One of my favorite statements, when people come to me seeking guidance on making specific decisions, is “I trust your good judgment.”
Granted they will sometimes make decisions I might not agree with, and that’s the best part. Why? Because it gives me a chance to coach them in a positive way.
I don’t have to tell them they were wrong. I simply ask them if they considered coming to a different conclusion by doing whatever?
I might say next time it might be better to blah, blah, blah.
Only in a rare set of circumstances would I bust them over a decision they have made.
If you want to build a powerful team of leaders look for opportunities to say, “I trust your good judgment.”
That’s all I’m gonna say, Tommy Gibbs
I’ve always encouraged dealers and managers to track ROI. I’m convinced it’s a critical piece of information that everyone needs to be aware of. By doing so the bottom line will increase.
If nothing else, it makes you aware of how important speed is when it comes to making money on used cars. (Or new for that matter.)
But let’s be clear. We pay our bills and we get paid by generating gross profit. Lots of gross profit.
It’s not about giving all your inventory away. It is about understanding which cars you can make money on and which ones need to be turned faster.
The question often comes up, “When does the clock start ticking?” Does it start with the actual day you own it, or does it start when the car goes on the lot/online?
Let me make this as clear as I possibly can. It starts the moment you own it. Period. No exceptions, no ifs, ands, or buts.
The gross profit and ROI clock is ticking from the moment you own it.
If you want to trick yourself by assigning a different date once the car’s online then go ahead; it’s your store you can do what you want. What you can’t do is change the math.
It is what it is. It’s a depreciating asset. Your ROI and Gross Profit are going south minute-by-minute, day-by-day.
Understanding the connection between ROI and Gross Profit makes you smarter. Be smart. That’s all I’m gonna say, Tommy Gibbs