We’re currently in the soft launch stage of my UpYourGross software. I’m not writing this today to sell you on using the software, but I want to share a couple of things I continue to observe with our early users and the current data.
It is stunningly remarkable the difference in grosses on:
Rental Car Purchases
Our top performing dealers realized they must turn the auction purchases faster with less gross. Same thing for rental units. They understand that by and large they can go back and buy some more. Turning these units faster at some gross is far better than sitting on them thinking you’re going to achieve the same type of gross that you will on a nice trade-in.
It is further stunning to me to see that there are dealers sitting on units that are over 60 days old and trying to make a profit. The root of that mindset is that every once in a while a miracle will happen and they actually make some money on an aged unit. God bless you if you can do that, but it’s a safe bet that the ROI is going in the tank even if the miracle happens.
It would be very wise for you to pay attention to the grosses you are trying to achieve on the various sources of your inventory and to take a look at your pricing on units that are starting to age out on you. That’s all I’m gonna say,
Absolutes are a powerful tool toward creating a disciplined organization.
The downside of absolutes is it chokes off the potential to have an acceptable exception.
Exceptions break the rule of discipline.
Exceptions soon become the norm.
When exceptions become the norm chaos breaks out. The type of chaos I’m referencing isn’t actually like a bomb going off. This chaos is slow and gradual, often not recognized, and then – whamo – there it is, its ugly face screaming at you, “What the heck happened?”
Now here’s the real deal for those of you looking to become
better leaders. You can have absolutes and exceptions in the same house. They can actually hang out with each other once in a blue moon.
True leaders can use them both and chaos will never show its ugly face. Granting an exception and going back to absolutes is very doable.
The problem with leadership is that very few leaders have the skill to make effective use of them both.
Most people in leadership positions are stuck with one or the other.
At any given moment one is just as bad as the other. That’s all I’m gonna say, Tommy Gibbs
When you’re in business you have a ton of issues to deal with. None are more important than communicating with staff and management to help them improve performance and profitability.
When you’re in a dealership day-to-day it’s like living with family members and therein lies the problem.
It’s difficult to hold family accountable.
There’s tons of data for you to sort through each day to help you create a roadmap of accountability. You often ignore it and look the other way because you don’t want to lose your family members.
Actually, sometimes it is family and that can be a whole other can of worms.
Let’s apply this to real life. Since you can’t fire or excommunicate your children, if your child isn’t doing what they need to do, don’t you at least try to point out a better direction for them? Don’t you try to coach them for greater and more positive results?
The problem is a lot of people see the word “accountable” as a negative word. When you’re holding people accountable you should be using it as a tool to coach them to the next level.
It’s about pointing out those things they may be missing that you’re able to spot because of your experience and all the data you have at hand.
People don’t do things because either:
A. They don’t know what to do.
B. They know what to do and refuse to do it.
As a leader you’re responsible for making sure they know. Once they know you’re responsible for making sure they do it.
When are you going to stand up? That’s all I’m gonna ask,
You might be constipated. When you’re constipated, it’s virtually impossible to be as productive as you might otherwise be.
Exercise, drinking lots of water and in some really bad cases taking a strong laxative can often relieve the problem and get you back on your “A Game.”
Having 60-day-old plus units in stock is a lot like being constipated. 60-day-old units will make you sluggish and hold back your potential to be as productive as you might be.
You can never perform your best when you’re all stopped up. Your “A game” will never show up when you have used car constipation. Think of it as Poop in the chute.
Until you get the water out of your used car inventory, you will never be but so good. You will have a few good months, but unless you commit to a good diet of solid processes you will always struggle.
One of the best ways to fix the problem is to reappraise the entire inventory, extract the water, give each unit a new birthday and put in my “Life Cycle Management Process.”
Constipation makes you stinky. You don’t want to be stinky.
Having aged units makes you stinky. Don’t be stinky. Constipation is fixable. Aged inventory is fixable. When you fix it, you feel better. When you feel better, you make more money.
If you give a hoot you’ll clean up your poop. That’s all I’m gonna say, Tommy GibbsTommy Gibbs