Did You Notice?

Did you notice that you are getting really comfortable with having aged units around?

You’ve justified in your mind that it’s ok because you convinced yourself during the pandemic that you could sell anything at any time and make money on it. Since you think that’s a brilliant plan, please let me know how the ROI turns out for you when you let crap age on you.

Did you notice that the selling processes you think your team is using, aren’t the selling processes you’re using?

Some members of your management team are doing their “own thing.” If you don’t believe it, sit down individually with your sales people and ask them how each manager starts and works a deal.

Did you notice that you are no longer doing a “save-a-deal meeting” and “trade walk” each day?

You’ve accepted it as fact that everybody is so busy that they don’t have time to do it. You’ll be surprised at how many more deals you will make by doing a “save-a-deal meeting.” And, how many more used cars you will end up keeping and retailing when the management team does a “trade walk.”

Did you notice that the management team doesn’t understand Life Cycle Management?

Life Cycle Management starts on day one, not day 61. If you are having aged units and/or losing money on units wholesaled at the end of the life cycle it’s because they are not using “Early Warning Radar.” If you don’t think Life Cycle Management is important, go ahead and tell me the story on your oldest unit in stock. Yep, they all have a story. You ignored the story on day one so now you get to the rehash the story on day 61. Had you been focused on Life Cycle Management, that unit would have been gone long ago with little or no loss and maybe even a profit.

Did you notice that the sales and management team doesn’t do lot walks anymore?

Did you ever wonder why your sales people don’t sell more used? It’s because they don’t know the inventory. Know the difference between a lot walk and a trade walk. Now do them both.

Did you notice that you get lots of lip service on those processes you know need to be followed in all the departments?

Guarding the processes is one of the most important functions of leadership.

Did you notice that the average cost per used car in stock keeps creeping up and up?

The reason it’s happening is because you are not paying attention to it every day. Pressing the average cost down is a fundamental discipline. If every manager doesn’t know the number, you’re not doing your job. The pain of discipline or the pain of regret.

Did you notice that you’re back to selling vehicles for less than what you have them posted online?

That’s because the sales team isn’t sold that you have the best product at the best price. Before you can make the customer a believer you have to get the sales staff to believe. Tracking GAP will create a focus that forces you to hold more gross profit.

Did you notice that a lot of your problematic used cars in stock are either high dollar or purchased at an auction?

If you would print out a list every day of your 10 most expensive units in stock, and distribute to your management team, you would eliminate most of these problem children.

Did you notice that sometimes you just don’t notice? Your job as a leader is to notice what’s going on. My job is to keep reminding you. That’s all I’m gonna say, Tommy Gibbs