Did you notice that you are getting really comfortable with having aged units around?

You’ve justified in your mind that it’s ok because you convinced yourself during the pandemic that you could sell anything at any time and make money on it. Since you think that’s a brilliant plan, please let me know how the ROI turns out for you when you let crap age on you.

Did you notice that the selling processes you think your team is using, aren’t the selling processes you’re using?

Some members of your management team are doing their “own thing.” If you don’t believe it, sit down individually with your sales people and ask them how each manager starts and works a deal.

Did you notice that you are no longer doing a “save-a-deal meeting” and “trade walk” each day?

You’ve accepted it as fact that everybody is so busy that they don’t have time to do it. You’ll be surprised at how many more deals you will make by doing a “save-a-deal meeting.” And, how many more used cars you will end up keeping and retailing when the management team does a “trade walk.”

Did you notice that the management team doesn’t understand Life Cycle Management?

Life Cycle Management starts on day one, not day 61. If you are having aged units and/or losing money on units wholesaled at the end of the life cycle it’s because they are not using “Early Warning Radar.” If you don’t think Life Cycle Management is important, go ahead and tell me the story on your oldest unit in stock. Yep, they all have a story. You ignored the story on day one so now you get to the rehash the story on day 61. Had you been focused on Life Cycle Management, that unit would have been gone long ago with little or no loss and maybe even a profit.

Did you notice that the sales and management team doesn’t do lot walks anymore?

Did you ever wonder why your sales people don’t sell more used? It’s because they don’t know the inventory. Know the difference between a lot walk and a trade walk. Now do them both.

Did you notice that you get lots of lip service on those processes you know need to be followed in all the departments?

Guarding the processes is one of the most important functions of leadership.

Did you notice that the average cost per used car in stock keeps creeping up and up?

The reason it’s happening is because you are not paying attention to it every day. Pressing the average cost down is a fundamental discipline. If every manager doesn’t know the number, you’re not doing your job. The pain of discipline or the pain of regret.

Did you notice that you’re back to selling vehicles for less than what you have them posted online?

That’s because the sales team isn’t sold that you have the best product at the best price. Before you can make the customer a believer you have to get the sales staff to believe. Tracking GAP will create a focus that forces you to hold more gross profit.

Did you notice that a lot of your problematic used cars in stock are either high dollar or purchased at an auction?

If you would print out a list every day of your 10 most expensive units in stock, and distribute to your management team, you would eliminate most of these problem children.

Did you notice that sometimes you just don’t notice? Your job as a leader is to notice what’s going on. My job is to keep reminding you. That’s all I’m gonna say, Tommy Gibbs

Why You’re Winning

I’ve written several articles of late talking about how dealers have benefited from the law of supply and demand. Let’s think about this as two legs of a three-legged stool. The third and most important leg that I’ve not discussed is “smarts.” Archie Manning of the famed quarterback family holds a quarterback training camp each summer. Archie says, “The best advice I try to give to a young quarterback is you need to know what you are doing because if you know where to go with the football, you can get rid of it, and throw it, and you won’t get hit.” And that’s where your smarts have played a bigger role than maybe even you have given yourself credit for. Knowing where to go with the football has played a far bigger role in your bottom line than many have acknowledged. Today’s dealers are smarter, and because they are smarter, when the law of supply and demand balanced itself, the smart dealers have made the most money in the history of their businesses. When you combine the amount of data available to dealers today and the intellect to understand it, then you have figured out where to go with the football. In the long term, knowing where to go with the football makes you a lot more money than a favorable law of supply and demand ever could. Supply and demand will not always be in your favor. Being smart will. You’re not just winning because you got lucky. You’re winning because you’re smart. Stay smart. 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, 2023 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. 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.

1. I trust your good judgment.

2. How can I help?

3. What do you think?

4. I’m proud of you.

5. We can fix this.

6. You’re important to our team.

7. It’s not a problem. It’s an opportunity.

8. I need your help.

9. How can we get faster and better?

10. Tell me more.

11. What do you want to be when you grow up?

12. Whatcha got?

13. What’s working?

14. What’s not working?

15. What’s the number one complaint you’re hearing?

16. You have my full support.

17. What else?

18. You’re the best.

19. Love ‘ya.

20. Tell me about your family

21. Let’s go to work.

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

Absolutes vs. Exceptions

Absolutes are a powerful tool toward creating a disciplined organization.

The downside of absolutes is it chokes off the potential to have an acceptable exception.

Exceptions break the rule of discipline. Exceptions soon become the norm.

When exceptions become the norm chaos breaks out.

The type of chaos I’m referencing isn’t actually like a bomb going off. This chaos is slow and gradual, often not recognized, and then – whamo – there it is, its ugly face screaming at you, “What the heck happened?”

Now here’s the real deal for those of you looking to become better leaders. You can have absolutes and exceptions in the same house. They can actually hang out with each other once in a blue moon.

True leaders can use them both and chaos will never show its ugly face. Granting an exception and going back to absolutes is very doable. The problem with leadership is that very few leaders have the skill to make effective use of them both.

Most people in leadership positions are stuck with one or the other.

At any given moment one is just as bad as the other.

That’s all I’m gonna say, Tommy Gibbs