1. Guard Against The “Peter Principle”-Don’t promote people based strictly on how they have performed in their current role. Promote them to their ability to perform in their new role. People are often promoted to their level of incompetence.

2. Guard The Processes-The team with the best and most consistent processes wins the most often.

3. Guard The Team-It really is about the team. You need team players. If they aren’t on the same team you cannot afford to keep them on the team. They will destroy morale and production.

4. Guard The Customers-When you protect your customers, you build your business and set the bar for the team to do the same. The team is watching and emulating how you deal with customer issues.

5. Guard The Vendors-You must demand the same high quality and standards from your vendors as you demand from your team. Don’t lower your standards because you’re saving a few bucks.

6. Guard The Culture-There’s nothing more important that you can do than guard your culture. You cannot afford to hire people who aren’t of the same mindset. If you make that mistake you will wake up one day and there is no culture.

7. Guard Against Legacy Thinking-Just because you’ve always done it that way doesn’t mean it’s the best way. Stop looking back. Look forward.

8. Guard Against Making The Same Mistakes-Mistakes are a part of growing, but what you cannot allow is the same mistakes happening over and over again.

9. Guard The Training-You cannot train too much. It’s not “redundant training” until the team is perfect. The team isn’t perfect. Don’t be talked out of training.

10. Guard The Passion-Don’t let anyone steal or drain your passion and don’t be afraid to show your passion for all the above.

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

Data + Common Sense=Good Stuff

Often there’s a disconnect between the desired goals and the skill level of those who have been put in charge of obtaining the numbers we need. We are now in the second month of the year and maybe the plans you laid down back in December are coming together or maybe they aren’t. Regardless, it’s always smart to remind ourselves of the fundamentals. Here are 5 thoughts to keep you moving forward: 1. It’s important to know what you deserve for any given car or truck on your lot. Knowing and understanding that is based on two parts: Data.Common sense. Knowing and getting what you deserve means having a true understanding of the market and every unit on your lot. They are all different, yet we often treat them all the same. It’s knowing when to fish or cut bait. All used cars do not deserve 60 days of shelf life. The sooner you understand that the sooner you will become a better used car operator. 2. Redundant Training. It ain’t redundant until you’re perfect. You’re used car department isn’t perfect. Don’t confuse getting lucky and today’s market with your management skills. Now is the time to amp up the training for your entire team. Dealers often think the fix to their used car department is to hire an experience used car manager or to invest in training their current used car manager. If you want to make a real difference train your entire management team on what’s important. When you get everyone on the same page great things happen. 3. Rolling 30-Day Sales Travel Rate. Pay attention to the number of units you currently have in stock vs. the number of units you have sold over the last 30 days. If you’re doing the right things all you need is a 30-day supply of cars. If you need more than that to get the job done, you’re probably stuck in the 1980s. Almost without exception, we are seeing inventories starting to outpace the sales travel rates. If you’re using our UpYourGross software tool, it’s right there on the scoreboard page for you to see. Maybe you don’t want to know the truth. 4. Not selling in Today’s Market. Your most profitable car is a car you see in the first 30 days. Grosses absolutely go down after the first 30 days. The excuse we often hear is it takes too long to get a car thru recon. If you’re 100% sure that’s part of the problem, then it’s your job as a leader to fix it. Speed wins; the lack of speed kills. 5. Early Warning Radar. You have to be able to spot a problem child on day one, not day 61. Every one of your aged units (Your oldest unit is an aged unit) has a story to go with it. That story started back on day one and somebody wasn’t paying attention. Fix your Radar system and your used car operation will become more efficient and more profitable. It’s only the second month of the year. Stay focused on what’s important. You get what you deserve when you do the work to deserve what you get. That’s all I’m gonna say, Tommy Gibbs

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:

1. Consistent underperformance despite support, training, and clear expectations.
2. Misalignment with core values or a clear lack of buy-in to your vision.
3. Negative impact on team dynamics, causing frustration or burnout among others.
4. 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

One of the most talked about issue of the day is the lack of affordability in the new car sector. There are no new cars priced under $20,000. Heck, finding something under $25,000 is no easy task. And very soon $30,000 will be a cheap car.

As bad as that sounds, there’s some real opportunity here for a savvy, well discipline dealer to capture more “used car market share.”

Look at your average cost per unit sold over the last 30 days and see how that compares to your average cost per unit in stock today.

The odds are that you are upside down with those two numbers. Even if you have a decent sales rate, the reality might be that you’re selling the fresher, lower priced units and the higher dollar stuff is sitting and costing you lots of money and a lousy ROI.

Staying focused on your average cost per used in stock will help you with the affordability game.

Your mission every day should be what can you do to press the average cost down. There is no magic number. Just know what the number is and do what you can to press it down.

One of the best ways to help control it is to make sure you most expensive units are turning fast and of course trying to keep some of those cheaper cars that you have been wholesaling.

There is no set of circumstances you can lay out that negates this concept. So, if you were to say any of the following, you would be wrong:

We do a great job with highline cars. (Irrelevant.)

We do a great job with high dollar pick-up trucks (Irrelevant.)

We do a great job with high dollar SUVs (Irrelevant.)

We don’t have software that can separate our inventory by Cars, Trucks, SUVs and Wholesale Pieces (Irrelevant.)

There is no question that if you just pay closer attention to what you are buying and what you are keeping for retail that your average cost will go down.

As you monitor your average cost it is going to bump up from time to time. There are two reasons for this. First, it’s because you traded in some high dollar stuff, which you will naturally have to do and second, it’s because you got goofy and went to the auction and bought some high dollar cars. In both cases it’s a matter of paying attention to it daily and getting back on track.

I’m often asked two questions:

1. What should my target goal be? There is no target, just try to get it lower than the day before.

2. Can I press my average cost too low. The answer is no. Don’t be concerned with that. If you do a good job with $30,000 SUVs, you will still sell $30,000 SUVs, but by pressing your average cost down it just makes you that much better.

Control what you can control. Do your part to solve the affordability problem. That’s all I’m gonna say, Tommy Gibbs

It’s a New Year!

I’m talking with a dealer the other day who needed some help with his used car department. As it turns out he’s struggling in both new and used car sales. It’s not unusual when you struggle with one you struggle with the other. There are exceptions to that rule as there are some dealers who see themselves as being a “new car dealer” and some who see themselves as being a “used car dealer,” and make good money. For years they have made money doing it their way and I’m not about to say they are wrong. I will say, “they could have made even more money had that not been a single minded car dealer.” The fact is you can be both. When the two departments are managed correctly they compliment each other. When they are both rocking they help to fire up the the parts, service and body shop business which and the bottom line explodes. We all know it’s true that when we improve your used car operation, we improve our entire dealership. While I realize I’m not telling you anything you don’t know, I may very well be telling you something you’re not 100% committed and focused on. Commit to 2025 being your best used car year ever, and 2025 will be your BEST YEAR EVER. That’s all I’m gonna say, Tommy Gibbs

You’re More Important Than You Think

In just eight more days you’re going to be very, very busy. The week after Christmas has the potential to be one of the best selling weeks of the year. It will only be a great week if you make it a great week. It’s not going to be a great week if you stay in your seat acting like a computer geek. You can make it a great week by getting up and moving around. You should be like a bumblebee on a pollination mission. You’re here. You’re there. You’re everywhere. Stinging your little heart out. You can’t just flap your little wings in place and think someone’s gonna sell a car. You have to create the buzz. You have to go from being weak and meek in order to make it a great week. I don’t like things to be all about you, but this is all about you. This week is all about you making things happen. It’s about you contributing as much in a week as you sometimes do in a month. It’s not about you giving 100 or 110%. It’s about you giving 200%. It’s about starting early and ending late.It’s not about asking others to do it. It’s about you doing it. You sometimes think you’re important. Well, you are important. You’re even more important than you think. At least this week you are. You may have to sting a few people this week. That’s ok. Some of your team could probably use a sting or two. A little stinging pain for a whole lot of car selling gain. Wishing you a very Merry Christmas, and an amazing 2025. That’s all I’m gonna say, Tommy Gibbs

Did you ever notice that successful people always seem to have a sense of urgency about them?

Think of any great leader you’ve worked with and 9 times out of 10 they were always on fire. In a hurry to get things done so they can move onto whatever is next.

The reality is that in business, a sense of urgency is essential for survival and success.

It accelerates progress, turning ideas into actions and actions into results quickly.

In a competitive world, delays can mean lost opportunities, customers, or market share. Urgency drives innovation, keeps teams laser-focused, and pushes people to prioritize what really matters.

It also fosters a culture of accountability, ensuring that deadlines are met, goals are achieved, and momentum is sustained.

Without it, complacency creeps in, and businesses risk becoming reactive instead of proactive—letting competitors take the lead. Simply put, urgency fuels growth, agility, and long-term success.

A Sense of Urgency:

Drives Action and Results: A sense of urgency transforms ideas into action, helping you move from strategy to execution faster.

Seizes Opportunities: In fast-paced markets, delays mean lost opportunities to competitors. Urgency ensures you act while the window is open.

Fosters Innovation: Urgency pushes teams to think creatively and solve problems quickly, driving continuous improvement and innovation.

Keeps Focus on Priorities: Urgency sharpens focus on what matters most, helping teams avoid distractions and stay aligned with business goals.

Builds Accountability: It creates a culture where meeting deadlines and delivering results is the standard, not the exception.

Prevents Complacency: Without urgency, businesses risk stagnating or becoming reactive, allowing competitors to get ahead.

Maintains Competitive Edge: Urgency helps you stay agile, responsive, and ahead of the curve in a rapidly changing market.

Be urgent. That’s all I’m gonna say, Tommy Gibbs

On a recent Clubhouse call the conversation came up about hiring people and how important it is for a person you hire to have Intestinal fortitude.

We can probably agree it’s a tough thing to measure in an interview, but let’s review what intestinal fortitude is all about.

In its most basic definition Intestinal Fortitude refers to the courage, determination, and resilience to face adversity and overcome challenges. It’s a mental toughness that helps individuals persist in difficult situations, adapt to unforeseen obstacles, and emerge stronger. (Yes, I looked it up.)

Intestinal Fortitude: The Power of Inner Strength

I realize it’s tough to zero in on that in an interview, but here are some questions you might ask:

1. “Can you tell me about a time when you faced a significant challenge at work (or in life) and how you handled it?”

2. “Describe a situation where you had to take a risk or stand by a decision that others opposed. What was the outcome?”

3. “Give an example of a time when you received criticism or failed at something. How did you react, and what did you learn?”

4. “Tell me about a time when you had to work with limited resources or under tight constraints. How did you overcome those difficulties?”

5. “Have you ever had to persevere through a situation that took longer than you expected? What kept you going?”

6. “How do you approach decisions when you don’t have all the information?”

7. “What motivates you to keep going when things get tough?”

Key Elements of Intestinal Fortitude

Mental Resilience

The ability to recover quickly from setbacks.

Staying composed and focused under pressure.

Emotional Control

Managing fears, doubts, and stress effectively.

Keeping a positive outlook in tough circumstances.

Physical Stamina

Sustaining effort and energy during challenging tasks.

Recognizing the connection between physical health and mental strength.

Commitment to Purpose

Staying true to goals despite roadblocks.

Finding motivation in personal values or a larger mission.

Why It Matters

If you have people on your team who have Intestinal fortitude, it equips you and your team to handle life’s uncertainties with grace and grit.

Grit. I like that. Grit is Intestinal Fortitude. That’s all I’m gonna say, Tommy Gibbs

Pay plans are a very touchy subject. I’m always being asked about pay plans. It’s often been said you’d be better off not to discuss religion, politics and let me add one more, pay plans.

I’m feeling kind of froggy today so I’m jumping in.

There are as many different pay plans as there are dealerships. It’s fair to say that how sales people’s pay plans are constructed often depends on the dealer’s philosophy of doing business and of course the influence of his/her key managers.

Those philosophies were developed early on, based on the experience and success of the decision makers in their personal and business growth.

We tend to think that everyone thinks like we do, and so if the way we were paid when we started made us successful, then it will work for others along the way. Or we think it’s worked so well for the dealership over the years, why change?

Just because you’ve always done it “that way” and it got you to where you are today, doesn’t mean doing it “that way” will get you to where you need to go.

See how much of this rings true:

1. You’re paying a lot of flats.

2. You’re pricing your used cars (even new) online with killer prices designed to drive traffic to the front door.

3. You’re working harder and harder to hold the line on your pricing when the customer shows up.

4. Because of #2 and #3, your sales staff have very little control over gross profit. Certainly not like they did in the good old days.

5. You’re not a one-price dealer yet, but you’re moving more in that direction.

6. It’s becoming more and more difficult to hire people, especially millennials, willing to be paid on gross profit.

In today’s market, it doesn’t make much sense to continue to pay on gross profit. What does make sense is to move more to a volume-based pay plan.

Some of your concerns:

1. You’re afraid to change pay plans because you’ll lose some of your key people.

2. You’re afraid your sales person’s compensation percentages will get out of line.

3. You’re afraid gross profit will go further south.

Let me clear those concerns up for you:

1. Some of those key people will actually like the change. But, if you have some people that you’re concerned about, then tell them that if they sell the same number of units over the next 12 months as they did the previous 12 months and if they don’t make the same or more money that you will pay up.

2. If you do your homework, analyze your history, analyze your grosses, trends and really think it through, you won’t screw it up and get out of line.

3. Gross profit could very well get better. Yes, your management team will have to work harder and harder to hold the line on pricing. If we spent a little more time on selling the sales staff that we’ve got the price right, gross might just go up.

When you dissect all of this, it is not so much about changing pay plans that’s all that hard. It’s about changing the mindset and culture of your organization.

That’s all I’m gonna say, Tommy Gibbs

Woody Hayes, the great Ohio State University Football coach once said: “Paralyze resistance with persistence.”

Change, continuous improvement, and daily disciplines are often met with resistance. Resistance is not a generational thing, it’s just a thing. It’s a thing that’s always been present. It’s been around since the caveman.

There are always strange forces of nature at work. Resistance is the force of nature against persistence. We’ve all seen very talented people fall flat on their faces because of a lack of persistence.

Talented people will often resist having to be accountable. They like doing their own thing. The lack of discipline is a close cousin of resistance.

Persistence can be a two-edged sword. We’ve all known salespeople who drove us nuts. They bugged you to death. They worked you till your nerves were on edge. But the bottom line is they were persistent. Persistence wins over time and persistence will sell lots of cars.

If you allow the average salesperson to analyze their own results, they will easily justify why they are doing so well or not. If a salesperson has a high closing ratio, then they would tend to think they are doing a great job. If a salesperson has a low closing ratio they will blame it on getting bad ups.

You as a leader must be persistent in how you frame a salesperson’s production and direction for improvement. If they have a high closing ratio then you should be encouraging them to talk to more customers. If they have a low closing ratio then you need to show them the way to better closing techniques. You must have the discipline not to let them sell you why this or why that.

There is always room for improvement, and you should never be satisfied…and you should never let them be satisfied. Becoming satisfied leads to complacency. To keep the “boogie man of complacency” away, you as a leader must be persistent in all things that have been deemed to be important to the success of the organization. It is so easy to lose persistence.

Being persistent is not something you do occasionally.

It is something that must be done every minute of every day.

Discipline is the twin brother of persistence. Discipline is what carries you through the down moments; those moments when you want to throw your hands in the air and say the heck with it.

I like to think of persistence as always staying after it regardless of your current state of mind. Being highly motivated can come and go. Even when you are not feeling all that motivated you can remain persistent.

Being persistent means have intestinal fortitude and a willingness to grind it out regardless of the obstacles that keep coming your way. Think of obstacles as just bugs on a windshield. Persistence is the windshield wiper.

Wipe ’em off and keep digging.

Being persistent means never giving up. Never, ever give up.

That’s all I’m gonna say, Tommy Gibbs