing there looking at the plane and then watching it pull away from the gate. Tears of hopelessness were running down my face. Ok, I wasn’t actually crying, but I felt like it.

That’s how you’re going to feel if you keep letting “Legacy Thinking” win at your dealership or business. “Legacy Thinking” is about viewing the present and the future through thoughts from the past.

I returned from the NADA convention a few weeks ago and I’ve finally had time to decompress all the information and conversations about technology and the changes taking place in the industry.

It has become clearly evident that a few are getting on the plane and many are being left at the gate.

Defeating legacy thinking is uncomfortable. It’s easy to look the other way and get locked into the past. The past is comfortable because it’s what we know and it has served us well. Stepping outside of what we know can be scary.

Being a little scared in the moment is going to be far better than being left at the gate. That’s all I’m gonna say, Tommy Gibbs

Are You Doing It Backwards?

Try sorting your used car inventory by cost or investment with your most expensive units at the top of the page. Print it out. Now sort your used car inventory by age. Print it out.

Compare the two pages. The odds are pretty good that a lot of your aged units are also listed on the top of the page you sorted by cost or investment.

You should be looking at and analyzing this list every day.

With a few exceptions, you should be pricing your most expensive units under the market and on the most problematic ones you should consider paying bonus money on them, regardless of the number of days in stock.

Sometimes we do things in this business bassackwards. When units start to age on us we sell it for little or no gross and pay the sales person a $500 bonus to make it go away.

In many cases you would be better off to price them tight to the market and pay a bonus on them on day 1 rather than day 61.

That’s all I’m gonna say, Tommy Gibbs

Which Do You Pick?

Did you watch the Super Bowl on Sunday, February 5, 2017 between the New England Patriots and the Atlanta Falcons? Even if you didn’t watch it, for sure you’ve heard about it by now.

If you watched it on TV did you see the look of desperation in the eyes of the Atlanta players and coaches late in the 4ith quarter and during the overtime?

Did they look confused? Did they look lost? Did they look like a team headed for the wrong side of the biggest comeback in sports history?

The winner and loser of this game wasn’t based on any one play, one penalty, one catch, one fumble, one interception, one sack or one call from the coaches’ box.

It was based on preparation, experience, and a bunch of little plays along the way.

Your used car business is the same deal. Dealers and managers often have that look of desperation on their faces when they haven’t prepared well, don’t have the right experience and miss a bunch of little things on their way toward age inventory, wholesale losses and low grosses.

You have to decide if the pain of preparation and doing the little things every day, is better than the pain of regret that you will have by not doing so. Winning and losing is based on a lot of little things.

You get to pick. That’s all I’m gonna say, Tommy Gibbs

Is Now The Time?

Top 10 Reasons You Should Schedule
a Workshop With Me:

1. You’ve had evaporation. Regardless of how good you are or how well disciplined you are, there’s going to be an evaporation of processes over a period of time. Bam! I can fix that!

2. You’ve had some turnover. Most people do. Turnover isn’t a sin. What’s a sin is not ensuring that the new guys and gals get it. If you don’t give them the right tools, they don’t have a chance. Bam! I can fix that!

3. The business is changing. Your team needs to understand the changes taking place and how to attack them. Bam! I can fix that!

4. Your team has gotten a little complacent, either because business has been pretty darn good or they have accepted
the status quo. They need to be re-energized and see the possibilities. Bam! I can fix that!

5. Your average grosses continue to decline. Mostly they decline because someone’s not paying attention to the little things. Bam! I can fix that!

6. You have aged inventory and wholesale losses. Aged inventory helps create #5. Aged inventory causes wholesale losses. Bam! I can fix that!

7. You have a team that struggles to get on the same page. You have old school thinking. You have new school thinking. You have no thinking. Bam! I can fix that!

8. The number of days it takes to get a car online and on the line is killing you. Bam! I can fix that!

9. You’re sick and tired of listening to the bickering, excuses and lack of forward movement. Bam! I can fix that!

10. You need a coach. You need someone to lean on. You need another set of eyes on the subject. Bam! I can fix that!

A quote worth remembering: “The purpose of training is to tighten up the slack, toughen the body, and polish the spirit.” Morihei Ueshiba

Is now the time? That’s all I’m gonna ask, Tommy Gibbs