The Mechanism That Will Thin the Herd in Our Industry
I was going to try and pass off that term as my own, but it’s got too much flare and intelligence which makes the ruse damn near impossible to pull off! So yes, my new BFF ChatGPT 4.0 provided me with this information, and it is a spot-on way to describe the future of our industry.
I am pretty sure that most of us understand the premise behind Darwin’s idea that as the environment changes, only the species that can adapt to the new conditions will continue surviving. How apropos that the natural laws of business mimic our biological environment. Makes sense though, survival of the fittest and all that jazz.
One last thing before the meat and potatoes. I thought too much about using the term “thinning the herd” in the subtitle because people would think it to be too offensive. Like, “I can’t believe he would be so thoughtless and rude, these are people’s businesses and livelihood!” and then I thought, how about this:
Get yourself a ticket to the greatest show on earth, be right there in the middle of the action while a completely unsuspecting Dealer gets their shorts eaten by AI! Be sure to cover the eyes of your kids because it won’t be pretty! Sadly, that was too long to be a sub-title and my Editor-in-Chief poopooed it 😊
Are we good on the groundwork now? So here is the deal…and yes, I will say it over and over again (Apparently “deafness” is common throughout our industry), Technology is going to play a pivotal role in what business species thrives and which ones may not survive.
Those that are determined to embrace technology and incorporate it into their culture, operations, and strategies are going to be more likely to outperform their competitors that don’t. The story doesn’t just end with technology, but a heavy dose of open-mindedness as well. Because guess what? The new world isn’t going to be the same Dealer model on steroids. It’s going to be the transformation to new models and mindsets that can take advantage of all the doors that will open because of technology.
Pretty simple right? Buzz! Wrong….
The concept is easy to understand but the execution of it is quite another thing. Why? Because it is inherent in the culture of our industry to resist change and be slow to adapt when you do finally decide to do it. It’s ok if you have 35,000 other Dealers pretty much doing the same thing, but that’s not how it is going to shake out in the future.
I already see owners who understand what a tremendous opportunity they have in front of them and are on the move to build better models. The most common questions I get from these folks, “What do I need to do to scale up? I want to go from 5 or 10 million up to 25 million plus”.
I have been in this Industry longer than I’d like to admit and I have never seen this many Dealers talking about some serious growth. If these Dealers are successful in reaching their goals, and I’m betting they will, what impact will it have on the rest of the Dealer network? Well let’s do some math:
Say the average Dealer does $2 Million a year. For everyone hell-bent on growing $20 million, it will equate to ten “regular” dealers. Say I’m rude but that herd is going to thin a lot faster than most people think. That’s because none of us have ever seen how quickly AI can change things. Have you thought about it?
Let’s close this puppy down and leave some homework on the table. BTW, I am not just writing these blogs as a poor attempt at entertainment. My goal is to help the people the people that are open to change and actually plan to do something about it. So here it is and it’s only one thing. Bring your team together and discuss the current technologies that you are using. Then ask this question of each program:
Does the software have the ability to integrate with other software?
Draw your conclusions from there and put together an action plan that will only include systems that play well with others!
Let’s get to work!
If you need help, I’m here! Feel free to click on my Calendly link to set up a 20 minute “jam” session.