One of the more interesting things I’ve discovered over the years is that unless a dealership has a really large body shop or does a big job in wholesale parts, that the difference between the used car inventory and the parts inventory runs about 75%.

In other words, if you have $1,000,000 tied up in used cars you probably have less than $250,000 tied up in parts. Now here’s the most amusing part. Every dealership has a dedicated parts manager. Not every dealership has a dedicated person handling used cars.

It is not unusual for someone to be serving double duty and sort of handling used cars. Sometimes it’s the desk manager. Sometimes it’s the sales manager. Sometimes it’s the general sales manager. Sometimes it’s the general manager.

The conventional skills we once looked for in the person managing our used car inventory have no doubt changed over the years, but what hasn’t changed is that somebody has to “own the department.” Without ownership the department is left to run itself.

Using my example you have a dedicated parts manager managing a $250,000 inventory that actually goes up in value each day.

On the used car side you have $1,000,000 tied up going down in value each day without a dedicated manager.

You might be sitting there saying, “Hey, wait a minute that’s not our dealership.”

Sometimes even when you have a dedicated manager, they aren’t dedicated.

Either way this might be you. That’s all I’m gonna say, Tommy Gibbs

Accountability: “The quality or state of being accountable; an obligation or willingness to accept responsibility or to account for one’s actions.”

Accountability starts with you, vibrates to those around you and ends up back in your lap.

If you believe a leader sets the culture of an organization then you must believe you cannot create an organization of accountability if you’re lacking in your daily disciplines.

If you’re not willing to hold yourself accountable then for sure you can’t hold others accountable.

Why should those around you do what has been deemed important, if you as their leader aren’t willing to do the same? There are a million ways to describe this, but since I’m a common sense guy, how about “monkey see, monkey do?”

A good leader makes sure those around them know what’s important. And a good leader makes things important by checking to make sure those around them are doing what’s important.

Building an organization of accountability isn’t a one-time thing. It’s an everyday thing led by you.

Accountability plays no favorites. If you let one person off the hook, eventually the entire organization falls off the hook.

Besides your personal accountability, there are three parts to holding people accountable.

1. Your personal street savvy. For many, this is based on time and experience and there are a few that are born with it.

2. Getting your head out of the sand. Get out of your office. Pay attention by using your peripheral vision and hearing.

3. Data. Look at the data and look at it some more. Data can be overwhelming. Figure out what’s important and what’s not by applying common sense to everything you’re looking at.

Sometimes data is misleading. Sometimes it smacks you upside your head.

Are you building an organization of accountability?

That’s all I’m gonna ask, Tommy Gibbs

There’s no denying that the stronger you are in used cars the better you are in New, Service, and Parts. It’s a given. It’s a fact. It is. It just is. You can deny it all you want. You will be wrong

There’s an old saying, “Do the things you don’t want to do, so you can do the things you want to do.” That’s a great life lesson to understand, live and grow by. Never has there been a more powerful truism than for the automobile business.

There’s no department that requires more specific strategic disciplines to be successful than your used car department.

The most common discipline that dealers struggle with is turning their inventory in 60 days. Let me state it a different way; no unit can become 60 days old. Some of the more disciplined operations are starting to put that number at 45 days old.

Most dealers would say they want to make more money. To make more money, you must do some things you don’t want to do. One of those things is the pain of discipline. Doing a lot of little things each day to ensure you can do what you want to do.

If you’re not already on a 60-day turn it’s going to be painful and costly to get there. Either you or your staff will have all kinds of excuses as to why you can’t do it. It’s going to cost you some money to get it done. (Do the things you don’t want to do.)

When you finally get it done, your dealership runs smoothly, you make more money, life is simpler, and you smile a lot. Now you’re doing the things you want to do, as in making more money.

If you’re the dealer or GM, and you have aged inventory do not blame your management team. You’re the one to blame because you have allowed it to happen.

“The pain of discipline or the pain of regret.” If you would use my lifecycle management process you’d have a lot less pain. That’s all I’m gonna say, Tommy Gibbs

You have a 75-day-old car, and you justify keeping it by saying, “I don’t want to dump this unit because I can’t replace it.”

What?

What did you just say?

Are you serious?

You don’t want to get rid of it because you can’t replace it?

What part of your brain are you not using?

I heard what you said, but here’s what you really said: “I want some more cars just like that one that are going to sit around for 75 days.” Are you stupid?

If you’ve had it for 75 days, there’s obviously a reason why you still have it.

For grins and giggles let’s suppose a miracle happens and you sell that 75-day old car today and you make $500. (ROI sucks but work with me here.)

Here’s my question for you; if you can sell it at day 75 and make $500, couldn’t you have sold it for that same price at day 45 and made $500 on it?

There’s no way of knowing the answer to that, but if you can sell it at day 75 and make $500 the odds are pretty good you could have sold it at day 45 and made that same $500.

The only reason you didn’t sell it at day 45 was because you weren’t willing to price it at a price point that someone wanted to come in and take it off your hands.

.

Don’t make dumb statements. That’s all I’m gonna say.

I don’t know if it’s me or the way the stars have lined up lately, but it seems I’ve been running into a lot of people who have diarrhea of the mouth. They talk on and on and on and never give others a chance to participate in the conversation.

Ok, I said others, but I’m talking about me. That said, I’m pretty sure they are that way with everyone. Or, maybe I have a sign on my forehead that says, “talk, he will listen.”

These are people from all walks of life. From a successful business people to a drunk guy I’m sitting beside in a bar having dinner.

They have no awareness that they are just “talking,” and not even close to having a conversation.

I will often interrupt them and try to change the subject in hopes we can have a “conversation.” Nope, it’s like bam, and they are off and running again.

I did a little research and here’s what I found:

The difference between having a conversation and someone talking without pause lies in balance and engagement:

A. Constant Talking (Monologue):

1.  One-Way Flow: One person dominates, talking continuously without giving the other a chance to respond or engage.

2.  Lack of Listening: The speaker may focus solely on their own thoughts or feelings, often neglecting cues that the other person wants to speak.

3.  Overwhelming or Exhausting: It can feel draining for the listener, who may feel excluded or undervalued in the interaction. (Drains the hell out of me.)

B. A Conversation:

1.  Two-Way Interaction: A conversation involves active participation from both parties. Each person takes turns speaking and listening.

2.  Exchange of Ideas: Both individuals share their thoughts, ask questions, and respond to one another, creating a flow of mutual understanding.

3.  Respect for Silence: Pauses are normal and allow space for reflection or for the other person to contribute.

Key Analogy:

1.  Think of a conversation as a dance, where both people take turns leading and following, creating a rhythm together. Constant talking is like one person performing solo, leaving the other standing on the sidelines.

Why Balance Matters:

When one person monopolizes the dialogue, it ceases to be a true conversation and becomes a lecture or rant. Effective communication requires a balance where both parties feel heard and valued, fostering connection and understanding.

A good conversation is about give and take. You have two ears and one mouth for a reason. Use your mouth less and your ears more. That’s all I’m gonna say, Tommy Gibbs