There’s a lot of discussions these days about the number of days it’s reasonable to hold a used unit before retailing it.

In the past, 60 days was the timeline most successful dealers worked with. Dale Pollak wrote recently about the new normal being 30 days.

Every piece of data I’ve looked at over the past 17 years validates that Dale is spot on.

If nothing else, dealers have come to understand the necessity of the Velocity concept and turning inventory. Of course, today dealers are working a tick harder to ensure they make the most money possible on units that they have a favorable cost to market and day’s supply in their favor.

That being said, any way you want to slice and dice it, speed to the front-line has never been more important than it is today.

If you’re not using a recon tool to track and zero in on where you’re not efficient and where you need to make some improvements, then it’s doubtful you will ever get close to the new normal of 30 days and gone. 30 days and gone doesn’t mean dumping units in the wholesale market. It means finding a retail buyer within that 30-day time frame.

There’s an underlying problem when it comes to 30, 60 or whatever. It’s the failure of upper management to communicate to service management the importance of the relationship and impact the entire recon operation has on the success of the used car department.

The reality is that lack of understanding also impacts the new car department. The used car department will miss trades and lose new car deals when they have a lack of confidence in the support of service management.

Issues will come and go in your recon operation. Lifts break down, technician shortages, a slug of used cars hit the ground, and an overload of retail customers are things that are going to occur.

The strategy of upper management should be to keep everyone informed and educated about what’s going on and what the expectations happen to be.

Everything that happens in your dealership, good and bad, is a result of great leadership.

Great leadership understands the need for speed, daily communication and keeping the team on the same page.

Great leadership doesn’t just talk the talk.

Great leadership walks the walk.

Be Great. Start walking or in the case of recon, you need to start running. That’s all I’m gonna say, Tommy Gibbs

I’m thinking most of you had a very good 2019.

Even though margins are being compressed, most of the reports I’m getting are that dealers are making more money than even when margins were high.

That being true would suggest dealers have gotten smarter and smarter when it comes to running more efficient operations.

Never in the history of the automobile business have dealers been as well informed and educated as they are today. If nothing else, technology has made it so much easier to figure things out.

The standard in the business has been that we should make at least 2% net profit to sales dollars generated.

If business has been as good as initial reports, and you didn’t make well above 2%, then you may need to re-evaluate what you did last year.

Dealers who made in the 4 to 6% range are in a far better position to weather a storm, than those chugging along in the average zone of 2% or less.

While I realize you did a lot of planning getting ready for 2020, you would be wise on a monthly basis to check off the following, regardless of where your percentage ended up in 2019.

10 Monthly Bullet Points:

1. Re-define and focus on your basics.
2. Evaluate your expenses monthly.
3. Stick to your used car and new car inventory turn timelines.
4. Evaluate the inventory on hand vs. anticipated selling rate.
5. Examine every process from front to back.
6. Don’t let legacy thinking control your thinking.
7. Don’t be afraid to fail; try something different.
8. Study the best of the best.
9. Seek to improve your leadership skills.
10. Don’t think you have it figured out because you don’t.

Last year is history. Learn from your history. Get better. That’s all I’m gonna say, Tommy Gibbs

It’s January and we’re off and running. Actually, some of you are running, some of you are walking. The runners have been training hard for the last few months. The walkers have been talking about training hard.

The runners were getting into shape back in November and December by laying down “the plan” for 2020. The walkers were thinking they needed to get in shape and get a plan for 2020.

Runners are never happy. I’ve never seen a runner smile. Walkers are well, walkers. They often smile because they are dreaming of the things they would like to do. Whatever they are dreaming stays in their dreams.

The runners have a firm plan going into 2020. The walkers have a “kind-a-sort-a” plan going into 2020. Walkers talk about a plan, runners actually execute the plan.

Walkers are afraid if they make a plan they might have to change it. Runners know there are mud puddles and they just have to jump over a few to get where they want to go.

Runners like challenging their leadership skills by changing the plan.

Walkers are afraid of change and would rather go with the
flow than rock the ship.

Runners love Dave Anderson’s book “If You Don’t Make Waves You Will Drown.” Walkers would rather read “Winnie the Pooh” and dream about Pooh Bear.

When I do a workshop, I recommend, suggest, and urge those in attendance to write out an action plan for the next 90 days using the top 3 or 4 processes from the workshop. At the end of 90 days re-write the action plan adding 3 or 4 more processes to it.

Any time you’re planning, there should be 30 day, 90 day, 180 day and 365-day action plans. The weather and the terrain are going to change and you need to be ready for a change.

Walking along whistling a happy tune will make you feel good for that one little moment in time. Running hard with a flexible plan will exhilarate your soul and brain and will allow your team to leap tall buildings with a single bound for a long time to come.

Runners take money to the bank. Walkers go to the bank to borrow money so they don’t go out of business…yet.

Becoming a runner means harder training, greater commitment, and disciplines that most people don’t have and will never have.

That’s why there is so much room at the top. Some will, most won’t.

It’s very simple to go from being a walker to a runner. Just do it. That’s all I’m gonna say, Tommy Gibbs