Has your selling process fallen apart? Has the Evaporation factor eaten you up? A little slide here and there? Does one manager do it one way and another manager do it another way?

Have you ever hired a training company to come into your dealership to install a training process? You know one of those 10 step systems that may or may not include an up system, four square or whatever?

I’m thinking you probably raised your hand and answered yes to my little question. I’m willing to bet at the completion of the training that your business improved and you saw an increase in volume, gross or both. I can also bet that over time your selling process began to evaporate.

The selling process to me is much like my “Life Cycle Management Section” in my used car workshop. The key to life cycle management is to recognize a problem car on day one not day sixty-one.

The problem with a selling process is we are often in denial that it’s actually falling apart. We want so much to believe that we have it right and that everyone is doing it right that we ignore the obvious.

Often the management team will say they have a selling process but they don’t follow the steps or they don’t have one and they just kind of wing it.

The most fundamental aspect of the car business, that hasn’t changed since the invention of the closing statement “would you take…,” is to have a selling process that all the members of the management team understand and believe in.

Dealers frequently complain about gross, volume or both. If you want to improve all the above then take a hard look at your selling process.

I’m a firm believer that a deal has three parts. A beginning, a middle and an end. All three are critical if you are to maximize results.

I like to think of the 1st stage, the beginning, as the greeting, fact finding, qualifying, or “make-a-friend” stage. Call it what you want. Managers who really know what they are doing have a keen eye for what’s going on in this stage. This is the stage where deals unwind or blow up, and then we wonder what the heck happened. Personally, I’ll execute a T.O. at this stage just as fast as I would in the closing stage, maybe even faster. If this gets screwed up you ain’t got a chance.

The 2nd stage or the middle of the deal involves a lot of the actual selling. It’s the story about the car, the dealership and why they should buy here.

And of course the last stage is the close itself. We all know that if stages 1 and 2 are done well then stage 3 is a cake-walk.

With all the amazing technology available to us today it would be easy to see how one might view a selling process as the old frontier which is tired, worn out and outdated. Nothing could be further from the truth.

It’s the old frontier that actually presents the most interesting opportunities to charge ahead of the competition. Attacking and tailoring your selling process with real innovation presents a unique challenge for the new age of selling into which we are evolving.

Don’t sell it short, or should I say don’t cut your selling process short. If you’re serious about improving gross and volume then maybe now is the time to re-evaluate what you do and how you do it. That’s all I’m gonna say, Tommy Gibbs

Have you ever noticed that with some businesses that it feels like nobody’s in charge? Sort of like the business has been turned over to the inmates to figure it out and do the best that they can? Sure, we’ve all had that experience.

Often, when I’m in a dealership I’m not sure who’s really in charge. In some cases it’s the blind leading the blind. Even more to the point I wonder if anyone is really “running the show.”

The sales department of the typical dealership needs to be set up in one of two ways:

1. General Sales Manager-this person runs the sales department. All the managers in the sales department answer directly to the GSM. The GSM needs to have great leadership skills and it’s always preferred that they have been an F&I and Used Car Manager. They must have the ability to communicate with the other department heads and understand their area of responsibilities. They should never let their egos get in the way of keeping the Dealer/GM informed as to what’s going on in the sales department. Their motto should be the Dealer/GM is never surprised. GSMs usually run into trouble when they start to think they are the dealer and begin making decisions on things that are above their pay grade.

2. General Manager/Dealer Operator-not only performs GM duties, but GSM duties as well. This situation is more prevalent in smaller stores or during those economic times when cutbacks are necessary and the GM takes on multiple responsibilities.

Notice the line that says “Needs to be set up in one of two ways.” My experience is that often it’s just not being done, or if it is it’s a halfhearted effort at best. You cannot put a group of managers together and hope they “get it” and work together as a team. You can’t “kind of sort of” say that so and so is in charge.

The best run businesses are those in which everyone clearly knows, understands and supports the chain of command.

People support the chain of command because they have respect for the person at the top not just based on their prior performance, but because of their daily actions. Respect has to be earned everyday and is not a result of “carry over” action from some previous accomplishments, such as he/she was a great salesman…now let’s anoint them with “Sales Manager in Charge” status.

Far too often the GSM or GM does not have the skills that are actually needed to run the sales department. Then there are times when they just don’t have the desire. It’s not their cup of tea. They may have other useful skills for the organization but managing a sales force just isn’t one of them.

It could be they don’t have the training and background or their personality just isn’t a sales personality. They may have been given the position because they were a great closer, or were the next person in line to be promoted.

It’s not all that unusual for a GM to be a former Parts and Service Director, Comptroller, or even a relative of the owner. They may or may not have the skills and/or training to do the job the way it needs to be done.

That doesn’t mean they are not a great GM by normal standards, but they may not be the type of GM who can also perform the duties of a GSM. Sometimes the person I’m talking about here is actually the owner who has taken on additional responsibilities for whatever reason. Just because someone is the owner doesn’t qualify them to run the sales operation, but they have to be smart enough to recognize the skills they have and don’t have.

So, here’s the deal. You have to put someone in charge who can do the job. I mean really do the job. It’s one of the most critical positions in the dealership.

If you have the wrong person or you are relying on the managers to work it out among themselves you will be led down a road of constant frustration, confusion, lack of direction and poor production. In the end everyone suffers, especially your bottom line.

That’s all I’m gonna say, Tommy Gibbs

I’m betting you and I are a lot alike because we are both constantly asking “What if?” What if I worked a little harder? What if I worked a little smarter? What if I could learn some things that others haven’t figured out yet? What if I could tweak an existing idea?

The vast majority of what we read and learn is either re-worked, re-stated or borrowed from someone else. I’ve probably had 10 original ideas in my lifetime and that may be a stretch.

The older I get the more I enjoy learning. Actually I love learning. The more I learn the more relevant I become. I like being relevant.

My brain is constantly reviewing information either through reading, communicating with others, observing, or from wherever information comes from, into my mental hard drive. I have a fear of being left behind and I don’t like the view from the rear.

I’m going to be discussing and commenting on what’s commonly known as the “Four Stages Of Learning” plus two others that I know you have never heard of because I made them up. I don’t know where the first four originated, I just know I stole them. All six stages of learning apply regardless of the application. They can be applied in sports, business, social activities, and life in general.

1. Unconscious incompetence-The individual does not understand or know how to do something and does not necessarily recognize the deficit. The individual must recognize their own incompetence, and the value of the new skill, before moving on to the next stage. The length of time an individual spends in this stage depends on the strength of the stimulus to learn. The more time they are willing to spend learning the skill or activity the faster they move to the next stage. Example: You decide to take up golf so you go out to the driving range and whack at a few balls. 1 out of 10 you make great contact, but you have no clue what you’re doing. You know you love the feeling and you know you want some more of it so you keep returning to the driving range and/or play a few rounds of awful golf.

2. Conscious incompetence-Though the individual does not understand or know how to do something, he or she does recognize the deficit, as well as the value of a new skill in addressing the deficit. The making of mistakes can be integral to the learning process at this stage. Example: After going to the driving range for a while and playing a few rounds you begin taking lessons with a golf pro and quickly realize how little you know. You observe others either at the golf course or on video, etc. and the realization of how much there is to this game starts to sink in.

3. Conscious competence-The individual understands or knows how to do something. However, demonstrating the skill or knowledge requires concentration. It may be broken down into steps, and there is heavy conscious involvement in executing the new skill. Example: More golf lessons, more golf rounds played and you are starting to understand the integral parts of the swing. You haven’t mastered the swing yet, but you are starting to strike the ball more consistently, especially when you think it through. It’s not automatic, but your skills are improving as your knowledge starts to grow. This can be the most frustrating stage of the first four. You still have to think about it. When you do, your results are much better and when you don’t, you want to throw your clubs in the lake.

4. Unconscious competence-The individual has had so much practice with a skill that it has become “second nature” and can be performed easily. The individual may be able to teach it to others, depending upon how and when it was learned. Example: You’ve now repeated your golf swing enough times, played enough rounds, attempted enough different types of shots that you can break par or better and have reached a very competitive level. You no longer have to think about the elements of your swing, you just do it. The physical and mental muscle memory is locked in.

5. Competent Incompetence-is the most dangerous of the six. It’s when you have years of experience, know your stuff and have become convinced you have nothing else to learn. (Do you know anyone in the car business like this?) Your success has convinced you that you are “the man,” (or woman) and you are done learning. Seeking more knowledge is the last thing on your mind. What got you to where you are today is what you think is going to keep you where you are and beyond.

6. Learning to be competent-this stage never stops. It’s a life long journey that keeps life interesting and challenging. You know that learning is a journey, not a destination. (That would be you and I.)

The most successful people at any skill, business or activity are the ones who continue to do two things:

1. They keep going back to the basics
2. They continue searching for answers even when they think they already have many of them.

What stage are you in? Only you can answer that. As for me I’m in the “Learning To Be Competent” stage and I hope it never ends. That’s all I’m gonna say, Tommy Gibbs

1. He’s too expensive. OMG, OMG, you gotta be kidding me. Come on Einstein, do the math. How many managers do you have? How many stores do you own? I come to you. No one misses days from work hanging out in Las Vegas learning stuff that “stays in Vegas”. I train all your managers. There is only one definition for the word all. Would you sell more used cars if your new car manager and your service manager had a better understanding of the used car business? Well imagine that!

2. I can’t find the time. For real, really, you can’t find the time? You don’t have time to change your used car business and make a bunch of money? You’re right, you don’t have time.

3. I want to wait until the Summer is over. So let’s see, that would mean maybe early September…no wait, maybe sometime in October. Oh, let’s stretch it ’till November. Brilliant, absolutely brilliant. That way you can prolong your agony. Makes total sense to miss the selling season. I’m grinding my teeth.

4. Tommy was just here two years ago. Well, well aren’t we the king of “stuff don’t evaporate.” Look, I’m a genius, but as well as your team might be disciplined there’s naturally going to be some evaporation of processes. The longer you wait the more processes evaporate and the more complaining you can do.

5. I’ve got an old dog and he doesn’t want to learn new tricks. (Please work with me and assume he, him can mean she, her.) So, how are those old tricks working out for you? Frustrating isn’t it? But you’re loyal to him. He’s loyal to you. So why bother? It may be time to take that one more shot, show him some new tricks and if he can’t or won’t perform the new tricks then walk him outside and park him on the porch.

6. I’ve got a new guy and I want him to get settled in first. Great idea, that way he can develop some bad habits that you will never be able to break. It’s always more fun to hit them upside the head with a 2 by 4 after they have a bunch of bad “brain muscle memory” going on.

7. I’m waiting ’till we get rid of these over aged units before I hire him. So, how much money do you think you’re gonna lose screwing around with those aged units? Suppose I had some brilliant ideas on how to help maneuver you through those land mines? Nah, go ahead and take those losses so you can keep complaining.

8. Some of Tommy’s ideas are too far out in left field. Really? The view from out here is pretty good. I see all and know all. You might want to come join me and get a view of what the future looks like.

9.We’re making a lot of money doing it our way even though the used car department keeps losing money. So, let me see if I have this right. You’re making a lot of money, used is losing money and you see no need to fix used so you can make any more money? Ok, got it. Keep doing what you’re doing.

10. I make a lot of money in new cars, parts and service, why should I worry about selling more used cars? Duh, did it ever pop into your brain that if you get stronger in used that you would sell even more new, more parts and more service? Nah, why bother, you’re doing just fine.

11. Tommy can’t teach me anything in a half-day workshop I don’t already know. Hmm, you know that might actually be true, but I can teach you a lot of cool stuff you aren’t doing. Knowing and doing are two totally different things.

12. I already get Tommy’s newsletters and learn all the stuff I need to know for free. Makes total sense. I get it. Why bring me in to get all your people jacked up about the potential you have for making lots of money in used cars? You can get all the motivation and enthusiasm you want by reading my stuff. I’m a far better writer than I ever thought. That’s all I’m gonna say, Tommy Gibbs

I never like to admit being frustrated, but I am. I really am. I’m frustrated that dealers still allow themselves to have aged inventory when they know it’s the killer of gross, volume and do I need to mention the attitudes of the sales staff?

If you go back about 20 years I could possible accept the fact that some dealers just didn’t understand the pitfalls and consequences of aged inventory, but that is no longer a valid excuse. I mean really…dealers and managers alike have been educated by 20 groups, conventions, workshops and brilliant people like me as to all the reasons why allowing aged inventory doesn’t work, yet I see it time and time again.

It’s beyond my comprehension that dealers are on 75, 90 days and beyond as a turn policy. Worse than that, some don’t even have a policy. Uggg…how in the world can someone convince themselves or allow someone else to convince them that keeping units past 60 days is a smart business decision?

How does “hope” overtake “reason?” As in “I hope I sell it and make some money on this depreciating asset” vs. fundamental reasoning that it’s only going to happen when a miracle falls out of the sky. Simply put, “hope” is not a strategy.

Dr. Seuss said it best “You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose. You’re on your own. And you know what you know. And YOU are the one who’ll decide where to go…”

I preach and preach that one of the top gross killers are those cars you retail over 45 days old. Can anyone reading this prove otherwise? Since that’s a true statement what do you think a 75 or 90 day old car does to your average gross profit?

Sure, let’s blame it on the Velocity concept of the “race to the bottom.” Makes sense, let’s blame it on someone else. Let’s blame it on the used car manager. Let’s blame in on technology. Let’s blame it the Internet. Let’s blame it on the difficulty of finding cars. Let’s blame it on George W. Bush.

Oh, please….How about looking in the mirror and let’s blame it on you, the person that allows it to happen in the first place.

Let me remind you that the key is not about dumping aged units in the wholesale market and losing money on them. It’s all about having a clear-cut strategy of turn and finding a retail buyer. Being on a 60 day turn does not mean wholesale losses, just the opposite.

Maybe I shouldn’t be so frustrated. Maybe I should remind myself that as long as dealers have aged units it gives me something to do and something to write about. Keeps me busy, makes me money. But from the bottom of my heart I’d give up being busy and making money if all dealers just “got it.”

I’m staying frustrated and busy, that’s all I’m gonna say, Tommy Gibbs