An Addendum to John Skelton’s post on December 29, 2010“ I have a question, that stems from my reading a reply to a dE post Monday”

John I have tried to post these comments to your original post.  It keeps popping up that the post has exceeded 40,000 characters and will not accept the post.  According to Word this post has 3,596 characters.  I believe the 40,000 limit is for the whole post.  If that’s so I thought I would add my comments to a new post to keep it going if members still have an interest.  I hope this meets with your approval.   

 

To answer your questions and add additional comments, I do not know the percentage of dealers participating in 20 Groups or how many have joined.

 

As far as lowering used vehicle wholesale costs and it’s effect on the salesperson.  Any increase or decrease in cost will trickle down to the salesperson. A very basic simple example is shown.

 

Sale Price

10,000

 

10,000

 

 

 

 

Cost

8,000

 

8,000

 

 

 

 

Add:

 

 

 

Clean-up

100

 

100

Reconditioning

140

 

340

 

 

 

 

Total Adds

240

 

440

 

 

 

 

Gross Profit

1,760

 

1,560

 

 

 

 

Pack

500

 

500

 

 

 

 

Commissionable  Gross

1,260

 

1,060

 

 

 

 

Commission @ 30%

378

 

318

 

 

 

 

 

 

 

 

John Skelton stated: The percentage you calculated actually reflect a significant higher percentage of dealership personnel engaging with dE than what I’d thought.”

 

The percentage of dealership personnel engaging didn’t surprise me one bit and here’s why.

 

When I go back to pre-Internet days, Automotive News, Ward’s and other magazines were the main source of what was happening in the industry.  The magazines usually stayed in the dealer’s office and were not shared with others.  The Internet has changed all that.  As such, I can see folks in Dealerland who thirst for knowledge becoming members of dealerElite; especially those who are not at the executive level.  They may not be participating in discussions but I am sure many are monitoring the dialogue.  They now have their own Automotive News and Wards.

  

As a prelude to commenting on others who have commented on your post, I am excerpting the beginning of Chapter One from my book, DUH!.  I believe it will give meaning to what others have written.

 

  CHAPTER ONE

 

THE PROVERBIAL ROCK

 

“If you have always done it that way,

 it is probably wrong.”

Charles F. Kettering

  

Somewhere in every dealership, bar none, lurking fat, dumb and happy in the shadows is the growth stifling, suffocating, proverbial rock.  Nobody knows why it’s there or how it got there.  The reason for its being was forgotten eons ago.  I suppose at one time its existence was necessary, and “bang,” there it was and it’s still here.  I guess the best way to describe the rock is to ask:

 

The Proverbial Question:  Why do we do it that way?

The Proverbial Answer:  We have always done it that way.

 

Nancy Simmons said - “they don’t want to change! Please tell me it isn’t so.”    You hit it right on the head and yes Nancy, it is so.  I am sure there were many times when you left a manager meeting muttering to yourself – WHY?  On reflection it really was simple.

 

“Pa did it that way”.

 

Tom Wilson stated -“Many dealers subscribe to the theory that whatever 19 other people are doing is what I’m gonna’ do too.”  Amen to that. 

 

TRUE STORY

 

Mr. Beatemup:  Boss, the guys and gals want to know if we are going to be open Christmas Eve?

Dealer:  Call around and find out what other dealers are going to do.

Mr. Beatemup:  Well boss, it looks like 15 are going to be open until noon and 5 are going to be closed

Dealer:  Okay, were open till noon.

 

Bobby Compton wrote - “A different point of view: I know many outstanding Dealers, GM’ and etc., who are very involved in the day to day operations, leaving little time left for anything else!  Not an excuse, simply facts..”

 

I believe it was Iacocca who said, “If you want to get something done give it to someone who does not have time.”   The striver always finds a way.   

           

Craig Lockherd commented - “I feel strongly about what you said about Social Media and getting GOOD info out to dealers…and dE is full of great info, but there are only 4,500 or however many people here, on FB 550 million…”

 “ …sooo if more people here shared these types of discussions on other sites, Twitter, FB etc…volume works? 

 

Can we say Iacocca?

 

Have a good day.                  

 

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Comment by Douglas R Manley on January 7, 2011 at 10:34pm

Nancy, Tom, John

 

Sorry for taking so long to reply.  I had some minor surgery and being a whoosh when it comes to pain I ordered a “morphine drip” carryout and have been riding the updrafts and downdrafts of cirrus, cumulus, stratus and nimbus.

 

Anywho:

 

John either Doug or Douglas works. I did link to your facebook today.

 

Tom did ya know that back in the 80’s I spent a week at Riverside consulting for the Dagenais’.  They wanted to hire me but not being an outdoors person I said, thanks but no thanks.

 

Nancy, Right on.

 

Have a good day

Comment by NANCY SIMMONS on January 4, 2011 at 1:29pm

Incredible post!  Thanks so much to John for boldly starting it and to Doug for elaborating so eloquently with such precise data and candid insight! 

 

Now...the question is...How many will read this and reflect on the possibility they could fall under this category?  Not many, because those that are engaging here are the true leaders who know they don't always have all the answers!!!

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