“The two hardest things to handle in life are failure and success.” Anonymous

Have you ever noticed that when some people get behind the wheel of a car, truck, or SUV that they lose their minds? It’s not unusual to see someone driving really nutty, doing something really stupid and you pull up beside them and they look like normal people.

They don’t have two heads, fangs, or horns sticking out of their heads. 

What is it with people when they get behind the wheel of a car? They sorta lose their minds. Good people, nice people seem to go a bit postal. 

As I’ve mentioned in the past at one time I drove race cars. I always found it interesting that some of the nicest guys outside of a race car were nuts once they got in the car.

It was as if their helmets squeezed their brains until stupid flowed out. I’m not excluding myself from that equation, as I was no different from the rest when I strapped mine on. I believe it’s the power of the engine that makes them go off the deep end.

I see the same thing in business every day. Someone gets promoted and whamo, they get the “king of the hill” mentality. “I’m ‘da king, you ‘da peasants, and you will do as I say.” That type of mentality will soon be their downfall.
They have been anointed this position of power, but don’t have a clue on how to lead. Should we blame them or the person who promoted them?

One of my father’s favorite sayings is, “Be nice to people on the way to the top because you never know who you will meet on your way down.”.That’s all I’m gonna say, Tommy Gibbs.

As a new car dealer for over 20 years I found packs to be a useful and profitable tool to increase profits and flexibility.

My favorite as a dealer was to use the pack money to step up on trades when we needed to make a deal. We all think differently when it comes to how to make the best use of them.

I tell dealers all the time “if they are still working, stay with them.” I just question if they are working as well as some dealers think they are.

I believe that in the big picture they have outlived their usefulness. If you review the history of packs, they came about in part because managers worked from cost up. Dealers figured out that if the manager’s target for front gross was $1000, that they would hit that number if they had packs or not.

Over time packs have become their own profit center.

These theories and concepts have worked well for a long period of time. The Internet has dramatically changed the game. More and more dealers are pricing to market vs pricing based on what they have in the car.

Dealers are not working from cost up like they did in the good old days.

Salespeople have very little control over grosses, as the price has been set before the customer even shows up.

As more and more dealers move away from paying salespeople on gross it makes very little sense to add packs to your vehicles.

As my good friend Dale Pollak likes to point out, packs are nothing but a tax on your vehicle. You are taxing yourself and making it that much more difficult to be competitive.

As more and more of the likes of CarMax, Varoom, Echo Park, Texas Direct, Carvana, Penske, Auto Nation USA are cranking up the pressure to source cars and trucks, the less relevant packs (taxes) will become.

When you’re being charged full retail in service and you also have packs, you are adding additional cost to your inventory that others don’t have.

When you pack your vehicles, you’re shooting yourself in the foot.

Every time you go to appraise a unit, buy from the public or go to the auction, those additional charges are running around in your head and are making it that much harder to acquire inventory.

If you’re going to sell more used cars you have to be able to get more used cars. To get more used cars you have to have an acquisition advantage. Packs create a disadvantage in today’s market.

If packs are still working for you, then keep using them.

But, you should keep asking yourself if they are really working as well as you think and if they are putting you at a disadvantage in the marketplace.

I don’t hate packs, but I do hate it when we lie to ourselves.

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

Back when Jimbo Fisher, was the head football coach at FSU and had some success, he was asked how he kept his team focused on the next game. He said it’s about managing the clutter that goes on around him and the team.

Clutter for him means the media and the distractions that keep things stirred up as they go about the task of getting ready for their next opponent. Managing clutter is one of your biggest challenges as you go through your day.

There are things coming at you from left and right. 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. 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.”Start swatting. That’s all I’m gonna say. Tommy Gibbs.

“The two hardest things to handle in life are failure and success.” Anonymous 

Have you ever noticed that when some people get behind the wheel of a car, truck or SUV that they lose their minds? It’s not unusual to see someone driving really nutty, doing something really stupid and you pull up beside them and they look like normal people. They don’t have two heads, fangs, or horns sticking out of their heads.  

What is it with people when they get behind the wheel of a car? They sorta lose their minds. Good people, nice people seem to go a bit postal.  As I’ve mentioned in the past at one time I drove race cars. I always found it interesting that some of the nicest guys outside of a race car were nuts once they got in the car.

It was as if their helmets squeezed their brains until stupid flowed out. I’m not excluding myself from that equation, as I was no different than the rest when I strapped mine on.  I believe it’s the power of the engine that makes them go off the deep end.

I see the same thing in business every day. Someone gets promoted and whamo, they get the “king of the hill” mentality. “I’m ‘da king, you ‘da peasants, and you will do as I say.” That type of mentality will soon be their downfall.

One of my father’s favorite sayings is, “Be nice to people on the way to the top because you never know who you will meet on your way down.”

That’s all I’m gonna say, Tommy Gibbs

There are a lot of common problems when it comes to the used car operations for new car dealers.

But of all the problems and challenges that dealers face, the number one problem is that dealers trade or buy a unit and have a lack of “intent.”

Most would say, “Of course I have intent. I intend to sell this unit and make some money.” That makes total sense, but the problem is, it’s far too general.

That’s like saying you’re going to drive from NY to LA without a plan on how you intend to get there.

How many of you have ever heard the saying, “Every used car has to stand on its own?” If you’ve been around long enough you understand the term and can probably agree with the statement.

That being true, how can you give them all the same shelf life?

How can you not have a specific intent for each unit?

Most managers don’t think, “What’s my intent,” when a unit comes into their inventory. They paint them all with the same broad brush, which doesn’t make a lot of sense.Intent starts with the appraisal and is finalized during the trade walk, where the “final intent” is determined.

If dealership managers would look at each unit and clearly state their intent, they would have fewer inventory problems, turn would improve, and average gross, volume and ROI would go up.

I’m not going to go into the details here in this newsletter, but my life cycle management process gives you the disciplines to determine and carry out your “intent.”

My intent with this article is not to try to sell you something. My intent is to get you to think harder about what your own intent happens to be when you bring units into your inventory.That’s all I’m gonna say, Tommy Gibbs.

In sports, you often hear about how powerful momentum and intensity can be. The last two minutes of a football game will frequently determine the outcome.

You will often see players and coaches ’ greatness shine through in the most helter-skelter moments.

There’s a good chance the last two minutes of the Super Bowl this weekend will determine the outcome.
In the automobile business, the last day of the month is like the two-minute drill of a football game.

I have some “what ifs” for you:

What if you approached the 15th of the month as if it were the last day of the month?
What if you approached every Friday and Saturday as if they were the last two days of the month?
What if you approached every Wednesday and Thursday as if they were the last two days of the month?
What if you approached every Monday and Tuesday as if they were the last two days of the month?
What if you approached every day as if it were the last day of the month?
What day is it? It’s the last day of the month. It’s always the last day of the month.

The clock is ticking. You’re running out of time-outs. Pick it up. Let’s go. That’s all I’m gonna say, Tommy Gibbs.

Everyone has problem cars from time to time. You know the ones I’m talking about.

The ones that want to stick around forever.

The ones you haven’t yet found a buyer for.

The ones you overpaid for and now scratching your head over.

But where did they come from? How did they all of a sudden end up on your lot? Did they just fall out of the sky?

Can you imagine how much better off you would be if you could identify problem cars on day 1 vs. day 61?

Suppose you had a strategy in place to deal with them sooner rather than later?

The number one problem I see in the industry is we just don’t pay attention.
We don’t pay attention soon enough.

By the time we realize we have a problem, it’s too late.

Take the time to do a “trade-walk” which includes all purchase units, and be blatantly honest about what you’re staring at.

Then put a strategic plan in place to deal with the more problematic units.

If you did nothing more than that, you’d have a lot fewer units falling from the sky, hitting you in the head and giving you a headache.

And, you would have a lot better bottom line. That’s all I’m gonna say, Tommy Gibbs.

Joe Maddon who has managed the Tampa Bay Rays, Chicago Cubs and now with the Las Angeles Angels is a bit of a strange duck.

Some would call him eccentric and for sure an out-of-the-box thinker. He does a lot of weird and interesting things with the way he manages the team, but he’s a winner and gets the job done.

One of his themes is “Do Simple Better.” When you break our business down, more often than not what makes or breaks a dealership is the ability to “Do Simple Better.”

Here are 5 simple things that maybe you can do better.

1. Early Intervention-you can’t manage activity by staring at your computer screen. Get up move around. Look for trouble. Trouble meaning a deal is getting screwed up before it even has a chance. You can do better.

2. Improve Your Selling Processes-odds are the evaporation factor is chasing you like a base runner caught in a rundown. Pay attention. Get on it. Stop the evaporation. You can do better.

3. Don’t Short Cut Your Appraisals-Take your time. Look for a way to make it happen. Do it right. Get it right. You can do better.

4. Speed It Up-It takes too much time to get your used vehicles through service. Find the bottleneck. Fix the bottleneck. You can do better.

5. Listen More-Take someone to lunch. Someone you would never take. Listen to them. Amazing the things you might learn. You can do better.

Make your own list.

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

Maybe it does or maybe it doesn’t, but if you’re like a lot of dealerships you don’t even have a bench.

Don’t believe me? Answer this question. If you lost a key manager today, who do you have that’s ready to step in and get the job done? There you go…I didn’t think so.

Time and time again a dealer group will seek to expand, or they lose a key manager and here we go again with, “Who do you know that would like to make a change?”

What should you do to improve your bench strength?

First, identify a couple of people that have high energy levels, are good communicators and exhibit some fundamental leadership skills. Some things you can teach. Some things you can’t.

Second, create a well-defined management development program. No, not in your head, write it down. It doesn’t have to be complicated, but it has to be a commitment.

If you’re going to put them in a place to succeed when their number is called, you’re going to have to invest some time and money. If you’re the GM or Dealer, then you need to invest some of your time mentoring these newfound rock stars. The more you commit to them, the greater the odds of success.

If you’re a salesperson by chance reading this, you too, need to be willing to invest in yourself. Stop sitting around crying and complaining and start investing.

Part of a management development training program should be to include these management candidates in your manager’s meetings, strategy sessions, and the monthly recap of “the numbers.”

Whenever I’ve done in dealership management training for dealers, I’ve always encouraged them that if they have someone on the sales team that they think might be a manager candidate to include them in the training. In 20 years, I can only think of a handful of times that a dealer invited a salesperson to attend the training.

Anything worth doing is worth doing right now. The best time to start growing your bench is right now.

You can’t grow if you don’t grow your team.

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

Would you like to improve your overall business model?

Want to improve customer satisfaction?

Want to reduce ongoing daily issues?

Want to improve your work environment?

One of the guiding principles of the Ritz Carlton hotel chain is, “If you get a complaint, you own the complaint.” That’s what you need to instill in every member of your team. “If you get a complaint, you own the complaint,” should become one of your core principles of leadership.

That doesn’t necessarily mean that you might not have to hand it off. But, if you hand a complaint off then it’s your responsibility to follow up and make sure it’s been handled.

We often overthink things in business. Keeping things simple is always the best method. If you develop a culture of wild and crazy team members who own the complaints, life is going to be so much easier, a lot more fun, and a much larger bottom line.

You’ll have happier customers and spend a lot less time in court. That’s all I’m gonna say. Tommy Gibbs.