Consistency

As many of you know during the 20 plus years that I was a new car dealer I also refereed Division I NCAA college basketball.

As a division I NCAA official I was required to attend the NCAA clinic held each fall just prior to the kick off of the basketball season. The purpose of those clinics were primarily to cover something called “points of emphasis” and to go over the new rules for the upcoming year.

“Points of Emphasis” means that during the previous year there was a rule in place that the officials did a lousy job of calling. It could be something as simple as “palming the ball” or a little more complex like a “block/charge foul.”

In those meetings that all Division I NCAA officials are required to attend, every Division I NCAA college basketball coach is also required to attend. I hope you can get a visual on this unique gathering. You have college basketball officials and college basketball coaches in the same room.

The term “interesting” is an understatement.

What do you think is the number one complaint that college basketball coaches have about college basketball officials? I’m thinking you probably got it right. It’s the lack of “consistency.”

What do you think the number one complaint is from most people about their supervisors? Got that one right too.

“Consistency.” As a matter of fact, it would not matter what department or business you might be in. The number one complaint from all subordinates about management is the lack of consistency. Being consistent is about having processes and procedures that you believe in.

The trick in management is to be consistent in demanding high standards, consistent in achieving high quality, and to reach such ends using methods that oftentimes requires flexibility, reassessment, change, etc. which can cloud the issue of being consistent.

Even with some flexibility in the equation, a leader has to be able to display consistency. When a Leader is consistent people can depend on them. That leads to trust, which leads to amazing results.

However let me caution you. There is good consistency and bad consistency. If you have really bad management techniques or bad processes you may be consistently getting it wrong.

Good consistency doesn’t require a major overhaul, but must be tweaked daily.

Bad consistency not only requires a major overhaul but it may require a total change in habits and if change doesn’t take place then the next step may require changing people.

If you think of companies you enjoy doing business with you will find a common thread of consistency. Amazon, Chick-fil-a, Southwest Airlines, Starbucks, FedEx to name a few.

You may not like everything about them, but when you compare them to their competitors they win hands down when it comes to consistency.

So, to its core, consistency is really important. It’s important for you and it’s important for those around you. I try to be consistent by sharing simple, but effective ideas with you each week.

That’s all I’m gonna say, Tommy Gibbs

How Long Does It Take You?

How Long?

How long does it take to know if they can do it? Do what?

Do whatever it is you’ve hired someone to do.

Does it take a week?

Does it take a month?

Does it take 90 days?

Does it take 6 months?

Does it take 6 years?

How long does it take you to figure out if you’ve got the right person or the wrong person in the job?

Part of that decision-making process might depend on:

1. How much have you invested in the selection process of putting the right person in the right job?

2. Did you put someone in the job because they were the “next up?”

3. How much have you invested in their training and development?

4. How much have you invested of your own time coaching and teaching the person?

5. Does your organization give people the tools they need in order to be successful?

6. Do you make the effort to get legitimate feedback from those around you that “know” about how this person is performing?

How long does it take for you to figure out if they can or they can’t?

That’s all I’m gonna ask, Tommy Gibbs

Ok, You Made Some Gross

It’s been 7 years since we introduced our UpYourGross life cycle and recon management tool. Our success has far exceeded our expectations.

One of the things I’ve noticed inside our software is a dealer will occasionally make a little bit of gross on a unit that’s over 60 days old. Sometimes even a lot.

During the pandemic that wasn’t an unusual occurrence. And to many dealers’ delight they have experienced a little of that with the introduction of tariffs on new cars. (What a great opportunity to get rid of your aged crap.)

Keep in mind even if you’ve gotten luck and made some gross on that aged unit, your ROI sucked. Maybe you don’t care all that much about ROI because you’re paid on gross and it ain’t your money.

I bet you feel a lot different about your personal 401K account.

Since I’m in the question-asking mood, what if you had priced that aged unit the same way on day 30 rather than after 75?

Would you have sold it faster?

Would you have had a better ROI?

Better yet, could you have sold it and reinvested the money and doubled the gross on two units vs. one?

Used cars don’t age on day 61. They age on day one because someone isn’t paying attention.

Suddenly, day 61 rolls around and panic sets in and we drop our drawers and take the hit.

One of the drills I like to do in my workshop is to ask managers to describe their oldest unit in stock.

After they tell me all about it, I ask them, “In your professional opinion, why do you think you haven’t sold that unit?” With very few exceptions, whatever they say was there on day one. The one undeniable fact about the automobile business is that price sells cars.

If you priced your most problematic cars more aggressively in the first 30 days, then you would increase your odds of making a lot more money. Of course, the smartest dealers are able to recognize a problem unit on day one.

Stop betting on lucky. Start betting on smart. That’s all I’m gonna say, Tommy Gibbs

Why They Walk Around Used Cars

As Starbucks CEO Howard Schultz reminds us, “Seek to renew yourself, even when you’re hitting home runs.” How appropriate is that in today’s market?

A lot of dealers had a record-breaking month in March. Some of them have already spent too much time gawking at their financial statements, poking their chest out and patting themselves on the back.

Let me caution you; you cannot be satisfied. You can never be satisfied. Those sounds you hear behind you are the competition coming to gobble you up. If you take just one little break, one little hiccup, it could be the very thing that puts you into a downward spiral.

People are successful for a variety of reasons, one of them being “fear.”

The fear of failure.

The fear of falling back.

The fear of giving up all they have worked so hard for.

It’s that fear that causes the successful ones to keep pushing and to keep looking for new and better ways of doing things.

Scott McNealy, CEO of Sun Microsystems, once said “You either eat someone for lunch, or you can be lunch.” No truer statement has ever been made.

Being a hard-charging competitor can be craziness at its best. Competing is fun. Trying to get better is the lifeblood of competing, leading and winning.

Study it. Embrace it. Love it. Use it as success fuel. Use it to take you to the top of your mental game.

Develop an unstoppable competitive mindset, and it will push you so far ahead of the competition that you won’t have to worry about looking over your shoulder.

What you have to realize is that most people are just lazy and because they are lazy they can become complacent very easily. Ultimately their lazy streak will show its head; that’s when you can “own” them.

There are times when you can have a good month in spite of yourself because the market lets you win. The market may cause April to be a win.

The best time to get better is when you’re winning. Don’t waste your wins.

That’s all I’m gonna say, Tommy Gibbs

You Had a Good Month

As Starbucks CEO Howard Schultz reminds us, “Seek to renew yourself, even when you’re hitting home runs.” How appropriate is that in today’s market?

A lot of dealers had a record-breaking month in March. Some of them have already spent too much time gawking at their financial statements, poking their chest out and patting themselves on the back.

Let me caution you; you cannot be satisfied. You can never be satisfied. Those sounds you hear behind you are the competition coming to gobble you up. If you take just one little break, one little hiccup, it could be the very thing that puts you into a downward spiral.

People are successful for a variety of reasons, one of them being “fear.”

The fear of failure.

The fear of falling back.

The fear of giving up all they have worked so hard for.

It’s that fear that causes the successful ones to keep pushing and to keep looking for new and better ways of doing things.

Scott McNealy, CEO of Sun Microsystems, once said “You either eat someone for lunch, or you can be lunch.” No truer statement has ever been made.

Being a hard-charging competitor can be craziness at its best. Competing is fun. Trying to get better is the lifeblood of competing, leading and winning.

Study it. Embrace it. Love it. Use it as success fuel. Use it to take you to the top of your mental game.

Develop an unstoppable competitive mindset, and it will push you so far ahead of the competition that you won’t have to worry about looking over your shoulder.

What you have to realize is that most people are just lazy and because they are lazy they can become complacent very easily. Ultimately their lazy streak will show its head; that’s when you can “own” them.

There are times when you can have a good month in spite of yourself because the market lets you win. The market may cause April to be a win.

The best time to get better is when you’re winning. Don’t waste your wins.

That’s all I’m gonna say, Tommy Gibbs

Discipline

There’s no denying that the stronger you are in used cars the better you are in New, Service, and Parts. It’s a given. It’s a fact. It is. It just is. You can deny it all you want. You will be wrong

There’s an old saying, “Do the things you don’t want to do, so you can do the things you want to do.” That’s a great life lesson to understand, live and grow by. Never has there been a more powerful truism than for the automobile business.

There’s no department that requires more specific strategic disciplines to be successful than your used car department.

The most common discipline that dealers struggle with is turning their inventory in 60 days. Let me state it a different way; no unit can become 60 days old. Some of the more disciplined operations are starting to put that number at 45 days old.

Most dealers would say they want to make more money. To make more money, you must do some things you don’t want to do. One of those things is the pain of discipline. Doing a lot of little things each day to ensure you can do what you want to do.

If you’re not already on a 60-day turn it’s going to be painful and costly to get there. Either you or your staff will have all kinds of excuses as to why you can’t do it. It’s going to cost you some money to get it done. (Do the things you don’t want to do.)

When you finally get it done, your dealership runs smoothly, you make more money, life is simpler, and you smile a lot. Now you’re doing the things you want to do, as in making more money.

If you’re the dealer or GM, and you have aged inventory do not blame your management team. You’re the one to blame because you have allowed it to happen.

“The pain of discipline or the pain of regret.” If you would use my lifecycle management process you’d have a lot less pain. That’s all I’m gonna say, Tommy Gibbs

Your Culture?

Accountability: “The quality or state of being accountable; an obligation or willingness to accept responsibility or to account for one’s actions.”

Accountability starts with you, vibrates to those around you and ends up back in your lap.

If you believe a leader sets the culture of an organization then you must believe you cannot create an organization of accountability if you’re lacking in your daily disciplines.

If you’re not willing to hold yourself accountable then for sure you can’t hold others accountable.

Why should those around you do what has been deemed important, if you as their leader aren’t willing to do the same? There are a million ways to describe this, but since I’m a common sense guy, how about “monkey see, monkey do?”

A good leader makes sure those around them know what’s important. And a good leader makes things important by checking to make sure those around them are doing what’s important.

Building an organization of accountability isn’t a one-time thing. It’s an everyday thing led by you.

Accountability plays no favorites. If you let one person off the hook, eventually the entire organization falls off the hook.

Besides your personal accountability, there are three parts to holding people accountable.

1. Your personal street savvy. For many, this is based on time and experience and there are a few that are born with it.

2. Getting your head out of the sand. Get out of your office. Pay attention by using your peripheral vision and hearing.

3. Data. Look at the data and look at it some more. Data can be overwhelming. Figure out what’s important and what’s not by applying common sense to everything you’re looking at.

Sometimes data is misleading. Sometimes it smacks you upside your head.

Are you building an organization of accountability?

That’s all I’m gonna ask, Tommy Gibbs

Dumb Statements

You have a 75-day-old car, and you justify keeping it by saying, “I don’t want to dump this unit because I can’t replace it.”

What?

What did you just say?

Are you serious?

You don’t want to get rid of it because you can’t replace it?

What part of your brain are you not using?

I heard what you said, but here’s what you really said: “I want some more cars just like that one that are going to sit around for 75 days.” Are you stupid?

If you’ve had it for 75 days, there’s obviously a reason why you still have it.

For grins and giggles let’s suppose a miracle happens and you sell that 75-day old car today and you make $500. (ROI sucks but work with me here.)

Here’s my question for you; if you can sell it at day 75 and make $500, couldn’t you have sold it for that same price at day 45 and made $500 on it?

There’s no way of knowing the answer to that, but if you can sell it at day 75 and make $500 the odds are pretty good you could have sold it at day 45 and made that same $500.

The only reason you didn’t sell it at day 45 was because you weren’t willing to price it at a price point that someone wanted to come in and take it off your hands.

Don’t make dumb statements. That’s all I’m gonna say.

Change People?

Have You Done Your Part?
When People Won’t or Can’t Change, You Have to Change the People
In leadership, relationships, or even personal growth, one of the most challenging realities is recognizing when people won’t or can’t change. This realization can be especially tough when dealing with employees, partners, or even friends.
No matter how much effort you invest in coaching, mentoring, or offering support, sometimes people either aren’t willing or are simply unable to meet expectations. When this happens, it’s essential to shift your focus: instead of endlessly trying to change them, you may need to change the people.
Understanding the Barriers to Change
People resist change for various reasons. Fear of the unknown, a fixed mindset, lack of motivation, or even a deep-seated comfort in the status quo can block transformation. Some individuals may genuinely want to change but lack the skills, resources, or emotional resilience to do so.
Others may simply not share your vision or values. It’s important to assess whether the person’s inability to change stems from external factors (e.g., training, lack of clarity) or from an unwillingness to adapt.
The Cost of Waiting for Change
Holding on to people who aren’t growing with you can slow down progress. Whether in business or personal life, this can lead to missed opportunities, low morale, or frustration.
As a leader, you may find yourself compensating for their shortcomings or spending excessive energy on trying to bring them along. The reality is that the longer you hold on to people who can’t or won’t change, the more it compromises your goals and the well-being of others who are willing to move forward.
When It’s Time to Make a Change
There are key indicators that signal when it’s time to shift your approach:
Consistent underperformance despite support, training, and clear expectations.Misalignment with core values or a clear lack of buy-in to your vision.Negative impact on team dynamics, causing frustration or burnout among others.Lack of personal accountability, where blame is often shifted and excuses are frequent.
When these signs become persistent, it’s time to consider changing the people involved. This doesn’t always mean firing or ending relationships harshly—it could mean shifting responsibilities, reallocating resources, or encouraging them to find a better fit elsewhere.
Changing the People to Move Forward
In leadership, difficult decisions often lead to the greatest results. Changing the people who surround you allows for the introduction of individuals who are aligned with your vision, willing to adapt, and equipped with the skills needed to thrive. This change isn’t an act of giving up, but rather a strategic step to ensure progress.
Building a team of people who are ready and willing to evolve helps maintain momentum, foster innovation, and reach new heights.Ultimately, knowing when to stop investing in those who won’t or can’t change and instead finding individuals who are aligned with your goals is a critical leadership skill. Change is inevitable, and sometimes, it’s the people around you that need to change in order for growth to happen.
Change is part of how we grow. That’s all I’m gonna say, Tommy Gibbs

Recon Backed Up?

It’s not unusual for dealers to have used cars backed up in their reconditioning operation.

Depending on the size of the dealership it could be anywhere from 4-5 units to 25 units. We all know the longer a car sits the more difficult it is to make a profit on it.

Dealers are quick to recognize the problem but as a rule they’re not very quick about coming up with a resolution for it.

There are only THREE CHOICES:

  1. Keep doing what you’re doing and let the frustration continue.
  2. Pay big bonuses to your techs to work late at night and/or weekends and get caught up. (It’s worth every penny if they are willing to do it.)
  3. Send them up the street

#3 goes against everything you’ve been taught by your 20 group and all those who came before you. I don’t need to list the reasons why we want to keep everything in house; you already know what they are.

But sometimes you as the GM or Owner operator must make a big boy or big girl decision and “get it done.”

You make money selling used cars.

You make the most money selling fresh used cars.

You cannot accept letting them sit until your service department gets around to getting them done.

Remove the obstacles. That’s all I’m gonna say, Tommy Gibbs