The Big Easy Leadership Skills & Used Car Sales

Transcription

1 The Big Easy Leadership Skills & Used Car #NADA100 Tommy Gibbs President Tommy Gibbs & Associates Treasure Island, FL

2 2 The views and opinions presented in this educational program and any accompanying handout material are those of the speakers, and do not necessarily represent the views or opinions of NADA. The speakers are not NADA representatives, and their presence on the program is not a NADA endorsement or sponsorship of the speaker or the speaker s company, product, or services. Nothing that is presented during this educational program is intended as legal advice, and this program may not address all federal, state, or local regulatory or other legal issues raised by the subject matter it addresses. The purpose of the program is to help dealers improve the effectiveness of their business practices. The information presented is also not intended to urge or suggest that dealers adopt any specific practices or policies for their dealerships, nor is it intended to encourage concerted action among competitors or any other action on the part of dealers that would in any manner fix or stabilize the price or any element of the price of any good or service.

3 The Big Easy Leadership Skills and Used Car Sales Defining Management How Does Management Function? What Is Leadership? What Are You A Champion Of? Leading With Used Cars

4 Defining...

5 Defining Management The Control of People or Things Management is Compliance Maximize Production and Resources Ensures that Daily Tasks are Done By Design, One Dept. Against the Other Management s Focus is to Follow the Rules If the Team Succeeds, the Manager Succeeds Managers Control Behavior When Employees are Not Trusted Allow Bullies to Exist if They Are Productive Technology Allows More Control by Management Management is About Retaining Power

6 How Does Management...

7 How Does Management Function? THEY PLAN THEY ORGANIZE THEY DIRECT THEY CONTROL THEY EVALUATE THEY OFTEN PANIC when it goes south

8 What Is Leadership?

9 What Is Leadership? Leadership Influences Others Leadership Walks the Walk Leadership puts Ethics before Production Leadership Takes a Chance on things that Might Not Work Leadership Follows the True North of their Moral Compass Leadership isn t about Being the Boss Leadership is about Embracing Being a Leader Leadership is about Championing what s Important

10 What Are You A Champion Of?

11 What Are You A Champion Of? Leadership is About Championing Certain Core Principles of... Responding Empathy Self-Evaluation Discipline Moving the Strategy Bar Enthusiasm Culture Challenging Legacy Thinking

12 Champion of Responding Being Responsive Do What You Say You re Going To Do Eat the Frog Mentality Monkey See A Matter of Choice When You Say You re Going To Do It Do the Things You Hate First Monkey Do

13 Champion of Empathy Can You Recognize the Emotions of Others Stay Connected and Grounded The No. 1 Rule

14 Champion of Self-Evaluation Look in the Mirror What Can You Do Better? and Do It Frequently Seek Feedback from Those Who Will Tell You the Truth Never Stop Learning You Never Have It Figured Out

15 Champion of Discipline The Pain of Discipline We Must Hold Ourselves and Others Accountable OR the Pain of Regret Know & Utilize the Lead Bulls Without Discipline, there is Chaos

16 Champion of Moving the Strategy Bar Stay Ahead of the Strategy Curve You Must Sell the Strategies to Your Team Make Sure the Team Restates the Strategy What Strategies Can You Take Back to the Store?

17 Champion of Enthusiasm Act It... You Will Become a Magnet for Others! Before You Can Be It Enthusiasm Shows Your PASSION Reach Out and High Five Someone Today!

18 Champion of Culture Leadership is the Catalyst for Creating a Defining Culture Culture is... What Separates One Group from Another Culture is... What Defeats All Enemies, Strategy, Tactics Culture is... What Gets You Where You Want To Go Culture is... Communication Just because you desire it, doesn t make it so Your ability to communicate will determine the success or failure of the culture you desire Culture is... A Living, Breathing Thing that Has To Be Watered and Fed Every Day Leaders Do Not Sacrifice Culture for Results If You Sacrifice Culture, You Are Selling Your Soul Be A Champion of Your Culture!

19 Champion of Eliminating Legacy Thinking America s Leading Futurist Describes Legacy Thinking Viewing the present and future through thoughts from the past.

20 Legacy Thinking Legacy Thinking Wins because Leaders must get RESULTS NOW! RESULTS Legacy Thinking is COMFORTABLE Legacy Thinking is what WE KNOW Legacy Thinking IGNORES Changes taking place Outside the Organization Legacy Thinking Reduces our Fear of the UNKNOWN

21 How Leaders Defy Legacy Thinking Leaders Thrive on Challenging the Status Quo Leaders say This is difficult, Let s Do It Leaders Don t Panic and Never Follow the Crowd If it ain t broke, Break It and Fix It... AGAIN!

22 Leading With Used Cars

23 Used Car Strategies Press It Press It If You Time to Attack Had a Million Dollars

24 Used Car Strategy

25 The Race To The Bottom How many of you struggle to make gross on those units over 60 days old? Is it fair to say the grosses on 45- to 60-day old units pull your average down? Have you analyzed the gross on a 20-day old car versus a 45- to 60+-day old car?

26 Two Simple Questions Are You Maximizing the Used Car Opportunities in Your Market? How Does That Relate to Maximizing Your New Car Opportunities?

27 It s A Fact! The Used Car Department is the Key to Doing New and Used Car Retail Volume Most Used Car Managers Are Trained by Other Used Car Managers and Local Wholesalers With Such Training, They are Asked to Manage Millions of Dollars of Inventory

28 New Car and Used Car Sales New Used Breakdown Franchise Independent Private

29 Used Car Strategy A Million Dollars!

30 Short-Term Stocks This Ain t No Mutual Fund! Used Car Sales Price Used Car Gross Profit Cost/ Investment = Rate of Return on Used Car Stock Number of Days Stock Held x Annualized = GROI (Gross Return on Investment) Example 1 $14,500 $2,500 $12,000 = 20.8% 25 x 14.6 = 303% Example 2 $14,500 $2,500 $12,000 = 20.8% 60 x 6.8 = 141% Example 3 $30,000 $2,500 $27,500 = 9% 25 x 14.6 = 131% Example 4 $30,000 $2,500 $27,500 = 9% 60 x 6.8 = 61.2%

31 Famous Last Words I Don t Want to Get Rid of It Because I Can t Replace It Front Gross Cost of Sale + Recon Rate of Return Days in Stock Annualized Turns per Year ROI 1 $1,200 $15, % % 2 $2,900 $15, % % 3 $1,200 $15, % % 4 $1,200 $15, % % 5 $4,300 $15, % % Keeping a Unit Because You Can t Replace It Is a Bad Business Model! FixROI

32 Fix ROI $1,500 $1,500 $12,000 $12, Press to Calculate ROI Press to Calculate ROI 12.5% % 12.5% %

33 ROI Reality

34 Tracking 30/30 See Sample In Your Handout (bottom of page 13)

35 Track 30/30 See Sample In Your Handout (bottom of page 13)

36 Track 30/30 See Sample In Your Handout (bottom of page 13)

37 Track 30/30 See Sample In Your Handout (bottom of page 13)

38 Used Car Strategy

39 Pressing Down Retail Sales - Gross Profit = Cost of Sales Retailed Units Jan - = = Feb - = = Mar - = = Apr - = = May - = = Jun - = = Jul - = = Aug - = = Sep - = = Oct - = = Nov - = = Dec - = = Totals: - = = Yearly Avg.: - = = = Avg. Cost per Unit Sold PRESS DOWN

40 Do This Daily Logout Contact Us Privacy Policy Home Scoreboard Appraisals Sales Wholesalers Inventory Aging Personal Profile Dealership Profile Find Inventory Summary Export to Excel Type Retail Wholesale Totals Units % 98 2 $$$ $1,382,075 $17,905 $1,400,080 % 98 2 Average Age Aging of Retail Units Days Units % $$$ % Average Cost/Unit $75,088 5 $9, $818, $14, $89,095 6 $17, $202, $20, $197, $24,679 Totals 86 $1,382,075 $16,070 Logout Contact Us Privacy Policy Home 2006 vauto,inc. V2.8.0

41 Used Car Strategy

42 Do This Daily... Scoreboard Appraisals Sales Wholesalers Inventory Aging Personal Profile Dealership Profile *Red highlighted vehicles indicated that the vehicle has not gone through the mpower Auto appraisal process. Find Logout Contact Us Privacy Policy Home Inventory Summary Avg. # Days in Stock: 31 Total Water: $30,754 Water %: 2.76 Avg. Score: Avg. Water Per Unit: $277

43 Investment Detail

44 Used Car Strategy Look to Book Acquisition Turn Trade Walk Think Retail Assign Expiration Date

45 Life Cycle Factors ACQUISITION TO SHOP POSTED ON INTERNET SHOP AND PARTS ISSUES PRICING STRATEGIES NOT WILLING TO REROUTE GROSS PROFIT AVERAGES PHOTOS QUALITY AND QUANTITY LACK OF ACCOUNTABILITY

46 The Results Slow Turn Gross Poor ROI Aging Attitudes Volume Ability to Trade at the Door

47 EWR: Early Warning Radar

48 Enact EWR When... Over Appraised Make-a-Deal Car Odd Equipment Customer Trade Out Potentially Large Repair Bill High Dollar Vehicle Bad Model For Your Store Bad Color No Experience High Miles CarFax Report Gut Feeling (Horse vs. Zebra)

49 Suggested Expiration Dates EWR 20 Days Auction Purchase Cars 30 Days Trade-Ins & Consumer Acquisitions 45 Days

50 If You Are On A 60-Day Turn... IT S NOT ABOUT IT IS ABOUT How Old a Unit Happens to Be How Many Days It Has Left in the Life Cycle A 45-Day Old Unit Is Not 45 Days Old It Has 15 Days to Go

51 Life Cycle Management Life Cycle Management... Starts with the Trade Walk Creates a Sense of Urgency Intensity Goes Way Up Aging Occurs on Day One --- Not Day 61 A Very Simple Discipline What Will Life Cycle Management... Do For You? Control Your Destiny Faster Overall Turn Volume Goes Up Reduces Wholesale Losses Gross Goes Up

52 Questions For You! Are you Managing or Leading? What are you a Champion of? Can you Unlock the Legacy Thinking that s holding you back? How much of your Market are you Missing? What s the Value of Speed? Should you Track ROI and 30/30? What s the Benefit of getting your Average Cost down? How much better off would you be by Attacking the 10 Most Expensive? Can you make Life Cycle Management work for you?

53 Questions 53

54 The Big Easy Leadership Skills & Used Car #NADA100 Tommy Gibbs President Tommy Gibbs & Associates Treasure Island, FL Please visit the NADA Pavilion in the Expo Hall for information on accessing electronic versions of this presentation and the accompanying handout materials, and to order the workshop video recording.