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Separating from the Herd

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In this day and age where more decisions are being made by a prearranged set of data, procedures and processes, fewer choices are left in the hands of our consumers and customers:

    • All of our companies purchase inventory from the same pools.

    • All of our inventory is listed via similar methods and platforms.

    • All of our customers are using a similar set of software that aggregates pricing and product options.

    • All of the insurance companies are measuring their MSOs on the same metrics.

For the vast majority of companies and consumers, we get caught blending into the herd simply trying to outrun our competition. As the old joke goes, a bear was chasing some hikers and one stopped to tie his shoes. What are you doing the other hiker asked, you can’t outrun a bear?  Of course, I can’t out run the bear, but I only have to out run you!

How do you win versus the herd when you beat each other up at the auction and you beat each other up on pricing in a continual race to the bottom? We hire the same employees who have been let go by other similar operations without stopping to think, I wonder why they left?



Yet, many of us are seeing companies in this highly competitive marketplace flourish. They pay more for their average employee and yet it cost them less as a percentage of income. They are able to hire people from outside the industry and integrate them in to a working culture and process designed for highly productive employees.

If you had to describe your processes and procedures, are they setup to compensate for bad or below average employees that you have to cajole into getting their job done? Or do you have a processes and procedures that require competent and engaged employees?

If you have the latter, at least it becomes transparent when an employee can’t fulfill their commitment that they are not up to the job. With the former, it doesn’t matter whether the employee is good or bad, they will all be dragged down by the same remedial process.

One reason why many hybrid or self-serve facilities are outproducing traditional full-service facilities is because they have replaced those low paying, frustrating, time consuming hires and positions with expensive yet highly productive equipment!!!! Isn’t that a novel idea? Paying more outright to be able to repeatedly and doggedly produce without interruption?

In fact, many of these companies understand how valuable these processes are that they have backups and redundancy for their equipment so they don’t encounter down time! How much down time do you have from dealing with poor, absent or constantly replaced employees?

This used to be an industry, where there was plenty of pasture for everyone. There were more cars available to buy and we were the only game in town in many respects. Now, the internet and technological advancements have made this not only a national game, but a global competition. Our parts and vehicles have value the world round.

Separating from the herd requires vision, investment, value and service.

This is true of the best sales people in our industry as well. Prices and inventory are largely fixed realities for most sales people. Yet the best understand that they compete on a variety of other values like timeliness, consistency and service.

The best owners and companies are typically early adapters of new opportunities like   pursuing new inventory, beta testing new technology, purchasing new equipment or tools.

The best purchasers seek out and prioritize relationships outside of traditional inventory sourcing. They bring more opportunities and flexibility to themselves.

The best managers and operators recognize team members who have potential for growth and greatness. They create room for their growth, challenge their potential and push them to produce.

Challenge yourselves. What employees draw most of your attention (good or bad)? What new opportunities have you opened up for your company? Are you investing or maintaining your company, equipment or employees?