Even if you don’t have your final statement, you should have a pretty good idea of what the final the numbers are going to look like.

So, rock star, how do they look? I’m thinking you’ve had one of three reactions to your numbers:

1. They look great. Could have even been better, but a little pat on the back is in order.

2. They are ok. Kind of pleased, but you know you could have done a lot better.

3. Not happy at all. What a wasted year. You are super disappointed and know you have to do better.

While you have that statement out, take a look and see if you have any used units over 60 days old. Even one is too many.

That being said, the odds are pretty good that you’ve not made as much money as you think you have, and if by some chance you lost money for the year, you’ve lost a lot more than you thought you did.

I hope the reasons are obvious, but if they aren’t, let me enlighten you a bit.

If you had to liquidate your used car inventory today, your bottom line would take a real hit. The fake news is you think you’ve made money. The real news is you haven’t made any, or at least not as much as you thought.

If you’re the owner or GM, keep in mind someone’s paycheck has been impacted in a positive way from that stuff that’s been sitting. The company’s paycheck, not so much.

A simple New Year’s resolution for you is to fix it. Fixing it doesn’t mean dumping stuff at 60 days old. Fixing it is understanding there’s a retail buyer out there at some number. Retailing early at some price is far better than dumping or retailing late.

I’ve been doing this a long time and for the life of me, I don’t understand the mindset of keeping aged inventory. I’m sure you have a great excuse for doing so.

Keep in mind, there’s not a unit in your aged inventory that you couldn’t have already retailed at some number. Think retail, retail, retail.

The choices you have are to keep on doing what you’re doing or do something that will dramatically improve what you’re looking at this time next year. Enjoy your numbers.

And never forget, having aged used cars is just stupid. That’s all I’m gonna say, Tommy Gibbs

I’m betting you’ve either got a lot of numbers already laid out on a spreadsheet for 2024 or you’re scrambling to get it done in the next few days.

I’m a big proponent of forecasting. It lays out a map as to where we are going. Although there are detours along the way it gives us a chance to get to our final destination.

I’m an even bigger proponent of department head meetings. I believe your job as a leader should be to teach, educate, coach and encourage your team to seek ways to improve your operations.

I tend to take a common-sense approach to most things in life and I approach forecasting and monthly management meetings no differently.

Dealers, or any business for that matter, tend to forecast based on what they would like to do in the upcoming year.

Often it’s based on statements such as “we need to increase our sales by 10%” and/or “we need to reduce expenses by 15%.”

Saying you want to increase your business by 10% sounds good, but if you don’t have a plan to get there what good is it?

I’ve always been baffled by annual forecasting.

One of two things usually happens:

1. Someone is overly optimistic and/or they are blowing smoke up someone’s butt.

2. Someone serves up a low ball because they don’t want the pressure of hitting an unrealistic number.

Although dealers want to see an improvement in the next year’s numbers, what they really want is a number they can take to the bank.

In order to do a realistic forecast, you have to take into account staffing, inventory, and market conditions. How can anyone do a forecast and predict what those three pieces of the equation are going to look like 3, 6 or 12 months down the road?

I’m not saying you shouldn’t do an annual forecast, but doesn’t it make more sense to adjust that forecast monthly or quarterly based on those three fundamental elements?

Because most leaders don’t make those adjustments it frustrates the management team and defeats whatever good intentions there might have been. Everyone eventually loses respect and confidence in any type of forecasting and concludes “Why bother?”

While it makes good sense to do a monthly or quarterly review of the actual numbers, managers become disillusioned with these reviews in that they become a “beat up” session rather than trying to figure out what went wrong and how “we” can fix it.

People know when they didn’t perform. What they want from upper management is leadership that gives well-defined ideas and direction on how to “fix it” or make it better.

Using more common sense with your forecasting and monthly management meetings will help you grow a solid organization that generates consistent profits and sustained growth.



That’s all I’m gonna say, Tommy Gibbs

“You’re never as smart as you think you are, and you are never as dumb as you appear.” Some of you are feeling smart right now. You’ve had a few good years and there’s been a little chest-pounding going on.

It could be that you are smart, or it could be that you got lucky because of a once-in-a-lifetime market shift in your favor.

And of course, there are times when you feel dumb. Maybe you are or maybe you aren’t. You might be a victim of a bad set of circumstances. Some of you have had bad franchises in bad locations or it could be that you’re a newer used car manager that inherited a hot mess for a used car inventory.

Or it could be you’re just dumb.

In any given set of circumstances, it’s important to maximize whatever you have. If you have half a brain you must ask yourself, “Did you maximize your potential the last few years?”

Sure, you had record profits, but how much did you leave on the table?

Did you do a lot of things right or did you just get lucky?

With grosses starting to slide, a lot of dealers are starting to question themselves as to where the market is going and what approach they should take moving forward.

The most important thing right now is recognizing where you are, how you got there, and how to keep the train on the tracks.

This business continues to be:

All about the basics.

All about the fundamentals.

All about your disciplines.

All about the processes.

All about understanding the data.

All about common sense.

All about your focus.

“You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose.”

That’s all that Dr. Seuss and I are gonna say, Tommy Gibbs

“You’re never as smart as you think you are, and you are never as dumb as you appear.” Some of you are feeling smart right now. You’ve had a few good years and there’s been a little chest-pounding going on.

It could be that you are smart, or it could be that you got lucky because of a once-in-a-lifetime market shift in your favor.

And of course, there are times when you feel dumb. Maybe you are or maybe you aren’t. You might be a victim of a bad set of circumstances. Some of you have had bad franchises in bad locations or it could be that you’re a newer used car manager that inherited a hot mess for a used car inventory.

Or it could be you’re just dumb.

In any given set of circumstances, it’s important to maximize whatever you have. If you have half a brain you must ask yourself, “did you maximize your potential the last few years?”

Sure, you had record profits, but how much did you leave on the table?

Did you do a lot of things right or did you just get lucky?

With grosses starting to slide a lot of dealers are starting to question themselves as to where the market is going and what approach they should take moving forward.

The most important thing right now is recognizing where you are, how you got there, and how to keep the train on the tracks.

This business continues to be:

All about the basics.
All about the fundamentals.
All about your disciplines.
All about the processes.
All about understanding the data.
All about common sense.
All about your focus.

“You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose.”

That’s all that Dr. Seuss and I are gonna say, Tommy Gibbs

The recent suspension of the University of Michigan’s head football coach, Jim Harbaugh, stirred conversations about the impact of losing a key leader.

His offensive coordinator, Sherrone Moore,, stepped up and secured three consecutive victories in his absence.

This prompts me to ask a crucial question – what if you were to lose your head coach even if for just one day?

In the automotive business, your head coach could be likened to your Desk Manager, Sales Manager, GSM, GM, or owner-operator.

The importance of leadership, preparation, and team development cannot be overstated when it comes to maximizing your business on a daily basis.

The success of the University of Michigan’s football team in the absence of their head coach highlights the significance of preparation and team cohesion.

Much like a well-coached football team, a successful dealership should be capable of sustaining momentum even when a key manager is absent.

Michigan’s victories were not a stroke of luck but a testament to the meticulous preparation by the head coach. The coaching staff and players were ready to adapt, showcasing the depth of leadership and the resilience of a well-prepared team.

In the automotive business, when a key manager is out of the store, you will often see sales fall off.

Is there a culture of continuous development and coaching within the organization? Too often, the lack of success in a manager’s absence can be traced back to inadequate leadership rather than the competency of the stand-in.

Their role extends beyond day-to-day operations; they are the architects of a winning team. Effective leaders cultivate a culture of learning, adaptability, and accountability. When a key leader is absent, the dealership should seamlessly transition, drawing strength from the foundation laid by the head coach.

To ensure success in the absence of a key manager, a winning culture must be ingrained in the dealership’s DNA.

If there’s a breakdown in your store when a key player is out, you must ask yourself, is it that your “head coach” is concerned about job security and doesn’t want the assistants to learn but so much, or do you have the wrong assistants on your team?

Keep an eye on your head coach. That’s all I’m gonna say, Tommy

It’s Thanksgiving and time to give thanks.

If you’re like me for sure you have a lot to be thankful for. Among many things I’m thankful for are your friendship and support.

Thanksgiving also starts the closeout of the year. It centers around Black Friday and rolls through the last week of the year. Like it or not, 2024 is already here.

I’ve listed some very basic ideas you need to take into consideration that will help you finish strong and get ready for your best year ever:

A. Re-commit yourself- and your thinking towards being the very best you can be. Take stock of all those great ideas running around in your head.

Write them down and make a commitment to get them done by certain dates. Post it on the wall in several places that you will see frequently. If you have a private restroom, put it on the mirror.

The dealers and GMs with the most successful used car operations are those who have taken ownership of the used car department.

The more involved you get, the more success your dealership will have. If you’re not committed to the used car business, it’s a safe bet your team isn’t either.

B. Re-evaluate the appearance of your inventory. One of those disciplines might be to do a weekly lot walk. Every car in your inventory must be touched. If it’s in service, touch it. If it’s in prep, touch it. If it’s in the budget center, touch it.

Everybody touches it. Even if you think you have your disciplines well defined inside your head, you’d be well served to make a written list and check them off from time to time.

D. Re-Recon-Take every unit over 30 days old back through a recon process. (You’ve already missed your best window of opportunity to make gross; that would be the first 20 days.)

E. Re-Invest in yourself and your management team. Do something to gain some knowledge. Hire me, visit CarMax, or visit a dealer friend in another state that does a good job in used. Attend a workshop. Join a Twenty Group. Join a Used Car Twenty Group. Do something besides sitting there and waiting for something to happen.

F. Re-think- your management team. Do you have the right person running your used car operation?

Yes, that person may have been with you for years. Loyalty sometimes equals mediocrity. Maybe they have some great skills, but the fact is that you may not be making the best use of their talents. Get them in the right seat on the bus or help them find a different bus.

I’m thankful for lots of things this holiday season and I’m especially thankful that you’ve taken the time to read my little Zingers.

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

Resistance is everywhere. It’s all those people yelling at you that it can’t be done. It’s you thinking, “I could never.”

It’s those around you throwing out the caution flag saying, “Are you sure, do you really think you can do that?”

It’s those friends, relatives and co-workers saying, “Hey, don’t leave us here, we like you being a part of our woes, please don’t run off and leave us.”

You have faith in yourself. You know you can do it. But, resistance keeps yelling at you from the far left hand lower corner of your brain, “Have you lost your damn mind? You can’t take such a chance.”

Momentarily you overcome the yelling, but then the yelling starts again, even louder, “You’re too old, you’re too young, you don’t have the experience, you don’t have the education, you haven’t been there and done that yet.”

Resistance is fear. It’s you being scared. It’s you being afraid to take a chance.

Resistance is as natural as the sun coming up each day.

Resistance is you being afraid to swing from your heels and go for the fences.

If you’re going to ever have your break out moment.

If you’re going to make it happen.

If you’re going to climb the mountain.

If you’re going to control your destiny.

If you’re gonna kick ass and take names.

All these ifs…

At some point you need to tell resistance where to go and get on with it. You’re smarter than resistance. I believe in you. A lot of people believe in you. You believe in you. Let’s go.


That’s all I’m gonna say, Tommy Gibbs

Joe Maddon, renowned for his achievements, clinched a World Series Title with the Chicago Cubs and secured the American League pennant with the Tampa Bay Rays. Although he briefly managed the Los Angeles Angels before parting ways in 2022, his tenure there was marked by limited success.

Maddon’s quirky personality, though not my personal favorite, is undeniably matched by his remarkable success in the field of baseball. In a recent article published in the Tampa Bay Times, he shared his perspective on why he hasn’t received any job offers since his departure. ARTICLE

Part of the reason, he believes, can be attributed to a book he authored titled, “The Book of Joe: Trying Not to Suck at Baseball & Life.”

This book provides insights into how general managers have increasingly relied on analytics, relegating on-field managers to a secondary role.

Maddon’s book includes a thought-provoking passage: “When I first embarked on this journey in the early 2000s, baseball people held the reins, while the analytical minds observed from the periphery. Now, it’s the analytical minds steering the ship, with baseball people peering from outside. There was a time when analytics were the exception, but today, they define the essence of baseball, while traditional methods stand as the outliers. The roles have been entirely reversed.”

One of my workshop titles is “When Common Sense Meets Technology.” I’m a staunch advocate for technology, having created a life cycle and recon tool called “Up Your Gross.” Nonetheless, I often ponder whether we’ve delved so deep into technology that we’ve neglected the importance of common sense.

One immutable truth remains: every used car is unique. Regardless of the technology at our disposal, only our senses can discern the subtle nuances of a vehicle. Your automotive acumen, your expertise, and your street smarts are the ultimate determinants of success in your used car department.

You can engage with a multitude of buttons, but if you overlook the “brain-in-gear” button, you’ll never reach your full potential. Common sense should remain at the forefront, even in the age of technology.

Far too many people “overthink” things these days. And they often “over data” things as well.

Dr. Suess said it well, “You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose.”

Let common sense meet technology. That’s all I’m gonna say, Tommy Gibbs

Perception

Being a leader is often a challenge because of the workplace environment we find ourselves in.

Being a leader is like being a parent. For example, if one parent stays at home, it can be more difficult to discipline the children due to being around them all the time.

Most of my readers are in the automobile business and are often around the same people for 12 plus hours a day. Most dealerships have systems and processes in place designed to create focus and discipline. Even under the best of circumstances processes are constantly breaking down which contributes to poor performance and a poor bottom line.

The reality is that it’s much easier to run a large dealership than a small one. As a leader in a large dealership, you can delegate much more and separate yourself from some of the personalities that can cause the breakdown of discipline.

Do not take that to mean that you don’t need to be involved, friendly or whatever. It just means you have to separate yourself from the emotional side of the equation. If you are in a smaller dealership the task of separating yourself from the staff is even more daunting.

I’m often amazed that leaders feel that they can socialize with staff members and still be able to properly manage and lead them. How can you:

1. Have lunch with the same people all the time?
2. Have dinner with spouses and members of your team on a regular basis?
3. Have after work drinks with staff members?
4. Party with staff members?
5. Attend sporting events with staff members?
6. Play golf on weekends with staff members?

Any of these in and of themselves is not a bad thing. But, to do any of this with the same person on a consistent basis does nothing but create problems for you and them. Aside from the fact it makes it difficult for you to manage them (let alone fire them) it creates a perception of favoritism that will destroy morale and team spirit.

Never forget, perception is reality. If you perceive that I’m a jerk, then I’m a jerk. The only way for that to change is for me to work toward changing your perception of me. The burden is on me, not you.

That’s all I’m gonna say, Tommy Gibbs