Frequent Quotes:

1. “We never miss a trade.”
2. “We don’t try to steal trades.”
3. “We put top dollar in every unit we appraise.”
4. “We’re not going to miss a deal at the front door.”

Fundamentally none of these are true. Everyone misses trades.

What’s funny is when you go to the auctions to buy cars you always pay more for them than you would if that car was sitting at your front door.

Stealing trades is one of those things that falls into the “We’ve always done it that way” category.

I believe there are four fundamental causes for trying to steal trades:

1. The fear of the bump. Used Car Managers fear the bump from upper management so they low-ball the trade thinking the bump request is just around the corner. The used car manager is protecting their “territory” by low-balling the trade.

2. Pay plans also tie into stealing the trade. The manager is protecting their own personal pocketbook especially in those cases where the used car manager is only paid on used car gross. Even if they are paid on total gross it still creates “trade stealing.” Gotta make some gross someplace.

3. Aged inventory. We need to steal the trades to make up for the sins we have on the lot right now. As long as you allowed aged inventory to exist you’re going to have people trying to steal trades.

4. The old adage that you “make the money,” when you buy or trade the unit. That’s only partially true. You “make the money” when you sell the unit and you make the most when money when you sell it fast.

Here’s the fix:

1. Put solid disciplines in to eliminate aged inventory. (My Life Cycle Management Process.)

2. Put top dollar on every trade. I said top dollar on every trade. No bumps. Pretend it’s your last bid as if you were at an auction. Step up from jump-street.

3. Change the pay plans. Paying on gross profit becomes more archaic every day. Becoming a one price dealer has worked out pretty well. Didn’t you learn anything from the Pandemic?

4. Stay focused on improving your look to book. Review every vehicle that was appraised from the previous day that you didn’t get. A phone call to a customer from a manager will do wonders for your business.

When you stop stealing trades and customer acquisitions, you improve the quality of your used car inventory.

When you improve the quality of your used car inventory you sell more used cars and make more gross profit.

When you sell more used cars you become more confident that you can put top dollar on trades.

When you put top dollar on trades you sell more new and used cars.

Stop stealing trades. That’s all I’m gonna say. Tommy Gibbs

Touch is a fundamental part of human interaction that plays a vital role in the workplace and beyond.

Whether it’s a handshake, fist bump, high-five, a pat on the back, or a friendly hug, touch can help build connections and foster a sense of trust and collaboration among colleagues.

Touch is a great way to increase energy and enthusiasm.

One of the most common forms of touch in the workplace and social arena is the handshake. This simple gesture can convey a great deal of information about a person, including their level of confidence, trustworthiness, and respect for others.

A firm handshake, for example, can convey a sense of strength and confidence, while a limp one may suggest the opposite. A wimpy and un-enthusiastic handshake can drain a potentially powerful moment.

During the pandemic this sort of human touch went away. I heard some people say they were happy it did. I’m not one of those people.

My father taught me how to shake hands at a young age and I’ve found it to be one of the most powerful human interactions on the planet. Even more so when it includes a hug.

In addition to handshakes, other forms of touch can also be valuable in the workplace. A pat on the back can be a sign of encouragement and support, while a touch on the shoulder can convey empathy and concern. Even a fist bump can be a lighthearted way to show camaraderie and a shared sense of purpose.

The high-five is an exclamation point for whenever you feel the need to put it into play. It once got me out of a traffic ticket. When the officer came to the window I high fived her and all she could do was smile and move on.

The first-ever high-five appears to have happened in 1977, during a baseball game between the Los Angeles Dodgers and the Houston Astros. After a home run, Dodgers outfielder Dusty Baker high-fived his teammate.

Of course, it’s important to remember that not everyone is comfortable with physical touch, and it’s essential to respect people’s boundaries and preferences. However, for those who are open to it, touch can be a powerful tool for building relationships and enhancing teamwork.

It’s also super important that you touch all your used cars on a regular basis. They will love you for it.

In conclusion, touch is an essential aspect of human communication that can play a vital role in the workplace. It can inspire positive thinking and expand trust.

Touch reduces social anxiety and stress. Physical touch increases levels of dopamine and serotonin, two neurotransmitters that help regulate your mood and relieve stress and anxiety. Dopamine is also known to regulate the pleasure center in your brain that can offset feelings of anxiety.

From handshakes to pats on the back, these small gestures can help build trust, foster collaboration, and create a more supportive and productive work environment. Touching your used cars will help them go away faster too.

With some caution, let the touching begin. A big high-five to you. That’s all I’m gonna say, Tommy Gibbs

The idea behind a Jet Fighter Interceptor is to intercept the enemy before anything bad can go wrong.

In the game of football an interception gives your team an advantage by intercepting a pass intended for a touchdown.

In both of these examples an interception occurred as a result of movement. The fighter jet was moving when it caught up with the enemy. The defensive back was moving when he caught up with the pass.

You need to get moving. I want you to use this mindset to sell more cars. If you are a sales manager, F&I Manager, GSM, GM or Owner/Operator you need to become the “interceptor” and you are going to make a huge difference in the number of cars that get sold.

You will intercept a whole bunch of problems before they become problems.

You are going to do it by moving.

Moving your butt out of the chair and toward the front door to introduce yourself to every customer that comes through the door. And you’re going to keep moving around like a big stealth spy bomber. Your radar, your eyes and ears, are going to be wide open like never before. (People want to connect with a “manager.”)

Deals frequently get screwed up early on in the equation and you’re gonna help prevent that. There are a number of things that will happen by following today’s “Operation Interception.”

If a TO is needed you have already set the stage early by having met the customer.

If your radar is working a full 360 degrees, you will sense something is not right with this sales person and this customer from that first handshake and you might intercept the deal right then and there.

Never forget the customer belongs to the dealership, not the sales person. Don’t be afraid to “do it now.”

By moving around the showroom you will get some early TOs before the deal is all screwed up. Early intervention is a wonderful thing.

Simple huh? Fire up your jet engines for lift off, get out of your office and go to work. It’s show time baby! Tommy Gibbs

March Madness is upon us. Unless you’ve been living under a rock you know that March Madness is the NCAA basketball tournament.

More often than not these games are won on defense and a full-court press is often a major part of a defensive strategy.

A full-court press is a basketball term that refers to a defensive style in which the defense applies man-to-man or zone defense to pressure the offensive team the entire length of the court before and after the inbound pass.

A full-court press takes a great deal of effort but can be an effective tactic.

Often when teams are behind late in a game, they will apply full-court pressure as a means of attempting to produce turnovers as well as tire opponents.

A team with less talent can beat a talented team by utilizing a full-court press for the entire game. It doesn’t take talent, but it takes a lot of heart and desire to play an “in your face” defense for the entire length of the court for a full forty minutes.

If you’re in the car business today you need to be in a full-court press. You may very well be behind in the game. Be it good or bad, in the car business every day is a full-court press day.

Every minute of every day there needs to be an “in your face” approach.

I know you think you’re doing all you can, but you aren’t, there is always more. If you’ve played sports you know that is true.

How can you do more? Start by writing it down.

Make a list of all the basic things you know about this business.

Things you now do, things you used to do, and things you’ve heard that others do.

Once you make the list, make a commitment to go into a full-court press for a minimum of the next 21 days.

Why 21 days? Research has proven it takes 21 days to create a new habit. If you will focus on this list for the next 21 days good things will happen.

I’m trying to press you to take action. I’m pressing you to get after it. I’m pressing you to take stock of what you do and how you do it.

I think of every minute of my life as a full-court press. Press on.

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

I’ve been around a while and have a lot of business experience. Thus, I’ve seen a lot, done a lot and have lots of opinions. Opinions are just that, an opinion. And you know the rest of that saying. 

Doesn’t make me right or wrong, but you have to realize I get to see so many different views that over time I can spot a zebra from a horse pretty easily.

One of the issues that constantly comes up is the PIC (Person in Charge); the dealer, general manager, owner-operator who doesn’t listen to those in the trenches when it comes to what’s working, what’s not, and what can be done to fix something.

Oftentimes it’s not just that they don’t listen, it’s that they don’t bother to ask.

Even when they do ask they won’t act on the information they have been given because they (the PIC) have been there and done that.

Sometimes they have over-analyzed the information to a point where they are convinced that whatever the thought or suggestion that was served up will not work.

In your zest to get it right have you screwed it up by not being willing to listen to others who might just have a good idea?

Experience is a powerful tool and so is the lack of it. Experience can convince you not to do something that might make you a lot of money. Inexperience can cause you to take a chance and make some money.

My father, just like your father, gave me tons of advice as a young man growing up. One of the things he said to me was “Son, you can go through life, not take many risks, and you will probably live an ok life. Or, you can go through life, take some chances and you might be rich.”

I think far too often in business we become convinced that something can’t be done and when we do that we are no doubt right. And, we are just as right when we become convinced that something can be done. Business and life is such a head game. The better heads win.

Often times as we go up the APG (Authority Power Grid) we start to believe that due to our success we have all the answers. We would be well served to value and act on those ideas that come to us from those who are dealing with the problems day-to-day.

Fear is a great motivator or de-motivator. If you’re scared to roll the dice once in a while it’s going to be very hard for you ever to hit the winning numbers.

You need to listen to those under you and you need to let them try some of the things they believe will help your business. Take the handcuffs off and turn them loose once in a while. What you think doesn’t matter as much as you think.

One of my favorite techniques as a new car dealer was to ask the members of the management team what they needed in order to fix whatever problem they felt was getting in their way of performing to their maximum potential.

My message to them was, “Tell me the problem, tell me what you think the fix is, and let’s get on with it.” I loved eliminating excuses. Now the ball is in their court. Game on!

When all the information comes from the top down in the power grid, those on the lower half of the grid become very unhappy. Unhappiness leads to frustration.

Frustration leads to throwing one’s hands up and giving up. When people give up they go through the motions and the organization never reaches its full potential. I want you to reach your full potential.

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

Most of my messages are geared toward management, but today I want to talk to your sales staff. You should forward this to every salesperson on your team and suggest they sign up for my newsletters.

If you’re a salesperson, I want to help you re-frame what you do every day and what a great opportunity you might be missing. If you’re in management, this is a message you need to share with all.
Have you ever wanted to be in business for yourself?

Have you ever thought about going into business, to get someone else to invest the money and you reap the rewards?

Welcome to the amazing world of the automobile business:

You have free office space.
You get rewarded based on how hard you work.
You have opportunities for advancement.
You have healthcare, vacation and retirement opportunities and Christmas bonus programs.
You have a management team working to help you be productive.
You have a free computer system.
You have a CRM/DMS and other software provided free of charge.
You have staff and technicians available to handle customer problems.
You have free marketing, advertising, and a website developer.
You have an administrative staff to help process your deals, DMV work, etc.
You have millions of dollars of inventory to sell with zero personal investment.
You get special spiffs/incentives from the factory.
You get all the free training/coaching that you can stand.
You have a detail/clean up department that gets your vehicles ready for delivery.
You don’t have to pay a penny for phone, electricity and other utilities.
You can demand an assistant when you become productive enough.
You have an Internet/BDC department begging you to take leads.
You have free janitorial service.
You have free coffee.
You have your own personal financial officer (F&I) working to put your deals together.
You work out of a multi-million dollar facility located on prime real estate.
You have an opportunity of a lifetime with no personal financial investment.
You need to “own” your own business.

That’s all I’m gonna say,Tommy Gibbs.

The Peter Principle is a management theory that states the selection of a candidate for a position is based on the candidate’s performance in their current role, rather than on abilities relevant to the intended role.

Thus, employees only stop being promoted once they can no longer perform effectively, and “managers rise to the level of their incompetence.”

Promoting people to their level of incompetence is one of the biggest issues facing businesses and is extremely prevalent in the automobile business.

Dealerships spend thousands of dollars in time and money developing staff members’ “managing skills.” We’ve all observed such people. They are wizards at managing things, processes and resources.

Someone may have been an awesome new car inventory manager. They were great with details, data and were as organized as a flight director at NASA. They can organize a herd of cats, but have zero leadership skills.

One day the big opening occurs and they are promoted. Bam!

Hello “Peter Principle.”

All is not lost. People can actually learn leadership skills. Of course the best way to learn is to have great mentors.

Far too often the person that got promoted is more than likely replacing someone with similar managing skills and little or no leadership mentoring has taken place.

If CEOs and owners would spend as much time, money and energy on developing people’s leadership skills as they do on developing management skills we’d have a lot less Peters to deal with.

That’s all I’m gonna say, Tommy Gibbs

Often in my training sessions I’ll ask the question, “How many of you agree that we do a lousy job of holding people accountable in the automobile business?” Without exception, they will all raise their hands.

Leaders that have figured out how to hold people accountable are the most successful when it comes to developing a culture of leaders and achieving high results.

Holding people accountable doesn’t have to be a negative experience. When people understand the expectations, they will seek to achieve those expectations, goals, objectives, culture or however you might want to frame it.

People tend to do the right thing when they know it’s in their best interest, not when you have to hit them over the head with a baseball bat.

Your job as a leader is to sell the team the idea that the things the organization deems to be in the best interest of the organization is actually in their best interest too. Achieving expectations means they win, we win and we all have more success.

Easy tips:

1. Make sure everyone is reminded of the expectations. Yes, that seems elementary, but the evaporation factor is always in play. Either as a direct message or subliminally, leaders must constantly remind the troops of what’s expected and what’s important.

2. Get on it right now. Far too often when there’s a lapse in achievement, leaders let things drag on and on. The more things are allowed to slip, the more those things become habit, and the more the expectations are lowered.

3. You don’t have to be mean to enforce expectations. People like to work in a well-run, well-disciplined organization. This isn’t about screaming and hollering at someone about their failures. It is about letting them know quickly we’re not on track; you and your team are not getting it done, whatever “getting it done” might mean to you.

At some point there must be consequences for those who cannot live up to reasonable expectations. The ultimate consequence is they get to go to work someplace else.

4. Be consistent in your actions and statements. The easiest way for expectations to fall apart is that you are all over the place. You let some things slide for some people and not for others. You cannot be Dr. Jekyll and Mr. Hyde. Selective enforcement with just a few people will destroy the morale and productivity of the team.

5. There are times when you need to figure out the real root of why expectations aren’t being met. What’s the real problem? Leadership sometimes will set the wrong expectations. Setting the wrong expectations is just as bad as not having any.

6. In order to hold others accountable we too have to hold ourselves accountable. We should make it a daily practice of looking in the mirror and being honest with ourselves.

A part of holding yourself accountable is never to forget, “Familiarity breeds contempt.” The closer you become with people the more difficult you make your responsibility of holding them accountable.

I’m holding you accountable. That’s all I’m gonna say, Tommy Gibbs

While I realize you don’t care all that much about my history, I want you to know I’ve tried it all when it comes to recruiting and training. In the early 80s we had an off-campus training facility with two full-time recruiters and trainers for our three-store group.

I wish I had a perfect fix for you. I can get you close but, in the end, you have to deal with the issues surrounding a major cultural shift.

That’s what it is, a major cultural shift when it comes to today’s recruiting and training of salespeople.

If you’re building a new store from the ground up, you have a much better chance of making it happen. You can write the new rules, hire the right people and change the game.

You can lay out an achievable game plan that will carry you through the next 20 years. I didn’t say it’s not going to change over the next 20 years, just that it will put you in a position to build on as you move forward.

Since you’re probably not building a new store it’s going to be a little more difficult, but if you have some discipline you can do it. It’s going to be expensive but if you think about what you might be investing in a new store given the chance, then it’s probably a bargain.

And, if you think about the cost of turnover, you’re going to win big time. Nothing you can do will eliminate turnover, but how you deal with it and how you restock your shelves can make a big difference.

The size of your store certainly can change the equation, but at some level all of this is doable.

When it comes to training, you have to get committed to something more than “Johnny the new car manager/GSM will handle it whenever we hire someone.” Johnny can close deals, but he ain’t no trainer.

As a matter of fact, it’s a burden and pain in Johnny’s butt to have to deal with it. His lesson plan consists of making sure they know the selling process.

Hiring outside companies to come in and do your recruiting and hiring is a short-term fix at best. It makes you feel warm and fuzzy, but the end result doesn’t change much of anything.

If you have 10 salespeople or more, you need to give serious consideration to having a full-time trainer and you need to invest in their teaching skills and not just base it on “they know what to do.” You have to continue to educate the trainer.

Here’s the secret sauce:

1. Hire a trainer. Give him/her the tools they need to be successful, as in equipment and training for them. (Why do this? Because the way you’ve been doing it isn’t working.)

2. Pick a specific week each month that you are committed to a new recruiting or training class. (Why do this? Because it shows you are committed to building a different and powerful organization. When you only recruit and hire when you need someone, you end up hiring people you shouldn’t. There’s always a need to upgrade and improve your sales team. Stop protecting non-producers and hang-ons.)

3. Require other managers to sit in on various phases of the training. Be flexible but do it. With the supervision of your trainer, you can assign them parts of the training to lead. (Why do this? Because they need to know what you are teaching and what to expect when the salespeople hit the floor. And, they might learn something.)

4. Every manager in the front part of the store will be required to personally recruit a person for class each month. They cannot run ads. They have to find them in the wild. If the person they recruit makes it 90 days, pay them a $500 bonus. If I was doing it, I’d fine them $500 if they didn’t have a butt in the class each month. (Why do this? Because when someone personally recruits someone else, they will take a personal interest in their success. You’ve seen it happen over the years where a sales manager takes a liking to a salesperson and helps them succeed. Same deal magnified a bunch.)

5. Change your pay plan to salary and volume based. Do not pay on gross. You can hire a lot of quality people who are happy making $50,000 to $70,000 a year. (Why do this? People today don’t want to be paid on gross. And, the sales people today have very little control over gross. The deal is already a mess because of the prices you’re putting on the Internet for both new and used.)

6. Don’t hire anyone that’s ever sold a car before. (Why do this? If I have to explain this, you’re in a lot more trouble than I can help you with.)

7. Hire some part-time salespeople to help out at peak times. (Why do this? To give you the coverage you need and so your full-time people don’t have to work 12 hour days.)

8. Commit to a 40-hour work-week. (Why do this? People think differently than we did in generations gone by. They don’t want to work 12 hours a day regardless of what the income potential might be. They are willing to earn less if they can have more time off. Their value system is far different than what we have seen in the past. Deal with it.)

9. Incorporate an up-system into your selling process. (Why do this? So, you don’t have the mob standing at the front door waiting on an expensive up. One of the reasons you lose quality people is they hate standing around doing nothing. Keeping them busy should be part of your daily mission. You need to lead the charge for them to be productive and generate their own customers.)

10. For at least 30 days all new salespeople’s deals will be desked by the trainer. (Why do this? Because they can’t say to the trainer “that wasn’t taught to me in class.” Your trainer and your salespeople will become better and better.)

Understand that people are going to come and go. It’s the nature of any sales business. One of your goals is to give them the tools to be successful with your organization or whatever they end up doing in life. When you help others to be better, you become better.

Be aware of your current staff saying they are all in on the outside and sabotaging your new direction on the inside.

There will be current salespeople and sales management that want to see your new direction fail. They will undermine you and point out all the reasons these are bad ideas. Some of them are simply protecting their own turf and will try to make you believe they are looking out for you.

They aren’t.

You have choices to make. Stick with what you’re doing or make major changes. The longer you wait, the more pain you will have and at some point, the pain will be so great that you have to change. That’s all I’m gonna say, Tommy Gibbs

P.S. SEE YOU AT THE CONVENTION!

In sports, you often hear about how powerful momentum and intensity can be. The last two minutes of a football game will frequently determine the outcome.

You will often see players and coach’s greatness shine through in the most helter-skelter moments. There’s a good chance the last two minutes of the Super Bowl upcoming Super Bowl will determine the outcome.

In the automobile business, the last day of the month is like the two-minute drill of a football game.

I have some what ifs for you:

What if you approached the 15th of the month as if it were the last day of the month?

What if you approached every Friday and Saturday as if they were the last two days of the month?

What if you approached every Wednesday and Thursday as if they were the last two days of the month?

What if you approached every Monday and Tuesday as if they were the last two days of the month?

What if you approached every day as if it were the last day of the month?

What day is it? It’s the last day of the month. It’s always the last day of the month.

The clock is aways ticking. You’re running out of time-outs. The end is near. You can do more. Let’s go. That’s all I’m gonna say. Tommy Gibbs