I’m in multiple dealerships almost every week. I get to see it all. The big ones, the little ones and bunches of in-between. I’ve seen 15-car showrooms and I’ve seen some that have zero cars in their showrooms.

In the big picture I realize dealers have to build what the manufacturers require them to build in order to acquire, keep and maintain the franchise. But, do you really need the size facility that some require you to have? Expensive real estate and expensive buildings may one day be the kiss of death.

Take a look at the banking industry. They are stuck with some serious “legacy buildings” that at some point are going to come home to roost. ATMs have turned into online banking. Online banking could turn into a thumb-print and you’re done.

Who needs to take a check to the bank when you can make the deposit with a photo and a few clicks on your phone? Go into any bank today and you will see very few staff members. What the heck are they going to do with all those buildings as we move into the new era?

Every piece of research indicates the car buying consumer wants to handle more and more of the purchase online.

In a recent article in Automotive News, Tom Kinney, manager of the General Motors Pre-Owner Collection Division, while discussing the Collection strategy stated, “The way the dynamics are changing in the marketplace, consumers are clearly demanding this type of a process, on a large scale, all in one place and more of it online. We’ve built this to keep us and our dealers relevant so we can be ahead of that curve.”

Sounds like they know the curve is moving more to online yet they want you to build and maintain big facilities. You can replace the words GM with Toyota, Honda, or Mercedes. They are all the same when it comes to facilities requirements.

Think about what’s happening right now with Cadillac. In the not too distant future, some of the smaller Cadillac stores won’t have any inventory and will order cars online for their customers. Push a button and maybe the car will show up before they buy something else.

What size is your current store? What size does it need to be? Makes you wonder how much longer you’re gonna need that big expensive showroom, doesn’t it?

I think the factory is speaking out of both sides of its mouth. That’s all I’m gonna say. Tommy Gibbs

Memorial Day is just around the corner so here’s an idea for you.

Odds are you are saying you’ve been there and done that. Probably not the way I’m going to explain it. Depending on the state you’re in, most dealers have had some experience with off-site “tent sales.”

Going off-site creates lots of issues. Many of those issues can be eliminated by doing an on-site “tent sale.”

Try This:
Put the tent up as close to the road as possible. Pick the best strategic position on your lot.
Put tables and chairs in the tent.
Put ALL of your people in the tent.
Everybody goes in the TENT!
Work all deals in the TENT!
If at all possible move your computers into the tent and do F&I in the TENT.
Hang banners from the TENT saying “TENT SALE.”
Promote it with Direct mail and/or with a “private invitation” only deal for Thursday before you kick off your regular ads.
Do anything you can to make it look like a circus.
Rent those jumping air things for kids.
Get Port-a-Potties. (People think something special is going on when they see them. Make sure you put them close to the road.)
Balloons and more balloons.
Pop Corn, Sodas, Hot Dogs.
Lots and lots of spiffs for your sales people and managers.
Do a great kick off breakfast on Thursday for your staff. Don’t just do it for the sales staff; get as many of your employees involved as you can. (Feed everybody lunch every day of the event as well.)
Send out memos and emails to all employees explaining in detail what’s going to be happening.
Rope off special parking for customers. Hire an off duty police officer or security guard to direct them.
Answer the phone XYZ Dealership Tent Sale in Progress.
Use any ideas you can think of to create attention.
Do a fundraiser at the same time for the local little league or whatever.
Post the event on your website.
Do an email blast to all your customers advising them of the sale. If your CRM system is sophisticated enough, make sure you tell them you need their specific trade and will pay top dollar for it during the sale.
Giveaways generally don’t do much except cause people to show up to get their gift and leave, but having people register for a free car is a good way to get info on them when they show up. Pick out a $1000 or $2000 car and give it away.
Along that same line, give the salesman who registers the winning ticket some sort of prize. Gift card, $200, whatever floats your boat…
Make up a bunch of signs like real estate signs that say “Tent Sale in Progress” and put along the grass in front of the dealership.
If you’re close to the interstate do some signs with arrows and put up close to the ramp. (Oh come on, the worst that can happen is they make you take them down.)
Rent a chicken suit or some kind of character and have them walk up and down in front of the Dealership with a placard that says “Tent Sale in Progress.”

You just have to be creative. Get some of your key people together and throw around some ideas. Event advertising works. You won’t spend that much more money than you normally spend on a big weekend, but you will get better results.

Consider following up after your “Tent Sale” weekend with a Big Used Car sale the next weekend with a theme of “we have to move all these trades because of the big success of last weekend’s Tent Sale.”

This might not be a fit for everyone, but maybe it’s a fit for you. That’s all I’m gonna say, Tommy Gibbs

Like many things in life, either we over-think them or we don’t think about them at all.

I have a little drill for you. Take a look at your retail used cars sales over a 24-month period. Graph out the sales for each corresponding month.

You should be able to spot trends in your sales that are directly tied to each month of the calendar year.

Even though we want to be optimistic and are always thinking of increasing our sales, we also need to be realistic. Maybe realistic is a 10 to 20% increase for each month. I like the term “optimistic-realist.”

The problem I often see is that dealers’ inventory stocking levels are the same for the slow months as they are for the busiest months. If you know January is your slowest sales month, then why would you have the same stocking levels as you do in July?

I have a hard time buying into the concept that you are stocking up on inventory in January to sell in May. If you’re totally sold on that idea then do yourself a favor and run the ROI on those units when you finally sell them and let me know how it turns out for you.

It’s ok to be optimistic, but don’t be “stupidmistic” (yes, I make words up) when it comes to how many you’re going stock. That’s all I’m gonna say, Tommy Gibbs

You’re looking for more and better sales people. You’re looking for more and better used cars and trucks for your used car department.

The reality is that there is no simple fix for either of these problems.

If you think hiring a rock star buyer will solve your inventory problems, in the end you will probably make them worse. If you think hiring a full time trainer/recruiter will be the fix-it for your need for sales people, then it’s probably not going to work out that well.

But of the two, hiring the recruiter/trainer will probably work out better than the buyer. These are the two toughest problems facing all automobile dealers and there is no one fix and voila it’s done.

Finding great players is a full time, never ending job. It’s just like being in the coaching field. Great coaches are always scouting and recruiting. If you are looking for a magical ad to put in the paper that’s going to attract your next superstar you may be waiting quite a while. (Try Hireology)

If you are looking toward the next great job fair and think you’re going find 10 college graduates for your sales team that will carry you to the promised land you are in for a very long day. It doesn’t happen. It doesn’t work that way. If you wait to hire people when “you need” them you are never going to find the people you need.

You and your assistant coaches have to be recruiting every minute of every day. You should be recruiting your customers, the sales clerk at the shoe store, your next-door neighbor, the waiter or waitress you meet at lunch or the enthusiastic hostess you met at Applebee’s. One of the most successful General Managers I know was working at Wendy’s when he started selling cars.

I love college graduates. It’s not so much what they actually learn, but it does show they can stick to something. However, the odds of them sticking with you are not very good. Most college graduates don’t see selling cars as a “step up” in their life.

What you should be looking for is someone who feels they missed the boat and this is their big chance. Someone with a year or two of college is a great selection. They think they screwed up by not finishing school and they see what you offer as a super opportunity. And of course if they have a sports background all the better. They are used to getting knocked down and getting up.

As for finding more inventory…Hey coach it’s the same thing. It’s a constant thing. There is no one answer. If you are going to succeed in finding used car inventory you cannot leave any stone unturned. Trades, mining your customer base, online auctions, auctions, for sale by owner and any other brilliant idea you can come up with. (Try StockWave)

But, none of them in and of themselves will give you the inventory you need. If you are only looking for cars when you need them you are going to end up with a lot of cars you don’t need.

When it comes to finding people and finding inventory they both require an ongoing effort by the entire management team. When you dabble in finding people and cars when you most need them, it’s like plowing a field uphill with a mule.

When you and your team accept the responsibility of looking for inventory and people as part of an every day discipline then you increase the odds of finding what you need.

It still won’t be easy.

Everybody wants easy.

It’s never been easy.

It will never be easy.

Stop looking for easy. Start looking for people and used cars and trucks.

That’s all I’m gonna say, Tommy Gibbs

I realize human nature is that people like to complain and want to blame someone for their inefficiencies. What do you think the number one complaint is I hear from sales management when I’m in dealerships?

Yep, you’re right, the service department. Sometimes it’s subtle, sometimes it’s blunt, often tempered with an excuse or apology to dare complain about it.

Early in my career my attitude was, “Shut up, go to work and control the things you can control, because it’s not going to change.” Well, I’m here to tell you it does need to change and sooner rather than later.

If you review history, you know that the reason dealers charged full retail from the service department to the used car department is very much the same reason they implemented packs. Sales managers have historically worked from cost up and so charging full retail and having packs has worked very well over the years.

You can think what you want, but as time has progressed, the used car department has become an easy mark for the service department. Though there are other factors involved, never forget the fact that the hours per RO on a used car ticket vs. a customer pay ticket is more than double.

It’s not only the amount they are charged, but also the time it takes to get the car in and out of service. Almost everyone in the business today understands how crucial speed is to being successful. The lack of speed and efficiency in your service department is killing your ability to do volume and make the money you have the potential to make.

Creating speed and becoming more efficient should be your number one priority as you move into the selling season.

I like relating our business to sports. Name a sport, any sport and today’s athletes are bigger and faster than they have ever been. With profit margins decreasing, your business needs to emulate sports. You have to get bigger (sell more cars) and become faster and more efficient than ever before.

Today the big buzz is how can we make the customer experience easier, better and faster? Even if you can improve the selling process you will never maximize your potential until you tackle the amount of time and cost tied to getting the used car to market.

I’ve said it before and I’ll say it again. The greatest thing about being the dealer/owner operator is you have the power. You have power to fix whatever it is you want to fix. That’s all I’m gonna say, Tommy Gibbs