If you have half-a-brain, and I know you do because you read my material, you know most ideas are not all that original. The vast majority of what you read and learn are either a re-work, re-stated or borrowed from someone else. I’ve probably had 10 original ideas in my lifetime and that may be a stretch.

The older I get the more I enjoy learning. I’ve decided the next time someone asks me what I do for a living I’m going to telling them "I learn." That’s what I really do. I’m always trying to learn something. My brain is constantly reviewing information either through reading, communicating with others, observing, or from wherever information comes from, into my mental hard drive. I have a fear of being left behind and I don’t like the view from the rear.

I’m going to be discussing and commenting on what’s commonly known as the "Four Stages Of Learning" plus two others that I know you have never heard of because I made them up. I don’t know where the first four originated, I just know I stole them. All six stages of learning apply regardless of the application. They can be applied in sports, business, social activities, and life in general.

1. Unconscious incompetence-The individual does not understand or know how to do something and does not necessarily recognize the deficit. The individual must recognize their own incompetence, and the value of the new skill, before moving on to the next stage. The length of time an individual spends in this stage depends on the strength of the stimulus to learn. The more time they are willing to spend learning the skill or activity the faster they move to the next stage. Example: You decide to take up golf so you go out to the driving range, whack at a few balls. 1 out of 10 you make great contact, but you have no clue what you’re doing. You know you love the feeling and you know you want some more of it so you keep returning to the driving range and/or play a few rounds of awful golf.

2. Conscious incompetence-Though the individual does not understand or know how to do something, he or she does recognize the deficit, as well as the value of a new skill in addressing the deficit. The making of mistakes can be integral to the learning process at this stage. Example: After going to the driving range for a while and playing a few rounds you begin taking lessons with a golf pro and quickly realize how little you know. You observe others either at the golf course or on video, etc. and the realization of how much there is to this game starts to sink in.

3. Conscious competence-The individual understands or knows how to do something. However, demonstrating the skill or knowledge requires concentration. It may be broken down into steps, and there is heavy conscious involvement in executing the new skill. Example: More golf lesson, more golf rounds played and you are starting to understand the integral parts of the swing. You haven’t mastered the swing yet, but you are starting to strike the ball more consistently especially when you think it through. It’s not automatic, but your skills are improving as your knowledge starts to grow. This can be the most frustrating stage of the first four. You still have to think about it. When you do your results are much better and when you don’t you want to throw your clubs in the lake.

4. Unconscious competence-The individual has had so much practice with a skill that it has become "second nature." and can be performed easily. The individual may be able to teach it to others, depending upon how and when it was learned. Example: You’ve now repeated your golf swing enough times, played enough rounds, attempted enough different types of shots that you can break par or better and have reached a very competitive level. You no longer have to think about the elements of your swing, you just do it. The physical and mental muscle memory is locked in.

5. Competent Incompetence-is the most dangerous of the six. It’s when you have years of experience, know your stuff and have become convinced you have nothing else to learn. Your success has convinced you that you are "the man," (or woman) and you are done learning. Seeking more knowledge is the last thing on your mind. What got you to where you are today is what you think is going to keep you where you are and beyond.

6. Learning to be competent-this stage never stops. It’s a life long journey that keeps life interesting and challenging. You know that learning is a journey, not a destination. (That would be you and I.)

The most successful people at any skill, business or activity are the ones who continue to do two things:

1. They keep going back to the basics
2. They continue searching for answers even when they think they already have many of them.

What stage are you in? I’m in the "Learning To Be Competent" stage and I hope it never ends. That’s all I’m gonna say, Tommy Gibbs

I was having a conversation the other day with my former Controller who is now selling cars at a dealership in South Florida. Within the last year, she relocated and wasn’t able to find a controller’s job, so she decided to go into auto sales. The conversation was concerning how to sell more cars and make more money.

Let me share with you some personal history. When I first started selling cars in the early ’70s I, and many of my co-workers, worked 12 hours a day, 6 days a week. (Dealerships were closed on Sundays back in those days.)

For those of us who were successful, that is what we did. For the most part that never changed in my entire dealership days, as a sales person, manager or dealer. I like working so it was never a big deal to me.

In 1980 I became a partner in my first dealership with my good friend, mentor and long time business partner Ashton Lewis from Chesapeake, VA. At that time Ashton owned Bill Lewis Chevrolet in Portsmouth, VA. Our partnership started with Parkway Pontiac-Volvo in Chesapeake, VA.

A couple of years prior to that I left the retail automobile business to work for ADR, an F&I training company out of Raleigh, NC becoming Vice-President of Sales. At that time we had over 850 dealers in 7 southeastern states. To put things in perspective, one of the current, larger F&I companies is JM&A, part of Southeast Toyota. They weren’t even a factor in the F&I business in those days. It was Pat Ryan and ADR and that was about it. It was during that time I got some great exposure to many ways of doing business.
                           
When Ashton and I opened Parkway Pontiac-Volvo in 1980 I was determined to change the business by focusing on the training and development of people. We opened an off-site training center for the express purpose of recruiting and training a different breed of sales person. We had two fulltime trainers/recruiters and a very nice training center with closed circuit TV for role playing, etc.

We primarily recruited college graduates on the pretense that they were entering into a management training program. Our training program not only consisted of spending two weeks in the classroom and ongoing training, but also included a rotation through the various departments in order for them to become familiar with all aspects of the operation.

I was very demanding about a dress code. Somewhere along the way I had read the book "Dress For Success," and I was totally sold (and I still am) on a dark suit and a long sleeved white shirt. I think someone spending $20,000 to $30,000 with you is deserving of that sort of respect. Will it sell more cars for you? Probably not. Will you perform better if you look the part? Absolutely.

So here’s the point, back in 1980 we were trying to solve the recruiting and hiring problem and to this day it’s not changed very much at all.

If a new sales person is going to earn a living they need to work bell to bell, period. If they work bell to bell, they can earn a decent living, but they lose their family and social life because they don’t have the time and energy. If they work only their shift they eventually quit or lose their job because they aren’t earning any money.

According to a survey from the National Association of Colleges and Employers, students who will graduate this spring are receiving job offers with starting salaries averaging $50,034 per year, up 3.5% from last year.

Keep in mind that is an average, some higher some lower, but it’s the average. Go look at your records. Of the sales people who worked a full year last year what was their average? Now realize the average you are looking at includes some who have been with you for many, many years. I’m thinking even with that, your average may be well below a first year worker with a college degree?

I shudder to think what your numbers might look like if you pulled out those sales people who have been with you for more than 12 months and did your calculation on just the ones with only one year of experience.

So, we are right where we started back in the early 80’s. Unless a new sales person works a ton of hours they cannot make any money. And, if they work the hours, make money, they don’t have a life. After all these years we still have not been able to solve the two biggest problems. Hours and money.

Another issue the industry is facing is that we are still trying to hire people with skills that do not fit today’s buyer. Today’s buyer and today’s seller are the same people. Think on that one for a minute.

With the Internet and the amount of online selling that continues to grow we have to think differently about the type of people we hire, the skill sets, the type of selling processes we utilize, the hours we require them to work and the way we compensate them.

So back to the conversation with my former Controller who is now selling cars. Here’s what I told her: "You will never be successful, and you will never make any real money working your shift. If you are not willing to pay the price you are wasting your time." It’s the same conversation I would have had with her some 30 years ago. Just plain sad. That’s all I’m gonna say, Tommy Gibbs

Before I get into today’s subject matter I want to clear up a couple of questions I’m frequently asked. Oddly enough those asking the questions are often people I know really well.

First, I’m often asked do I write the newsletters or does someone do it for me? Really? Of course I write it. If you know my personality, you know I write just like I talk.

One of the things it’s important to keep in mind is if I’m not doing a workshop, coaching a client, speaking at a 20 group meeting or convention my mind is very much focused on two things:

1. How to help you sell more new & used cars & trucks.
2. How to develop better leadership skills for the industry I so love.

Most of my ideas and things I write about come from observations in
dealerships, coaching conversations I have with many of you and from things I see and read. Something will happen in my travels and my brain goes, "ahh, good idea for a Zinger."

The second question that frequently comes up is why do I give out so much free information? The truth of the matter is I’m just trying to remain relevant in this fast paced ever changing auto world. If not for keeping score and the love of money, I would do it all for free.

A lot of what I share with you is a reminder to help keep you focused on what’s important. I know from personal experience how the "evaporation factor" wants to take over your store. One of the things I do in my workshop is I give dealers a lot of information fully realizing they can’t or won’t do it all. What’s really important is to grab 3 or 4 solid ideas and work ’em hard for the next 90 days. Then find and work on 3 or 4 more and work on them without losing the momentum on the first ones.

Keep in mind, you reading these is nowhere near as good as me presenting them in person to your team. My enthusiasm and passion is like drinking a case of red bull. 

11 Things I Shouldn’t Share With You For Free

1. Study The Data– Be a student of the game. Use Auto Count’s Reports each month to confirm what’s selling and what’s not. Use vAuto’s stocking tool to determine the fastest moving units to stock. Combine those reports with Auto Trader’s reports and you will have a competitive edge. Make sure you keep these lists at the tower/desk so when one comes to the door to be appraised you step up and make a deal on a car that you are going to be able to retail in short order. The more units you step up on the more cars you sell at retail.

2. Press Your Cost Down-This is probably the simplest and most effective thing you can do to improve your business. Know what your average cost per unit is every day and do what you can to reduce it. If you are at $15,000 today, do what you can to get it to $14,500 and so on.  There is no magical number. It’s about keeping the less expensive units and making sure the more expensive ones turn fast. 

3. Know Your ROI-Every deal should be tracked for ROI. As you are working a deal you not only need to know how much gross you have, but what the ROI is. Go to FixROI.com and plug in three numbers. Your cost, your gross, and the number of days the unit has been in stock. Bingo, you have your ROI. Shoot for 110 to 120 ROI. By knowing your ROI you will know what’s working and what’s not. 

4. Attack the 10 Most Expensive Units in Stock-Make a list each day of your 10 most expensive units in stock. With one exception make sure they are priced really, really right. The one exception is if you know you always make money on a unit that’s on the list then use some common sense, don’t give it away. Consider putting bonus money on those 10 units regardless of the number of days they have been in stock. Sooner rather than later. Most dealers bonus their sales staff when the units have aged. Do it early, you will be much better off. Lastly, make sure the service manager gets that list each day and if one of those units happens to be in the service department the service manager has to understand they must get it out of the shop in a hurry because it’s one of your 10 most expensive units. You have lots and lots at risk with these units.  

5. Life Cycle Management-Read this statement then read it again. There is nothing, absolutely nothing you can do that will improve all aspects of your used car business more than understanding my process of "Life Cycle Management." Think Fast, Be Fast-You are working with a depreciating asset. Everything, including decisions on what to keep and not keep has to be done fast. Pull the trigger quickly on units that you are suspicious about. Don’t hang on to them hoping and wishing something good is going to happen. Early losses are far better than late losses. If you are paying attention and recognizing problem units early in the life cycle then you will have a lot less need to lose money on them at 45 or 60 days. There are certain "Trigger Points" you need to focus on during your daily "Trade Walk." Knowing how to use EWR (Early Warning Radar) pays big dividends.

6. Lot Walk-Nothing new here. If you do a lot walk once a week with all the members of your sales and management team then without a doubt you will sell more units. And, you’re going to see a lot of things you’re not going to like. Do you remember doing "Phone POPS?" You know, it’s the deal where they place mystery phone calls to your sales department then play the results back to you. They are never, never, never very good. Makes you just want to scream. So, initially you will have the same feeling when you do the lot walk. But, the bottom-line on the lot walk is it gets your entire team to know and understand your used car inventory. The more knowledge they have the more they sell. 

7. Daily Inventory Pricing-The market changes every day and so should your pricing. Sometimes you can ask more, sometimes you can ask less. You cannot and will not achieve maximum results by changing prices every 10 to 20 days. Pricing takes intense management. It’s not something you do when you get around to it. You would be far better off if someone priced the car who is not in charge of appraising and buying them. 

8. Analyze Your Wholesale Pieces-Look at the numbers. How many units are you wholesaling each month? Go over each unit. How many of them could you have retailed if you opened your mind a bit either relative to pricing and/or the type of product you’re willing to keep? Are there early wholesale units or late wholesale units? You need to know the difference between the two. If you have lots of units being wholesaled late (at the end of the cycle) the odds are you are either stocking the wrong stuff or pricing them wrong. If you are wholesaling a lot of units early in the cycle it’s probably because someone on your staff doesn’t want to "mess" with certain types of cars. The probability is there may be a problem getting them through service in a timely manner or the used car department feels ripped off by your service department. The good news is in either case it’s a fixable problem. You just have to want to fix it. 

9. Photo Booth-and 40 pictures per car. If there is one thing I would do if I opened a dealership today it would be to do whatever it takes to have a photo booth. If you haven’t accepted the fact that the Internet is your new showroom then you are doomed. You cannot and will not be able to remain competitive until you get with it. It’s the biggest no brainer since the invention of the wheel.

10. SETS & SUBSETS-simply put, SETS is an easy way to set up a price leader with several other vehicles for the customer to pick from when they show up. SETS & SUBSETS are designed to drive traffic and increase volume. You can do as few as two cars in a SET, but never more than five. It’s not as complicated as it first appears. Don’t over think this. 

11. Save-a Deal-It’s the basic of all basics. From the first day I got in the business we did a save-a-deal meeting every morning. Back in those days we didn’t call it that. I learned that term back in the 80s from my good friend Mike Casey with JM&A. Call it whatever you want, but it’s an easy way to improve your business. Simply put, you go through all your pending deals, appraisals and ups from previous days. You will always find that two heads, three heads, etc. are better than one.

Since I’ve already said too much I guess it’s time to shut up. That’s all I’m gonna say. Tommy Gibbs

The idea behind a Jet Fighter Interceptor is to intercept the enemy before anything bad can go wrong. In the game of football an interception gives your team an advantage by intercepting a pass intended for a touchdown. In both of these examples an interception occurred as a result of movement. The fighter jet was moving when it caught up with the enemy.  The defensive back was moving when he caught up with the pass.

You need to get moving. I want you to use this mindset on Saturday to sell more cars. If you are a sales manager, F&I Manager, GSM, GM or Owner/Operator you need to become the “interceptor” and you are going to make a huge difference in the number of cars that get sold. You will intercept a whole bunch of problems before they become problems.

You are going to do it by moving. Moving your butt out of the chair and toward the front door to introduce yourself to every customer that comes through the door. And you’re going to keep moving around like a big stealth spy bomber. Your radar, your eyes and ears, are going to be wide open like never before.

Deals frequently get screwed up early on in the equation and you’re gonna help prevent that. There are a number of things that will happen by following today’s “Operation Interception.”

If a TO is needed you have already set the stage early by having met the customer. If your radar is working a full 360 degrees, you will sense something is not right with this sales person and this customer from that first handshake and you might intercept the deal right then and there. Never forget the customer belongs to the dealership, not the sales person. Don’t be afraid to “do it now.”

By moving around the showroom you will get some early TOs before the deal is all screwed up. Early intervention is a wonderful thing.

Simple huh? Fire up your jet engines for lift off, get out of your office and go to work. It’s show time baby!  Tommy Gibbs