Always putting out fires? Such a shame. So much time wasted. Non-productive time on those darn fires.

Think about a real fire. Most fires are started due to carelessness. The fires you fight are the same way. 

Someone is careless and thus, you get to fight the fire.

Fighting fires takes away from time that could be so much more productive. 

Productive building your team.

Productive building your business.

Productive building your bottom line.

If you’re to be more productive you have to eliminate the fires.

The fires you fight are more often than not a result of someone either not knowing or not doing.

If someone doesn’t know, that’s your fault. If someone isn’t doing what they know how to do, that’s also your fault.

You’re creating your own fires. I’m thinking that’s called arson. It’s not about putting out the fires. It’s about fire prevention so that the fire alarm never goes off.

That’s not going to happen until you take responsibility for fire prevention training.

Fire prevention is about coaching and teaching your team on the “why and the how” and then setting expectations.

Anything less puts you in the fire. Enjoy the heat. That’s all I’m gonna say. Tommy Gibbs 

We’re talking about your job. Yes, your job. We know it’s not easy, that’s why you’re asked to do it.

If it were easy, we’d put someone in it with a lot less talent. Less drive. Less enthusiasm. Less moxie. Less grit. Less get up and go.

Your job was never designed to be easy. If it were easy no one would care. And if it were easy, you’d be paid a lot less.

Sure, you’re not paid enough. But, it’s not always about what you’re being paid. It’s about what you’re paying to the big picture.

Sometimes it takes some serious grinding it out to get the pay to match. You will eventually get to the point where you’re being paid for more than you are actually doing.

Never forget that you’re contributing. You’re contributing in a big way. A way that others can’t contribute. We need you to keep doing what’s not easy.

Just stay the course. Of course, the course is not always easy, but needed. That’s all I’m gonna say, Tommy Gibbs

The car business is a game of high stakes. The highest stake is and has always been the used car department.

It doesn’t matter if your trading at the front door or buying at the auction it’s always a gamble. You’re gambling that you paid the right money for the unit.

It’s true you make money when you buy the unit. It’s even truer that you make the money when you sell the unit. You never know what a unit is worth until you sell it. It’s always a gamble.

Used cars are not an exact science. It’s more often than not a wild-ass guess. Some guess better than others, but it’s always a gamble.

Solid leadership and a savvy understanding of the business will mitigate your gamble and give you better odds of winning the game and improving your bottom line.

If you’re the Owner, Dealer or General Manager you should never turn the riskiest part of your business over to a single individual. Your leadership and experience are critical to your thriving and surviving the risky part of your business.

There’s an old Chinese proverb that says: If you must play, decide upon three things at the start:

1. The rules of the game-Upper management set the rules of the game and decide if they are going to demand accountability. Rules without accountability are just stupid. Don’t be stupid.

2. The stakes-The stakes are very high. How much money do you have invested in your used car operation? Most of the time we think about that in terms of the number of used car of used cars we’re carrying.

Often in the millions of dollars. Yes, that’s the biggest chunk of the investment, but there’s also a huge investment in time, management development and resources that go into the equation. Don’t be stupid with your investment.

3. The quitting time-At what point do we find a retail buyer at some number? Our first inclination when reading “the time to quit,” is when do we dump the unit in the wholesale market.

Dumping in the wholesale market is always a bad idea. If you want to think about it as dumping, you should be thinking about it as dumping in the retail market.

At some point, the unit should be priced at a price point that makes someone come in and take it off your hands.

All units don’t deserve the same shelf-life. To assign all units the same quitting time is a bad business strategy. Not having a solid strategy and flying by the seat of your pants is just stupid.

I’m being repetitive, but it’s worth repeating that the used car business is a gamble and you need to do everything in your power to increase the odds in your favor.

That’s all I’m gonna say, Tommy Gibbs

You may be running out of time. The year is closing out fast.

I’m always reluctant to promote my training business in my Zinger Newsletter, but I’ve got some good bullet points at the end of this that will help you think about what’s going on in your dealership.

You’ve been contemplating hiring me to improve your used car operation, but keep procrastinating thinking your used car department will fix itself.

I am going to enhance what you do well and give you some powerful concepts to take you to the next level.

Here’s the biggie; I’m going to get your team on the same page.

It’s a pretty safe bet that you have a management staff that all have their own way of thinking about your new and used car business. Some of their thinking is spot on. Some of it not so much.

I’ll destroy the myths and line the moon, stars and earth up.

See if any of this applies to you:

1. You’ve had evaporation. Regardless of how good you are or how well disciplined you are, there’s going to be an evaporation of processes over a period of time. Bam! I can fix that!

2. You’ve had some turnover. Most people do. Turnover isn’t a sin. What’s a sin is not ensuring that the new guys and gals get it. If you don’t give them the right tools, they don’t have a chance. Bam! I can fix that!

3. The business is changing. Your team needs to understand the changes taking place and how to attack them. Bam! I can fix that!

4. Your team has gotten a little complacent, either because business has been pretty darn good or they have accepted the status quo. They need to be re-energized and see the possibilities. Bam! I can fix that!

5. Your average grosses continue to decline. Mostly they decline because someone’s not paying attention to the little things. Bam! I can fix that!

6. You have aged inventory and wholesale losses. Aged inventory helps create #5. Aged inventory causes wholesale losses. Bam! I can fix that!

7. You have a team that struggles to get on the same page. You have old school thinking. You have new school thinking. You have no thinking. Bam! I can fix that!

8. The number of days it takes to get a car online and on the line is killing you. Bam! I can fix that!

9. You’re sick and tired of listening to the bickering, excuses, and lack of forward movement. Bam! I can fix that!

10. You need a coach. You need someone to lean on. You need another set of eyes on the subject. Bam! I can fix that!

A quote worth remembering: “The purpose of training is to tighten up the slack, toughen the body, and polish the spirit.” Morihei Ueshiba

You’ll become smarter when you hire me. Becoming smarter is always a bargain, something you can buy for a lot less than it’s worth.

Is now the time? That’s all I’m gonna ask, Tommy Gibbs

Managing a used car inventory is a complex process, and while data analytics is a powerful tool, relying solely on it may lead to missed opportunities and pitfalls.

I must state, I’m a big fan of data. vAuto and some of the other great tools out there.. In my opinion vAuot is the gold standard of automobile data.

And, I own my own software product called UpYourGross. One of my favorite workshops to teach over the years is “When Common Sense Meets Technology.”

Dealerships should also draw upon their experience, wisdom, knowledge, and common sense to make better decisions. Here are 8 reasons why:

1. Data Can’t Predict Local Market Nuances

While data can show trends in broader markets, it often fails to capture the unique nuances of local markets. Management knows their customer base better than any algorithm. They understand which cars sell quickly in their region, the types of vehicles their clientele prefer, and which models are in high demand at different times of the year.

2. Historical Data Can’t Always Predict Shifting Trends

Used car markets are dynamic and can shift suddenly due to external factors like fuel prices, economic changes, or government regulations. Relying on past data alone might cause dealerships to miss emerging trends.

3. Human Intuition Can Fill Gaps in Data

While data can be comprehensive, it doesn’t always tell the whole story. For example, it might indicate that a specific model is a slow seller nationwide, but a dealership’s intuition and historical knowledge might suggest the opposite due to local preferences or promotions.

4. Experience with Vehicle Condition and Maintenance Costs

Not all used cars are the same, even within the same make and model. A car’s condition, maintenance history, and current mechanical state can significantly affect its resale value. Let me say this a different way; the used car you are looking at is an absolute “one of a kind.” There’s not another one like it in the entire world. Your eyes are on it and you know what you’re dealing with.

 5. Pricing Sensitivity May Vary Across Markets

Data-driven tools may set price recommendations based on averages, but those averages may not apply everywhere. Local economic conditions, competitor pricing, and even customer buying habits can influence what price a dealership can set for a used car. That said, price sells cars.

There’s an old saying about a car bought “right” is half sold. That’s sorta true, but never forget every used car has a price that it will sell for. When you have a car that you can’t sell, often it’s because you haven’t price it “right enough,” to make it go away.

6. Personal Networks and Relationships Matter

Dealership managers often have extensive personal networks and relationships with wholesalers, auction houses, and even other dealerships. These connections can lead to valuable insights and opportunities that are invisible to a purely data-driven approach. There’s lots of knowledge out there. Be smart enough to know what’s good knowledge and what’s not.

7. Gut Instincts Can Lead to Bold, Profitable Moves

There are moments when gut instincts, honed by years of experience, lead to bold decisions that data would never suggest. These instincts are based on accumulated wisdom, market feel, and an understanding of human nature. I once worked with a GM who seemed to have a horseshoe up his butt when it came to guessing the market. He would put on a big used car sale in the middle of a snowstorm and knock it out of the park.

8. Common Sense Helps Avoid Over-reliance on Trends

Data may highlight trends that appear promising but might be short-lived or irrelevant to a specific dealership. Common sense, grounded in real-world experience, can help avoid chasing trends that won’t deliver long-term benefits.

I’ve already mentioned the importance of common sense. Never sell yourself short, but don’t think that you’re so smart that the data doesn’t matter. That’s all I’m gonna say, Tommy Gibbs

Recently I got my normal early morning start…up early, some computer work, wrote a couple of articles, and headed to the gym. After the gym, I had a couple of errands to run but felt a little hungry after lifting all those heavy weights.

Because I’m conscious of eating healthy, I decide to zip through Taco Bell and grab something with some nourishing protein in it.

I pull up to the menu board and can’t find any of their breakfast food on the menu. About that time a little voice says, “Welcome to Taco Bell, order when ready.”

I’m still trying to find breakfast on the menu. Finally, I speak back into the little box and say, “Hey, I can’t find the breakfast menu.” Crickets.

I’m thinking, ok they must be busy, so I’ll just pull around to the window and order. I pull up to the window and the worker opened the window. I say, “Hey, what’s for breakfast?” She says, “We’re not open.”

I say, “What time do you open?” She says, “8:00.” Oh, ok…I pull up to the exit driveway and look at the clock on my phone. It’s 7:59.

I wonder, would she have been fired if she had said, we don’t open until 8, but it’s only one minute early so I’ll take your order. Or, I guess she could have said, drive around the building and you will be on time.

This reminds me of when I was a new car dealer. Back in those days, we opened the service department at 7:30 am. There would be customers lined up outside the service doors waiting for the doors to open. The service writers would be inside standing at their podium getting ready for the day and staring back at the customers.

“It’s 7:25, hey we’ve got customers, let’s open the door and get them on their way,” said no one ever.

Of course, you can imagine when Tommy hit the building, he’s screaming, “Open the door and take care of our customers.”

Now, what do you think the pushback was when I chatted with the service director later in the day about this hot topic?

“Boss, if we do that, we are training the customers to show up earlier and earlier.”

OMG, what a horrible thing that we train the customers that they can count on us to exceed their expectations and get them on their way lickety-split.

Does one-minute matter?

Maybe not to you and the Taco Bell bunch, but it matters to me and your customers. That’s all I’m gonna say. Tommy Gibbs.

I want to speak to those of you that are in charge of the hiring and struggle to find that superstar used car manager. The used car manager you need may very well be right under your own roof, and you’re walking right by him or her a dozen times a day. For whatever misconceived reason, when you need a used car manager, the first thing you want to do is find a used car guru that works someplace else and lure them away. I don’t have to tell you the challenges of hiring from the outside. I don’t have to, but I will. 1. The person you hire isn’t going to have the same culture that you’ve been working so hard to develop. 2. Their thinking about the used car business isn’t going to necessarily align with yours. That doesn’t mean either of you has it right or wrong. It just means it’s going to be frustrating and more than likely expensive. 3. If you’re running an ad in Automotive News, most of the respondents are going to be from outside your area. I’m not even going to attempt to list all the issues tied to bringing someone in from afar. If you don’t understand those issues then you’ve got a lot more problems than I can help you with. 4. When you hire from the outside you are looking for a miracle worker to fix the mess left from the last miracle worker. Most likely the mess will get bigger. All you’re doing is rinse and repeat. 5. You’re doing nothing to encourage people to want to grow and develop within your organization when you keep going to the outside. You need to promote from within. The real answer is that you don’t need someone from the outside with a bunch of experience. What you need is to commit to giving someone from within a chance and a whole bunch of your personal time and energy. What you need is: 1. Someone that’s a young “thinker.” 2. Someone that has high energy. 3. Someone that believes in your culture and store. 4. Someone that’s coachable. 5. Someone that has common sense. 6. Someone that understands technology. 7. Someone that has integrity. 8. Someone that has a strong work ethic. 9. Someone that has good communication skills. 10. Someone that’s hungry. If you don’t have someone or multiple someones like this in your organization then you need to rethink your organization. That’s all I’m gonna say, Tommy Gibbs

Do The Care?

THIS IS DIFFICULT What’s difficult? What I’m about to say is difficult. I don’t like saying it, but it’s the truth. People lie. When they lie the impact is expensive and painful. What lie am I talking about? It’s the lie of: “Yes boss, I’m all in.”“I’m with you.”“Let’s rock this thing.”“I think you’re brilliant.”“This will take us to the promised land.” They are looking right at you shaking their head north and south on the outside, but on the inside their head is going east and west and they are thinking, “No way!” Behind the scenes they are circumventing whatever it is you’re trying to do. They don’t want the change you’re trying to implement, and they have convinced themselves that the old way is the best way. They have a hidden posse of followers that they have gathered up to help spread the negative propaganda. They will act like they are in the boat rowing with you, but at the same time they are drilling holes and letting the water seep in. They will play along with you for a period of time as if they support the idea, but plant seeds of doubt to convince you that you’ve got it wrong and that we need to go back the other way. In the end, one of two things will happen. You will listen to them and bail out of the idea. Legacy thinking wins again. Or you figure out what’s going on and send them packing. Either way it’s going to be expensive and painful for you.It would be a lot less expensive and painful if you had figured it out sooner.You’d figure it out a lot sooner if you would just pay attention. That’s all I’m gonna say, TommyOne of my favorite authors and bloggers is Seth Godin. Seth once wrote “that when staff members aren’t doing what you would like them to do it’s not due to ignorance. It’s due to the fact that they don’t care about what you care about.” Getting people to care about what you care about isn’t necessarily about having more meetings and training sessions. Of course, that activity is a part of giving people what they need to know. Knowing something and doing something is what separates the good companies from the great companies. One of the best things a leader can give to his/her organization is to set the atmosphere for a defining culture and to make sure there’s a clear understanding of the following facts: Everybody has the same product.Everybody has great prices.Everybody has technology.Everybody has trained technicians.Everybody has good selling processes.Culture is what will separate your organization from your competition. Most of the time upper management “gets it.” The breakdown occurs at the next level. Far too often we don’t get enough influence from the core staff to make a real difference. A few are talking the talk, but most aren’t walking the walk. People must “see it” in order to start to “believe it.” Your challenge is to get more of the “next level” involved, engaged, and believing they can make a difference. Until you do so, you’ll hold some nice meetings. Do some nice talking. Print some nice posters. Create some nice name badges. Feel good about yourself. But not much will change. That’s all I’m gonna say, Tommy Gibbs

One of my favorite authors and bloggers is Seth Godin. Seth once wrote “that when staff members aren’t doing what you would like them to do it’s not due to ignorance. It’s due to the fact that they don’t care about what you care about.”

Getting people to care about what you care about isn’t necessarily about having more meetings and training sessions. Of course, that activity is a part of giving people what they need to know.

Knowing something and doing something is what separates the good companies from the great companies.

One of the best things a leader can give to his/her organization is to set the atmosphere for a defining culture and to make sure there’s a clear understanding of the following facts:

Everybody has the same product.

Everybody has great prices.

Everybody has technology.

Everybody has trained technicians.

Everybody has good selling processes.

Culture is what will separate your organization from your competition.

Most of the time upper management “gets it.” The breakdown occurs at the next level. Far too often we don’t get enough influence from the core staff to make a real difference.

A few are talking the talk, but most aren’t walking the walk. People must “see it” in order to start to “believe it.”

Your challenge is to get more of the “next level” involved, engaged, and believing they can make a difference.

Until you do so, you’ll hold some nice meetings. Do some nice talking. Print some nice posters. Create some nice name badges. Feel good about yourself. But not much will change. That’s all I’m gonna say, Tommy Gibbs