Most of you fall into one of two camps.
You’re either unhappy with your average gross per unit…
or you’re unhappy with your used car volume.
And if we’re being honest — you’re probably unhappy with the total gross too.
Let me remind you of something simple:
The only number that really matters is total gross.
I know that statement is controversial, but it’s a true statement.
I’ve said it for years:
You cannot spend average gross profit. You can only spend total gross profit.
Yet many dealers send completely conflicting messages to their teams.
One day you demand higher grosses.
The next day you demand more volume.
You can’t pound people with two opposing marching orders and expect clarity. All you create is confusion, frustration, and inconsistent execution.
Sure — somewhere out there a store is hitting home runs on both ends. But that’s the exception, not the rule. Stop managing your dealership based on unicorns.
That doesn’t mean you can’t improve both. You can. But you must decide what game you’re actually playing.
And make no mistake — today this is a different game.
Over 80% of used car shoppers start online. That means if you think you can post high prices — or worse, no prices — and traffic will magically show up, you’re mistaken.
The Internet changed the rules.
It doesn’t care about your franchise, your market, or how things used to work.
You have to decide:
Do you want to play the game?
More importantly — do you want to win?
As Dr. Seuss said:
“You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose.”
If you want more volume, it starts with acquisition — and I don’t mean just buying more cars.
Buying more inventory without strategy is the kiss of death.
All you’re doing is creating aged units you’ll be discounting three months from now.
Volume requires a complete operational commitment:
- Smarter acquisition strategies
- Proper staffing
- Pay plans aligned with objectives
- Efficient reconditioning
- Aggressive marketing
- Market-based pricing
Miss any one of these, and production stalls. Miss several, and you’ll be worse off than when you started.
Here’s the truth:
The fastest path to happiness in a dealership is a stronger bottom line.
And the fastest way to improve the bottom line?
Improve your volume.
When used car volume improves, everything improves — New, Service, Parts, absorption, and cash flow.
That’s all I’m gonna say. Tommy Gibbs