1. I wish we could do away with packs.
2. I wish every salesperson worked his or her entire deal on a tablet.
3. I wish we had salaried salespeople with monthly and annual bonuses.
4. I wish we had salaried management with monthly and annual bonuses.
5. I wish we didn’t have to rely on processing fees to make a nice bottom line.
6. I wish we had two-tiered pricing from the service department to the used car department.
7. I wish every service writer presented the menu on a tablet.
8. I wish more dealers would move to one-price.
9. I wish we didn’t have “towers of power.”
10. I wish more dealers would set up a VBC (Vehicle Buying Center.)
11. I wish sales management & salespeople had a 40-hour workweek.
12. I wish we could get units through recon in 3 days.
13. I wish we never would have any units over 60 days.
14. I wish the manufacturers don’t overload dealers with inventories.
15. I wish auction fees could be reduced.
16. I wish we focused more on “leading” rather than “managing.”
17. I wish every dealer was in a 20 group.
18. I wish your showroom didn’t look like a showroom.
19. I wish I’d see you at the NADA convention.
20. I wish a larger percentage of a sales transaction could take place online.
21. I wish you’d get 12 turns per year and better.
22. I wish we could rid ourselves of “Legacy Thinking.”
23. I wish people would listen to each other more.
24. I wish you would finally hire me.
25. I wish you a great holiday season.

That’s all I’m gonna wish for, Tommy Gibbs

Bonus Wish: I wish I didn’t send you so many newsletters, but I can’t resist myself.

That’s all I’m gonna say, Tommy Gibbs.

Have you ever noticed that with some businesses that it feels like nobody’s in charge?

Sort of like the business has been turned over to the inmates to figure it out and do the best that they can? Sure, we’ve all had that experience.

Often, when I’m in a dealership I’m not sure who’s really in charge. In some cases, it’s the blind leading the blind. Even more to the point, I wonder if anyone is really “running the show.”

The sales department of the typical dealership needs to be set up in one of two ways:

1. General Sales Manager-this person runs the sales department. All the managers in the sales department answer directly to the GSM. The GSM needs to have great leadership skills and it’s always preferred that they have been an F&I and Used Car Manager. They must have the ability to communicate with the other department heads and understand their area of responsibility.

They should never let their egos get in the way of keeping the Dealer/GM informed as to what’s going on in the sales department. Their motto should be the Dealer/GM is never surprised. GSMs usually run into trouble when they start to think they are the dealer and begin making decisions on things that are above their pay grade.

2. General Manager/Dealer Operator-not only performs GM duties, but GSM duties as well. This situation is more prevalent in smaller stores or during those economic times when cutbacks are necessary and the GM takes on multiple responsibilities.

Notice the line that says “Needs to be set up in one of two ways.” My experience is that often it’s just not being done, or if it is it’s a halfhearted effort at best. You cannot put a group of managers together and hope they “get it” and work together as a team. You can’t “kind of sort of” say that so and so is in charge.

The best-run businesses are those in which everyone clearly knows, understands, and supports the chain of command.

People support the chain of command because they have respect for the person at the top not just based on their prior performance, but because of their daily actions. Respect has to be earned every day and is not a result of “carry over” action from some previous accomplishments, such as he/she was a great salesman…now let’s anoint them with “Sales Manager in Charge” status.

Far too often the GSM or GM does not have the skills that are actually needed to run the sales department. Then there are times when they just don’t have the desire. It’s not their cup of tea. They may have other useful skills for the organization but managing a sales force just isn’t one of them.

It could be they don’t have the training and background or their personality just isn’t a sales personality. They may have been given the position because they were a great closer, or were the next person in line to be promoted.

It’s not all that unusual for a GM to be a former Parts and Service Director, Comptroller, or even a relative of the owner. They may or may not have the skills and/or training to do the job the way it needs to be done.

That doesn’t mean they are not a great GM by normal standards, but they may not be the type of GM who can also perform the duties of a GSM. Sometimes the person I’m talking about here is actually the owner who has taken on additional responsibilities for whatever reason. Just because someone is the owner doesn’t qualify them to run the sales operation, but they have to be smart enough to recognize the skills they have and don’t have.

So, here’s the deal. You have to put someone in charge who can do the job. I mean really do the job. It’s one of the most critical positions in the dealership.

If you have the wrong person or you are relying on the managers to work it out among themselves you will be led down a road of constant frustration, confusion, lack of direction, and poor production. In the end, everyone suffers, especially your bottom line.

That’s all I’m gonna say, Tommy Gibbs.

It’s Thanksgiving and time to give thanks.

If you’re like me for sure you have a lot to be thankful for. Among many things I’m thankful for are your friendship and support.

Thanksgiving also starts the closeout of the year. It centers around Black Friday and rolls through the last week of the year. Like it or not, 2022 is already here.

I’ve listed some very basic ideas you need to take into consideration that will help you finish strong and get ready for your best year ever.

A. Re-commit yourself- and your thinking towards being the very best you can be. Take stock of all those great ideas running around in your head.
Write them down and make a commitment to get them done by certain dates. Post it on the wall in several places that you will see frequently. If you have a private restroom, put it on the mirror.

The dealers and GMs with the most successful used car operations are those who have taken ownership of the used car department.

The more involved you get, the more success your dealership will have. If you’re not committed to the used car business, it’s a safe bet your team isn’t either.

B. Re-evaluate the appearance of your inventory. Let’s do a little checklist:
1. Look at your inventory online. Are they all there? Actual photos & prices posted?

2. Take a lot walk. Are the vehicles in straight lines?

3? When was the last time the entire lot was rotated?

4. Are you using angles to display your inventory?

5. Do you have hang tags? If so, do they all have hang tags?

6. Are they nasty, dirty on the outside?C. Refocus Your Disciplines-To be successful in the used car business you have to have daily/weekly/monthly disciplines that you live and breathe by.

One of those disciplines might be to do a weekly lot walk. Every car in your inventory must be touched. If it’s in service, touch it. If it’s in prep, touch it.

If it’s in the budget center, touch it.

Everybody touches it. Even if you think you have your disciplines well defined inside your head, you’d be well served to make a written list and check them off from time to time.

D. Re-Recon-Take every unit over 30 days old back through a recon process. (You’ve already missed your best window of opportunity to make gross; that would be the first 20 days.)

E. Re-Invest in yourself and your management team. Do something to gain some knowledge. Hire me, visit CarMax, or visit a dealer friend in another state that does a good job in used. Attend a workshop. Join a Twenty Group. Join a Used Car Twenty Group. Do something besides sitting there and waiting for something to happen.

F. Re-think- your management team. Do you have the right person running your used car operation?

Yes, that person may have been with you for years. Loyalty sometimes equals mediocrity. Maybe they have some great skills, but the fact is that you may not be making the best use of their talents.

I’m thankful for lots of things this holiday season and I’m especially thankful that you’ve taken the time to read my little Zingers.

That’s all I’m gonna say, Tommy Gibbs.

EXPECTATIONS: Frequently in my training sessions, I’ll ask the question, “How many of you agree that you do a lousy job of holding people accountable in your business?” Without exception, they will all raise their hands.

Leaders that have figured out how to hold people accountable are the most successful when it comes to developing a culture of leaders and achieving high results.

Holding people accountable doesn’t have to be a negative experience. When people understand the expectations, they will seek to achieve those expectations, goals, objectives, culture, or however, you might want to frame it.

People tend to do the right thing when they know it’s in their best interest, not when you have to hit them over the head with a baseball bat.

Your job as a leader is to sell the team the idea that the things the organization deems to be in the best interest of the organization are actually in their best interest too.

Achieving expectations means they win, we win and we all have more success.

Easy tips:

1. Make sure everyone is reminded of the expectations. Yes, that seems elementary, but the evaporation factor is always in play. Either as a direct message or subliminally, leaders must constantly remind the troops of what’s expected and what’s important.

2. Get on it right now. Far too often when there’s a lapse in achievement, leaders let things drag on and on. The more things are allowed to slip, the more those things become a habit, and the more the expectations are lowered.

3. You don’t have to be mean to enforce expectations. People like to work in a well-run, well-disciplined organization. This isn’t about screaming and hollering at someone about their failures. It is about letting them know quickly we’re not on track; you and your team are not getting it done, whatever “getting it done” might mean to you. At some point, there must be consequences for those who cannot live up to reasonable expectations. The ultimate consequence is they get to go to work someplace else.

4. Be consistent in your actions and statements. The easiest way for expectations to fall apart is that you are all over the place. You let some things slide for some people and not for others. You cannot be Dr. Jekyll and Mr. Hyde. Selective enforcement with just a few people will destroy the morale and productivity of the team.

5. There are times when you need to figure out the real root of why expectations aren’t being met. What’s the real problem? Leadership sometimes will set the wrong expectations. Setting the wrong expectations is just as bad as not having any.

6. In order to hold others accountable, we too have to hold ourselves accountable. We should make it a daily practice of looking in the mirror and being honest with ourselves.

A part of holding yourself accountable is never to forget, “Familiarity breeds contempt.” The closer you become to people the more difficult you make your responsibility of holding them accountable. I’m holding you accountable. That’s all I’m gonna say, Tommy Gibbs.

“The two hardest things to handle in life are failure and success.” Anonymous

Have you ever noticed that when some people get behind the wheel of a car, truck, or SUV that they lose their minds? It’s not unusual to see someone driving really nutty, doing something really stupid and you pull up beside them and they look like normal people.

They don’t have two heads, fangs, or horns sticking out of their heads. 

What is it with people when they get behind the wheel of a car? They sorta lose their minds. Good people, nice people seem to go a bit postal. 

As I’ve mentioned in the past at one time I drove race cars. I always found it interesting that some of the nicest guys outside of a race car were nuts once they got in the car.

It was as if their helmets squeezed their brains until stupid flowed out. I’m not excluding myself from that equation, as I was no different from the rest when I strapped mine on. I believe it’s the power of the engine that makes them go off the deep end.

I see the same thing in business every day. Someone gets promoted and whamo, they get the “king of the hill” mentality. “I’m ‘da king, you ‘da peasants, and you will do as I say.” That type of mentality will soon be their downfall.
They have been anointed this position of power, but don’t have a clue on how to lead. Should we blame them or the person who promoted them?

One of my father’s favorite sayings is, “Be nice to people on the way to the top because you never know who you will meet on your way down.”.That’s all I’m gonna say, Tommy Gibbs.

As a new car dealer for over 20 years I found packs to be a useful and profitable tool to increase profits and flexibility.

My favorite as a dealer was to use the pack money to step up on trades when we needed to make a deal. We all think differently when it comes to how to make the best use of them.

I tell dealers all the time “if they are still working, stay with them.” I just question if they are working as well as some dealers think they are.

I believe that in the big picture they have outlived their usefulness. If you review the history of packs, they came about in part because managers worked from cost up. Dealers figured out that if the manager’s target for front gross was $1000, that they would hit that number if they had packs or not.

Over time packs have become their own profit center.

These theories and concepts have worked well for a long period of time. The Internet has dramatically changed the game. More and more dealers are pricing to market vs pricing based on what they have in the car.

Dealers are not working from cost up like they did in the good old days.

Salespeople have very little control over grosses, as the price has been set before the customer even shows up.

As more and more dealers move away from paying salespeople on gross it makes very little sense to add packs to your vehicles.

As my good friend Dale Pollak likes to point out, packs are nothing but a tax on your vehicle. You are taxing yourself and making it that much more difficult to be competitive.

As more and more of the likes of CarMax, Varoom, Echo Park, Texas Direct, Carvana, Penske, Auto Nation USA are cranking up the pressure to source cars and trucks, the less relevant packs (taxes) will become.

When you’re being charged full retail in service and you also have packs, you are adding additional cost to your inventory that others don’t have.

When you pack your vehicles, you’re shooting yourself in the foot.

Every time you go to appraise a unit, buy from the public or go to the auction, those additional charges are running around in your head and are making it that much harder to acquire inventory.

If you’re going to sell more used cars you have to be able to get more used cars. To get more used cars you have to have an acquisition advantage. Packs create a disadvantage in today’s market.

If packs are still working for you, then keep using them.

But, you should keep asking yourself if they are really working as well as you think and if they are putting you at a disadvantage in the marketplace.

I don’t hate packs, but I do hate it when we lie to ourselves.

That’s all I’m gonna say, Tommy Gibbs.