Two of the biggest mistakes I’ve observed over the years is dealers hire salespeople when they “need” them and they buy used cars when they “need” them.

Huh?

If you wait until you “need” salespeople, you are likely to hire in a rush and hire the wrong salespeople. Advertising for “salespeople” isn’t generally going to bring the best candidates to the table.

In larger dealerships you would be wise to have a regularly scheduled new hire salesperson’s training class on a specific week of each month.

If you are in a position to do so, you should require every manager on the front side of the dealership to personal recruit someone for that class. If it floats your boat, pay the manager a decent bonus if the recruit survives the first 90 days. You could even tie volume or gross to each salesperson as a qualifier for the manager to be paid the bonus.

Even if you’re a smaller store, your source of salespeople should come from personally recruiting by all your staff members.

This may sound a little harsh, but there’s always 10% of your people that need “to go.” Thus, if you care about growing, continuous recruiting, hiring, and training is a necessity not a luxury.

When it comes to used cars the worst time to buy used cars is when you “need” them. If you wake up one day and you need two truckloads of used cars and if you go to the auction and buy two truckloads of used cars you end up with the “wrong” used cars.

Never forget some of the best days you have at the auctions is when you come back with zero used cars.

Stop buying and hiring when you “need” to. That’s all I’m gonna say, Tommy Gibbs

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

Managing clutter is one of your biggest challenges as you go through your day. There are things coming at you from left and right all of which are designed to knock you off your game.

At times, you feel like you are being attacked by a swarm of bees.
Your ability to swat those bees one by one will often determine your progress and results on any given day. Always remember to swat the biggest bee first.

That thought process aligns with Mark Twain’s “If you have to eat a live frog, do it first thing in the morning and nothing worse will happen to you for the rest of the day.” And eat the biggest frog first.

You cannot let the clutter get you off your progressive track. The more you can do to control clutter the better. Clutter is just a bunch of little stuff that slows you down, moves you off your center, gets you off track, discombobulates you and messes up your entire day. You cannot let clutter control your production and performance.

Clutter is best dealt with by making sure you take a few minutes at the end of the day or first thing in the morning to map out your major tasks for that day. Swatting those little bees one by one and having an attitude of “next” will keep you on task and moving forward.

Staying on task and swatting the “clutter bees” at the same time is what separates the bee killers from the killer bees. Kill the clutter. That’s all I’m gonna say. Tommy Gibbs

When I ask dealers and managers if they under-allow on trades, some will say yes. Some will say occasionally and, some will even say no we don’t do that.

Let me suggest that if you’re going to under-allow, go all in and do it with all your customers, not just those you think are stupid or drunk. That may be a little harsh, but I want you to get the point. Stop picking and choosing.

My under-allowance grid goes like this:

ACV of $30,000 and up $3,000
ACV of $20,000 and up $2,500
ACV of $15,000 and up $2,000
ACV of $10,000 and up $1,500
ACV of $5,000 and up $1,000
ACV of $5,000 and below $500

You may not like my grid and that’s fine. Come up with your own. Then come up with the discipline to serve it up to everyone that has a trade.

If you do so, one of three things will happen:

1. Some will say yes, and you make some extra gross.
2. The customer will quickly adjust their thinking as to the value of their vehicle.
3. If you are a store that still negotiates, then you just put yourself in a much better bargaining position.

There are a few customers you might have to peel off the ceiling. That’s ok. That’s why you’re paid the big bucks.

Utilizing an under-allowance isn’t “old school.”

It’s common sense. That’s all I’m gonna say. Tommy Gibbs

Back in the fall of 2013 I had the honor of being inducted into the Ferrum College Football Hall of Fame. It was the entire team from the 1965 National Championship team. Ferrum is now a four-year school, but at the time we won the Championship it was a Junior College. I wasn’t exactly a model student.

I was a defensive safety on a team that went 10-0, had 7 shutouts and only gave up 18 points the entire year.

I’m not writing this to tell you about my accomplishments, as much as to tell you about a couple of observations.

First, I hadn’t seen my teammates for 47 years. Though most sounded the same, none even came close to looking the same. Many are overweight and dealing with health problems. And, sadly at this point a number of them have passed away.

In a sense it seems just like yesterday we were beating and banging on each other and in a flash we’re all as old as dirt. What happened to all the time? Where did it go? How did this all happen so fast?

The message here, whether it’s business or your personal lives and regardless of where you are in the cycle of life, enjoy it, try to understand that if things are good or bad that where you are today will not last forever. Enjoy where you are.

I had another major take-away from the ceremonies I want to share with you.

One of the other items on the agenda was the presentation of the “Distinguished Alumni Award.”

As the master of ceremonies was going over a former tennis player’s list of accomplishments, he mentioned she had won an annual “sportsmanship award” presented by the NCAA.

When she got up to speak, she told the story behind the award. She stated that her coach had always warned her to make sure she took two tennis rackets with her to every match just in case one broke. The way she put it is, “he had beat it into her head.”

In the middle of a regional NCAA tournament match her opponent broke her racket. And guess what? Her opponent didn’t have a spare. Apparently, there is an amount of time they give you to come up with another racket.

The other player’s coach was not present to help her find one and time was running out. She was going to have to forfeit the match. The young lady who won the award gave her opponent her spare. And guess what? You guessed it didn’t you? Her opponent beat her with her own racket.

The school’s motto is, “Not self, but others.”

When you put others first, you always win. The game of life (and the game of business) is short. Putting others first always makes you and the team winners. That’s all I’m gonna say, Tommy Gibbs

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?

Let me caution you; you cannot be satisfied. You can never be satisfied. Those sounds you hear from 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 a lot of 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.

Betting on easy wins is a bad bet. Betting on the things you can control is a solid bet and will keep you winning when others are “crying” about the market.

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

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 an 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.

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 talk. 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 likable. Ties into being a jerk. If you’re not likable 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 mouths. 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 casually. 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.

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

Frequent Quotes:

1. “We never miss a trade.”
2. “We don’t try to steal trades.”
3. “We put top dollar in every unit we appraise.”
4. “We’re not going to miss a deal at the front door.”

Fundamentally none of these are true. Everyone misses trades.

What’s funny is when you go to the auctions to buy cars you always pay more for them than you would if that car was sitting at your front door.

Stealing trades is one of those things that falls into the “We’ve always done it that way” category.

I believe there are four fundamental causes for trying to steal trades:

1. The fear of the bump. Used Car Managers fear the bump from upper management so they low-ball the trade thinking the bump request is just around the corner. The used car manager is protecting their “territory” by low-balling the trade.

2. Pay plans also tie into stealing the trade. The manager is protecting their own personal pocketbook especially in those cases where the used car manager is only paid on used car gross. Even if they are paid on total gross it still creates “trade stealing.” Gotta make some gross someplace.

3. Aged inventory. We need to steal the trades to make up for the sins we have on the lot right now. As long as you allowed aged inventory to exist you’re going to have people trying to steal trades.

4. The old adage that you “make the money,” when you buy or trade the unit. That’s only partially true. You “make the money” when you sell the unit and you make the most when money when you sell it fast.

Here’s the fix:

1. Put solid disciplines in to eliminate aged inventory. (My Life Cycle Management Process.)

2. Put top dollar on every trade. I said top dollar on every trade. No bumps. Pretend it’s your last bid as if you were at an auction. Step up from jump-street.

3. Change the pay plans. Paying on gross profit becomes more archaic every day. Becoming a one price dealer has worked out pretty well. Didn’t you learn anything from the Pandemic?

4. Stay focused on improving your look to book. Review every vehicle that was appraised from the previous day that you didn’t get. A phone call to a customer from a manager will do wonders for your business.

When you stop stealing trades and customer acquisitions, you improve the quality of your used car inventory.

When you improve the quality of your used car inventory you sell more used cars and make more gross profit.

When you sell more used cars you become more confident that you can put top dollar on trades.

When you put top dollar on trades you sell more new and used cars.

Stop stealing trades. That’s all I’m gonna say. Tommy Gibbs

Touch is a fundamental part of human interaction that plays a vital role in the workplace and beyond.

Whether it’s a handshake, fist bump, high-five, a pat on the back, or a friendly hug, touch can help build connections and foster a sense of trust and collaboration among colleagues.

Touch is a great way to increase energy and enthusiasm.

One of the most common forms of touch in the workplace and social arena is the handshake. This simple gesture can convey a great deal of information about a person, including their level of confidence, trustworthiness, and respect for others.

A firm handshake, for example, can convey a sense of strength and confidence, while a limp one may suggest the opposite. A wimpy and un-enthusiastic handshake can drain a potentially powerful moment.

During the pandemic this sort of human touch went away. I heard some people say they were happy it did. I’m not one of those people.

My father taught me how to shake hands at a young age and I’ve found it to be one of the most powerful human interactions on the planet. Even more so when it includes a hug.

In addition to handshakes, other forms of touch can also be valuable in the workplace. A pat on the back can be a sign of encouragement and support, while a touch on the shoulder can convey empathy and concern. Even a fist bump can be a lighthearted way to show camaraderie and a shared sense of purpose.

The high-five is an exclamation point for whenever you feel the need to put it into play. It once got me out of a traffic ticket. When the officer came to the window I high fived her and all she could do was smile and move on.

The first-ever high-five appears to have happened in 1977, during a baseball game between the Los Angeles Dodgers and the Houston Astros. After a home run, Dodgers outfielder Dusty Baker high-fived his teammate.

Of course, it’s important to remember that not everyone is comfortable with physical touch, and it’s essential to respect people’s boundaries and preferences. However, for those who are open to it, touch can be a powerful tool for building relationships and enhancing teamwork.

It’s also super important that you touch all your used cars on a regular basis. They will love you for it.

In conclusion, touch is an essential aspect of human communication that can play a vital role in the workplace. It can inspire positive thinking and expand trust.

Touch reduces social anxiety and stress. Physical touch increases levels of dopamine and serotonin, two neurotransmitters that help regulate your mood and relieve stress and anxiety. Dopamine is also known to regulate the pleasure center in your brain that can offset feelings of anxiety.

From handshakes to pats on the back, these small gestures can help build trust, foster collaboration, and create a more supportive and productive work environment. Touching your used cars will help them go away faster too.

With some caution, let the touching begin. A big high-five to you. That’s all I’m gonna say, Tommy Gibbs

The idea behind a Jet Fighter Interceptor is to intercept the enemy before anything bad can go wrong.

In the game of football an interception gives your team an advantage by intercepting a pass intended for a touchdown.

In both of these examples an interception occurred as a result of movement. The fighter jet was moving when it caught up with the enemy. The defensive back was moving when he caught up with the pass.

You need to get moving. I want you to use this mindset to sell more cars. If you are a sales manager, F&I Manager, GSM, GM or Owner/Operator you need to become the “interceptor” and you are going to make a huge difference in the number of cars that get sold.

You will intercept a whole bunch of problems before they become problems.

You are going to do it by moving.

Moving your butt out of the chair and toward the front door to introduce yourself to every customer that comes through the door. And you’re going to keep moving around like a big stealth spy bomber. Your radar, your eyes and ears, are going to be wide open like never before. (People want to connect with a “manager.”)

Deals frequently get screwed up early on in the equation and you’re gonna help prevent that. There are a number of things that will happen by following today’s “Operation Interception.”

If a TO is needed you have already set the stage early by having met the customer.

If your radar is working a full 360 degrees, you will sense something is not right with this sales person and this customer from that first handshake and you might intercept the deal right then and there.

Never forget the customer belongs to the dealership, not the sales person. Don’t be afraid to “do it now.”

By moving around the showroom you will get some early TOs before the deal is all screwed up. Early intervention is a wonderful thing.

Simple huh? Fire up your jet engines for lift off, get out of your office and go to work. It’s show time baby! Tommy Gibbs