Improving Used Car Operations

1. It starts by selecting the right inventory. Unless you are an exception to the rule, most of those aged units are purchase cars. Therefore, you are obviously buying the wrong stuff. I continue to be fascinated at how many overage cars have been purchased from the likes of Enterprise Rent-a-Car.

2. Tackle my “Life Cycle Management” concept like your life depends on it, because it does. You will never get your inventory under control as long as you allow all units to have the same number of days on the shelf. You have to identify and acknowledge what each car is on day 1 not day 61. Can’t you spot a Zebra in a herd of horses? Acknowledging what you are dealing with is a major step towards improving your used car turn and eliminating problem cars.

3. Making smart and quick decisions on trade-ins you bury yourself in. Happens all the time. You step up for whatever reason, but since you don’t use “Life Cycle Management” you treat these units just like every other unit. Look Einstein, if you buried yourself in it on day one it’s only going to get worse. The best thing you can do is price that unit below market and make it disappear.

4. Don’t get too excited about a successful short term run. It will kick your butt every time. Stop it. All of a sudden you have a strong 30 day period when you sell 10 XYZs. For whatever reason they were hot. So, what do you do? You run out and buy 20 more of those bad boys. And guess what happens? They sit and they sit. And now you have some more huge wholesale losses staring you in the face.

You have much more control when you take them in small doses rather than choking yourself to death.

5. Understand that you are in the retail business. You need to make sure you are pricing your cars to market early enough and attractive enough to find a retail buyer early in the life cycle. In most cases, if you analyze your aged units you will discover that for whatever reason you overpriced them too long. Key words here are “too long.” Sure you might have them priced correctly now, but they are now stale, the sales staff knows they can’t make any money on them so they walk around them.

That’s all I’m gonna say. Tommy Gibbs

Don’t Take Yourself Too Seriously

If you’re in a leadership position or hope to be so one day and you don’t have a sense of humor then I’d say you are out of luck.

I realize there are people in top leadership positions who don’t have a sense of humor, but I have to believe by and large they are totally miserable people and not nearly as successful as they, and their organizations, could be.

I believe part of a leader’s responsibility is to create a workplace that’s well disciplined, functional, effective and a fun place to work. Just because you display a sense of humor doesn’t mean you’re not serious about your work or have lost your discipline.

It means at any given moment you know how to inject humor to lighten up the joint.

Working in a place of business without a sense of humor is like working in a room with the lights off. Humor turns the lights on and adds an unmeasurable element to the organization.

Back when I was running my dealerships, I personally conducted cultural training to make sure every team player knew the mission and what was expected of them. I was quick to point out to our new hires, as well as existing staff, that if they didn’t have a sense of humor then it was the wrong place for them to be working.

I stated to them, “If you can’t laugh at yourself, then you’re going be miserable here. So, it might be best if you make some plans to meet some new people at your next workplace.”

So go ahead, laugh at yourself. It’s ok, it really is and those around you will be better off for it and so will you. That’s all I’m gonna say. Tommy Gibbs

Relentless

In a given week I probably answer somewhere between 25 and 50 emails from readers asking questions, seeking advice and searching for solutions.

I’m always thrilled when I get a chance to help someone solve a problem. Unless I just plain miss an email, I’m relentless in responding to any and all requests.

My youngest sister, Melba Gibbs, exemplifies the word relentless. When we were growing up she would drive our parents nuts until she got what she wanted. If she wanted a puppy, she got a puppy.

It might take her a month, but she would stay after them until she “won.” She’s no different today as the Director of Fund Raising for Easter Seals in Richmond, VA. Her relentless style serves her well.

Often when dealers and managers write to me, I end my return email by saying the key to fixing this issue is your middle name has to become “Relentless.” A relentless leader is aware that there will be peaks and valleys.

They know it’s going to be tempting to give up, fall off the wagon or get distracted just enough that the evaporation factor will win out.

When you are relentless you will have moments when you are annoying to others. (Hello Melba)…but, when you are relentless, the good things you put on the wagon of success are less likely to fall off. Let the relentless continue.

That’s all I’m gonna say, Tommy “Relentless” Gibbs

Doing More

I hope you’ve had some great mentors in your life. I’ve had some of the very best. My business partner for over 30 years, Ashton Lewis, Sr., taught me some of the best leadership skills I could ever have hoped for.

Ashton taught me nothing is more important than always doing more. More than is necessary, more than is fair. When in doubt as to whether you’ve given enough, give some more. Yep, I’ve had some great mentors. I hope you have too.

Great mentors develop great leaders and they all teach, Do More:

1. They do more than they know is necessary.
2. They do more than they know is fair.
3. They do more because it’s the right thing to do.
4. They do more not expecting anything in return.
5. They do more even when they know it still may not save the day.
6. They do more even when they know it may not save the customer.
7. They do more because they know it’s a teaching moment.
8.They do more because they don’t want to leave this earth owing anything.
9. They do more because they can.
10. They do more because they see the big picture.
11. They do more because if not them, who? Maybe you!

I wish I could do more, that’s all I’m gonna say, Tommy Gibbs