One of the most talked about issue of the day is the lack of affordability in the new car sector. There are no new cars priced under $20,000. Heck, finding something under $25,000 is no easy task. And very soon $30,000 will be a cheap car.

As bad as that sounds, there’s some real opportunity here for a savvy, well discipline dealer to capture more “used car market share.”

Look at your average cost per unit sold over the last 30 days and see how that compares to your average cost per unit in stock today.

The odds are that you are upside down with those two numbers. Even if you have a decent sales rate, the reality might be that you’re selling the fresher, lower priced units and the higher dollar stuff is sitting and costing you lots of money and a lousy ROI.

Staying focused on your average cost per used in stock will help you with the affordability game.

Your mission every day should be what can you do to press the average cost down. There is no magic number. Just know what the number is and do what you can to press it down.

One of the best ways to help control it is to make sure you most expensive units are turning fast and of course trying to keep some of those cheaper cars that you have been wholesaling.

There is no set of circumstances you can lay out that negates this concept. So, if you were to say any of the following, you would be wrong:

We do a great job with highline cars. (Irrelevant.)

We do a great job with high dollar pick-up trucks (Irrelevant.)

We do a great job with high dollar SUVs (Irrelevant.)

We don’t have software that can separate our inventory by Cars, Trucks, SUVs and Wholesale Pieces (Irrelevant.)

There is no question that if you just pay closer attention to what you are buying and what you are keeping for retail that your average cost will go down.

As you monitor your average cost it is going to bump up from time to time. There are two reasons for this. First, it’s because you traded in some high dollar stuff, which you will naturally have to do and second, it’s because you got goofy and went to the auction and bought some high dollar cars. In both cases it’s a matter of paying attention to it daily and getting back on track.

I’m often asked two questions:

1. What should my target goal be? There is no target, just try to get it lower than the day before.

2. Can I press my average cost too low. The answer is no. Don’t be concerned with that. If you do a good job with $30,000 SUVs, you will still sell $30,000 SUVs, but by pressing your average cost down it just makes you that much better.

Control what you can control. Do your part to solve the affordability problem. That’s all I’m gonna say, Tommy Gibbs

It’s a New Year!

I’m talking with a dealer the other day who needed some help with his used car department. As it turns out he’s struggling in both new and used car sales. It’s not unusual when you struggle with one you struggle with the other. There are exceptions to that rule as there are some dealers who see themselves as being a “new car dealer” and some who see themselves as being a “used car dealer,” and make good money. For years they have made money doing it their way and I’m not about to say they are wrong. I will say, “they could have made even more money had that not been a single minded car dealer.” The fact is you can be both. When the two departments are managed correctly they compliment each other. When they are both rocking they help to fire up the the parts, service and body shop business which and the bottom line explodes. We all know it’s true that when we improve your used car operation, we improve our entire dealership. While I realize I’m not telling you anything you don’t know, I may very well be telling you something you’re not 100% committed and focused on. Commit to 2025 being your best used car year ever, and 2025 will be your BEST YEAR EVER. That’s all I’m gonna say, Tommy Gibbs

You’re More Important Than You Think

In just eight more days you’re going to be very, very busy. The week after Christmas has the potential to be one of the best selling weeks of the year. It will only be a great week if you make it a great week. It’s not going to be a great week if you stay in your seat acting like a computer geek. You can make it a great week by getting up and moving around. You should be like a bumblebee on a pollination mission. You’re here. You’re there. You’re everywhere. Stinging your little heart out. You can’t just flap your little wings in place and think someone’s gonna sell a car. You have to create the buzz. You have to go from being weak and meek in order to make it a great week. I don’t like things to be all about you, but this is all about you. This week is all about you making things happen. It’s about you contributing as much in a week as you sometimes do in a month. It’s not about you giving 100 or 110%. It’s about you giving 200%. It’s about starting early and ending late.It’s not about asking others to do it. It’s about you doing it. You sometimes think you’re important. Well, you are important. You’re even more important than you think. At least this week you are. You may have to sting a few people this week. That’s ok. Some of your team could probably use a sting or two. A little stinging pain for a whole lot of car selling gain. Wishing you a very Merry Christmas, and an amazing 2025. That’s all I’m gonna say, Tommy Gibbs

Did you ever notice that successful people always seem to have a sense of urgency about them?

Think of any great leader you’ve worked with and 9 times out of 10 they were always on fire. In a hurry to get things done so they can move onto whatever is next.

The reality is that in business, a sense of urgency is essential for survival and success.

It accelerates progress, turning ideas into actions and actions into results quickly.

In a competitive world, delays can mean lost opportunities, customers, or market share. Urgency drives innovation, keeps teams laser-focused, and pushes people to prioritize what really matters.

It also fosters a culture of accountability, ensuring that deadlines are met, goals are achieved, and momentum is sustained.

Without it, complacency creeps in, and businesses risk becoming reactive instead of proactive—letting competitors take the lead. Simply put, urgency fuels growth, agility, and long-term success.

A Sense of Urgency:

Drives Action and Results: A sense of urgency transforms ideas into action, helping you move from strategy to execution faster.

Seizes Opportunities: In fast-paced markets, delays mean lost opportunities to competitors. Urgency ensures you act while the window is open.

Fosters Innovation: Urgency pushes teams to think creatively and solve problems quickly, driving continuous improvement and innovation.

Keeps Focus on Priorities: Urgency sharpens focus on what matters most, helping teams avoid distractions and stay aligned with business goals.

Builds Accountability: It creates a culture where meeting deadlines and delivering results is the standard, not the exception.

Prevents Complacency: Without urgency, businesses risk stagnating or becoming reactive, allowing competitors to get ahead.

Maintains Competitive Edge: Urgency helps you stay agile, responsive, and ahead of the curve in a rapidly changing market.

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

On a recent Clubhouse call the conversation came up about hiring people and how important it is for a person you hire to have Intestinal fortitude.

We can probably agree it’s a tough thing to measure in an interview, but let’s review what intestinal fortitude is all about.

In its most basic definition Intestinal Fortitude refers to the courage, determination, and resilience to face adversity and overcome challenges. It’s a mental toughness that helps individuals persist in difficult situations, adapt to unforeseen obstacles, and emerge stronger. (Yes, I looked it up.)

Intestinal Fortitude: The Power of Inner Strength

I realize it’s tough to zero in on that in an interview, but here are some questions you might ask:

1. “Can you tell me about a time when you faced a significant challenge at work (or in life) and how you handled it?”

2. “Describe a situation where you had to take a risk or stand by a decision that others opposed. What was the outcome?”

3. “Give an example of a time when you received criticism or failed at something. How did you react, and what did you learn?”

4. “Tell me about a time when you had to work with limited resources or under tight constraints. How did you overcome those difficulties?”

5. “Have you ever had to persevere through a situation that took longer than you expected? What kept you going?”

6. “How do you approach decisions when you don’t have all the information?”

7. “What motivates you to keep going when things get tough?”

Key Elements of Intestinal Fortitude

Mental Resilience

The ability to recover quickly from setbacks.

Staying composed and focused under pressure.

Emotional Control

Managing fears, doubts, and stress effectively.

Keeping a positive outlook in tough circumstances.

Physical Stamina

Sustaining effort and energy during challenging tasks.

Recognizing the connection between physical health and mental strength.

Commitment to Purpose

Staying true to goals despite roadblocks.

Finding motivation in personal values or a larger mission.

Why It Matters

If you have people on your team who have Intestinal fortitude, it equips you and your team to handle life’s uncertainties with grace and grit.

Grit. I like that. Grit is Intestinal Fortitude. That’s all I’m gonna say, Tommy Gibbs

Pay plans are a very touchy subject. I’m always being asked about pay plans. It’s often been said you’d be better off not to discuss religion, politics and let me add one more, pay plans.

I’m feeling kind of froggy today so I’m jumping in.

There are as many different pay plans as there are dealerships. It’s fair to say that how sales people’s pay plans are constructed often depends on the dealer’s philosophy of doing business and of course the influence of his/her key managers.

Those philosophies were developed early on, based on the experience and success of the decision makers in their personal and business growth.

We tend to think that everyone thinks like we do, and so if the way we were paid when we started made us successful, then it will work for others along the way. Or we think it’s worked so well for the dealership over the years, why change?

Just because you’ve always done it “that way” and it got you to where you are today, doesn’t mean doing it “that way” will get you to where you need to go.

See how much of this rings true:

1. You’re paying a lot of flats.

2. You’re pricing your used cars (even new) online with killer prices designed to drive traffic to the front door.

3. You’re working harder and harder to hold the line on your pricing when the customer shows up.

4. Because of #2 and #3, your sales staff have very little control over gross profit. Certainly not like they did in the good old days.

5. You’re not a one-price dealer yet, but you’re moving more in that direction.

6. It’s becoming more and more difficult to hire people, especially millennials, willing to be paid on gross profit.

In today’s market, it doesn’t make much sense to continue to pay on gross profit. What does make sense is to move more to a volume-based pay plan.

Some of your concerns:

1. You’re afraid to change pay plans because you’ll lose some of your key people.

2. You’re afraid your sales person’s compensation percentages will get out of line.

3. You’re afraid gross profit will go further south.

Let me clear those concerns up for you:

1. Some of those key people will actually like the change. But, if you have some people that you’re concerned about, then tell them that if they sell the same number of units over the next 12 months as they did the previous 12 months and if they don’t make the same or more money that you will pay up.

2. If you do your homework, analyze your history, analyze your grosses, trends and really think it through, you won’t screw it up and get out of line.

3. Gross profit could very well get better. Yes, your management team will have to work harder and harder to hold the line on pricing. If we spent a little more time on selling the sales staff that we’ve got the price right, gross might just go up.

When you dissect all of this, it is not so much about changing pay plans that’s all that hard. It’s about changing the mindset and culture of your organization.

That’s all I’m gonna say, Tommy Gibbs

Woody Hayes, the great Ohio State University Football coach once said: “Paralyze resistance with persistence.”

Change, continuous improvement, and daily disciplines are often met with resistance. Resistance is not a generational thing, it’s just a thing. It’s a thing that’s always been present. It’s been around since the caveman.

There are always strange forces of nature at work. Resistance is the force of nature against persistence. We’ve all seen very talented people fall flat on their faces because of a lack of persistence.

Talented people will often resist having to be accountable. They like doing their own thing. The lack of discipline is a close cousin of resistance.

Persistence can be a two-edged sword. We’ve all known salespeople who drove us nuts. They bugged you to death. They worked you till your nerves were on edge. But the bottom line is they were persistent. Persistence wins over time and persistence will sell lots of cars.

If you allow the average salesperson to analyze their own results, they will easily justify why they are doing so well or not. If a salesperson has a high closing ratio, then they would tend to think they are doing a great job. If a salesperson has a low closing ratio they will blame it on getting bad ups.

You as a leader must be persistent in how you frame a salesperson’s production and direction for improvement. If they have a high closing ratio then you should be encouraging them to talk to more customers. If they have a low closing ratio then you need to show them the way to better closing techniques. You must have the discipline not to let them sell you why this or why that.

There is always room for improvement, and you should never be satisfied…and you should never let them be satisfied. Becoming satisfied leads to complacency. To keep the “boogie man of complacency” away, you as a leader must be persistent in all things that have been deemed to be important to the success of the organization. It is so easy to lose persistence.

Being persistent is not something you do occasionally.

It is something that must be done every minute of every day.

Discipline is the twin brother of persistence. Discipline is what carries you through the down moments; those moments when you want to throw your hands in the air and say the heck with it.

I like to think of persistence as always staying after it regardless of your current state of mind. Being highly motivated can come and go. Even when you are not feeling all that motivated you can remain persistent.

Being persistent means have intestinal fortitude and a willingness to grind it out regardless of the obstacles that keep coming your way. Think of obstacles as just bugs on a windshield. Persistence is the windshield wiper.

Wipe ’em off and keep digging.

Being persistent means never giving up. Never, ever give up.

That’s all I’m gonna say, Tommy Gibbs

“You Can’t Communicate to a Group Unless You Communicate with Individuals”

It’s not that you can’t. It’s that it just doesn’t work all that well. In leadership, it’s tempting to believe that addressing a group as a whole is enough to deliver your message. Every person within a group processes information differently, and unless you take the time to connect on a one-to-one basis, your message can get lost in the crowd. Here’s why individualized communication is the backbone of group success: 1. The Power of Personal Connection Relevance Matters: Each person has a unique perspective, experience, and role. What resonates with one person may fall flat with another. By understanding and acknowledging these differences, you can tailor your message for greater impact.Emotional Investment: When you take the time to connect personally, you show that you value the individual. This investment often leads to heightened emotional commitment to the group’s objectives. 2. Fostering a Sense of Belonging People Want to Feel Seen: In a group setting, it’s easy for individuals to feel invisible or that their contributions don’t matter. Direct communication makes people feel seen and heard, which fosters a stronger sense of belonging.Inclusion Drives Engagement: People are more likely to engage in the group when they feel they are individually valued. This involvement leads to richer discussions and more diverse perspectives. 3. Clearing the Air: Reducing Miscommunication Group Messaging is Often Vague: Broad messages can easily be misinterpreted by different people. By engaging individuals, you can clarify points and ensure everyone has the same understanding.Preempting Conflict: Misunderstandings in group communication can lead to conflict. Direct conversations with individuals allow you to address concerns before they escalate. 4. Building Trust and Loyalty Trust is Built One-on-One: Trust is rarely built in a group setting. True trust develops through personal connections and authentic conversations. A leader who takes the time to connect with each individual is more likely to earn trust.Loyalty to the Leader Equals Loyalty to the Mission: When individuals trust the leader, they are more loyal not only to the leader but also to the group’s mission. They believe in both the “why” and the “who.” 5. Tailoring Feedback for Growth Constructive Feedback is Best Delivered Individually: Feedback in a group setting can feel impersonal or even embarrassing. Individuals are more open to receiving constructive criticism when it is shared privately and thoughtfully.Acknowledging Strengths in Private: Public praise is valuable, but acknowledging an individual’s specific strengths in a one-on-one setting deepens their confidence and motivation. 6. Unlocking Potential Leaders Develop Leaders: When you take the time to mentor individuals within the group, you’re not just building rapport—you’re developing future leaders. Individual communication gives you the chance to nurture talent and empower others to rise.Identifying Personal Aspirations: Group goals are important, but individuals have their own aspirations. When you understand these personal goals, you can align them with the group’s vision, creating a sense of shared purpose. 7. Cementing Long-Term Success Sustaining Momentum: Individual communication ensures that the group doesn’t just perform well in the short term but remains motivated and aligned over the long haul. The more each person feels invested, the more sustainable the group’s success. Group communication may set the stage, but it’s individual conversations that seal the deal. Leadership is about creating meaningful relationships, one person at a time. By communicating with individuals, you create an environment where every voice matters—and that’s how you truly lead a group. Thanks all I’m gonna say, Tommy Gibbs

By now you’ve closed out October, twisted over the numbers and gone back to work.

Not so fast.

October is the perfect month. “Perfect for what?” you say. Perfect for figuring out where you’ve been and where you want to go.

I can’t say that math was one of my best subjects, but I can divide by 10 real easy. At a glance, I know what the averages are for any line item expenses, sales volume, and gross profit.

What also makes October a perfect time is it sets the stage for the next year. Now is the time to start planning for 2025. Waiting until the last week in December to get your plan together is a really bad strategy.

This is the perfect time to dig in and firm up your fundamentals in all departments. This is the time to get back to basics. This is not the time to cut back on your training.

This is when you need to amp up your thinking, stretch your organization and stretch your imagination. If you don’t have a solid foundation of basic processes you will never maximize your success.

This is the time to take control of the “evaporation factor” that’s been occurring all year long. This is the time to stop the “process bleeding.”

Your long-term plan should include joining a Twenty Group and attending the NADA convention.

We all get lazy and get caught up in our daily routines. Attending these meetings gets you revitalized. It gets you outside of your daily box and opens your eyes up to what the possibilities might be. Seems like a no-brainer.

This is the time to make those plans. Teamwork is critical if you’re going to maximize your bottom line. To keep your team on the same page you have to constantly communicate to them what the expectations are and what processes they are expected to follow.

There is no “shake ‘n bake” solution. You don’t fix it and walk away. You fix it and re-fix it.

What to do?

1. Ask yourself if you can improve your processes? If you focus on revamping your processes, what effect do you think it will have on your business? It is an absolute fact that regardless of how well disciplined you are, over time your processes are going to evaporate.

The best piece of advice I can give you is to lock yourself and your management team in a room and review every detail of your selling processes. Be brutally honest with yourself. Then take the necessary action to get yourself back on track.

2. Can you improve your team? Got the wrong players? Now is the time to make the changes. If you already have the right team in place then it’s time to let them know what your expectations are and show them the plan and the path to achieving those expectations.

3. Don’t think of your planning as “you now having a plan.” Think of it as a “mission.” Plans can fall apart. When you’re on a mission you stay after it until you succeed and then you stay after it some more.

I’m on a mission to get you to re-think what you’re doing. I’m on a mission to get you ready. That’s all I’m gonna say, Tommy Gibbs

Always putting out fires? Such a shame. So much time wasted. Non-productive time on those darn fires.

Think about a real fire. Most fires are started due to carelessness. The fires you fight are the same way. 

Someone is careless and thus, you get to fight the fire.

Fighting fires takes away from time that could be so much more productive. 

Productive building your team.

Productive building your business.

Productive building your bottom line.

If you’re to be more productive you have to eliminate the fires.

The fires you fight are more often than not a result of someone either not knowing or not doing.

If someone doesn’t know, that’s your fault. If someone isn’t doing what they know how to do, that’s also your fault.

You’re creating your own fires. I’m thinking that’s called arson. It’s not about putting out the fires. It’s about fire prevention so that the fire alarm never goes off.

That’s not going to happen until you take responsibility for fire prevention training.

Fire prevention is about coaching and teaching your team on the “why and the how” and then setting expectations.

Anything less puts you in the fire. Enjoy the heat. That’s all I’m gonna say. Tommy Gibbs