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?

A lot of dealers had a record-breaking month in March. Some of them have already spent too much time gawking at their financial statements, poking their chest out and patting themselves on the back.

Let me caution you; you cannot be satisfied. You can never be satisfied. Those sounds you hear 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 most 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. The market may cause April to be a win.

The best time to get better is when you’re winning. Don’t waste your wins.

That’s all I’m gonna say, Tommy Gibbs

There’s no denying that the stronger you are in used cars the better you are in New, Service, and Parts. It’s a given. It’s a fact. It is. It just is. You can deny it all you want. You will be wrong

There’s an old saying, “Do the things you don’t want to do, so you can do the things you want to do.” That’s a great life lesson to understand, live and grow by. Never has there been a more powerful truism than for the automobile business.

There’s no department that requires more specific strategic disciplines to be successful than your used car department.

The most common discipline that dealers struggle with is turning their inventory in 60 days. Let me state it a different way; no unit can become 60 days old. Some of the more disciplined operations are starting to put that number at 45 days old.

Most dealers would say they want to make more money. To make more money, you must do some things you don’t want to do. One of those things is the pain of discipline. Doing a lot of little things each day to ensure you can do what you want to do.

If you’re not already on a 60-day turn it’s going to be painful and costly to get there. Either you or your staff will have all kinds of excuses as to why you can’t do it. It’s going to cost you some money to get it done. (Do the things you don’t want to do.)

When you finally get it done, your dealership runs smoothly, you make more money, life is simpler, and you smile a lot. Now you’re doing the things you want to do, as in making more money.

If you’re the dealer or GM, and you have aged inventory do not blame your management team. You’re the one to blame because you have allowed it to happen.

“The pain of discipline or the pain of regret.” If you would use my lifecycle management process you’d have a lot less pain. That’s all I’m gonna say, Tommy Gibbs

Have You Done Your Part?

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

It’s not unusual for dealers to have used cars backed up in their reconditioning operation.

Depending on the size of the dealership it could be anywhere from 4-5 units to 25 units. We all know the longer a car sits the more difficult it is to make a profit on it.

Dealers are quick to recognize the problem but as a rule they’re not very quick about coming up with a resolution for it.

There are only THREE CHOICES:

1. Keep doing what you’re doing and let the frustration continue.
2. Pay big bonuses to your techs to work late at night and/or weekends and get caught up. (It’s worth every penny if they are willing to do it.)
3. Send them up the street

#3 goes against everything you’ve been taught by your 20 group and all those who came before you. I don’t need to list the reasons why we want to keep everything in house; you already know what they are.

But sometimes you as the GM or Owner operator must make a big boy or big girl decision and “get it done.”

You make money selling used cars.

You make the most money selling fresh used cars.

You cannot accept letting them sit until your service department gets around to getting them done.

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

One of the more interesting things I’ve discovered over the years is that unless a dealership has a really large body shop or does a big job in wholesale parts, that the difference between the used car inventory and the parts inventory runs about 75%.

In other words, if you have $1,000,000 tied up in used cars you probably have less than $250,000 tied up in parts. Now here’s the most amusing part. Every dealership has a dedicated parts manager. Not every dealership has a dedicated person handling used cars.

It is not unusual for someone to be serving double duty and sort of handling used cars. Sometimes it’s the desk manager. Sometimes it’s the sales manager. Sometimes it’s the general sales manager. Sometimes it’s the general manager.

The conventional skills we once looked for in the person managing our used car inventory have no doubt changed over the years, but what hasn’t changed is that somebody has to “own the department.” Without ownership the department is left to run itself.

Using my example you have a dedicated parts manager managing a $250,000 inventory that actually goes up in value each day.

On the used car side you have $1,000,000 tied up going down in value each day without a dedicated manager.

You might be sitting there saying, “Hey, wait a minute that’s not our dealership.”

Sometimes even when you have a dedicated manager, they aren’t dedicated.

Either way this might be you. That’s all I’m gonna say, Tommy Gibbs

Accountability: “The quality or state of being accountable; an obligation or willingness to accept responsibility or to account for one’s actions.”

Accountability starts with you, vibrates to those around you and ends up back in your lap.

If you believe a leader sets the culture of an organization then you must believe you cannot create an organization of accountability if you’re lacking in your daily disciplines.

If you’re not willing to hold yourself accountable then for sure you can’t hold others accountable.

Why should those around you do what has been deemed important, if you as their leader aren’t willing to do the same? There are a million ways to describe this, but since I’m a common sense guy, how about “monkey see, monkey do?”

A good leader makes sure those around them know what’s important. And a good leader makes things important by checking to make sure those around them are doing what’s important.

Building an organization of accountability isn’t a one-time thing. It’s an everyday thing led by you.

Accountability plays no favorites. If you let one person off the hook, eventually the entire organization falls off the hook.

Besides your personal accountability, there are three parts to holding people accountable.

1. Your personal street savvy. For many, this is based on time and experience and there are a few that are born with it.

2. Getting your head out of the sand. Get out of your office. Pay attention by using your peripheral vision and hearing.

3. Data. Look at the data and look at it some more. Data can be overwhelming. Figure out what’s important and what’s not by applying common sense to everything you’re looking at.

Sometimes data is misleading. Sometimes it smacks you upside your head.

Are you building an organization of accountability?

That’s all I’m gonna ask, Tommy Gibbs

There’s no denying that the stronger you are in used cars the better you are in New, Service, and Parts. It’s a given. It’s a fact. It is. It just is. You can deny it all you want. You will be wrong

There’s an old saying, “Do the things you don’t want to do, so you can do the things you want to do.” That’s a great life lesson to understand, live and grow by. Never has there been a more powerful truism than for the automobile business.

There’s no department that requires more specific strategic disciplines to be successful than your used car department.

The most common discipline that dealers struggle with is turning their inventory in 60 days. Let me state it a different way; no unit can become 60 days old. Some of the more disciplined operations are starting to put that number at 45 days old.

Most dealers would say they want to make more money. To make more money, you must do some things you don’t want to do. One of those things is the pain of discipline. Doing a lot of little things each day to ensure you can do what you want to do.

If you’re not already on a 60-day turn it’s going to be painful and costly to get there. Either you or your staff will have all kinds of excuses as to why you can’t do it. It’s going to cost you some money to get it done. (Do the things you don’t want to do.)

When you finally get it done, your dealership runs smoothly, you make more money, life is simpler, and you smile a lot. Now you’re doing the things you want to do, as in making more money.

If you’re the dealer or GM, and you have aged inventory do not blame your management team. You’re the one to blame because you have allowed it to happen.

“The pain of discipline or the pain of regret.” If you would use my lifecycle management process you’d have a lot less pain. That’s all I’m gonna say, Tommy Gibbs

You have a 75-day-old car, and you justify keeping it by saying, “I don’t want to dump this unit because I can’t replace it.”

What?

What did you just say?

Are you serious?

You don’t want to get rid of it because you can’t replace it?

What part of your brain are you not using?

I heard what you said, but here’s what you really said: “I want some more cars just like that one that are going to sit around for 75 days.” Are you stupid?

If you’ve had it for 75 days, there’s obviously a reason why you still have it.

For grins and giggles let’s suppose a miracle happens and you sell that 75-day old car today and you make $500. (ROI sucks but work with me here.)

Here’s my question for you; if you can sell it at day 75 and make $500, couldn’t you have sold it for that same price at day 45 and made $500 on it?

There’s no way of knowing the answer to that, but if you can sell it at day 75 and make $500 the odds are pretty good you could have sold it at day 45 and made that same $500.

The only reason you didn’t sell it at day 45 was because you weren’t willing to price it at a price point that someone wanted to come in and take it off your hands.

.

Don’t make dumb statements. That’s all I’m gonna say.