| By and large, most dealers and managers have come to understand it’s not the big that will eat the small but the fast that will eat the slow. We all know the faster we can get a car on the lot and online the more we increase our odds of making a respectable profit. If you are committed to 60 days or less (which you should be) then any days in the cycle in which the unit is not available for sale is a killer. The question often comes up, “When does the clock start ticking?” Does it start with the acquisition, the day you own it, or does it start when the car goes on the lot/online?Let me make this as clear as I possibly can. It starts the moment you own it. Period. No exceptions, no ifs, ands, or buts. But Tommy, it’s been in the body shop for 20 days? Nope, no, no, no. The clock is ticking. Your money is tied up from day one. You’re working with a depreciating asset. If you try to think any other way, you are lying to yourself. Don’t lie to yourself. 10 Things To Help You Win The Clock Ticking Game: 1. If you are in a state where there are title issues there has to be a clear line of communication with the office on a minute-by-minute basis to alert you when the title arrives. Any breakdown in communication is costing you money. Staying after these title issues cannot be left up to chance. Somebody has to take ownership of chasing after the titles. 2. It’s a fact that you are having to go further out of your area to buy cars at auctions, but you have to be selective and know what the timeline is that you are dealing with. Anything you can do to reduce transportation days is better. You might even want to consider paying the trucker a bonus for fast delivery. Our software helps you keep track of days in transit. 3. How hard are you trying to buy cars in your own market? Do you have a procedure set up so that when someone comes in and wants to sell you a car that you give them the full routine with a written appraisal? Does your website have a self-appraisal link so the customer can get real numbers from you quickly. Do you have an individual or a team in place working full-time acquiring vehicles from the public? 4. Mine your customer base. For sure, you know which cars you always do well with. Often they are right under your nose hiding within your CRM. Vin Solutions has some great tools for finding those vehicles and giving you a chance to buy the car, trade the car or ultimately sell the owner a new car. 5. How about a unique and separate website that drives the customer to your website to sell you their car? 6. If you’re in a market with CarMax, consider promoting that if the customer brings their CarMax appraisal to you within 7 days of the appraisal, that you will give them more for their car than CarMax or give them $100 cash if you can’t beat CarMax’s offer. What do you have to lose? Suppose you buy 10 extra cars this month and also pay out $1000 in loser fees. Do ‘da math, what did you make on the 10 extra cars? 7. Fix your service and recon issues. I know it sounds likeI’m picking on service a lot and that’s not my intent. I just know in most dealerships it’s the same old, same old. How many total days are being wasted from the time the car is acquired until the time it gets on the lot and online? In today’s age of speed, you have to find every day that you can if you’re gonna win the “meter game.” My UpYourGross software comes with a free “Recon Tool.” 8. Make sure you include in your “save-a-deal” meeting every morning a list of all vehicles that are either in transit or tied up due to title issues. The more you pick up the intensity on these units, the faster things will happen. 9. Pick up the intensity level. Not just you, but the entire team has to understand that any day that a vehicle is not on the lot/online it’s costing the dealership big money.10. Consider hiring a “Chaser.” A chaser is just that. It’s someone who chases your units through the system to ensure nothing sits any longer than absolutely necessary. Pop Quiz: When does the clock start? When you own it. What can you do to improve the clocking ticking? Re-read 1 thru 10. Control what you can control. That’s all I’m gonna say, Tommy Gibbs. |
Author: Tommy Gibbs
Justification
“You can justify anything you want to justify.”
Pick any subject and go for it.
Here’s just one:
You can come up with lots of reasons why you have and allow aged inventory.
And certainly, with far better logic & data, you can justify why you need to retail that stuff and never allow an aged unit again.
You get to pick. Choose wisely.
That’s all I’m gonna say, Tommy Gibbs.
You Can Justify Anything
“You can justify anything you want to justify.”
Pick any subject and go for it.
Here’s just one:
You can come up with lots of reasons why you have and allow aged inventory.
And certainly, with far better logic & data, you can justify why you need to retail that stuff and never allow an aged unit again.
You get to pick. Choose wisely.
That’s all I’m gonna say, Tommy Gibbs.
Do You Want To Own Your Own Business?
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.
GO TAKE A WALK
Most health magazines would tell you that walking 20 minutes a day has huge health benefits. There are also some huge business benefits if you would make yourself take a walk. Try these three walks and your health and business will improve:
1. The Meet Your Team Walk-The first walk occurs each day as soon as you arrive at the dealership. Generally speaking, I’m directing most of my writings at the dealer and/or General Manager of the dealership, but in this specific case, it can apply to anyone and will pay huge dividends regardless of your position.
Start at the back of the dealership and work your way toward the front. Your mission should be to speak to as many team members (call them what you want) as possible. Over time you should get to know them.
Make it a point to stop and talk to every technician, every porter, every service writer, etc.
Work your way into the body and parts departments and do the same. Then visit the office staff and sales department. Of course, the sequence may depend on your actual job and role in the operation, but you get the point. In time you need to at least learn the following:
Their name. (Duh!)
Where are they originally from?
How long have they worked there?
What drew them to the type of work they are doing and to the company?
Married/single?
Spouse’s name?
Children, ages/boy/girl?
Hobbies/what do they like to do in free time?
What are their long-term goals in life?
Find out something from them that others would be surprised about.
As I was writing this I considered explaining the benefits of taking a “team walk” each day, but concluded that if you can’t figure it out yourself it’s hopeless and you might be in the wrong business.
2. The Trade Walk-there should be a staging area where all trades are parked. All members of management must go on the trade walk every day at a specific time, preferably after your “save-a-deal meeting.”
All managers mean GM, GSM, Used Car Manager, F&I Manager, BDC Manager, Internet Manager, New Car Manager, and most importantly the Service Manager. Stop at each car and talk about the car.
You will be amazed at how many more trades you will end up keeping and how many more deals you actually are able to put together by getting insight and suggestions from the various members of your management team. It is very foolish to allow one person to make decisions on which trades to keep and not keep.
The concessions and input you will get from your service manager will pay valuable dividends. It’s a total no-brainer. (My software mobile app will help you.)
3. The Lot Walk-The lot walk takes place once a week preferably after your weekend kick-off sales meeting which should be on Friday. (I’ve never understood the concept of having a kick-off sales meeting on a Saturday.) After the meeting, all salespeople and all the members of the management team including the service manager will take a lot walk. Stop at each vehicle on the lot and talk about the unit.
This is how you get your entire sales team involved in selling more used cars. The more they know about your inventory the more they will sell. You have to force-feed them. You will find out why certain cars have not sold because as you stop to talk about the specific cars the salespeople will tell you why that car is still sitting there getting stale.
Oftentimes there is an issue with a car as to why it has not sold. By having the service manager on the walk he/she will jump all over the issue and get it handled for you. It’s called the “embarrassment factor.”
So, here’s the bottom line. Start walking. Walking is good for your health. Walking is good for your business. That’s all I’m gonna say, Tommy Gibbs.
1. The Meet Your Team Walk-The first walk occurs each day as soon as you arrive at the dealership. Generally speaking, I’m directing most of my writings at the dealer and/or General Manager of the dealership, but in this specific case, it can apply to anyone and will pay huge dividends regardless of your position.
Start at the back of the dealership and work your way toward the front. Your mission should be to speak to as many team members (call them what you want) as possible. Over time you should get to know them.
Make it a point to stop and talk to every technician, every porter, every service writer, etc.
Work your way into the body and parts departments and do the same. Then visit the office staff and sales department. Of course, the sequence may depend on your actual job and role in the operation, but you get the point. In time you need to at least learn the following:
Their name. (Duh!)
Where are they originally from?
How long have they worked there?
What drew them to the type of work they are doing and to the company?
Married/single?
Spouse’s name?
Children, ages/boy/girl?
Hobbies/what do they like to do in free time?
What are their long-term goals in life?
Find out something from them that others would be surprised about.
As I was writing this I considered explaining the benefits of taking a “team walk” each day, but concluded that if you can’t figure it out yourself it’s hopeless and you might be in the wrong business.
2. The Trade Walk-there should be a staging area where all trades are parked. All members of management must go on the trade walk every day at a specific time, preferably after your “save-a-deal meeting.”
All managers mean GM, GSM, Used Car Manager, F&I Manager, BDC Manager, Internet Manager, New Car Manager, and most importantly the Service Manager. Stop at each car and talk about the car.
You will be amazed at how many more trades you will end up keeping and how many more deals you actually are able to put together by getting insight and suggestions from the various members of your management team. It is very foolish to allow one person to make decisions on which trades to keep and not keep.
The concessions and input you will get from your service manager will pay valuable dividends. It’s a total no-brainer. (My software mobile app will help you.)
3. The Lot Walk-The lot walk takes place once a week preferably after your weekend kick-off sales meeting which should be on Friday. (I’ve never understood the concept of having a kick-off sales meeting on a Saturday.) After the meeting, all salespeople and all the members of the management team including the service manager will take a lot walk. Stop at each vehicle on the lot and talk about the unit.
This is how you get your entire sales team involved in selling more used cars. The more they know about your inventory the more they will sell. You have to force-feed them. You will find out why certain cars have not sold because as you stop to talk about the specific cars the salespeople will tell you why that car is still sitting there getting stale.
Oftentimes there is an issue with a car as to why it has not sold. By having the service manager on the walk he/she will jump all over the issue and get it handled for you. It’s called the “embarrassment factor.”
So, here’s the bottom line. Start walking. Walking is good for your health. Walking is good for your business. That’s all I’m gonna say, Tommy Gibbs.
Why Do You Tolerate This?
As a new car dealer for over 20 years the training of salespeople was big on my list of priorities.
We always had someone in charge of the training of which I was always a part of. At one time we even had an offsite training center that was state of the art with video cameras for role play, etc.
As I’m writing this, I’m sitting here shaking my head because I just don’t get it.
Over the last few weeks I’ve driven by the same dealership at various times of the day and there are always 4 or 5 salespeople standing out on the “porch,” looking like they are getting ready to mug the next customer that shows up.
If I were a customer there is no way I’d be pulling into customer parking and take a chance with that mob standing there.
How can this been going on in today’s world?
Where’s the leadership? Have we not learned anything over the past 20 years?
All that money you’ve tied up in your CRM and technology going right down the drain.
If you’ve ever wondered why you can’t get and keep good people here’s part of it right here:
People want to feel productive.
People want to feel like they are contributing.
People want to work for an organization that’s disciplined and gives direction.
Why would anyone with half a brain want to work in an organization that has no more direction than this?
Here’s the reality; that store isn’t alone.
Some of you have the same issue.
Open your eyes, there’s a hot mess out on your porch and it’s costing you money.
Oh yes, there’s training going on at your dealership. It’s happening right out on the porch.
That’s all I’m gonna say, Tommy Gibbs
We always had someone in charge of the training of which I was always a part of. At one time we even had an offsite training center that was state of the art with video cameras for role play, etc.
As I’m writing this, I’m sitting here shaking my head because I just don’t get it.
Over the last few weeks I’ve driven by the same dealership at various times of the day and there are always 4 or 5 salespeople standing out on the “porch,” looking like they are getting ready to mug the next customer that shows up.
If I were a customer there is no way I’d be pulling into customer parking and take a chance with that mob standing there.
How can this been going on in today’s world?
Where’s the leadership? Have we not learned anything over the past 20 years?
All that money you’ve tied up in your CRM and technology going right down the drain.
If you’ve ever wondered why you can’t get and keep good people here’s part of it right here:
People want to feel productive.
People want to feel like they are contributing.
People want to work for an organization that’s disciplined and gives direction.
Why would anyone with half a brain want to work in an organization that has no more direction than this?
Here’s the reality; that store isn’t alone.
Some of you have the same issue.
Open your eyes, there’s a hot mess out on your porch and it’s costing you money.
Oh yes, there’s training going on at your dealership. It’s happening right out on the porch.
That’s all I’m gonna say, Tommy Gibbs
Don’t Do Easy
It’s easy to do easy.
It’s easy to ignore.
It’s easy to look the other way.
Easy to let slide.
We all like easy.
Anybody can do easy.
Being easy causes you to say yes, when you should say no.
Being easy causes you to take your eye off the big picture.
When you take your eye off the big picture, everything around you becomes a little fuzzier.
The fuzzier things get, the more confused you and your staff get.
The more confused you and the staff get, the more little things begin to slide.
Easy now becomes habit.
Habit becomes the norm.
The norm becomes easy.
That’s when rinse and repeat occurs. The problem is that the water you’re rinsing with is murky and dirty.
Expectations begin to drop. Lower expectations become the norm.
The little things can be hard to measure, so they are ignored.
When you focus on the little things, the performance of the team improves.
Why would you want to do easy?
Don’t do easy. That’s all I’m gonna say, Tommy Gibbs
CarBravo or CarBrav-Not?
Unless you’ve been living under a rock, you know GM has just introduced their new used car platform called CarBravo.
I so want to say, “Bravo, way to go GM,” but inside my head I keep thinking about history.
Like most subjects I took in school, history wasn’t one of my stronger ones. Even so, one of the things I did learn is history often repeats itself.
When was the last time the factory was successful when they tried to do something on the retail side of the automobile business? Go ahead think on it and get back to me.
I do want to cheer GM for taking on the likes of Carvana and Carmax. As much as dealers have tried, they haven’t put much of a dent in what these “big boys” have been able to accomplish.
These two groups do a lot of things well and by and large dealers have been chasing them for years.
I suspect that was part of GMs thinking. You Dealers haven’t been able to figure it out, so we are here to save you. Sorta like the Federal Government. Shame on us.
We all know that anytime the Feds or the Factory take over something the success rate goes way down.
I’m confident that GMs mission is to help their dealers make more money. (Said with a big dose of sarcasm.)
Don’t kid yourself. GMs gonna make money out of this.
Your first question should be, will you?
Your second question should be, what’s GMs long-term game plan? Do they ultimately want to be in the retail new car business? Imagine that.
I can’t help but remember a quote from a former factory executive who said, When the factory says “if you play ball with us, we’ll play ball with you.” What they are really saying is “play ball with us and we will shove the bat right up your ass.”
Play ball. Game on. That’s all I’m gonna say. Tommy Gibbs
Maybe You Ain’t That Smart?
A number of years ago I came up with a saying, “You’re never as smart as you think you are and you are never as dumb as you appear.” Some of you are feeling pretty smart right now.
It could be that you are really smart, or it could be that you got lucky because of a once-in-a-lifetime market shift in your favor.
And of course, there are times when you feel pretty dumb. Even that may or may not be true. You might be a victim of a bad set of circumstances. Some of you have had bad franchises in bad locations or it could be that you’re a newer used car manager that inherited a hot mess for a used car inventory.
Or it could be you’re just dumb.
In any given set of circumstances, it’s important to maximize whatever you have. Right now, you may be maximizing things in spite of yourself or maybe you’ve been smart enough to make some good moves.
It could have been you didn’t know what to do and by doing nothing you got lucky.
The most important thing right now is recognizing where you are, how you got there, and how to stay on this magical course you’ve discovered.
Even with all that said, this business continues to be:
All about the basics.
All about the fundamentals.
All about your disciplines.
All about the processes.
All about understanding the data.
All about common sense.
All about your focus.
Never forget that sometimes when you get to the fork in the road you need to take it.
That’s all I’m gonna say, Tommy Gibbs
Dress For Success
Many years ago I read a book titled “Dress For Success,” written by John T. Molloy. To this very day, it’s one of the most influential books I’ve ever read.
My dress for success mentality was further influenced by others in business whom I looked up to. They all fit a common mold when it came to “the look.” They looked professional and therefore they were.
A dark suit, long-sleeved white shirt, and a conservative or very bright tie wins hands down in the dress the part contest. Whatever argument you have against this fundamental concept is totally flawed.
When I was 15 I was a batboy for the New York Yankees Triple “A” farm team in Richmond, VA. The manager at the time was Sheriff Robinson. I remember to this day him saying to the players “If you can’t play like a pro at least look like a pro.”
“Fake it till you make it. Then fake it some more.”
If you are scratching your way to the top, or if you are already there, then the way to stand out is to dress up, not dress down. I can tell you from personal experience, that when you dress up you are far more productive. When you look like an executive you start to think and inspire as an executive.
Many businesses have gone with the “Casual Look,” or some call it business casual. It’s either casual or it’s business. Business casual turns into “business sloppy.” Just because your company allows business casual doesn’t mean you have to go along with the program. I doubt upper management is going to bust your chops for dressing “up.”
The argument and justification that the customer feels more comfortable and relaxed is a bunch of malarkey. The only person being more relaxed is you.
Look, Einstein, the customer is making the second-largest purchase in their life next to a home. Do you think they want to do business with a slob? The answer is a big fat no.
Oh, I know if you are dressed in a suit then it’s too intimidating for the customer and they won’t buy the car.
Really? You’ve got to be kidding me. Look if your people skills are no better than that and you can’t overcome wearing a suit, then it’s a miracle you’ve lasted this long.
Most of you are in some sort of authority position. Trust me on this one. When you dress casually there has to be an element of loss of respect by those around you. If you want more respect and want to be more productive then dress the part.
There are many elements that make up great leadership skills and looking the part is an important one. Never forget you only get one chance to make a good first impression.
That’s all I’m gonna say, Tommy Gibbs
P.S. shine your shoes…