The Competitive Advantage Nobody Talks About

Everyone talks about providing “great customer service.”

Very few people surprise their customers.

And that’s the difference.

One of the simplest ways I’ve found to exceed expectations has nothing to do with grand gestures. It costs nothing. It doesn’t require a committee meeting. It doesn’t involve a new CRM or another training program.

It simply involves doing more than you promised.

Suppose someone calls with a question.

Instead of saying, “I’ll call you right back,” I might say, “I’ll get back to you by the end of the day tomorrow.”

Then I call them back within an hour. In some cases I knew the answer when they first called.

What just happened?

I didn’t merely answer a question. I exceeded their expectations.

People remember that.

Today, too many businesses do the opposite.

“We’ll call you right back.”

“We’ll have it ready this afternoon.”

“I’ll email that over in five minutes.”

Then nothing happens.

Customers don’t expect perfection.

They expect people to keep their word.

When you consistently deliver sooner, faster, or better than expected, you begin building something that’s hard for competitors to duplicate.

Trust.

Give people one more reason to say, “Wow.”

People rarely remember average service.

They always remember being pleasantly surprised.

Exceeding expectations isn’t about spending more money.

It’s about paying more attention.

And in today’s world, where so many businesses simply fail to do what they promised, consistently exceeding expectations may be the greatest competitive advantage you have. That’s all I’m gonna say, Tommy Gibbs

What’s The Trade-Tree?

Dealers love to talk about the value of a customer, which starts with the first vehicle we sell them and continues through repeat purchases, service business, and referrals.

But we rarely consider the total value of the trade that first transaction creates and the journey that trade takes through our dealership.

Years ago, dealers used something called a “wash-out sheet.” Some of you know exactly what I’m talking about, and the rest of you probably think it had something to do with the detail department.

Here’s how it worked. You sold a new car and took in a trade. You sold that trade and took in another trade. You sold that one and took in another. Eventually, the last vehicle was sold without a trade, and the entire chain of transactions was finally “washed out.”

Only then did the dealer calculate the total gross generated from the original sale and every transaction that followed.

Today, dealers have more technology and data than ever before, yet most still can’t answer a simple question: How much total profit did this vehicle create for the dealership?

Your first reaction may be, “We already track that.” No, you don’t. You track pieces of it. You know the front-end gross, F&I gross, Parts and Service gross from reconditioning, packs, and doc fees. But when the vehicle is sold and creates another trade, you stop connecting the dots.

I call it the Trade Tree. One vehicle creates a trade. That trade creates another sale and possibly another trade. The process continues until the final transaction ends the chain.

A deal that appears average might ultimately create thousands of dollars in additional gross profit, but because you aren’t tracking the entire Trade Tree, you simply don’t know. And part of that is tracking all the parts and service gross that’s a result of that very first transaction.

With today’s technology, dealers should be able to track the total gross generated by every vehicle from the first sale to the last transaction it creates. Stop looking at every transaction as an isolated event and start measuring the total profit created by the Trade Tree.

The old wash-out sheet may be a little like suits and ties. Keep them around long enough, and eventually they come back in style.

What’s the value of a customer?

How much gross does one trade create?

That’s all I’m gonna ask.

Tommy Gibbs

It’s Obvious…Or Is It?

One of the advantages of having spent years working with dealers and analyzing inventory performance inside our UpYourGross software platform is that patterns become very clear.

And some of those patterns are impossible to ignore.

One of the most consistent observations we’ve made is the dramatic difference in gross profit performance based on where a vehicle originated.

Trade-ins.

Auction purchases.

Rental purchases.

Customer acquisitions.

I don’t doubt that you already know this…I do suspect you might need reminding.

The best-performing dealers understand that not all inventory sources should be managed the same way.

Auction purchases don’t deserve the same shelf-life as a nice trade or customer acquisition. Yes, you know that, but are you paying attention to it?

What continues to surprise me is how many dealers are still holding vehicles beyond 45 days while trying to achieve the same gross they expect from a trade-in.

The logic is understandable: every once in a while a miracle happens and an aged unit sells with a healthy profit.

But building a strategy around miracles is rarely a good business plan.

Even when that occasional win occurs, the return on investment is often disappointing after considering depreciation, floorplan expense, lost opportunity, and the capital tied up in the vehicle.

The lesson is simple.

Pay close attention to the gross profit expectations you have for each inventory source. More importantly, monitor the age of those vehicles and be willing to adjust your pricing strategy before a unit becomes an expensive problem.

The dealers who consistently outperform their competitors understand Life-Cycle Management. That’s all I’m going to say.

— Tommy Gibbs

What’s That Used Car Worth?

Let’s get something straight.

A used car is not a spreadsheet.

It’s not a formula.

It’s not a clean data set.

And it sure as hell isn’t the same as the one parked next to it.

Every used car is one of a kind.

Same year. Same make. Same model. Same mileage.

And still… completely different cars.

Why?

Because cars live different lives.

One was owned by a neat freak who serviced it like clockwork.

Another was driven hard, skipped oil changes, and cleaned only when it rained.

And yet…

we’ve got dealers appraising them as if they are all the same.

The Software Trap

I’m in the software business.

I believe in it. I use it. I sell it.

Good software is powerful. It gives you data, speed, and consistency.

But here’s the problem…

Too many dealers have turned software into a crutch instead of a tool.

They plug in the VIN.

They look at the number.

And they stop thinking.

You Can’t Download Experience

No software can:

•        Feel how a transmission shifts

•        See the difference between “clean” and “exceptional”

•        Smell smoke, pets, or neglect

•        Recognize pride of ownership

That only comes from you. You’re more important than you might think.

Your experience.

Your judgment.

Your time in the trenches.

You’re the one standing in front of the car.

You’re the one who decides:

“Is this rough, average… or is this special?”

Common Sense Still Wins

Bottom Line

Software is a tool.

You are the advantage.

If you rely on the tool and ignore your instincts—you’ll underperform.

If you combine both?

Now you’re dangerous.

Every used car tells a story and only you can read the story. That’s all I’m gonna say. Tommy Gibbs

I Can Beat You

Several years ago, the legendary University of Tennessee women’s basketball coach, Pat Summitt, passed away.

She will forever be remembered as one of the greatest coaches in the history of sports—regardless of the game or level of competition.

In her book, “Reach for the Summitt,” Pat made a statement that has always resonated with me:

“Here’s how I’m going to beat you: I’m going to outwork you.”

I love that mindset.

I put myself and many of the people I’ve worked with throughout my career into the category of, “We’ll outwork you.”

Talent is important. Intelligence is valuable. Experience matters.

But there is something powerful about a person who simply refuses to be outworked.

Over the years, I’ve watched countless people with more talent, better opportunities, and bigger advantages get passed by.

Why? Because someone else was willing to put in the effort, stay later, get up earlier, make one more call, visit one more customer, and keep pushing when others quit.

The truth is, there is a tremendous amount of room at the top of the pyramid. Most people think it’s crowded up there. It isn’t.

The competition gets thinner the higher you climb because fewer and fewer people are willing to do what it takes to get there.

Success leaves clues, and one of the biggest clues is that high achievers have a work ethic that separates them from the pack.

Today, it seems like fewer people wear the badge of honor that says, “I’ll outwork you.”

In fact, it’s becoming easier and easier to outwork many of the workers in today’s marketplace.

Show up on time.

Do what you say you’re going to do.

Follow up.

Stay focused.

Put in a little extra effort.

Those simple disciplines alone can put you ahead of a surprising number of people.

Maybe that’s why opportunity still exists for those willing to hustle.

As for me, I’ll continue betting on hard work.

That’s all I’m gonna say.

— Tommy Gibbs

WHAT’S NEXT?

Can you believe it? We’re already halfway through the year.

July is here, and whether we like it or not, the first six months are in the books. Time seems to move a little faster every year.

For some of you, the first half has been outstanding. You’re hitting your numbers, turning inventory, growing market share, and building momentum.

For others, it hasn’t gone quite as planned.

Maybe you’ve been running full speed ahead. Maybe you’ve felt like you’ve been dragging through quicksand.

Maybe you’ve been fighting aging inventory, inconsistent processes, staffing challenges, or simply trying to keep your head above water.

Whatever your situation, here’s the good news:

You still have six months left.

The first half of the year doesn’t determine how the year ends.

If things haven’t gone your way, don’t waste time looking in the rearview mirror. Identify what’s holding you back. Maybe it’s market conditions. Maybe it’s execution. Maybe the plan simply wasn’t the right plan.

The important thing is this: if the plan isn’t working, change it.

Review your inventory strategy.

Review your processes.

Review your people.

Review your accountability.

Then make the adjustments necessary to finish strong.

For those of you who have had a great first half, be careful.

Success has a way of making people comfortable, and comfort often leads to complacency. The best operators are constantly looking for ways to improve, even when things are going well.

The second half of the year belongs to those who are willing to challenge themselves, make adjustments, and execute at a higher level.

Everything comes down to choices.

You can choose to improve your processes, tighten your execution, and raise your expectations.

Or you can choose to do nothing.

The calendar will keep moving either way.

Six months from now, you’ll either be glad you made some changes—or you’ll be wondering where the year went.

The choice is yours. That’s all I’m gonna say,

— Tommy Gibbs

Can You Do Gross & Volume?

Short answer?

It depends.

Long answer?

It depends on what you mean by *gross*.

Some dealers call $4,000 a copy “gross.”

Others are perfectly happy with $2,000.

So, before you even ask the question… define the term.

Because if you don’t define it, you’re arguing opinions—not reality.

Here’s the truth nobody likes to admit:

There are only two ways to make money in this business—

“volume or gross”

That’s it.

If you’ve got a lot of something…

You’re going to sell it for less.

That’s not a strategy.

That’s **supply and demand.**

If you’ve got something scarce that people want?

Now you can hold gross.

Maybe even push it.

We all saw it during the pandemic:

Low supply.

High demand.

Everything sold.

Grosses were strong.

No mystery there.

So can you balance both?

Yes.

Can you maximize both?

At some point, you’re choosing:

* More volume, less gross

* More gross, less volume

The winners?

They find their **sweet spot**.

Not perfect.

Not theoretical.

At some point you have to get real and define what YOU mean by volume and what YOU mean by gross.

Process matters.

Execution matters.

Adjusting your thinking matters.

Don’t ignore reality trying to out-process the market.

You’re not smarter than the law of supply and demand.

That’s all I’m gonna say, Tommy Gibbs

WHAT ABOUT YOUR “ABOUT” BUTTON?

Take a look at your dealership’s website.

Click the “About Us” button.

What do you see?

If you’re like many dealers, you’ll find a mission statement, a little history, maybe a few stock photos, reviews, and maybe some directions.

What you often won’t find are the people who actually make the dealership successful.

No photos.

No bios.

No contact information.

You have a website trying to sell cars without introducing the people who sell and service them.

Does that make any sense?

People buy from people.

They always have.

They always will.

“I Don’t Want Other Dealers Recruiting My People”

That’s the excuse I hear most often.

It’s also a weak one.

Keeping your staff off your website doesn’t protect them.

Great leadership, culture, and opportunity do.

Customers Want to Know Who They’re Doing Business With

Wouldn’t it help if customers could see the faces behind your dealership?

A technician with 20 years of experience.

A service advisor who’s been helping customers for a decade.

A salesperson who shares their interests and values.

Trust goes up when customers know who’s on the other side of the transaction.

AI Is Paying Attention Too

If you think this isn’t going to be even more important as we move forward and more customers us AI when they search, you might want to rethink that. Detailed websites are going to have that much more of an advantage.

AI doesn’t just look at inventory.

It looks at content, expertise, and credibility.

The dealerships that showcase their people are giving AI—and customers—more reasons to trust them.

Your People Are Your Brand

Inventory, pricing, and facilities can be copied.

Your people cannot.

So here’s a challenge:

Go to your website and click “About Us.”

If a customer can’t quickly learn who works there, you’re missing an opportunity.

Add photos.

Add bios.

Add contact information.

Introduce your managers, salespeople, advisors, and technicians. And if you’re going to go to all that trouble, make sure the layout has a consistent look.

There are only two logical reasons you don’t have your team on your website…s you’re stupid or lazy.

I don’t think you’re stupid. That’s all I’m gonna say, Tommy Gibbs

Are You Focused on The Engine or The Noise?

Most dealers don’t have a used car problem.

They have a focus problem.

Everybody agrees used cars matter.

But watch what happens during the day…

A deal blows up.

A salesperson needs help.

Service gets backed up.

You lose a good person.

Your DMS takes a crap.

Shit happens.

And just like that — focus shifts.

Here’s the Truth:

The car business rewards reaction.

But results come from discipline.

You can stay busy all day, solve problems, feel productive…

…and never improve the one area that drives your dealership.

Great athletes figure this out early.

The greatest of all athletes start out playing more than one sport.

At some point they realize they need to get focused on the one that they have the most potential with.

Used cars require that same commitment.

You can’t manage them part-time.

You can’t check in when it’s convenient.

And you can’t expect great results without consistent focus.

When I say “you,” I’m talking about those at the very top of the leadership team.

Used cars aren’t just a department.

They’re the engine.

They drive cash flow, inventory turn, service absorption, and overall profitability.

When they’re right, everything feels easier.

When they’re wrong… everything gets heavy.

So what does real focus look like?

The best way for you to create focus is to ask lots of questions. Question anything and everything that has to do with used cars.

Focus isn’t what you say.

It’s what you refuse to take your eyes off.

You don’t need a new strategy.

You need a tighter lens.

You’re not stupid. You know used cars drives your entire business.

To not focus on used cars is just plain stupid.

Don’t be stupid. That’s all I’m gonna say, Tommy Gibbs

Are You a Liar?

I’m thinking that even if you don’t, you probably have. We often lie to ourselves in order to justify whatever it is we’re trying to justify.

Let me save you some consulting money…

The biggest problem in your used car department

isn’t your market…

isn’t your inventory…

isn’t your competition…

It’s you.

More specifically—

The lies you tell yourself.

Now before you get defensive… stay with me.

Because these aren’t the obvious lies.

These are the comfortable ones.

The ones that sound smart.

The ones that feel justified.

The ones everybody nods their head to in the meeting.

“We’re priced to the market.”

(Then why are your cars having birthdays on the lot?)

“Recon is fine.”

(Define ‘fine.’ Because you “think” you’re getting them through quickly.)

“Packs are working.”

(I doubt it. I really, really doubt it.)

We just need more leads.”

(You’re not converting the ones you’ve got.)

“I don’t want to get rid of it because I can’t replace it.”

(Are you serious? You want some more of those so they too can sit around for 90 days?)

Here’s what you’re really doing—

You’re building a case… instead of building a business.

And you’re a good lawyer.

You’ve got evidence.

You’ve got opinions.

You’ve got other people agreeing with you.

But none of that changes the scoreboard.

And make no mistake—

Used cars is a scoreboard business.

Turn.

Age.

Gross.

TAG…fix the tag.

No opinions.

No feelings.

No stories.

Part of the lying is the justification.

You start explaining instead of fixing.

Defending instead of adjusting.

Talking instead of acting.

And here’s the truth nobody likes—

Every time you lie to yourself about your used car operation is another day justifying what you want to justify.

Choose your lies wisely, that’s all I’m gonna say, Tommy Gibbs.