Last week’s article was titled "Are You All In?" The bottom line to that article is knowing what you want to do, having a plan and getting after it. Being "All In," is far different than being a "Bull In A China Shop."

How many times in your career have you either hired someone or been in an organization that hired someone and the person hired comes in like a "Bull In A China Shop?" My definition as I’m using it here would be that someone is put in a position of management and creates a lot of hate and discontent, destroys morale and creates an environment where nothing positive happens. Sales end up going south rather than north. And when they are finally shown the door the dealership is in worse shape than when they arrived and there’s a huge sigh of relief heard across the land.

For whatever reason, these hot shots come in like a wild man (or woman, work with me), change this, change that, upset anything and everything. They assume everyone working there prior to their arrival is an idiot and are determined to fix it in 30 days or less. Am I describing anyone you’ve ever known?

First I’m going to lay this right where it belongs. On the owner, GM or whoever hired this cowboy. First of all, what were you thinking? Did you not see the warning signs during the interview process? Did you not check any references? Did you not ask enough questions about their previous experience? Did you not use a personality profile test of some sort?

Let’s assume you did or you didn’t do those things. Did it occur to you that this outside person coming into a totally different organization with a totally different culture might need some handholding and/or coaching for some period of time? Heck there are some people that need handholding forever.

Years ago I hired a very talented GSM. This guy was awesome…that is as long as I kept the reins on him. A few years later when we sold the store he went off on his own to do his own thing. What a disaster that was. There are some people who can perform quite well as long as they are being coached, but don’t have the self-control to go it alone without ticking the world off.

Many of them come down with a sickness called "Dealeritis," (another word I made up.) They lose their mind when given authority. It becomes their Achilles heel and their ultimate downfall.

Just in case you are the bull one day I have some suggestions for you to make your life and everyone’s life around you better and far more productive.

1. Don’t assume everyone at your new store is an idiot. Maybe they just need some leadership, a change in direction, a roadmap with a plan of execution.

2. Depending on your new position, interview and spend time with everyone in the store. Do a 15 to 30 minute interview process that allows you to get to know every employee and what they think. Ask them about their background, the job they are currently doing, what they like about it and what they don’t like about it. And, most important, ask their advice about what they think it would take to make the organization better than it is today. I often ask that question in the following manner: "If you owned this dealership today what would you do different?"

3. If you are the GM then you need to meet one on one with each department head on a weekly basis to establish common ground and work out potential brewing issues. And, at least once a week you need to meet with all department heads to review what’s going on and where you are heading. Add to that a monthly department head meeting to review the previous month and the new forecast for the upcoming month. If you’re the GSM you would do the same sort of thing with your sales and F&I managers. No store is too big or too small for this process.

4. Seek to provide training and information for all the members of your team. If you’re the GM get involved with a 20 group. Being in a 20 group will open your mind up to what the possibilities might be. The more training you bring to the table for the team the more buy in you will get. As great a salesman as you might be, they still need to hear the message from an outsider once in a while. (Hire me, he, he) Showing that you are willing to invest in the team pays amazing dividends.

5. Darn it, be nice. No really I meant that. You don’t have to give up principles and discipline when being nice. Acting as if you are a dictator and that you are greater than thou only pushes people away from you. Those working in your organization want to be treated with dignity and respect just as you do. Just because you sit in the highest office doesn’t mean you can treat people like crap.

6. Listen to other people’s ideas. You will be amazed at what you can learn if you talk less and listen more. Leave your ego at the front door. The only thing you need to prove to people is you are interested in their success. If you do that the rest will fall in place.

This ain’t no bull and that’s all I’m gonna say, Tommy Gibbs

Have you ever been to the beach or maybe sat around at a swimming pool and observed how people enter the water? Some will walk in about ankle deep at first. Then they move a little further up to the calf area, then the thighs, finally up to their waist…from that point on it’s 50/50 if they ever take the full plunge. Then there are others who don’t mess around with that ankle stuff, they just dive right in.

Some swimmers are totally committed, others not so sure. Some of this is confidence or a learned skill. The person who jumps right in has probably been doing it since they were a little kid and it’s second nature. For those who don’t take the plunge there could be a multitude of reasons why they don’t.

This concept happens in personal relationships, life and certainly business. Depending upon the situation taking the plunge can be good or bad.

There are many in business who jump in, get after it knowing that if it doesn’t work out they will fix it and move on. They know “it” whatever “it” might be is a moving target so they have a mindset of “just do it.” They know doing something is better than sitting on their hands waiting for something to happen. These people are leading from the front.  Others in the business observe from the rear and question themselves “is this the right thing to do?” Thus, they do nothing.

I often ask 20 group members, “Do you remember when you first got in a 20 group? You would go to a 20 group meeting get some great ideas, get all jacked up, and when you returned to the store shove a bunch of stuff down people’s throats and make ‘em eat it if they liked it or not.”

Over the course of time you begin to feel the vibes that your staff members hated it when they knew you were going to a 20 group meeting. They feared you were coming back with a bunch of crazy stuff to shove down their throats. Over time you changed your strategy to coming back from the meeting and laying low for 30 days and then implemented those ideas in a soft and easy manner. What actually happened is you ended up doing nothing. I always suggest to 20 group members if you get some good ideas from your 20 group meeting go back and start shoving it right away.

Being “all in” is the most important thing you can do when implementing change. I recently did some training and consulting for a dealer who has 3 new car dealerships that are doing very well. Prior to being a new car dealer he was a very, very successful used car dealer. Though he’s made good money with his new car deal his used car business hasn’t reached its full potential.  

There have been some issues from the service department side that needed to be addressed among other things. He’s had a $2500 pack on his used cars which in the past has served him well, but has contributed to not being price competitive and thus a lot of overage used cars.  His Internet strategy has not served him well and the list goes on. With his permission I’m sharing an email he sent me this past week:

“Ok Tommy Gibbs, my stores are all in with your program. Service managers have bonuses based on keeping average cost of repair orders down, Service managers have volume bonuses to keep their speed up, Salespeople are on a flat pay plan.

We are buying the right used cars (I am doing all the buying) we have our 10 C.A.R. list being done with me every week and putting our "last chance stickers on them" pulled up in front of dealership, Analyzing anything in stock at 20 days and putting "EWR" stickers on those, All price buckets are being updated daily.

We have signs up at all the dealership with our "value pricing” philosophy, All cars are tagged with prices on our "value pricing” window tags, We are not charging any fees, The price they see is the price they pay and we are doing everything right. So yes we changed our whole business model on your advice.

ALL I CAN SAY IS THIS BETTER WORK!!!!! And so far it has. Been running full speed for about 2 weeks now and so far, I repeat so far it looks like we are on track to DOUBLE our used car volume in all our stores. I’ll keep you posted.”

I’d say he and I are both all in. Does he have a perfect plan? Probably not. Will he have some evaporation and need to make some adjustments? Probably yes. But here’s the deal: He has a plan and he’s all in and that’s all I’m gonna say, Tommy Gibbs

1. He’s too expensive. OMG, OMG, you gotta be kidding me. Come on Einstein, do the math. How many managers do you have? How many stores do you own? I come to you. No one misses days from work hanging out in Las Vegas learning stuff that "stays in Vegas". I train all your managers. There is only one definition for the word all. Would you sell more used cars if your new car manager and your service manager had a better understanding of the used car business? Well imagine that!

2. I can’t find the time. For real, really, you can’t find the time? You don’t have time to change your used car business and make a bunch of money? You’re right, you don’t have time.

3. I want to wait until the first of next year. So let’s see, that would mean maybe early January…no wait, maybe sometime in February. Oh, let’s stretch it ’till March. Brilliant, absolutely brilliant. That way you can prolong your agony. Makes total sense not to hit the streets running hard on January 1. I’m grinding my teeth.

4. Tommy was just here two years ago. Well, well aren’t we the king of "stuff don’t evaporate." Look, I’m a genius, but as well as your team might be disciplined there’s naturally going to be some evaporation of processes. The longer you wait the more processes evaporate and the more complaining you can do.

5. I’ve got an old dog and he doesn’t want to learn new tricks. (Please work with me and assume he, him can mean she, her.) So, how are those old tricks working out for you? Frustrating isn’t it? But you’re loyal to him. He’s loyal to you. So why bother? It may be time to take that one more shot, show him some new tricks and if he can’t or won’t perform the new tricks then walk him outside and park him on the porch.

6. I’ve got a new guy and I want him to get settled in first. Great idea, that way he can develop some bad habits that you will never be able to break. It’s always more fun to hit them upside the head with a 2 by 4 after they have a bunch of bad "brain muscle memory" going on.

7. I’m waiting ’till we get rid of these over aged units before I hire him. So, how much money do you think you’re gonna lose screwing around with those aged units? Suppose I had some brilliant ideas on how to help maneuver you through those land mines? Nah, go ahead and take those losses so you can keep complaining.

8. Some of Tommy’s ideas are too far out in left field. Really? The view from out here is pretty good. I see all and know all. You might want to come join me and get a view of what the future looks like.  

9.We’re making a lot of money doing it our way even though the used car department keeps losing money. So, let me see if I have this right. You’re making a lot of money, used is losing money and you see no need to fix used so you can make any more money? Ok, got it. Keep doing what you’re doing.

10. I make a lot of money in new cars, parts and service, why should I worry about selling more used cars? Duh, did it ever pop into your brain that if you get stronger in used that you would sell even more new, more parts and more service? Nah, why bother, you’re doing just fine.

11. Tommy can’t teach me anything in a half-day workshop I don’t already know. Hmm, you know that might actually be true, but I can teach you a lot of cool stuff you aren’t doing. Knowing and doing are two totally different things.

12. I already get Tommy’s newsletters and learn all the stuff I need to know for free. Makes total sense. I get it. Why bring me in to get all your people jacked up about the potential you have for making lots of money in used cars? You can get all the motivation and enthusiasm you want by reading my stuff. I’m a far better writer than I ever thought. That’s all I’m gonna say, Tommy Gibbs

Being a former Marine, part of my core values as an individual comes from my Marine Corps training. And no doubt a large part of my success in life comes from being well disciplined.

Many of my disciplines have come from being an athlete where you cannot achieve any level of success without discipline. Without question people with a military and/or a sports background make better employees/team members because they are well disciplined.

Discipline shows up in many forms in the workplace including being on time, achieving assignments, how you dress, how you talk, what you say, how you say it and who you say it to.

I cannot fathom someone achieving a key leadership position unless they are highly disciplined. If you do not have a sports background, military background or if you didn’t grow up in an environment where there was a focus on discipline then you are at a total disadvantage as you attempt to climb the ladder of success. It is virtually impossible to achieve success in sports or the military without discipline, and business and life are the same.

It’s pretty much a sure bet that if you are un-disciplined in your work life that your personal life is no different and chaos has become your best friend.

Discipline is about controlling willpower/self-control over one’s desires to do the wrong or easy thing. It’s about doing the right thing when the wrong thing keeps screaming “why bother.”

Focus on improving your discipline regardless of where you have come from and where you might be today. Observe others around you who you deem to be well disciplined and start to emulate them. Pretty soon others will start to emulate you and now the tribe becomes very powerful.

Only the well disciplined ever get to be the chief of the tribe. "The pain of discipline or the pain of regret." You get to pick. That’s all I’m gonna say. Tommy Gibbs

Some Will?-the truth of the matter is very few will. Will what, you say? Will make the necessary changes to leap frog and kill the competition. Yes, kill the competition. Killing the competition is a worthy goal. Of course I don’t mean that in the sense of the word. But you really should want to kill them. You should want to drive them nuts. Make them have sleepless nights because you are dominating the market. You show me an athlete or a team that doesn’t have a killer instinct and I will show you a loser.

You often hear coaches say “We couldn’t put them away.” When would you think they would say that? Yep, right after they just lost. Quit being a loser. Start thinking like a winner. Kill the competition.

Being a winner is going to require you to do some things that will make you very uncomfortable. Being a winner is having a healthy discontent for people and things getting in the way of your ability to kill the competition.

Some Won’t?-Re-read “Some Will.”

Some Do?-Of course some do. They are the ones buying more dealerships and starting more businesses. They are part of the “rich get richer” saying. I remember hearing my dad use that saying when I was a young man.  I never really understood it. Now I do. The rich get richer because they are always pushing forward. They are willing to try different ideas and things until they get it right. Then when they get it right, they try to get it “righter.” A simple winning formula!

Those who do are not sitting around and saying “Yes, I know the train is coming, but I don’t want to be the first one on board, because it might jump the tracks.” Oh, pooh pooh that, jump on the train, take over the engineer’s job and drive the darn thing.

Some Don’t?-Re-read “Some Do.”

So What?-I’ll tell you so what. Keep on doing it the old fashioned way. Keep on keeping some of those same stinky old loyal people. (Old as in thinking old, not age.) Keep on thinking you can still sell cars the old fashioned way with old fashioned pay plans, old fashioned concepts in the service department and your hole will get deeper and deeper until one of the “Some Dos” comes along and buys you out or picks your dealership up for nothing after you go out of business.

What you should be saying to the competition is “Here’s what.” Watch my dust as I pull further and further away from you.

Who’s Next?-As in whose butt are you going to kick next? Are you willing to absolutely kick your competitor’s butt? Are you going to turn your used car department upside down and finally make it work for you? Are you going to explain to the service department and parts department who runs the dealership? Will you do that, will you really do that? (I’m screaming.)

Are you going to let the entire dealership, including the office staff, know that if we don’t sell cars, lots and lots of cars, that they don’t have a job.

I’m always amazed at how the office staff complains about all the mistakes the sales department makes, but they don’t understand if the sales staff doesn’t make mistakes then they don’t have a job.

“Who’s next” should be you standing up and telling it like it is. “Who’s next” should be the tail quits wagging the dog. That’s all I’m gonna say, Tommy Gibbs

Here’s a section from last week’s newsletter:

…To price it right you have to own it right. When you add packs to the high cost of reconditioning (that’s a subject for another newsletter) then you are at a huge disadvantage when it comes time to sell the car.

As promised, today’s newsletter is going to be about used car reconditioning.

I realize human nature is that people like to complain and want to blame someone for their inefficiencies. What do you think the number one complaint is I hear from Sales management when I’m in dealerships?

Yep, you’re right, the service department. Sometimes it’s subtle, sometimes it’s blunt, often tempered with an excuse or apology to dare complain about it. Early in my career my attitude was "Shut up, go to work and control the things you can control because it’s not going to change." Well, I’m here to tell you it does need to change and sooner rather than later.

If you review history, you know that the reason dealers charged full retail from the service department to the used car department is very much the same reason they implemented packs as was pointed out in last week’s newsletter. Sales managers have historically worked from cost up and it has made dealerships a lot of money over the years.

You can think what you want, but as time has progressed, the used car department has become an easy mark for the service department. The mere fact that the hours per RO on a used car ticket vs. a customer pay ticket is more than double should tell you something.

It’s not only the amount they are charged, but also the time it takes to get the car in and out of service. Used car managers will tell you they get charged for things that they don’t need fixed, and things that need to be fixed often are not. Almost everyone in the business today understands how crucial speed is to being successful. The lack of speed and efficiency in your service department as it relates to used vehicles is killing your ability to do volume and make the money you have the potential to make.

Creating speed and becoming more efficient should be your number one priority as you move toward 2013. I like relating our business to sports. Name a sport, any sport and today’s athletes are bigger and faster than they have ever been. With profit margins decreasing, your business needs to emulate sports. You have to get bigger (sell more cars) and become faster and more efficient than ever before.

Yes, becoming more efficient means speed but it also means figuring a way to reduce the cost from the service department. There are many pieces to this puzzle, but with creative thought I’m confident a lot of dealers are going to figure it out and for those who do they shall reap the profits. Dealers will all tell you they know the key to being successful is teamwork, yet the pay plans and territories that are set up in the dealership enhance the opposite.

In CarMax’s 2012 Annual Report, Under the section "Discovering Efficiencies" it states:

"Eliminating waste from our reconditioning processes has contributed to a year-over-year improvement in our gross profit per used vehicle sold in 12 of the last 13 quarters, while still preserving the competitiveness of our pricing. At the end of last year, we noted that our targeted efforts allowed us to achieve a cumulative reduction in average reconditioning costs of approximately $250 per vehicle, while still maintaining our high quality standards. While actual reconditioning costs will vary based on sales mix, these sustainable savings are now embedded in our cost structure."

So, forget that they don’t have packs. Forget that they don’t pay sales people and sales managers on gross profit. Forget that they don’t view the service department as a profit center. Forget that they buy based on data. Forget that pricing is controlled at corporate headquarters. Forget that 99% of what they put on their lot to retail, they actually retail…just forget all of that…but realize and don’t forget they have a $250 cost savings per car that you don’t have. They have 108 stores. They sold 408,000 cars last year and made $413 Million in their last fiscal year so they must be doing a lot right. 

I had lunch this past Monday with two of the smartest people I know in the car business. Part of that conversation was that there are a lot of little things dealers can do a better job with in the sales department when it comes to managing the inventory, working deals, managing systems, etc.

I told them that even if all things were perfect in the sales department, until the service issues are fixed (cost and speed) it will be impossible for dealers to come close to maximizing their potential. The dealer has the power and expertise to fix any of these issues if they want to.

Here’s the bottom line: If you can become more efficient, more streamlined, and reduce the cost of repairs to your used cars then doesn’t it stand to reason that you will be able to sell more cars than you are currently selling?

Seth Godin, one of my favorite writers, wrote a blog this week and here’s the article:

Denying facts you don’t like

"Transformational leaders don’t start by denying the world around them. Instead, they describe a future they’d like to create instead. Denying the truth about relative market share, imperial power or the scientific method helps no one.

Gandhi didn’t pretend the British weren’t dominating his country, and Feynman didn’t challenge Einstein’s theory of relativity or the laws of thermodynamics.

It’s okay to say, "This is going to be difficult." And it’s productive to point out, "our product isn’t as good as it should be yet."

The problem with Orwellian talking heads, agitprop, faux news and Ballmer-like posturing is that they take away a foundation for a genuine movement to occur, because once we start denying facts, it’s difficult to know when to stop. Tell us where we are, tell us where we’re going. But if you can’t be clear about one, it’s hard to buy into the other."

If you’re happy and you know it and clap your hands. If you’re not happy smack yourself upside the head and fix it. That’s all I’m gonna say. Tommy Gibbs