Data + Common Sense=Good Stuff

Often there’s a disconnect between the desired goals and the skill level of those who have been put in charge of obtaining the numbers we need. We are now in the second month of the year and maybe the plans you laid down back in December are coming together or maybe they aren’t. Regardless, it’s always smart to remind ourselves of the fundamentals. Here are 5 thoughts to keep you moving forward: 1. It’s important to know what you deserve for any given car or truck on your lot. Knowing and understanding that is based on two parts: Data.Common sense. Knowing and getting what you deserve means having a true understanding of the market and every unit on your lot. They are all different, yet we often treat them all the same. It’s knowing when to fish or cut bait. All used cars do not deserve 60 days of shelf life. The sooner you understand that the sooner you will become a better used car operator. 2. Redundant Training. It ain’t redundant until you’re perfect. You’re used car department isn’t perfect. Don’t confuse getting lucky and today’s market with your management skills. Now is the time to amp up the training for your entire team. Dealers often think the fix to their used car department is to hire an experience used car manager or to invest in training their current used car manager. If you want to make a real difference train your entire management team on what’s important. When you get everyone on the same page great things happen. 3. Rolling 30-Day Sales Travel Rate. Pay attention to the number of units you currently have in stock vs. the number of units you have sold over the last 30 days. If you’re doing the right things all you need is a 30-day supply of cars. If you need more than that to get the job done, you’re probably stuck in the 1980s. Almost without exception, we are seeing inventories starting to outpace the sales travel rates. If you’re using our UpYourGross software tool, it’s right there on the scoreboard page for you to see. Maybe you don’t want to know the truth. 4. Not selling in Today’s Market. Your most profitable car is a car you see in the first 30 days. Grosses absolutely go down after the first 30 days. The excuse we often hear is it takes too long to get a car thru recon. If you’re 100% sure that’s part of the problem, then it’s your job as a leader to fix it. Speed wins; the lack of speed kills. 5. Early Warning Radar. You have to be able to spot a problem child on day one, not day 61. Every one of your aged units (Your oldest unit is an aged unit) has a story to go with it. That story started back on day one and somebody wasn’t paying attention. Fix your Radar system and your used car operation will become more efficient and more profitable. It’s only the second month of the year. Stay focused on what’s important. You get what you deserve when you do the work to deserve what you get. That’s all I’m gonna say, Tommy Gibbs

When People Won’t or Can’t Change, You Have to Change the People

In leadership, relationships, or even personal growth, one of the most challenging realities is recognizing when people won’t or can’t change. This realization can be especially tough when dealing with employees, partners, or even friends.

No matter how much effort you invest in coaching, mentoring, or offering support, sometimes people either aren’t willing or are simply unable to meet expectations. When this happens, it’s essential to shift your focus: instead of endlessly trying to change them, you may need to change the people.

Understanding the Barriers to Change

People resist change for various reasons. Fear of the unknown, a fixed mindset, lack of motivation, or even a deep-seated comfort in the status quo can block transformation. Some individuals may genuinely want to change but lack the skills, resources, or emotional resilience to do so.

Others may simply not share your vision or values. It’s important to assess whether the person’s inability to change stems from external factors (e.g., training, lack of clarity) or from an unwillingness to adapt.

The Cost of Waiting for Change

Holding on to people who aren’t growing with you can slow down progress. Whether in business or personal life, this can lead to missed opportunities, low morale, or frustration.

As a leader, you may find yourself compensating for their shortcomings or spending excessive energy on trying to bring them along. The reality is that the longer you hold on to people who can’t or won’t change, the more it compromises your goals and the well-being of others who are willing to move forward.

When It’s Time to Make a Change

There are key indicators that signal when it’s time to shift your approach:

1. Consistent underperformance despite support, training, and clear expectations.
2. Misalignment with core values or a clear lack of buy-in to your vision.
3. Negative impact on team dynamics, causing frustration or burnout among others.
4. Lack of personal accountability, where blame is often shifted and excuses are frequent.

When these signs become persistent, it’s time to consider changing the people involved. This doesn’t always mean firing or ending relationships harshly—it could mean shifting responsibilities, reallocating resources, or encouraging them to find a better fit elsewhere.

Changing the People to Move Forward

In leadership, difficult decisions often lead to the greatest results. Changing the people who surround you allows for the introduction of individuals who are aligned with your vision, willing to adapt, and equipped with the skills needed to thrive. This change isn’t an act of giving up, but rather a strategic step to ensure progress.

Building a team of people who are ready and willing to evolve helps maintain momentum, foster innovation, and reach new heights.

Ultimately, knowing when to stop investing in those who won’t or can’t change and instead finding individuals who are aligned with your goals is a critical leadership skill. Change is inevitable, and sometimes, it’s the people around you that need to change in order for growth to happen.

Change is part of how we grow. That’s all I’m gonna say, Tommy Gibbs

One of the most talked about issue of the day is the lack of affordability in the new car sector. There are no new cars priced under $20,000. Heck, finding something under $25,000 is no easy task. And very soon $30,000 will be a cheap car.

As bad as that sounds, there’s some real opportunity here for a savvy, well discipline dealer to capture more “used car market share.”

Look at your average cost per unit sold over the last 30 days and see how that compares to your average cost per unit in stock today.

The odds are that you are upside down with those two numbers. Even if you have a decent sales rate, the reality might be that you’re selling the fresher, lower priced units and the higher dollar stuff is sitting and costing you lots of money and a lousy ROI.

Staying focused on your average cost per used in stock will help you with the affordability game.

Your mission every day should be what can you do to press the average cost down. There is no magic number. Just know what the number is and do what you can to press it down.

One of the best ways to help control it is to make sure you most expensive units are turning fast and of course trying to keep some of those cheaper cars that you have been wholesaling.

There is no set of circumstances you can lay out that negates this concept. So, if you were to say any of the following, you would be wrong:

We do a great job with highline cars. (Irrelevant.)

We do a great job with high dollar pick-up trucks (Irrelevant.)

We do a great job with high dollar SUVs (Irrelevant.)

We don’t have software that can separate our inventory by Cars, Trucks, SUVs and Wholesale Pieces (Irrelevant.)

There is no question that if you just pay closer attention to what you are buying and what you are keeping for retail that your average cost will go down.

As you monitor your average cost it is going to bump up from time to time. There are two reasons for this. First, it’s because you traded in some high dollar stuff, which you will naturally have to do and second, it’s because you got goofy and went to the auction and bought some high dollar cars. In both cases it’s a matter of paying attention to it daily and getting back on track.

I’m often asked two questions:

1. What should my target goal be? There is no target, just try to get it lower than the day before.

2. Can I press my average cost too low. The answer is no. Don’t be concerned with that. If you do a good job with $30,000 SUVs, you will still sell $30,000 SUVs, but by pressing your average cost down it just makes you that much better.

Control what you can control. Do your part to solve the affordability problem. That’s all I’m gonna say, Tommy Gibbs