The Big Gamble

he car business is a game of high stakes. The highest stake is and has always been the used car department.

It doesn’t matter if your trading at the front door or buying at the auction it’s always a gamble.

You’re gambling that you paid the right money for the unit.

It’s true you make money when you buy the unit. It’s even truer that you make the money when you sell the unit. You never know what a unit is worth until you sell it. It’s always a gamble.

Used cars are not an exact science. It’s more often than not a wild-ass guess. Some guess better than others, but it’s always a gamble.

Solid leadership and a savvy understanding of the business will mitigate your gamble and give you better odds of winning the game and improving your bottom line.

If you’re the Owner, Dealer or General Manager you should never turn the riskiest part of your business over to a single individual. Your leadership and experience are critical to your thriving and surviving the risky part of your business.

There’s an old Chinese proverb that says: If you must play, decide upon three things at the start:

1. The rules of the game-Upper management set the rules of the game and decide if they are going to demand accountability. Rules without accountability are just stupid. Don’t be stupid.

2. The stakes-The stakes are very high. How much money do you have invested in your used car operation? Most of the time we think about that in terms of the amount of used car inventory we’re carrying.

Often in the millions of dollars. Yes, that’s the biggest chunk of the investment, but there’s also a huge investment in time, management development and resources that go into the equation. Don’t be stupid with your investment.

3. The quitting time-At what point do we find a retail buyer at some number? Our first inclination when reading “the time to quit,” is when do we dump the unit in the wholesale market.

Dumping in the wholesale market is always a bad idea. If you want to think about it as dumping, you should be thinking about it as dumping in the retail market.

At some point, the unit should be priced at a price point that makes someone come in and take it off your hands.

All units don’t deserve the same shelf-life. To assign all units the same quitting time is a bad business strategy. Not having a solid strategy and flying by the seat of your pants is just stupid.

I’m being repetitive, but it’s worth repeating that the used car business is a gamble and you need to do everything in your power to increase the odds in your favor.

That’s all I’m gonna say, Tommy Gibbs

The Enemy of Discipline

If I learned anything from being an athlete, a coach, an NCAA college basketball referee, and my time in the United States Marine Corps, it is that you have to be a well-disciplined team to win.

I, like many of you, can look back and review my career and unequivocally conclude that the success I’ve had is directly tied to discipline.

The common denominator that I observe in my dealership travels for the most successful operations is discipline. It’s there. It’s visible. It’s consistent.

You can have:

A lot of great ideas.

A lot of great concepts.

A lot of great tools and training at your disposal.

A lot of talented people.

A lot of great software.

None of it is worth the ink to write it down if you don’t have discipline.

As many of you know my team and I have developed some amazing software rightly named UpYourGross. What’s obvious is that the dealers who have the discipline to allocate 10 minutes a day to the software are getting results that far exceed their expectations and their investments.

Those that don’t are wasting their money.

This isn’t about my software. It’s about the value of discipline.

Leadership must have a clear understanding of discipline and what it means to the success of the organization.

If you’re going to develop a winning team you must be committed to the now, not later. If you’re not a person of action, not much else will matter.

When a leader is consistent in everything he/she does, then others will follow. When others follow the lead of discipline, momentum and growth are inevitable.

Never forget the enemy of discipline is procrastinating. Be disciplined. That’s all I’m gonna say, Tommy Gibbs

Your Next Used Car Manager

I want to speak to those of you that are in charge of the hiring and struggle to find that superstar used car manager.

The used car manager you need may very well be right under your own roof, and you’re walking right by him or her a dozen times a day.

For whatever misconceived reason, when you need a used car manager, the first thing you want to do is find a used car guru that works someplace else and lure them away.

I don’t have to tell you the challenges of hiring from the outside. I don’t have to, but I will.

1. The person you hire isn’t going to have the same culture that you’ve been working so hard to develop.

2. Their thinking about the used car business isn’t going to necessarily align with yours. That doesn’t mean either of you has it right or wrong. It just means it’s going to be frustrating and more than likely expensive.

3. If you’re running an ad in Automotive News, most of the respondents are going to be from outside your area. I’m not even going to attempt to list all the issues tied to bringing someone in from afar. If you don’t understand those issues then you’ve got a lot more problems than I can help you with.

4. When you hire from the outside you are looking for a miracle worker to fix the mess left from the last miracle worker. Most likely the mess will get bigger. All you’re doing is rinse and repeat.

5. You’re doing nothing to encourage people to want to grow and develop within your organization when you keep going to the outside. You need to promote from within.

The real answer is that you don’t need someone from the outside with a bunch of experience. What you need is to commit to giving someone from within a chance and a whole bunch of your personal time and energy.

What you need is:

1. Someone that’s a young “thinker.”

2. Someone that has high energy.

3. Someone that believes in your culture and store.

4. Someone that’s coachable.

5. Someone that has common sense.

6. Someone that understands technology.

7. Someone that has integrity.

8. Someone that has a strong work ethic.

9. Someone that has good communication skills.

10. Someone that’s hungry.

If you don’t have someone or multiple someones like this in your organization then you need to rethink your organization. That’s all I’m gonna say, Tommy Gibbs

Do You Treat All Used Cars The Same?

I’m done playing nice.

I’m done soft-speaking. I’m done sugarcoating. I’m done hearing you say, “Everything’s fine — we drank the Kool-aid.”

Unless you drank my super Kool-aid, it’s not fine.

Some of you have. Most haven’t. If you haven’t, do yourself a favor — drink it.

Here’s the plain truth: you need a life-cycle management process. Not because it’s trendy. Not because I sell software. Because it makes sense. Smart, measurable, practical sense.

You can argue with me if you want — you’ll be wrong.

Some of you will say, “We don’t have the discipline to use it.” That’s an excuse. Discipline can be built. Systems can be taught. Saying it “doesn’t make sense” is the only claim you can’t defend.

For years you’ve preached, “Every unit must stand on its own.” But you treat every unit the same. What are you thinking? How’s that working out?

Life-cycle management demands a unique strategy for every unit on Day One. If you actually set a strategy on Day One, you won’t be watching the same car on Day Sixty-One wondering why it hasn’t moved.

Yes, my software helps manage this. But I don’t care if you buy my software. What I care about is this simple fact:

Not every unit deserves the same shelf life.

On Day One be honest: did you price this to sell, to hold, or to hope? Stop treating purchase units and trades as twins when they’re not. Start triaging them like the business you want to be.

Do this and your gross goes up. That’s not hype — it’s math.

Are you done playing nice? You should be. That’s all I’m gonna say, Tommy Gibbs

5 Things To Pay Attention To

1. Redundant Training- It ain’t redundant until you’re perfect. You ain’t perfect. If your sales staff isn’t polished enough to be able to justify the price then you are not going to get the desired gross. It’s just that simple. Get busy training and you’ll get more gross. (If you have a bunch of knuckleheads working with you then all the training in the world isn’t going to make a difference.) At the very least, you should have a lot walk once a week with all managers and all salespeople. The more your people know about your inventory, the more your gross goes up. (Training Proposal.)

2. Ask For More On The Right Units- There are some that you need to start way high. Some very low. vAuto’s Profit Time and my UpYourGross are great software tools to help you know which units are which.

Once in a while you gotta “ask for it all.” Since the beginning of this business, high average gross profit has been achieved by hitting a home run once in a while. You can’t hit it if you don’t take a full swing. If it’s a low mileage, really nice car you deserve more money for it. You don’t deserve more money for an edgy one and you have to be smart enough to know which is which. And without a doubt, you have every right to ask more money for a certified car. But that doesn’t mean you sit on the “more money” pricing forever. Change the pricing daily.

3. Not selling in Today’s Market-Your most profitable car is a 20-day car. If you are retailing a lot of cars at the 30, 45, 60 plus day mark, you don’t have a chance. Speed wins; the lack of speed kills. Why don’t you try charting those units that you sell at 45 days and beyond to see what they are doing to your average gross profit? In the movie “A Few Good Men,” Jack Nicholson might have been talking about you. You can’t handle the truth.

4. Does Your Website Suck?–stop reading this and go look at your website. Is it easy to surf through and/or do you have a bunch of crap popping up?

5. No Early Warning Radar-You’re asleep at the wheel. You have to be able to spot a problem child on day one, not day 44 or day 59. Every one of your aged units has a story to go with it. That story started back on day one.

You have to be smart enough to have an “Early Warning Radar” system in your arsenal. Fix your Radar system and your grosses will improve. I invented “Early Warning Radar.” You should steal it and use it.

Five Simple things to pay attention to. That’s all I’m gonna say,Tommy Gibbs

Five Simple Things

1. Redundant Training- It ain’t redundant until you’re perfect. You ain’t perfect. If your sales staff isn’t polished enough to be able to justify the price then you are not going to get the desired gross. It’s just that simple. Get busy training and you’ll get more gross. (If you have a bunch of knuckleheads working with you then all the training in the world isn’t going to make a difference.) At the very least, you should have a lot walk once a week with all managers and all salespeople. The more your people know about your inventory, the more your gross goes up. (Training Proposal.)

2. Ask For More On The Right Units- There are some that you need to start way high. Some very low. vAuto’s Profit Time and my UpYourGross are great software tools to help you know which units are which.

Once in a while you gotta “ask for it all.” Since the beginning of this business, high average gross profit has been achieved by hitting a home run once in a while. You can’t hit it if you don’t take a full swing. If it’s a low mileage, really nice car you deserve more money for it. You don’t deserve more money for an edgy one and you have to be smart enough to know which is which. And without a doubt, you have every right to ask more money for a certified car. But that doesn’t mean you sit on the “more money” pricing forever. Change the pricing daily.

3. Not selling in Today’s Market-Your most profitable car is a 20-day car. If you are retailing a lot of cars at the 30, 45, 60 plus day mark, you don’t have a chance. Speed wins; the lack of speed kills. Why don’t you try charting those units that you sell at 45 days and beyond to see what they are doing to your average gross profit? In the movie “A Few Good Men,” Jack Nicholson might have been talking about you. You can’t handle the truth.

4. Does Your Website Suck?–stop reading this and go look at your website. Is it easy to surf through and/or do you have a bunch of crap popping up?

5. No Early Warning Radar-You’re asleep at the wheel. You have to be able to spot a problem child on day one, not day 44 or day 59. Every one of your aged units has a story to go with it. That story started back on day one.

You have to be smart enough to have an “Early Warning Radar” system in your arsenal. Fix your Radar system and your grosses will improve. I invented “Early Warning Radar.” You should steal it and use it.

Five Simple things to pay attention to. That’s all I’m gonna say,Tommy Gibbs

When Leadership is Stinky

I’ve spent most of my life observing and studying leadership skills. It started with my first little league coach, my college coaches, my experience as an athlete and as a NCAA college basketball referee.

Then into the business world, observing some of the best and some of the worst. Reading, studying and attending workshops have all been a part of my journey on why leadership is stinky and the reverse, why it excels.

Today, I’m taking the leadership is stinky side of the equation.

I started off with 10 reasons leadership is stinky. I ended up with 30 and could have kept going.

Here you go:

1. They aren’t flexible. You can tie this thought to any sport you want. The best teams are lead by people who make the right adjustments at the right time. Leaders are like boxers. They are bobbing and weaving. Far too often leaders get locked into whatever and their whatever drives the team nuts.

2. They don’t pay attention. What a simple concept. Real leaders have their eyes and ears open 24/7. They don’t lock themselves in their office and issue orders. They walk around. They ask questions. They listen.

3. They think they know it all. Nobody knows it all. You don’t, I don’t. Even CNN & Fox don’t. Leaders know what they don’t know.

4. They want you to rely on them to tell you everything to do. That’s not what real leaders do. Leaders say, “I trust your good judgment, you decide.” When you stumble, they coach you up, not put you down.

5. They walk like a turtle. Show me a slow walker and I’ll show you someone nobody wants to follow. Get some pep in your step and get your butt in gear.

6. They are a stick in the mud. What a miserable life if you can’t laugh at yourself. If you don’t have a sense of humor you need to get a sense of humor.

7. They are arrogant and egotistical. There’s a big difference in being confident and being a jerk. Don’t be a jerk.

8. They aren’t likeable. Ties into being a jerk. If you’re not likeable the odds of being a great leader are about slim and none.

9. They hide the details. Leaders want to give you more than you need to know. They know that the more you know, the faster you learn. The faster you learn, the faster you buy in. The faster you buy in, the faster the team grows.

10. They put the wrong people in the wrong seats on the bus. Leaders know that just because you have skill A doesn’t mean it’s a fit for seat B. Getting the right people in the right seats is critical for success.

11. They have lapses in integrity. You either have integrity or you don’t. It’s not a part time thing to be used when you see fit. Leaders have integrity 24/7/365.

12. They say stupid things. Leaders use common sense before they open their mouth. The problem in today’s world is common sense isn’t so common.

13. They run around like a nut. Leaders know when to be calm and when to get excited. Too much of either makes people suspicious of you.

14. They have boss tattooed on their chest. Leaders aren’t the least bit concerned about tattoos or titles.

15. They say, “Look at me, look what I did.” Leaders say you guys did an awesome job. Way to go. I’m proud of you.

16. They blame others. Leaders say, “I let you down.” I need your help so I can do a better job. Let’s all work harder and smarter to do better.

17. They say do this, do that. Leaders say, “I need your help”

18. They got promoted over their head. They know it. Everyone knows it. Not their fault. Somebody screwed up. Leaders don’t have to live with it. When all else fails, leaders hit the eject button, reset and move on.

19. They never read the bible. Leaders follow the golden rule. It simple. It’s easy. Preach it. Talk it. Walk it.

20. They don’t do what they say they are going to do. Leaders are true to their word.

21. They lack discipline. Leaders understand the pain of discipline or the pain of regret.

22. They confuse friendship and loyalty. Leaders are loyal, but they are smart enough to know when their loyalty to certain individuals is hurting the team. Leaders make hard decisions. You can be loyal without being stupid. Don’t be stupid.

23. They don’t own a mirror. Leaders find most of the solutions to their problems in the bathroom mirror.

24. They live in the past. Leaders say, just because we’ve always done it that way doesn’t mean we’re going to keep doing it that way.

25. They stop learning and growing. Leaders invest time and money on self and team development.

26. They resist change. Leaders knock down the walls of resistance. They know resistance is enemy #1.

27. They let people be mean to others. Leaders have a motto, “If you aren’t nice to your teammates and our customers you can’t work here.” Another simple concept for you.

28. They micro-manage. Leaders are good checkers, but they give people a job and let them do their job. They coach when necessary and stay out of the way the rest of the time. Leaders don’t “number” people to death.

29. They don’t look like a leader. I understand you want to dress casual. I do too, but I don’t. Ok, I’ll give you one day a week and that’s painful for me to say. The rest of the time you need to set the example and look the part.

30. This one’s for you. You pick. I’m sure you’ve got one that I left out. Hit reply and I’ll steal it from you.

I’ve said enough so that’s all I’m gonna say, Tommy Gibbs

Hate Your Job?

What to Do When You Hate Your Job (and Maybe Your Boss)

It’s Monday morning. You’re staring at the clock, dreading the day ahead. You’ve been telling yourself it’s “just a phase,” but let’s be honest—this isn’t a phase. You hate your job.

But here’s the twist: hating your job doesn’t mean you’re stuck, and it doesn’t mean it’s time to walk out the door just yet.

I come from the school of “work hard, show up, and good things will come.” And more often than not, that approach pays off. Sometimes we fall in love with the job because we got better at it. Sometimes the lessons and scars become the tools we use to land our next opportunity.

I, like a lot of you didn’t wake up one day and think “I wanna be in the car business,” but here we are a whole bunch of years later still at it and loving it.

But what happens when the real problem isn’t the work—it’s the leadership?

Let’s talk about that.

1. Separate the Work from the Environment

Ask yourself: Is it the work you hate, or the people around you? The job might be a great fit, but toxic leadership can make anything feel unbearable.

If it’s the environment that’s draining you, not the actual tasks, you’ve just gained clarity—and clarity is power.

2. Learn While You’re There

Every bad boss is a case study in what not to do. If you aspire to lead, you’re getting a free education on how to avoid damaging morale, crushing initiative, or micromanaging people into misery.

Keep a mental list titled: “When I’m the boss, I’ll never do this.

3. Be Better Than the Boss

You don’t have to sink to their level. Set the tone for your own professionalism. Show up on time. Be kind. Be consistent. If nothing else, you build your reputation—and your resilience.

4. Focus on Transferable Skills

Are you building communication chops? Gaining industry insight? Managing conflict? Don’t throw away a bad situation before extracting the good from it.

Treat it like the gym: hard, uncomfortable—but making you stronger.

5. Find a Mentor Outside the Chaos

Don’t suffer in silence. Get advice from someone outside the drama—a mentor, coach, or even a peer who can offer perspective. Sometimes you need someone to remind you of your worth.

6. Have a Plan B, But Work Your Plan A

Yes, polish your resume. Yes, network. But don’t mentally quit before you physically leave. That short-circuits your growth.

You never know: the skills you sharpen in this season might lead to your next promotion—or your exit plan.

7. If You Must Go, Go with Class

Don’t burn bridges. Document your contributions. Exit with dignity. Because someday, that “bad boss” might read about your success and realize who they pushed away.

Final Thought: Quitting Isn’t Always the Answer. Growth Is.

Not every job will feel like your dream. Not every boss will inspire you. But if you focus on getting better—not bitter—you’ll walk away stronger, smarter, and more equipped to lead the right way when it’s your turn.

That’s all I’m gonna say, Tommy Gibbs

Are You Making This Used Car Mistake?

In the world of new car dealerships, especially when you’re part of a multi-store group there’s a habit that sounds good on paper but quietly eats away at your bottom line. It’s called “passing the car around.”

You know the drill: a used car hits 60 days, and rather than take a wholesale loss or aggressively retail it, one store “sells” it to a sister store down the street. On paper, the problem is solved. In reality, it’s just been relocated.

 It’s a “shell game” that you cannot win.

And it’s bad business idea.

The Illusion of Recovery: Passing a 60-day-old unit to a sister store may look like movement, but it’s often just shuffling the loss rather than solving the problem.

Wholesale to one of your other dealerships isn’t a Win: Taking a write-down to move a car internally is still a loss.

That car had retail potential.

Why haven’t you already retailed it?

Was it price or something else like lousy recon?

A retail exit strategy is always a better choice. Even if you have to discount, selling to a retail customer nearly always beats wholesale-to-sister-store economics.

We are in the retail business. I know you know the benefits of retailing a unit even if you retail it at a loss.

1. You capture a new customer for your store

2. There might be a trade

3. You made some service gross

4. You made some F&I Income

5. A salesperson got excited because they sold a car

Kicking the Can Down the Road: All too often, the second store ends up with an even older unit that’s now less desirable and harder to retail.

You’re Not Solving the Problem — You’re Delaying It

When you pass a car to another store, you’re not getting rid of a problem, you’re simply kicking the can down the road.

What often happens next?

  • The second store sits on the unit.
  • It hits 60 plus days.
  • Now it’s even harder to move.
  • Eventually, it gets wholesaled out at a bigger loss.
  • In the end you’re ROI totally sucks.

What you thought was a clever workaround becomes a ticking time bomb in someone else’s inventory.

The Bottom Line

Passing cars between stores might make the inventory report look better short-term, but it’s a false win. The damage to gross, discipline, and long-term performance is real. Trust me on this; your people hate the idea and you should be smart than putting such a bad policy in place.

Stop playing the shell game. That’s all I’m gonna say, Tommy Gibbs

When Are You Going To Do It?

A few years ago I read an article on the retirement of the University of Florida’s Athletic Director, Jeremy Foley. Foley is finishing up a forty year career at UF.

You can well imagine the number of people Jeremy Foley has had to fire over the years. Of course he’s not always made the perfect decision when hiring and firing, but based on the school’s success, he’s been right far more times than he’s been wrong.

One of Foley’s sayings is, “If something needs to be done eventually, it needs to be done immediately.”

You will often find that to be a characteristic and trait of exceptional leaders. They see what needs to be done and they do it immediately.

You as a leader know there are things you eventually need to do, but for whatever reason you keep putting it off.

You know there are people you need to eventually replace. If you know you need to eventually replace them, then you need to do it immediately.

You know you need to eventually change your pay plans. If you know you need to eventually change pay plans, then you need to do it immediately.

You know you need to eventually get rid of packs. If you know you need to eventually get rid of them, then you need to do it immediately.

There’s a long list of things you know you need to eventually do.

If you want to be a better leader, you would do them immediately.

That’s all I’m gonna say, Tommy Gibbs