It’s Obvious…Or Is It?

One of the advantages of having spent years working with dealers and analyzing inventory performance inside our UpYourGross software platform is that patterns become very clear.

And some of those patterns are impossible to ignore.

One of the most consistent observations we’ve made is the dramatic difference in gross profit performance based on where a vehicle originated.

Trade-ins.

Auction purchases.

Rental purchases.

Customer acquisitions.

I don’t doubt that you already know this…I do suspect you might need reminding.

The best-performing dealers understand that not all inventory sources should be managed the same way.

Auction purchases don’t deserve the same shelf-life as a nice trade or customer acquisition. Yes, you know that, but are you paying attention to it?

What continues to surprise me is how many dealers are still holding vehicles beyond 45 days while trying to achieve the same gross they expect from a trade-in.

The logic is understandable: every once in a while a miracle happens and an aged unit sells with a healthy profit.

But building a strategy around miracles is rarely a good business plan.

Even when that occasional win occurs, the return on investment is often disappointing after considering depreciation, floorplan expense, lost opportunity, and the capital tied up in the vehicle.

The lesson is simple.

Pay close attention to the gross profit expectations you have for each inventory source. More importantly, monitor the age of those vehicles and be willing to adjust your pricing strategy before a unit becomes an expensive problem.

The dealers who consistently outperform their competitors understand Life-Cycle Management. That’s all I’m going to say.

— Tommy Gibbs

What’s That Used Car Worth?

Let’s get something straight.

A used car is not a spreadsheet.

It’s not a formula.

It’s not a clean data set.

And it sure as hell isn’t the same as the one parked next to it.

Every used car is one of a kind.

Same year. Same make. Same model. Same mileage.

And still… completely different cars.

Why?

Because cars live different lives.

One was owned by a neat freak who serviced it like clockwork.

Another was driven hard, skipped oil changes, and cleaned only when it rained.

And yet…

we’ve got dealers appraising them as if they are all the same.

The Software Trap

I’m in the software business.

I believe in it. I use it. I sell it.

Good software is powerful. It gives you data, speed, and consistency.

But here’s the problem…

Too many dealers have turned software into a crutch instead of a tool.

They plug in the VIN.

They look at the number.

And they stop thinking.

You Can’t Download Experience

No software can:

•        Feel how a transmission shifts

•        See the difference between “clean” and “exceptional”

•        Smell smoke, pets, or neglect

•        Recognize pride of ownership

That only comes from you. You’re more important than you might think.

Your experience.

Your judgment.

Your time in the trenches.

You’re the one standing in front of the car.

You’re the one who decides:

“Is this rough, average… or is this special?”

Common Sense Still Wins

Bottom Line

Software is a tool.

You are the advantage.

If you rely on the tool and ignore your instincts—you’ll underperform.

If you combine both?

Now you’re dangerous.

Every used car tells a story and only you can read the story. That’s all I’m gonna say. Tommy Gibbs

I Can Beat You

Several years ago, the legendary University of Tennessee women’s basketball coach, Pat Summitt, passed away.

She will forever be remembered as one of the greatest coaches in the history of sports—regardless of the game or level of competition.

In her book, “Reach for the Summitt,” Pat made a statement that has always resonated with me:

“Here’s how I’m going to beat you: I’m going to outwork you.”

I love that mindset.

I put myself and many of the people I’ve worked with throughout my career into the category of, “We’ll outwork you.”

Talent is important. Intelligence is valuable. Experience matters.

But there is something powerful about a person who simply refuses to be outworked.

Over the years, I’ve watched countless people with more talent, better opportunities, and bigger advantages get passed by.

Why? Because someone else was willing to put in the effort, stay later, get up earlier, make one more call, visit one more customer, and keep pushing when others quit.

The truth is, there is a tremendous amount of room at the top of the pyramid. Most people think it’s crowded up there. It isn’t.

The competition gets thinner the higher you climb because fewer and fewer people are willing to do what it takes to get there.

Success leaves clues, and one of the biggest clues is that high achievers have a work ethic that separates them from the pack.

Today, it seems like fewer people wear the badge of honor that says, “I’ll outwork you.”

In fact, it’s becoming easier and easier to outwork many of the workers in today’s marketplace.

Show up on time.

Do what you say you’re going to do.

Follow up.

Stay focused.

Put in a little extra effort.

Those simple disciplines alone can put you ahead of a surprising number of people.

Maybe that’s why opportunity still exists for those willing to hustle.

As for me, I’ll continue betting on hard work.

That’s all I’m gonna say.

— Tommy Gibbs

WHAT’S NEXT?

Can you believe it? We’re already halfway through the year.

July is here, and whether we like it or not, the first six months are in the books. Time seems to move a little faster every year.

For some of you, the first half has been outstanding. You’re hitting your numbers, turning inventory, growing market share, and building momentum.

For others, it hasn’t gone quite as planned.

Maybe you’ve been running full speed ahead. Maybe you’ve felt like you’ve been dragging through quicksand.

Maybe you’ve been fighting aging inventory, inconsistent processes, staffing challenges, or simply trying to keep your head above water.

Whatever your situation, here’s the good news:

You still have six months left.

The first half of the year doesn’t determine how the year ends.

If things haven’t gone your way, don’t waste time looking in the rearview mirror. Identify what’s holding you back. Maybe it’s market conditions. Maybe it’s execution. Maybe the plan simply wasn’t the right plan.

The important thing is this: if the plan isn’t working, change it.

Review your inventory strategy.

Review your processes.

Review your people.

Review your accountability.

Then make the adjustments necessary to finish strong.

For those of you who have had a great first half, be careful.

Success has a way of making people comfortable, and comfort often leads to complacency. The best operators are constantly looking for ways to improve, even when things are going well.

The second half of the year belongs to those who are willing to challenge themselves, make adjustments, and execute at a higher level.

Everything comes down to choices.

You can choose to improve your processes, tighten your execution, and raise your expectations.

Or you can choose to do nothing.

The calendar will keep moving either way.

Six months from now, you’ll either be glad you made some changes—or you’ll be wondering where the year went.

The choice is yours. That’s all I’m gonna say,

— Tommy Gibbs