Controlling The Controllable

Odd as it may seem, we often put a lot of energy and wasted effort into trying to control the things we don’t have control over and miss a real opportunity to control the things we can control.

I often like to compare the car business to the coaching field. Coaches never have total control over the game, but they do have control over the things they do to prepare for the game. You can take control by preparing the team.

Great coaches study the game 24/7/365. If you don’t live, eat and sleep the car business, then you will never be able to control what you can control.

Successful coaches understand that to control the game they have to teach the game. They make an investment in time and resources to ensure the team understands the plan and how best to execute it.

Your mission as a coach is to create an ongoing environment that demonstrates you are committed to training and developing your staff at all levels; “Controlling what you can control.”

You cannot control the price of gas, the stock market or the world economy. You can control the speed by which you turn your used car inventory.

Knowing and understanding the necessity of utilizing speed to control your inventory is a major step toward controlling what you can control. That’s all I’m gonna say, Tommy Gibbs

Are You Pushing It?

This video clip shows people really pushing it. Pushing it to the next level. They are pushing it to the extreme. What about you? Are you pushing it? Are you even close to pushing it to the extreme? Are you satisfied with the status quo?

When you come to work each day, is it the same old same old? If it is the same old same old, have you looked in the mirror lately or are you blaming others for “it” not getting pushed?

I send you these emails to help push you along. The reality is you’re the one that needs to do the pushing. Start pushing, that’s all I’m gonna say, Tommy Gibbs

Video-People Pushing It

Used Car Stress

“A psychologist walked around a room while teaching stress management to an audience. As she raised a glass of water, everyone expected they’d be asked the “half empty or half full” question.

Instead, with a smile on her face, she inquired: “How heavy is this glass of water?” Answers called out ranged from 8 oz. to 20 oz. She replied, “The absolute weight doesn’t matter. It depends on how long I hold it. If I hold it for a minute, it’s not a problem. If I hold it for an hour, I’ll have an ache in my arm. If I hold it for a day, my arm will feel numb and paralyzed. In each case, the weight of the glass doesn’t change, but the longer I hold it, the heavier it becomes.”

She continued, “The stresses and worries in life are like that glass of water. Think about them for a while and nothing happens. Think about them a bit longer and they begin to hurt. And if you think about them all day long, you will feel paralyzed – incapable of doing anything.” Remember to put the glass down.” Author unknown.

Used cars are the same way. The longer you hold them the more stress they create. Even your worst decision becomes lighter when you unload it early.

There are dealers around the country with a lot of stress in their used car department. Either the Dealer, the GM, the General Sales Manager or Used Car Manager has decided they can deal with the stress. Maybe they can “deal with it.” But, dealing with it at what cost?

How much money is it costing them? If you extracted the water out of your inventory and subtracted it from your bottom line, how good would you really look?

Some of you are sitting there kinda smug thinking, “Not a problem at my store, we don’t have aged units.” You know what I’m thinking? I’m thinking you are darn smart and I’m really, really proud of you.

For those who aren’t feeling all smug. Enjoy your stress. You earn it one day at a time. That’s all I’m gonna say, Tommy Gibbs

Warning From New Orleans

I’m writing this from New Orleans at the NADA Convention. I was also here in 2009 and it’s a much different environment this week than it was back then. To say the dealers were depressed in 2009 is an understatement. Everything I’ve seen thus far at the convention is optimistic almost to a fault.

Many dealers are coming off an all time record profit year and optimism has never been higher. It’s easy to become complacent and have a certain amount of self-assured confidence that you are a rock star, on a roll, and you can do no wrong.

It’s a fact that dealers make the most money when they are coming off of tough times. The reason for that is pretty simple. When things are tough, dealers get back to the basics and grinding it out. As business gets better, they are in a great position to make a lot of money because they have cut all the fat out.

But the better and better business gets, dealers tend to add this and that to the expense line and get further and further away from the basics.

I know you’re a “Smart Leader” because you read my stuff. And because you’re a “Smart Leader,” you know that to get to 4 to 6% net to sales you need to continue to evaluate everything you are doing, every dime you are spending, and every process “you think” you have in place.

Are you as efficient as you can be? That’s all I’m gonna ask, Tommy Gibbs

Stealing…

It’s not about stealing stuff. It’s about stealing time. How much time in a given day is stolen by the sales team? How much time is being stolen by the entire staff? Totally stolen?

Would you fire someone if you caught them stealing? Stealing time is the same as stealing stuff.

Most sales people wait on maybe 3 people a day. How much time does that take? What happens to the rest of their day? Are they being productive with the rest of their time?

Think about what a good deal it is to be a sales person today. Sales people have very little money invested and yet they have millions of dollars of inventory at their disposal.

They have a free receptionist, a great prospecting CRM management system to work with, free computers, and free training. And, all sorts of support from BDCs to delivery coordinators. Not a bad gig, yet there’s a lot of productive time being stolen.

One of the basic premises in Bruce Tulgan’s book, “It’s Ok To Be The Boss,” is if you go into a restaurant and get bad service from the wait staff it’s not their fault. It’s management’s fault for allowing it to happen in the first place.

Same deal with you. If stealing is going on at your store, it’s not the fault of the sales person or the person stealing “time.” It’s someone in management and maybe that’s you? That’s all I’m gonna say, Tommy Gibbs

Yes, I’m Mad

I’m mad ’cause I don’t think you’re listening. I’m mad ’cause you ain’t paying attention. I’m mad ’cause you’re not ready. I’m mad ’cause I keep telling you and you keep ignoring my advice. Ok, so you couldn’t care less that I’m mad.

Ignore me if you will, but here’s what I know. You keep jerking around about how you’re going to fix your mess, but it’s still not done and “S Day” is just around the corner. “S Day” is March 20, the first day of spring, which is often referred to as the Spring Selling Season.

There’s still a lot of pent up demand and you’re not going to get to play the game ’cause you ain’t ready. Your people aren’t ready, your leaders aren’t ready and your inventory is still screwed up.

You and your staff have been sitting and whining with your heads stuck in the sand. This business is a contact sport and you ain’t contacting.

Can you hear me screaming? Do something…do something even if it’s wrong! I’m sorry if I’m screaming, but I see dealers around the country really “getting after it” and making a difference and I see others letting it “get after them.”

Just in case you didn’t know it, new and used car average grosses will continue to be a challenge. It’s going to take some serious leadership skills to win that battle.

The only way to win the game is to improve total gross. The only way to improve total gross is to be a great used car operator. When you become a great used car operator you sell more new. When you become a great used car operator you sell more parts & service. When you become a great used car operator you sell more used.

When you become a great used car operator, I’m not mad anymore. That’s all I’m gonna say. Tommy Gibbs

Game Day

Patrick York, COO of the Gillman Companies, headquartered out of Houston, TX recently sent me the following email:

“You know what? I love Friday nights. I say that for two reasons. First, I get pumped every Friday night just like teams get pumped in the locker room before a BIG game because Saturdays are our BIG VOLUME sales days. The second reason I love Friday nights is because I get my weekly dose of straight talk and inspiration from my friend Tommy Gibbs.”

Forget about the part about Tommy Gibbs. Let’s focus on what Patrick said about getting pumped on Friday nights for the big game on Saturday.

Winning the big game on Saturday doesn’t happen because of what you necessarily do on Saturday. It happens because of what you did the week, the month and the year before you ever got to Saturday.

All the great teams, be they Automobile teams, football teams, basketball teams, or any other teams, win based on their willingness to prepare for the big game.

Yep, most people want to win, but most people don’t have the will to prepare to win. That’s all I’m gonna say. Tommy Gibbs

I’m Gonna Miss You…

Well, maybe not, but I will if you’re not at the NADA Convention in just a few days. So, if you’re not going I’m wondering why? Why would you not go? Short on staff? I guess that’s a maybe. You went last year? Ugh, I guess that might be a maybe also. Can’t afford the expense? Another maybe goes up on the board. Those excuses and most others are not great reasons for not going.

Some of you live in a little box and wonder why things never change for you. Most of you are coming off a pretty good year. Maybe you think you have it figured out or maybe you know things are starting to slip a bit.

There’s no better time than right now to open your mind and shoot some WD 40 into your brain to loosen things up a bit. It’s winter, it’s cold and if you’re not careful your brain will freeze up and not thaw until sometime in August.

If your mindset is “the Convention is always the same” then you are dead wrong. The only reason the Convention is the same is because you’re the same. If you’ve gone to the Convention in the past to rub shoulders with the factory guys and attend the parties then I guess it would be the same for you. You get out of something what you put into it.

If you go to the Convention and are determined to take real ideas back to your dealership and make things happen the odds will be in your favor of making things happen.

It’s hard for your vision to change when you sit there and stare at those same walls and same people day after day. It’s a cancer that eats away at your soul. That’s why you need to go. You need inspiration. You need to see the possibilities. You need to go and learn something.

If you show up and find me I’ll even give you a little book titled “The Little Used Car Book, Volume 5.” My little book is not a cure-all for your used car business but it’s guaranteed to give you some ideas and wisdom to help your bottom line.

By helping your bottom line, it will more than pay for your little trip. I’ll be hanging out some at the vAuto booth (booth #2318) so look me up. I’d hate to miss you this year. That’s all I’m gonna say. Tommy Gibbs

What Do We Have In Common?

Actually I know what we have in common. We have winning in common. That’s why you check in with me from time to time and read my material. You’re looking for ideas to help you to keep winning.

You and I may have different ideas about what winning means to us. Fundamentally it’s about keeping score regardless of what the “score factor” might be. The “score factor” might be number of units sold, it might be gross profit, it might be income, it might be net profit, or it might be how many people we have helped make a better life for themselves. It’s all about keeping some sort of score.

It’s important to surround yourself with people who have things in common with you. If they are not interested in keeping score then they are not interested in winning. If they are not interested in winning then you don’t have much in common with them.

If you don’t have much in common with them then you need to be a real winner and rid yourself of their presence. It’s not just about winning, it’s about running up the score. Yep, that’s what you and I have in common, we wanna run up the score. That’s all I’m gonna say, Tommy Gibbs

Found Profit

I’ve always loved selling budget cars. I’m thinking we all define budget cars differently, but let’s just say they are the cheaper cars that in the past you let “Bubba and the gang” have.

If you’re going to sell budget cars then you may want to think differently about how you recondition them and how you charge for that reconditioning. The key word is to make them safe but not perfect.

Most customers understand they are not buying a new car. Furthermore, charging full retail from your service department will eventually cause your used car manager to “throw the baby out with the bath water.” If you are using packs you may want to at least lower the packs on these units.

The one thing you should not skimp on is the recon or clean up. Spend whatever you have to spend on it to make it pretty. If you ultimately have to sell the unit in the wholesale market you will more than get the clean up money back.

These units need to be on a very short shelf life of 20 to 30 days and gone. Just because you don’t have a lot of money tied up in them, it’s not a justification to keep them hanging around. If you let them sit around too long, “lot rot” will kick in. Common sense should tell you, if it’s an inexpensive car and it doesn’t sell immediately then it’s time to move on.

Budget Center cars need to have their own location on your lot. It needs to be clearly marked off as to what it is. “The Budget Center,” or whatever clever name you can come up with. Over the years mine was called the “Chicken Coop.” There’s a long story on that which I won’t go into today. You might call yours the “Budget Corral.” Just come up with something. At the very least mark the area off with safety cones.

In most dealerships sales people are always complaining that they need cheaper cars to sell. One of the most effective things you can do on your “lot walk” each week is when you get to the budget center explain to the sales staff that if these units aren’t sold by next Wednesday, then you are going to wholesale them. Creating a sense of urgency in their mind is a good thing.

Depending on the size of your store it could easily mean another 5 to 20 sales a month. Gaining more customers is always a good thing when you do the math. Being in the “Budget Center” business makes good business sense. That’s all I’m gonna say, Tommy Gibbs