Which Have You Chosen?

You may have chosen to do volume or shoot for a high average gross profit. The odds are pretty good that you’re not all that happy with your choice.

If you chose high average gross, the odds are very good that you’re not generating enough total gross and your volume is kind of poopy.

If you chose volume, you’re not all that happy either. Your average gross is also poopy.

It’s a contradiction to say to your staff that you expect both high volume and high gross per unit.

They stay confused and frustrated when you keep pounding them over the head with this misdirection and sleight of hand marching orders.

I’m sure somewhere out there someone is making it happen on both ends, but it is certainly the exception and not the rule. So, you need to get over it.

It’s a given that more than 80% of the people shopping for a used car shop the Internet. If you think you are going to post high prices or no prices out on the Internet and traffic is going to show up then you’re not going to be very busy. The Internet is a “game changer” for all of you regardless of your new car franchise or set of circumstances.

When you take the leap into the volume world it requires you to rewrite your overall strategy from acquisition to staffing, pay plans, reconditioning, marketing, and pricing.

Failing to address any of these will result in frustration and poor production and you may find yourself worse off than you are right now.

The bottom line should be to increase your total gross profit. It’s not done by improving your average. It’s done by maintaining a respectable gross and substantially improving your volume. Small market or big market, it doesn’t matter.

The Internet has opened the world up to you and you have to decide if you want to be in either that world or your own little world. Your little world has limitations.The Internet world does not.

“You can’t spend average gross profit. You can spend total gross profit.” Your job as a leader is to figure out how to get the best of both worlds. That’s all I’m gonna say, Tommy Gibbs