It’s a New Year!

I’m talking with a dealer the other day who needed some help with his used car department. As it turns out he’s struggling in both new and used car sales. It’s not unusual when you struggle with one you struggle with the other. There are exceptions to that rule as there are some dealers who see themselves as being a “new car dealer” and some who see themselves as being a “used car dealer,” and make good money. For years they have made money doing it their way and I’m not about to say they are wrong. I will say, “they could have made even more money had that not been a single minded car dealer.” The fact is you can be both. When the two departments are managed correctly they compliment each other. When they are both rocking they help to fire up the the parts, service and body shop business which and the bottom line explodes. We all know it’s true that when we improve your used car operation, we improve our entire dealership. While I realize I’m not telling you anything you don’t know, I may very well be telling you something you’re not 100% committed and focused on. Commit to 2025 being your best used car year ever, and 2025 will be your BEST YEAR EVER. That’s all I’m gonna say, Tommy Gibbs

You’re More Important Than You Think

In just eight more days you’re going to be very, very busy. The week after Christmas has the potential to be one of the best selling weeks of the year. It will only be a great week if you make it a great week. It’s not going to be a great week if you stay in your seat acting like a computer geek. You can make it a great week by getting up and moving around. You should be like a bumblebee on a pollination mission. You’re here. You’re there. You’re everywhere. Stinging your little heart out. You can’t just flap your little wings in place and think someone’s gonna sell a car. You have to create the buzz. You have to go from being weak and meek in order to make it a great week. I don’t like things to be all about you, but this is all about you. This week is all about you making things happen. It’s about you contributing as much in a week as you sometimes do in a month. It’s not about you giving 100 or 110%. It’s about you giving 200%. It’s about starting early and ending late.It’s not about asking others to do it. It’s about you doing it. You sometimes think you’re important. Well, you are important. You’re even more important than you think. At least this week you are. You may have to sting a few people this week. That’s ok. Some of your team could probably use a sting or two. A little stinging pain for a whole lot of car selling gain. Wishing you a very Merry Christmas, and an amazing 2025. That’s all I’m gonna say, Tommy Gibbs

Did you ever notice that successful people always seem to have a sense of urgency about them?

Think of any great leader you’ve worked with and 9 times out of 10 they were always on fire. In a hurry to get things done so they can move onto whatever is next.

The reality is that in business, a sense of urgency is essential for survival and success.

It accelerates progress, turning ideas into actions and actions into results quickly.

In a competitive world, delays can mean lost opportunities, customers, or market share. Urgency drives innovation, keeps teams laser-focused, and pushes people to prioritize what really matters.

It also fosters a culture of accountability, ensuring that deadlines are met, goals are achieved, and momentum is sustained.

Without it, complacency creeps in, and businesses risk becoming reactive instead of proactive—letting competitors take the lead. Simply put, urgency fuels growth, agility, and long-term success.

A Sense of Urgency:

Drives Action and Results: A sense of urgency transforms ideas into action, helping you move from strategy to execution faster.

Seizes Opportunities: In fast-paced markets, delays mean lost opportunities to competitors. Urgency ensures you act while the window is open.

Fosters Innovation: Urgency pushes teams to think creatively and solve problems quickly, driving continuous improvement and innovation.

Keeps Focus on Priorities: Urgency sharpens focus on what matters most, helping teams avoid distractions and stay aligned with business goals.

Builds Accountability: It creates a culture where meeting deadlines and delivering results is the standard, not the exception.

Prevents Complacency: Without urgency, businesses risk stagnating or becoming reactive, allowing competitors to get ahead.

Maintains Competitive Edge: Urgency helps you stay agile, responsive, and ahead of the curve in a rapidly changing market.

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

On a recent Clubhouse call the conversation came up about hiring people and how important it is for a person you hire to have Intestinal fortitude.

We can probably agree it’s a tough thing to measure in an interview, but let’s review what intestinal fortitude is all about.

In its most basic definition Intestinal Fortitude refers to the courage, determination, and resilience to face adversity and overcome challenges. It’s a mental toughness that helps individuals persist in difficult situations, adapt to unforeseen obstacles, and emerge stronger. (Yes, I looked it up.)

Intestinal Fortitude: The Power of Inner Strength

I realize it’s tough to zero in on that in an interview, but here are some questions you might ask:

1. “Can you tell me about a time when you faced a significant challenge at work (or in life) and how you handled it?”

2. “Describe a situation where you had to take a risk or stand by a decision that others opposed. What was the outcome?”

3. “Give an example of a time when you received criticism or failed at something. How did you react, and what did you learn?”

4. “Tell me about a time when you had to work with limited resources or under tight constraints. How did you overcome those difficulties?”

5. “Have you ever had to persevere through a situation that took longer than you expected? What kept you going?”

6. “How do you approach decisions when you don’t have all the information?”

7. “What motivates you to keep going when things get tough?”

Key Elements of Intestinal Fortitude

Mental Resilience

The ability to recover quickly from setbacks.

Staying composed and focused under pressure.

Emotional Control

Managing fears, doubts, and stress effectively.

Keeping a positive outlook in tough circumstances.

Physical Stamina

Sustaining effort and energy during challenging tasks.

Recognizing the connection between physical health and mental strength.

Commitment to Purpose

Staying true to goals despite roadblocks.

Finding motivation in personal values or a larger mission.

Why It Matters

If you have people on your team who have Intestinal fortitude, it equips you and your team to handle life’s uncertainties with grace and grit.

Grit. I like that. Grit is Intestinal Fortitude. That’s all I’m gonna say, Tommy Gibbs

Pay plans are a very touchy subject. I’m always being asked about pay plans. It’s often been said you’d be better off not to discuss religion, politics and let me add one more, pay plans.

I’m feeling kind of froggy today so I’m jumping in.

There are as many different pay plans as there are dealerships. It’s fair to say that how sales people’s pay plans are constructed often depends on the dealer’s philosophy of doing business and of course the influence of his/her key managers.

Those philosophies were developed early on, based on the experience and success of the decision makers in their personal and business growth.

We tend to think that everyone thinks like we do, and so if the way we were paid when we started made us successful, then it will work for others along the way. Or we think it’s worked so well for the dealership over the years, why change?

Just because you’ve always done it “that way” and it got you to where you are today, doesn’t mean doing it “that way” will get you to where you need to go.

See how much of this rings true:

1. You’re paying a lot of flats.

2. You’re pricing your used cars (even new) online with killer prices designed to drive traffic to the front door.

3. You’re working harder and harder to hold the line on your pricing when the customer shows up.

4. Because of #2 and #3, your sales staff have very little control over gross profit. Certainly not like they did in the good old days.

5. You’re not a one-price dealer yet, but you’re moving more in that direction.

6. It’s becoming more and more difficult to hire people, especially millennials, willing to be paid on gross profit.

In today’s market, it doesn’t make much sense to continue to pay on gross profit. What does make sense is to move more to a volume-based pay plan.

Some of your concerns:

1. You’re afraid to change pay plans because you’ll lose some of your key people.

2. You’re afraid your sales person’s compensation percentages will get out of line.

3. You’re afraid gross profit will go further south.

Let me clear those concerns up for you:

1. Some of those key people will actually like the change. But, if you have some people that you’re concerned about, then tell them that if they sell the same number of units over the next 12 months as they did the previous 12 months and if they don’t make the same or more money that you will pay up.

2. If you do your homework, analyze your history, analyze your grosses, trends and really think it through, you won’t screw it up and get out of line.

3. Gross profit could very well get better. Yes, your management team will have to work harder and harder to hold the line on pricing. If we spent a little more time on selling the sales staff that we’ve got the price right, gross might just go up.

When you dissect all of this, it is not so much about changing pay plans that’s all that hard. It’s about changing the mindset and culture of your organization.

That’s all I’m gonna say, Tommy Gibbs