Pile It Up

In a recent workshop, a conversation came up about selling used cars and trucks in volume versus selling for high grosses.

Depending on your definition of high grosses and high volume, the concept of doing both goes against Tommy’s laws of nature.

That’s not to say that there isn’t a happy medium, because if you do a lot of little things right you can achieve a respectable volume and higher gross profits at the same time.
(Life Cycle Management will change your world.)

It’s petty much a sure bet that you’re not going to do $3,000 on the front and sell 300 used vehicles a month, which most people would agree are pretty strong numbers.

Think about it this way; at the beginning of the month you start out with zero gross on the books. It takes a lot of gross to pay all the bills. The name of the game is how fast and how much gross we can pile up.

Does it really matter how we get there?

You can sell 50 units at $1,500 which equals $75,000 or you can sell 25 units at $3,000 a copy and you still get to the $75,000.

I think you know where this is going. In both cases these numbers are plus F&I, plus trade-ins, plus the parts and service work. Plus you now have another customer in your family of customers, who are likely to purchase other vehicles, parts and service from you.

When you think volume, you work harder to step up on more trades at the front door. When you work harder to buy more deals at the front door, you sell more new and used vehicles. When you sell more new and used vehicles, you pile up more gross in all departments including parts and service.

When you pile up more gross you make more money.

Let the piling up begin. That’s all I’m gonna say, Tommy Gibbs