I’m gritting my teeth as I write this. I really am. Some of you are still struggling with the 60 day concept. I guess talking about 45 days isn’t going to win any friends and influence my enemies, so I’m going to just chat about 60 days.

I’m always concerned when I’m teaching a workshop that those in attendance may think when I’m talking about 60 days that I’m saying that they need to dump cars at 60, take the losses and move on.

I’m gonna scream this so get ready. I’M NOT TALKING ABOUT DUMPING A BUNCH OF CARS AT 60 AND LOSING MONEY. Will you have to dump a few at 60? Yes, but darn few. (Especially if you follow my “Life Cycle Management Process.”)

I’m taking about finding a retail buyer before we even get to 60.

Do you think keeping it past 60 is really going to help your situation? Do you thinking keeping them past 60 days is gonna help your average gross profit? Do you think you’re gonna have a great ROI after 60 days? Do you think you need to keep it because you can’t replace it? What I wanna know is, what are you thinking?

I’ll tell you what I’m thinking. I’m thinking I’m hoping that you will one day change your thinking. That’s all I’m gonna say, Tommy Gibbs

If you have children, I’m thinking it’s a safe bet to say that when they were small you always knew where they were. I would further bet that if they weren’t with you that you knew who they were with.

Not only did you know who they were with, but you knew what clothes they had on and you knew what they had to eat for their last meal. If they had a booboo on their finger you applied a band aide and checked it regularly.

I’m appalled at how many used car managers don’t actually know where their children (used cars) are, let alone know what they are wearing.

Often when I’m reviewing inventory with a used car manager I’ll ask them to tell me about certain cars in their inventory.

On some of the cars I’ll ask them where is it? They will say “It’s in the inventory.” No, I’ll say, “Where is it? Where is it parked?” Typical comments, “I’m not sure”, “I think it’s out back”, “I think it’s in the service department”, “I think it’s in clean up”, “I think someone is driving it”, “I think it’s sold.”

Grab this, grab it fast. You’re not being paid to think. You’re being paid to know. The great used car managers know where every car is every moment of its life with their store.

The great used car managers know where all their children are regardless if they have a 40 car inventory or a 400 car inventory.

They just know. You wanna know why they know? They know because they care. They know because they are great parents. They know because the more they know about where their children are, the more they can protect them.

They can protect them from the evils of the world such as becoming aged, poor ROI, and slow turn. Let the parenting begin. That’s all I’m gonna say, Tommy Gibbs

Odd as it may seem, we often put a lot of energy and wasted effort into trying to control the things we don’t have control over and miss a real opportunity to control the things we can control.

I often like to compare the car business to the coaching field. Coaches never have total control over the game, but they do have control over the things they do to prepare for the game. You can take control by preparing the team.

Great coaches study the game 24/7/365. If you don’t live, eat and sleep the car business, then you will never be able to control what you can control.

Successful coaches understand that to control the game they have to teach the game. They make an investment in time and resources to ensure the team understands the plan and how best to execute it.

Your mission as a coach is to create an ongoing environment that demonstrates you are committed to training and developing your staff at all levels; “Controlling what you can control.”

You cannot control the price of gas, the stock market or the world economy. You can control the speed by which you turn your used car inventory.

Knowing and understanding the necessity of utilizing speed to control your inventory is a major step toward controlling what you can control. That’s all I’m gonna say, Tommy Gibbs

“A psychologist walked around a room while teaching stress management to an audience. As she raised a glass of water, everyone expected they’d be asked the “half empty or half full” question.

Instead, with a smile on her face, she inquired: “How heavy is this glass of water?” Answers called out ranged from 8 oz. to 20 oz. She replied, “The absolute weight doesn’t matter. It depends on how long I hold it. If I hold it for a minute, it’s not a problem. If I hold it for an hour, I’ll have an ache in my arm. If I hold it for a day, my arm will feel numb and paralyzed. In each case, the weight of the glass doesn’t change, but the longer I hold it, the heavier it becomes.”

She continued, “The stresses and worries in life are like that glass of water. Think about them for a while and nothing happens. Think about them a bit longer and they begin to hurt. And if you think about them all day long, you will feel paralyzed – incapable of doing anything.” Remember to put the glass down.” Author unknown.

Used cars are the same way. The longer you hold them the more stress they create. Even your worst decision becomes lighter when you unload it early.

There are dealers around the country with a lot of stress in their used car department. Either the Dealer, the GM, the General Sales Manager or Used Car Manager has decided they can deal with the stress. Maybe they can “deal with it.” But, dealing with it at what cost?

How much money is it costing them? If you extracted the water out of your inventory and subtracted it from your bottom line, how good would you really look?

Some of you are sitting there kinda smug thinking, “Not a problem at my store, we don’t have aged units.” You know what I’m thinking? I’m thinking you are darn smart and I’m really, really proud of you.

For those who aren’t feeling all smug. Enjoy your stress. You earn it one day at a time. That’s all I’m gonna say, Tommy Gibbs

I’m writing this from New Orleans at the NADA Convention. I was also here in 2009 and it’s a much different environment this week than it was back then. To say the dealers were depressed in 2009 is an understatement. Everything I’ve seen thus far at the convention is optimistic almost to a fault.

Many dealers are coming off an all time record profit year and optimism has never been higher. It’s easy to become complacent and have a certain amount of self-assured confidence that you are a rock star, on a roll, and you can do no wrong.

It’s a fact that dealers make the most money when they are coming off of tough times. The reason for that is pretty simple. When things are tough, dealers get back to the basics and grinding it out. As business gets better, they are in a great position to make a lot of money because they have cut all the fat out.

But the better and better business gets, dealers tend to add this and that to the expense line and get further and further away from the basics.

I know you’re a “Smart Leader” because you read my stuff. And because you’re a “Smart Leader,” you know that to get to 4 to 6% net to sales you need to continue to evaluate everything you are doing, every dime you are spending, and every process “you think” you have in place.

Are you as efficient as you can be? That’s all I’m gonna ask, Tommy Gibbs

I’m mad ’cause I don’t think you’re listening. I’m mad ’cause you ain’t paying attention. I’m mad ’cause you’re not ready. I’m mad ’cause I keep telling you and you keep ignoring my advice. Ok, so you couldn’t care less that I’m mad.

Ignore me if you will, but here’s what I know. You keep jerking around about how you’re going to fix your mess, but it’s still not done and “S Day” is just around the corner. “S Day” is March 20, the first day of spring, which is often referred to as the Spring Selling Season.

There’s still a lot of pent up demand and you’re not going to get to play the game ’cause you ain’t ready. Your people aren’t ready, your leaders aren’t ready and your inventory is still screwed up.

You and your staff have been sitting and whining with your heads stuck in the sand. This business is a contact sport and you ain’t contacting.

Can you hear me screaming? Do something…do something even if it’s wrong! I’m sorry if I’m screaming, but I see dealers around the country really “getting after it” and making a difference and I see others letting it “get after them.”

Just in case you didn’t know it, new and used car average grosses will continue to be a challenge. It’s going to take some serious leadership skills to win that battle.

The only way to win the game is to improve total gross. The only way to improve total gross is to be a great used car operator. When you become a great used car operator you sell more new. When you become a great used car operator you sell more parts & service. When you become a great used car operator you sell more used.

When you become a great used car operator, I’m not mad anymore. That’s all I’m gonna say. Tommy Gibbs

Well, maybe not, but I will if you’re not at the NADA Convention in just a few days. So, if you’re not going I’m wondering why? Why would you not go? Short on staff? I guess that’s a maybe. You went last year? Ugh, I guess that might be a maybe also. Can’t afford the expense? Another maybe goes up on the board. Those excuses and most others are not great reasons for not going.

Some of you live in a little box and wonder why things never change for you. Most of you are coming off a pretty good year. Maybe you think you have it figured out or maybe you know things are starting to slip a bit.

There’s no better time than right now to open your mind and shoot some WD 40 into your brain to loosen things up a bit. It’s winter, it’s cold and if you’re not careful your brain will freeze up and not thaw until sometime in August.

If your mindset is “the Convention is always the same” then you are dead wrong. The only reason the Convention is the same is because you’re the same. If you’ve gone to the Convention in the past to rub shoulders with the factory guys and attend the parties then I guess it would be the same for you. You get out of something what you put into it.

If you go to the Convention and are determined to take real ideas back to your dealership and make things happen the odds will be in your favor of making things happen.

It’s hard for your vision to change when you sit there and stare at those same walls and same people day after day. It’s a cancer that eats away at your soul. That’s why you need to go. You need inspiration. You need to see the possibilities. You need to go and learn something.

If you show up and find me I’ll even give you a little book titled “The Little Used Car Book, Volume 5.” My little book is not a cure-all for your used car business but it’s guaranteed to give you some ideas and wisdom to help your bottom line.

By helping your bottom line, it will more than pay for your little trip. I’ll be hanging out some at the vAuto booth (booth #2318) so look me up. I’d hate to miss you this year. That’s all I’m gonna say. Tommy Gibbs

I’ve always loved selling budget cars. I’m thinking we all define budget cars differently, but let’s just say they are the cheaper cars that in the past you let “Bubba and the gang” have.

If you’re going to sell budget cars then you may want to think differently about how you recondition them and how you charge for that reconditioning. The key word is to make them safe but not perfect.

Most customers understand they are not buying a new car. Furthermore, charging full retail from your service department will eventually cause your used car manager to “throw the baby out with the bath water.” If you are using packs you may want to at least lower the packs on these units.

The one thing you should not skimp on is the recon or clean up. Spend whatever you have to spend on it to make it pretty. If you ultimately have to sell the unit in the wholesale market you will more than get the clean up money back.

These units need to be on a very short shelf life of 20 to 30 days and gone. Just because you don’t have a lot of money tied up in them, it’s not a justification to keep them hanging around. If you let them sit around too long, “lot rot” will kick in. Common sense should tell you, if it’s an inexpensive car and it doesn’t sell immediately then it’s time to move on.

Budget Center cars need to have their own location on your lot. It needs to be clearly marked off as to what it is. “The Budget Center,” or whatever clever name you can come up with. Over the years mine was called the “Chicken Coop.” There’s a long story on that which I won’t go into today. You might call yours the “Budget Corral.” Just come up with something. At the very least mark the area off with safety cones.

In most dealerships sales people are always complaining that they need cheaper cars to sell. One of the most effective things you can do on your “lot walk” each week is when you get to the budget center explain to the sales staff that if these units aren’t sold by next Wednesday, then you are going to wholesale them. Creating a sense of urgency in their mind is a good thing.

Depending on the size of your store it could easily mean another 5 to 20 sales a month. Gaining more customers is always a good thing when you do the math. Being in the “Budget Center” business makes good business sense. That’s all I’m gonna say, Tommy Gibbs

I’m thinking most of my readers are familiar with the “Rule of 78s.” If not, it’s a term used in lending that refers to a method of yearly interest calculation.

I have a new rule of 78s that will help you improve your average gross profit. I call it the “Gimme $78 more” rule.

Most of the sales managers I work with today are very competent and many of them got the job because they were good closers. Therefore I believe most of them can get another $78 from every customer just by asking.

Unless you’ve already gotten the customer to pay the Internet price then for sure you can go back in and convince the customer to pay $78 more. Sure you can. I know you can.

And, if you have already gotten the customer to agree to the Internet price and if there happens to be a trade involved, surely you are strong enough to hold back $78?

So your goal this month is very simple. Get $78 more on each deal. Then next month do the same thing. In two months you’ve improved average gross profit by $156. Then do the same thing over the next two months…and now we’re at $312 improvement in average front gross.

Far too often we get hung up on kicking the average gross up by $300 or $400 at one time. We give up at some point because the elephant is too big to eat in a month’s time. Take a small bite each month and you will soon be there.

Don’t gimme a bunch of excuses as to why you can’t do it. Just gimme the rule of $78. That’s all I’m gonna say, Tommy Gibbs

It’s January and we’re off and running. Actually, some of you are running, some of you are walking. The runners have been training hard for the last few months. The walkers have been talking about training hard.

The runners were getting into shape back in November and December by laying down “the plan” for 2014. The walkers were thinking they needed to get in shape and get a plan for 2013.

Runners are never happy. I’ve never seen a runner smile. Walkers are well, walkers. They often smile because they are dreaming of the things they would like to do. Whatever they are dreaming stays in their dreams.

The runners have a firm plan going into 2014. The walkers have a “kind-a-sort-a” plan going into 2014. Walkers talk about a plan, runners actually execute the plan.

Walkers are afraid if they make a plan they might have to change it. Runners know there are mud puddles and they just have to jump over a few to get where they want to go.

Runners like challenging their leadership skills by changing the plan. Walkers are afraid of change and would rather go with the flow than rock the ship.

Runners love Dave Anderson’s book “If You Don’t Make Waves You Will Drown.” Walkers would rather read “Winnie the Pooh” and dream about Pooh Bear.

When I do a workshop I recommend, suggest, and urge those in attendance to write out an action plan for the next 90 days using the top 3 or 4 processes from the workshop. At the end of 90 days re-write the action plan adding 3 or 4 more processes to it.

Any time you’re planning, there should be 30 day, 90 day, 180 day and 365 day action plans. The weather and the terrain are going to change and you need to be ready for change.

Walking along whistling a happy tune will make you feel good for that one little moment in time. Running hard with a flexible plan will exhilarate your soul and brain and will allow your team to leap tall buildings with a single bound for a long time to come.

Runners take money to the bank. Walkers go to the bank to borrow money so they don’t go out of business…yet.
Becoming a runner means harder training, greater commitment and disciplines that most people don’t have and will never have.

That’s why there is so much room at the top. Some will, most won’t. What about you? That’s all I’m gonna say, Tommy Gibbs