When I’m in dealerships one of the first things I ask a dealer and the members of his/her management team is how many used cars are they selling each month. Then I ask them based on the “market” and based on what they know about their organization what they think their real potential might be.
For instance, it’s not unusual for a dealership selling 75 used a month to tell me they think their potential is 90 to 100. This same dealer tells me his competitor two blocks up the street is selling 200 units a month. And of course I’m scratching my head wondering if they can sell 200 why do you think your potential maxes out at 100?
As the conversation develops the dealer implies that I don’t understand his/her market. Really? Here’s a serious piece of reality for you; what makes your market different is your thinking, not so much your market.
When I further press the question about the dealer up the street selling 200 units a month these are some of the comments I frequently get:
1. The dealer up the street has a lot of Inventory. Answer: Go get more inventory. (What I’m really being told is we’re not committed to the used car business.)
2. The dealer up the street focuses on AutoTrader. Answer: Focus more on Auto Trader. (What I’m really being told is we’re not committed to the used car business.)
3. The dealer up the street has the right inventory. Answer: Buy the right inventory. (What I’m really being told is we’re not committed to the used car business.)
4. The dealer up the street pays more money for his/her cars. Answer: Start paying more for your cars. (What I’m really being told is we’re not committed to the used car business.)
5. The dealer up the street has better trained sales people. Answer: Do a better job of training your sales people. (What I’m really being told is we’re not committed to the used car business.)
6. The dealer up the street has better processes and gets his/her cars through service faster than we do. Answer: Fix the issues in your service department. (What I’m really being told is we’re not committed to the used car business.)
7. The dealer up the street has an awesome website and great looking photos. Answer: Get a better website and take some better photos. (What I’m really being told is we’re not committed to the used car business.)
8. The dealer up the street is a big vAuto Dealer. Answer: Become better at using vAuto. (What I’m really being told is we’re not committed to the used car business.)
Making a commitment to selling more used cars isn’t rocket science. No doubt there are a lot of little pieces to the equation, but the real deal is for you to be passionate about the commitment of doing so.
I know what it takes to be successful and that’s why I’m constantly stirring up your thinking. That’s all I’m gonna say. Tommy Gibbs