It’s Your Ship, Or Is It?

From the book, “It’s Your Ship”, by Captain Michael Abrashoff. “Captains need to see the ship from the crew’s perspective. They need to make it easy and rewarding for crew members to express themselves and their ideas, and they need to figure out how and when to delegate responsibility.”

Well, well ain’t that a mouthful? The key word that’s often missing when it comes to leadership skills is empathy. Far too often those in leadership positions only see things from their point of view. If only they could flip themselves over to the other side once in a while.

Your ability to connect to the team, the entire team, is what will separate you from being an anointed leader to being a real leader.

You often hear in sports that a coach is a “player’s coach.” That doesn’t mean he’s easy. That doesn’t mean he doesn’t exercise discipline. It means he understands each and every member of the team. He sees the value they all bring to the table. Great leaders have the ability to nurture the skills of all those they have been blessed to have the opportunity to lead.

It’s your ship to steer, but it ain’t really your ship, that’s all I’m gonna say, Tommy Gibbs

The Rule of “$78.00”

I’m thinking most of my readers are familiar with the “Rule of 78s.” If not, it’s a term used in lending that refers to a method of yearly interest calculation.

I have a new rule of 78s that will help you improve your average gross profit. I call it the “Gimme $78 more” rule.

Most of the sales managers I work with today are very competent and many of them got the job because they were good closers. Therefore I believe most of them can get another $78 from every customer just by asking.

Unless you’ve already gotten the customer to pay the Internet price then for sure you can go back in and convince the customer to pay $78 more. Sure you can. I know you can.

And, if you have already gotten the customer to agree to the Internet price and if there happens to be a trade involved, surely you are strong enough to hold back $78?

So your goal this month is very simple. Get $78 more on each deal. Then next month do the same thing. In two months you’ve improved average gross profit by $156. Then do the same thing over the next two months…and now we’re at $312 improvement in average front gross.

Far too often we get hung up on kicking the average gross up by $300 or $400 at one time. We give up at some point because the elephant is too big to eat in a month’s time. Take a small bite each month and you will soon be there.

Don’t gimme a bunch of excuses as to why you can’t do it. Just gimme the rule of $78. That’s all I’m gonna say, Tommy Gibbs

The Challenge of Staying After Yourself…

If you’re like me you love life and the challenges it brings to the table each and every day. I always look forward to getting up in the morning and “getting after it.”

As a dealer for 20 plus years, I loved coming into the store every day and being around all the people and the energy that came with that.

I always got there really early and stayed late. To me, seeing the people and the place coming to life in the morning was like a special sunrise.

Since I’ve been in the speaking, training and coaching business I primarily work alone. It can be challenging at times since I only have myself to rely on. But actually I like the idea of “staying after myself.”

It doesn’t matter if you work alone or work with 500 people you still have to “stay after yourself.” It’s a fun challenge and something you can actually get better at.

“Staying after yourself” requires planning and discipline. If my father said it once to me he’s said it a thousand times, “Plan your work and work your plan.”

Some key elements to “staying after yourself” include reading, writing, listening and forcing yourself to attend Twenty Group meetings, conventions and workshops. Those things open the mind and help you see what the possibilities might be.

I’ve become a firm believer that writing is a bigger component to success than one might think. I don’t mean that you have to be an award winning author; writing your thoughts down each day helps to open your brain up to where you’ve been and where you can go.

Writing helps you “stay after yourself.” It will help you self-evaluate your actions, your behavior and how well you are accomplishing those “continuous goals” you should be writing down.

Goal setting is critical to “staying after yourself.” Goal setting is important, but it’s even more important to understand that a goal is simply a temporary target and not the end. You have to constantly evaluate, tweak and adjust your goals so you are always moving forward.

A big part of staying after yourself is to “stay after others.” I don’t mean that in a micro-managing sense, but as a way of encouraging others.

The more you encourage others the more you are encouraging yourself. There is nothing you can do that is more important than helping others along the way.

It’s sometimes hard to understand the impact we can have on others with a kind word of encouragement and a pat on the back. It’s so very powerful!

My encouragement for you today is for you to remember to take some time to “stay after yourself.” That’s all I’m gonna say, Tommy Gibbs

What Are You Creating?

My good friend John Malishenko, Director of Operations for the Germain Group recently sent out an email that included the following sentence:

“Today again is a day that must be “created” if it’s going to be a productive one and with only four days remaining, everyone is important.”

Obviously John was speaking to a specific day, in a specific week in a specific month. I would challenge you that John’s quote should be in the forefront of your thinking each and every day.

Ask yourself what are you creating? Are you making things happen or are you sitting around waiting for something to happen.

This thought processes applies regardless of your position in the dealership. It’s as appropriate for the dealer as it is for a sales manager. You have the talent and you have the knowledge or you wouldn’t be where you are today.

What better time to create something than right now? Go do it. That’s all I’m gonna say, Tommy Gibbs

Here We Go..Well, Some of Us…

It’s January and we’re off and running. Actually, some of you are running, some of you are walking. The runners have been training hard for the last few months. The walkers have been talking about training hard.

The runners were getting into shape back in November and December by laying down “the plan” for 2014. The walkers were thinking they needed to get in shape and get a plan for 2013.

Runners are never happy. I’ve never seen a runner smile. Walkers are well, walkers. They often smile because they are dreaming of the things they would like to do. Whatever they are dreaming stays in their dreams.

The runners have a firm plan going into 2014. The walkers have a “kind-a-sort-a” plan going into 2014. Walkers talk about a plan, runners actually execute the plan.

Walkers are afraid if they make a plan they might have to change it. Runners know there are mud puddles and they just have to jump over a few to get where they want to go.

Runners like challenging their leadership skills by changing the plan. Walkers are afraid of change and would rather go with the flow than rock the ship.

Runners love Dave Anderson’s book “If You Don’t Make Waves You Will Drown.” Walkers would rather read “Winnie the Pooh” and dream about Pooh Bear.

When I do a workshop I recommend, suggest, and urge those in attendance to write out an action plan for the next 90 days using the top 3 or 4 processes from the workshop. At the end of 90 days re-write the action plan adding 3 or 4 more processes to it.

Any time you’re planning, there should be 30 day, 90 day, 180 day and 365 day action plans. The weather and the terrain are going to change and you need to be ready for change.

Walking along whistling a happy tune will make you feel good for that one little moment in time. Running hard with a flexible plan will exhilarate your soul and brain and will allow your team to leap tall buildings with a single bound for a long time to come.

Runners take money to the bank. Walkers go to the bank to borrow money so they don’t go out of business…yet.
Becoming a runner means harder training, greater commitment and disciplines that most people don’t have and will never have.

That’s why there is so much room at the top. Some will, most won’t. What about you? That’s all I’m gonna say, Tommy Gibbs

Winning Is Constant Preparation

Great leaders know that in order to win it takes constant preparation. They know there is no single strategy they can execute that will make the team a consistent winner. They know and understand the need for ongoing preparation. They are constantly exploring new strategies, concepts and ideas.

Winning football requires preparation. Most great coaches will tell you the game isn’t won on game day. It’s won during the week on practice days. It’s the preparation that makes the biggest difference.

It’s a given that most people want to be part of a winning team. Winners are drawn to those organizations that are willing to pay the price with preparation. I believe there are three types of people:

1. Those who want to get better and embrace preparation.
2. Those who don’t care if they get better and will do everything they can to avoid preparation.
3. Those who are just confused and looking for someone to show them the way.

Preparation breeds confidence. Confidence creates a can-do spirit. A can-do spirit creates momentum. Momentum keeps the ball rolling. Winning is constant preparation. That’s all I’m gonna say, Tommy Gibbs

The Lost Art

With so many customers shopping online and knowing what they want and having a price when they finally get to the store it’s easy to try and justify the lack of a professional demo ride.

Dealers are always complaining about average gross profit going down. One of the biggest killers of gross profit is not doing those things that we know to be important. Allowing the demo ride to evaporate to little or no meaning is something management cannot allow.

The demo ride creates value. The touch, the feel, the smell and the opportunity for the sales person to have the customer’s undivided attention is priceless. The closing ratio and the gross profit goes up when you return to the most fundamental basic of the car business.

The demo ride is an art. Don’t let it be a lost art. That’s all I’m gonna say, Tommy Gibbs

Do You Know What You’re Doing?

Archie Manning operates a quarterback passing camp, was a pretty good quarterback in the NFL in his day and has two sons currently playing the same position for the Denver Broncos and New York Giants.

Archie Manning recently stated, “The best advice I try to give to a young quarterback is, you need to know what you are doing. You need to know what you’re doing because if you know where to go with the football, you can get rid of it, and throw it, and you won’t get hit.”

Holy crap! Isn’t that the way we need to think about a used car manager? I’m going to re-do his statement based on the car business:

“The best advice I can give a used car manager (or dealer) is, you need to know what you are doing. You need to know what you’re doing because if you know where to go with the car, you can get rid of it, and unload it at retail or wholesale, and you won’t take a hit.”

Shazam! Hallelujah! Holy Toledo! Kaboom!

And therein lies the problem. Far too many managers don’t know what to do or they don’t do it soon enough. They hold the ball too long. Holding the ball too long and not knowing where to go creates gigantic losses and headaches.

The great quarterbacks recognize the defense immediately and change the play at the line of scrimmage in order to give them the best chance for success.

The problem in the car business is far too often the used car manager doesn’t recognize the problem until it’s too late and by the time they do they have taken a major hit.

You need to know what you’re doing. That’s all I’m gonna say, Tommy Gibbs

The Evidence Is Piling Up

Many of you who read my material are convinced I’m against packs and charging full retail in service, etc. The reality is I’m not actually against either. Whenever I’m working with a client who utilizes those strategies, I tell them if it’s working to keep doing it.

I’m also quick to point out that they need to be ready for the change, because change is coming. It’s going to become tougher and tougher to run your business the old fashioned way.

In a recent article published in “MSN Money,” Alison Spitzer, of the Spitzer Auto Group states “Today, customers find the car first, then the dealership.”

Part of finding the car means finding the car they want at a price they want to pay. Allison could just as well have said, “They find a price and then they find a dealership.”

If you don’t believe that’s so, drop all your photos and pricing from your website, Auto Trader, etc. and just put stuff on your website telling the consumer how great your service is and see what happens to your traffic.

The following quote from the article tells the real story when it comes to today’s consumer and where pay plans are heading.

“Today, buyers call or walk into a showroom already armed with a car’s invoice price, competing dealer bids and discounts from the manufacturers, and can get updates on their cellphones while standing in the store. They can access online reviews of the salesperson and dealership.

That has led many dealers to eliminate commissioned pay, price new vehicles closer to their own costs and station more staff in front of computers, where they are rewarded for generating sales quickly and in higher volumes, rather than trying to talk a customer into buying a more expensive model.”  (Read FULL ARTICLE)

I’m going to state this one more time. I’m not against packs as long as they are working for you. I do question whether they are really working or not.  As my good friend Marvin Barnes has always said, “You can justify anything you want to justify.”

The more the industry moves towards non-negotiating and not paying on gross, the less of a need you will have for packs.

The showroom is no longer the showroom. The Internet is the showroom. Today’s consumers go there to look at photos and to get a price. That’s all I’m gonna say, Tommy Gibbs

What Are You Known For?

One of the many challenges facing today’s leaders is to determine what the organization stands for and how to separate themselves from the competition.

What is your defining proposition? Don’t take this the wrong way, but anyone can become a new car dealer and start selling cars. Same old blah, blah, blah. (I didn’t say it was easy.)

Beside price, what do you stand for? Great leaders are able to separate themselves from the competition.

The attached is from Virgin Air. They are different. Very different. Virgin Air’s video for their safety announcements sets them apart from the rest.

Virgin Air is somewhat like Southwest was at one time. What I find interesting about Southwest is they have moved more towards being like all the others as opposed to all the others becoming more like Southwest Air. They have lost their humorous niche.

You may have read or heard the story about the uniqueness of Gunter VW in Cocoanut Creek FL. In 2012 they sold over 4,000 new VWs. They did it by being different. Gunter VW Photo

It’s not sufficient to say you are known for great service. Everyone has great service. Having great service makes you average. Having great service is expected. You’re not exceeding anyone’s expectations by having great service.

Having free coffee and donuts makes you average. I get a chuckle every time I read a story in Automotive News about someone who now has a café and free whatever.

In the mid 80s we had a deli, a hair cuttery, a shoeshine man, and a tailor shop. Our employee lounge was decorated with characters from Warner Brothers like Bugs Bunny, Tweety Bird, Daffy Duck and others. And, we were famous for the Chicken Man. (Now that’s a story for another time.)

At least we were different. How different are you? Are you just another car dealership? Do you even dare to be different? Being different is not easy and requires taking risks. Not being different is boring, risk free and makes you known for nothing. That’s all I’m gonna say, Tommy Gibbs