EP028: - The Velocity of Trust – Chuck Scalies & John Gavin

[00:00:00] Hey everybody, welcome to True Confessions of a Car Guy. My name is John Gavin. I decided to do this because I've been in the car business a little over 40 years. And as I've been going through all those 40 years, I'm not proud of this fact, but I've worked at 49 different dealers. Over those 40 plus years, I have seen some of the craziest stuff happen.

[00:00:29] Good Dad, The Ugly, you name it. I've worked with some real characters. I no longer work for any dealer, so I can say whatever the fuck I want, when I want, about what I want. I'm gonna do a lot of the truth of what happened in the car business. I mean there's stuff that I can tell you that women took their clothes off to discount in the dealership. Literally, they took their clothes off and offered sex to get discounts. I mean there's crazy shit that went on in the car business.

[00:00:56] That was unbelievable that nobody else would believe. Dumbest fuck. So, I think there's a lot more going on in this industry. But we're car dumb. It's a different type of dumb. Did you put the disclaimer up that says that we're only allowed to have so many curses in one session? I don't need you. I've never needed anybody. You can go fuck yourself and let's see how your store does in the next six months. I shit my pants. I gotta go. This is the guy from the sales floor.

[00:01:26] I shit my pants. I gotta go. It's 831. He's running on the sales floor. Croak and choke. Croak and choke. That's right. I don't remember. Yes. Croak and choke. That's right. It was croak and choke. He goes, your car's on fire. Just like that. This guy went ancient. I had more balls than brains and he didn't, he had a little bit of brains and no balls. Would you believe my used car manager took a hundred milligram Viagra and stuck it in my coke can?

[00:01:57] Bro, I had a call out of work the next day because as soon as the washcloth hit it, and I thought I was gonna die. But if I'd have stayed longer, it would have killed me. Because all we did was party. It was just a nonstop party. And all you car guys and gals who are out there who got stories like mine, you want to send them in to me, I'd be more than happy to read them or have you on the show. Send it to confessionsofacarguy at gmail.com and we'll all laugh.

[00:02:26] You ought to print that on our show. Make that a fucking tidbit. That really happened. Welcome everybody to another episode of True Confessions of a Car Guy. With me in studio tonight is our host, John Gavin. And we have a very, very special guest with us today.

[00:02:56] Today we are joined by Chuck Scalise, a dealership executive, coach and author of The Velocity of Trust. But more importantly, he's someone who spent decades helping dealerships build stronger leaders, stronger cultures and better businesses. Chuck, welcome to True Confessions of a Car Guy. Gentlemen, thank you for having me. It's great to be here. All right. Well, thanks, Badgie.

[00:03:25] Chuck, as I was mentioning, I ordered your book, The Velocity of Trust. I started to read through it. It showed up today, so I didn't get to get through the whole book. But I've got through 55 pages. And before we get into your book, I want to ask a few questions. So where are you from? What part of the country are you from?

[00:03:52] I spent most of my time here in the greener Philadelphia area. I lived in New Jersey for about 10 years. I went to school in the center of the state, but I grew up here. I was actually technically born in the city. We moved to Delaware County. And I've been out here basically my entire life. Okay. And in your background, how long? You've been in the car business, correct? Is that where it all started? Was the car business to get there? Yeah, I was at a Ford dealership for seven years.

[00:04:21] I left November 1st of 1993, and I haven't had shovel snow since then and clean cars and move inventory. So I'm living a good life. Okay. So you've been out of the car business since 93. And what have you been consulting dealers since then? Yes, sir. Oh, okay. Gotcha. So I say you dedicate a book. The first five years I was out, I was not very good at what I did.

[00:04:46] Well, you know, as an ex-Cox employee, it's tough to get into a dealer unless they're paying you every month for something. They don't really want to talk to you unless they're paying you already. Then they want you all the time. But to start that, I can imagine that was very difficult. Yeah. You dedicated your book to your dad and your dad left you with a lot of great stuff. I mean, you know, my last name's Gavin. I'm adopted when I was in third grade.

[00:05:15] I'm really all Italian like you. Chuck Scalise, is your mom Italian also or no? Yes. Yes. Okay. So most of my relatives... Okay. Most of the relatives that came from Italy that are my family are in Succasana, New Jersey and Pittsburgh, PA. So that's where they kind of went. And I mean, outside of Pittsburgh, I can't tell you exactly what city because I don't remember.

[00:05:44] But when I, you know, so it looks like your dad instilled a lot of good things on how to treat people. And, you know, I've been in the car business since 1979 and selling cars since 82. And I've always hated the car business in the sense that we don't take care of the customer as best as we could.

[00:06:11] You know, it's all about the end of the day is how much we made, how many cars we sold. But even that's changed so much that you wrote a book about it. So it's a big change. How, when did you write the book? I mean, I know it came out in June, I think, but when did you write it? How long did it take you to write it? It actually didn't take me that long at all. I got on social media when Drew Perlman got on here.

[00:06:39] He wanted me to join some of his lives. It's not something that I'd ever done. I'm 62 years old. It's not an environment that I was accustomed to. But when I got in three or four months ago, I started hearing a lot of stuff, probably about delivered is what started this. And all the back and forth with all these guys getting pissed off at this guy, I sit here and say, wait a minute, he's not the problem. We're the problem. And that's what really, and I started writing some stuff before, but that's what really made

[00:07:06] me finish it because at the end of the day, the reason that people are paying him a thousand dollars a car is because they hate us and they hate this industry. And it's our fault. And at the last stage of my career, I really, I'm crazy enough to think that I can make a huge impact and get people to listen to me because my message is really, it's very sincere. Yeah. I read, like I said, I've read up to page 55, 56.

[00:07:33] And, you know, I've been in the car business for a long time. I don't know if you know this about me, but I worked at 55 dealers. You change my fucking pay. We'll play a leaf. There's nothing to talk about. I just go get a box and I'm gone. But keeping that in mind, I still would get 50 people who'd call me every month for a referral, you know, 50 people. Because I believe in taking care of the customer. We both, we got to make some money. They got to get a good deal.

[00:08:03] It's a fine line. So as I was reading through your book, I thought to myself, I mean, first of all, do you have any dealers actually following the book right now? Or has anybody been, has any dealer said, Hey, let's, let's do this. No, not yet. I literally, I literally, I literally just finished the operating system because the book is more, is more touchy feely than how to do it. So I then created a velocity of trust operating manual. I'm literally having a meeting on it this week.

[00:08:31] The message that I'm having with the dealer is they realized that this is a problem. And I was, I was speaking with a client about 10 days ago. And I said, you know, if they come in and if a customer would come into your office, Mr. Dealer, tell me what that process would look like. And he walked through it. You know, I pick up the phone again, they give a price, they take the car, they would go home. I said, well, then why doesn't it work like that on your sales floor? And it was aha moment for the dealer.

[00:08:55] I mean, it's all, and, and I wrote it in the beginning of the book, the customer, I hate when people say the customer change and the customer is different. Well, the customer has changed in this instance because 25 years ago, they did not have access to the information and they had to come to us to get the information. That paradigm is gone. And we haven't adjusted and everybody's an 85% of the dealers are still trying to shove customers into this old antiquated road to the sale box.

[00:09:24] And they hate us because of, and it's just, it's crazy to me because it's, it's backwards thinking. Yeah. I think back in 2015, I, I made a comment at a, at a meeting with Cox and back then, you know, it was like 200 people on a call. And I said, the dealer that's the most transparent is going to win this battle. Well, fast forward to 2020, I was completely wrong because dealers were not transparent at

[00:09:53] all. And they're still doing it today. You know, I hate to say it. I mean, I got to page 54 and or 53, maybe where you talk about changing the pay plan, because if you think about it, this is, I've said this before. This is what we offer a salesman. Come on in your, your salary. There isn't one. We're going to give you a draw of a couple hundred bucks, just enough to buy cigarettes.

[00:10:21] Basically, if you smoke and we're going to take it back, we're going to pay a commission, but we're going to pack a car, which is money. We're going to put onto the car and you don't get paid on that. We're going to pay a commission on that. As far as ours, look at the door. That's what we're open. If you're not here to deliver your car, we're going to take half your commission. Oh, and those three guys that sit up at that big desk high up like they're kings. The one's going to mother fuck you once a week.

[00:10:50] And it's because, you know, one of them is a drinker. One's a gambler once because that's what we drew. I mean, I've been in the car. We'd party with everybody. That's what it was. But and then insurance, you get that in three months. So you have a great concept that I just don't know. There's so much controlled about this. I mean, by inventory for one today. I mean, your your pay plan. What do you think a salesman should make based on your strategy here?

[00:11:20] What do you think? Every 12 cars. That's a guy 12 cars. What's he going to make? Well, not not what they'd like to make. They can make six digits if they sell 20 cars a month. Part of the problem with our business is that we take four hours to do a deal. And the reason we take four hours to deal with those because we have barriers all over the place. If I remove the pricing problem, there's not a dealer in the country that wouldn't sell a car at market price. What's the market doing? OK, I'm going to be completely and totally satisfied. So let's just assume we start there.

[00:11:49] We're going to be a single price dealer and have a single point of contact. I've been taken logistically that person that could only do 12 cars because each one takes a week and a half to do when I do 12 at four and a half hours. That salesperson now can go ahead and do a delivery in an hour and a half, maybe two hours. So their productivity is better.

[00:12:07] So by paying these guys a salary and then paying them based off of customer satisfaction and posting on social media, they can make 100 to $125,000 a year and actually be focused on the customer experience. Hey, welcome to the dealership today. Can I ask what your goals or ambitions today? Or what do you want to accomplish today? And how much time do you have available? Great. Come with me. That's a different greed. It came on the app.

[00:12:36] We'll sit down, blah, blah, blah, blah, blah. And then I can't get a price and I can't get an appraisal. And then I give you a price and I first wear you and it's too high. And we're going to wind up at market price anyway at the end of the day. So why not? That's the biggest issue is that the pricing isn't transparent. And they're willing to pay guys $1,000 to do go through this thing with them in advocates or brokers because they don't want to come into us.

[00:13:01] And in my operating system, I'll email it to you after the fact, but I changed the names of everybody. It's client advisors, launch advisors, which is FNI, customer experience leaders, which are sales managers and customer experience director, which is the sales manager. One of the reasons that we have a problem hiring people in this business is 93% of Americans hate car salespeople.

[00:13:27] So I put an ad in the paper for a car salesperson and 100% of the people see that 93% of them hate us. Why would I go into a business to be a car sales? If I change the name from car sales and the client advisor, that's a different idea now in the customer's head. And when I'm interviewing somebody, your job is to meet the customer where they are sitting down at your desk, be non-confrontational. Here's the pricing. And I want you to do the whole deal on your desk because the manager can control that from behind the scenes.

[00:13:56] We have software stacks that will do this right now today. Yeah, I totally agree with you on this. The problem that I see is it all starts with that pay plan part because we can call them client advisor. We can call them Colonel Sanders. We can call them whatever we want. If they now your pay plan would I think an average 12 car guy makes 85 to 100 grand under this is what I think. And I think that's fair for 12 cars a month. Yeah, I really do. So I like the pay plan.

[00:14:24] The problem that I see is now you talk about the finance department. Every car dealer in the country right now is living off that back end, the finance department and now upselling service. So if a guy doesn't do 2200 plus a copy, they're looking for somebody else. So they're forcing this guy into a corner because he's got to sell stuff that they don't need or want, but he's still got to push it because if he doesn't, he's going to be out of a job.

[00:14:54] So I really think when you're talking to these owners, I think it's got to be a different sale on the sense that we're selling the future, not today. Because this is like, you know, I don't know if you know, but Dale Pollack came out with a book called velocity. So velocity was about selling cars, turning them.

[00:15:19] And all of a sudden, fast forward to 2000 and maybe 16, we went from velocity to profit time. Now we don't sell fast. Now we sell, we make what each car stands on its own, basically. So you'd have to do the same thing with owners, I think, if they follow this, where they have to look at these guys.

[00:15:40] And if you can get a good quality guy or girl and you pay them a salary and you give them a life and you give them something, because what you're talking about is you're right. You got client advisor, salesperson, whatever, they show up and they show up to your place as a car dealer and they go up to ABC accounting and they got two different experiences of how that interview went. I mean, car guys aren't exactly educated.

[00:16:08] You know, they're not college grads. I don't have any Harvard guys working there, right? So it's a whole different atmosphere. So, but you're on to something here. You really are. I wish I would love to have a few dealers take a look. And I think you're going to appeal mostly to the guy 35 to 45, those owners. I think they're going to get it. That's who I believe. I don't know if the older guys will.

[00:16:36] I think the Carvana thing has really got people on edge. I think the FTC really has people on edge. Dealers admit that they don't train their people. They don't really know how to do it. The problem with paying on gross profit is it instantaneously become confrontational with the customer. Sure. So if I remove that barrier for the salesperson, the biggest thing that's the problem of the back and forth.

[00:17:00] And when I sent this book to my brother, who's purchased many cars, every time I go there, they have to stop and they have to go talk to their manager. It really upsets me. I don't understand why we have to do that anymore. I just don't. If I've structured it up front and I've trained the people correctly on how to take care of the customer, then everything's okay. So I'm going to give – and here's my pushback.

[00:17:18] If Chick-fil-A can create a sales system, selling chicken, where everybody does the same thing and it's a hospitality play, just like Starbucks is a hospitality play, and these guys are not making a lot of money, we've chosen to take the path of least resistance in this business and not educate and training and coaching these people on the metrics that truly matter. Yeah. And we can do that if we make a decision to do that because the math is going to be the math. If I'm at market price, it's going to be what it is.

[00:17:47] And I can make the same argument on F&I as well. But I'm not going to have the one deal that's a $4,000 back end and another deal that's a $2,000 back end and a $10,000 back end because I have a laydown in front of them. Again, that experience is computational. The customer doesn't want to go into it. We've done a great job of convincing them of all the things that they don't like in this business in the four years I've been in it. And you've been in it longer than me. Absolutely.

[00:18:11] It's just you have manufacturers today who have decided that we're going to run lean and mean because gross is our way up. Think of Cadillac. Think of Toyota. You've only got like four lines that have inventory, right? You got Kia. You got Hyundai. You got CDJR, which can't keep a car out of service for more than an hour. And who else? Ford, maybe. And Nissan. Nissan. They got inventory.

[00:18:38] And the rest of these, if we try to get to where we start to treat the customer like a citizen, how they should be, and do everything right, now we got a problem with how many cars we are actually going to get to keep the service, all these guys fed, properly. That's why they have the one guy at each store that does 12 cars at $2,000 a car. He's the bone doctor or whatever he is. That guy would be eliminated.

[00:19:08] Under the new structure. He would be gone. He wouldn't stand for this. He would definitely be gone, which I'm all for it in a sense. It's great you got that one person who has 30 people that come in and see him and everybody, but that also can be a problem. I was with a group recently that was a problem. And when I say a problem, it's just you got dibs on every customer. Guy was there 49 years. 49 years at a small store.

[00:19:38] So you bring up a lot of great points. When you talk about the bonus structure, though, I got a little lost in there. I don't know what your thoughts were on how do you pay the finance department. I mean, sales is great. I get that. But how do you pay the finance guys through this? Because that's going to be a slippery slope. The dealer is going to have to make a decision as to how they want finance to go long term.

[00:20:07] And if I've got a single point of contact and I've spoken to a couple of these guys here as I was putting all this stuff together, these guys are doing everything, including F&I. And then they're taking it and giving it to somebody just to clean up the paperwork. So the salesperson is presenting the F&I products that now that they've established trust in the purchase, now they're giving choices and options to the customer. They're controlling the margin internally as to where I'm going to get on a service contract and gap and all this other stuff.

[00:20:34] And they're putting it on the iPad and they say, let me explain to you what all these things are. You don't have to get anything. Pick the things that you want. If you want more explanation, I'd be more than happy to give them to you. But it's a much different conversation than you have a three or 36,000 mile bumper to bumper warranty on your car. Let me explain to you how you can protect your investment. It's just it's so old fashioned. People are used to Amazon and point and click and and getting Grubhub.

[00:21:02] And they're used to paying a premium to have it to them. And Carbomb is making all the money in the world on these cars because it's easy and it's convenient. Price is not the driving factor in the purchase for the customers. Americans love to spend money. If they didn't, they wouldn't have $20,000 in credit card debt.

[00:21:24] So we're kind of talking salesman takes the car from cradle to grave is probably the best method to make this all work. Right. Because, I mean, Mercado Group, are you familiar with the Mercado Group? They're in Florida. They're in they're all over now. But I'm pretty sure they're already starting that cradle to grave process. Because I really do think that works great. And you take a lot of you take a lot of heat off the customer in that four hour wait.

[00:21:53] I mean, you know, I worked for a BMW store in downtown Chicago. And, you know, I had the same 15 salespeople the whole time I was there, nine years. I never had anybody in the box more than nine minutes. I'd pride myself on it. And I'd still do $3,000 a copy. Because just like you said, a customer, they know what they want. If you're knowledgeable about what they need, you can make some money. So I don't understand why it takes two hours.

[00:22:18] But that's part of the problem with this structure if you don't sell the back end part to be cradle to grave. Because now the finance guy, he's responsible to make $2,400 a copy. So he's got to take his time. He's got to load the whole deal. And you brought that up in your book about how many times we repeat the same fucking process with the customer. They do it online. They come in. The salesman does it. The finance guy does it. We do it over and over.

[00:22:50] Here's the thing that I find the most interesting. We sold X amount of cars this month. And nobody ever says, how many didn't we sell? Yeah. And how many didn't we sell because of our process or our people or for all of the various reasons that customers are going to say no and never come back? Or I won't give you my best price unless you're coming to the dealership today.

[00:23:11] We throw more money out than we actually sell because we're so confrontational and combative with the people that we're supposed to embrace and make feel warm and fuzzy. And then we have everything in this business is silos. So sales and service are not connected. When you get further on to the chapter 13, I'd love to speak with you again because I married the two of them together. The guy in Cummings, Georgia at Beaver Toyota said something two months ago I've never heard anybody say in my entire life.

[00:23:41] Patrick Arnaud. Every customer to me is a $27,000 lifetime value. Nobody and I've been in some really big rooms with some really smart people. Nobody has never played the single customer as an annuity worth focused on everything we got. How do I get $27,000 out of every customer? And this guy went from 150 cars a month to 700 while doing it.

[00:24:09] You know, the other guy, Chris Slade, another brilliant guy. He's the first person I ever said in this business used the term logistics. Well, if I can pull down all these barriers and make this process smooth and I do more with my existing staff or less. Again, 40 years in the business. I've never heard lifetime value of a customer. Never heard anybody say logistics about car sales. You're listening to True Confessions of a Car Guy.

[00:24:42] Yeah, I don't think I've ever had a lifetime sales pitch to me. I have had a value put on a customer many times. But logistics, depending on how we're using it, I don't think I've ever had it used in the sales. And I think you hit on a big, big nail, though. We throw out more money than we take in on a daily basis.

[00:25:04] But that's because we have, again, uneducated guys at the desk in the market or their pay plan is based strictly on gross. So they're not going to take that short deal, especially if you're at one of those places like Toyota, Cadillac or et cetera. But Chevy, GMC has no inventory. So you've got to make that same nut on half the amount of cars.

[00:25:30] So that's why you're shortchanging 50% of the deals. And that's been a problem since being a time in the car business, which I steal everything. It goes down to, and this is, you know, I give my father credit for this. The function of every business is to create satisfied customers. The purpose is to make money. You can't, and most of us in this business are confused where it's making money and then the customer. We've been talking about QCP, CSI, the voice of the customer for the 40 years that I've been in this business.

[00:26:00] And it's nothing more than lip service. And the dealers that are taking care of the customer are the ones that are really reaping rewards now because they come back to service and come back to service and come back to service. And that service department gives everybody a loaner car because they know if they give them a loaner car, they're going to come back another time. Even if it's for a $60 oil change, they want the customer to come back because we realize how much money we're making in fixed operations compared to sales. But we don't, it's not about the customer. And that's the issue.

[00:26:29] If we make it about the customer, we're going to change the way they react to people. If it's your mother or your, it's a brave nun, John, how are you going to handle them? So why aren't we handling everybody's? I think one of the, you know, again, I've been around a long time. I probably hired 5,000 and fired 10,000. But the only thing I kind of tell salespeople is to treat every one of them like your friend because they can, they know when you're bullshitting. They know when you don't know.

[00:26:59] So treat them like they're your friend. And we don't do that anymore in the car business. I mean, I, I've been in stores. I don't even see guys, managers get up anymore and go talk to the customer. They don't do that. The salespeople don't, they're not, like you said, they're not trained. I mean, that's a big, big problem right now, but there's so much uncertainty, I think, with price of cars at sale at the auctions, you know, inventory period.

[00:27:25] And, you know, just life itself that that's on the back burner every month. All they want to know is how much did they make. That's all that dealers are going after, except for these younger. I like these young guns, you know, the, the, the Murgados. I mean, he's not exactly young, young, but he's newer to being a mega dealer and he's really doing a lot of things. Right. Not, not that he's my friend or anything about it.

[00:27:50] It's just one I noticed who's doing a lot of good things, but I noticed that these dealers who are, you know, third generation, fourth generation are looking at this kind of idea of how to take care of the customer. That without the customer, we're not here, you know, without them, we've got nothing. So it starts right here. It starts right here.

[00:28:14] So, and I, you know, I worked for a guy who said, Tony Casello, Toyota, River Oaks, Toyota said the most important people we have are salespeople. They should make the most money. They're the ones who talk to the customer. And, you know, it's just not looked at like that. No, it's, it needs to change. So I would love to, I think we should do a two-parter because I want to finish the book. And if you're up for it, I'm up for it. And I would like to do a second half.

[00:28:44] I'm easy. I can interview or be interviewed. I am not shy and introverted by any stretch of the imagination. And the best part about all of this for social media, and my buddies will die today because I've been saying this now for about three months. I have literally worked more over the past four months than I probably have the past three years because I am so juiced about this. And the book is a labor of love. And as I was writing it, I couldn't figure out how to make money with it. And now that I developed an operating system, I figured out how to make money with it.

[00:29:13] But the dealers are primed for this conversation. You and I had customers that trusted us. And if we're that single point of contact and we bridge that divide and we built bridges and not barriers with the customer, when we go to the next step of disclosing what the F&I products are, it is a much different conversation because the customer now trusts me.

[00:29:37] And they're going to buy more at a higher margin, just like they would at Starbucks and Chick-fil-A and Grubhub because they trust us and they know what the experience is going to be. I know that taking care of the customer is the right thing to do. And we just have to embrace it because the guys that don't embrace it have a really, really stiff headwind coming against them.

[00:30:01] Because the Carvana is in this single point model is not going to go away and the tech stock's not going to go away. And at some point really soon, they're literally going to be able to point click and have it show up at every dealer across the country. And I don't know that that's five years out. It's coming. Yeah, I agree. That's what it is. Yeah. Yeah. Well, the other thing that I'm concerned about for dealers is this FTC.

[00:30:29] I guess the mailer that went out or the email that went out to the 97 dealers and how many things they've already had to change by putting prices online. But you either have to go to, you know, cradle the brain with one guy because so on. But the FTC is really like going after the dealers because all the guys are doing and girls are trying to upsell because they're forced into that situation by these pay plans.

[00:30:57] So as far as us, you know, these big changes coming. I mean, like you, I think this is going to happen in the next two years. I mean, I'm glad I'm retired. I would hate to have to start now. And if I did, I would have to start with this kind of methodology or this kind of process because I don't believe the old ways work at all except for that 40% of the deals that they make and they crush these people.

[00:31:26] And everybody's high five and then high gross and there's no inventory. So they got that as an excuse. So, OK, you want to get four to 10 instead of eight out of 10. OK, but I'm not a fan of that. I don't think that's survival. I don't think you're around five years from now, 10 years from now. So, but the consolidation is going to is going to continue.

[00:31:50] And we're going to get to a point where this becomes standard in our business and we're not going to be rating as poorly as Congress is. I firmly believe that these guys have these guys have a decision to make because the inventory issues aren't going to go away. The training issue is going to go away. The trying to attract people to this business isn't going to go away unless we change what we're doing. Now, the nice part about doing business with independent dealers at the end of the day is it's really the last bastion of pure capitalism that exists.

[00:32:18] And if you can make a mathematical argument to them, they'll do it. Now, is there going to be pain along the way? Yeah, because we got a lot of we got a lot of cavemen in this people. You know, that guy that's selling 25 cars a month getting used to pay on the gross. That's got to be addressed somewhere. Is that going to be a one off? Probably. But as I bring people in and I'm giving them a path to train on. Right. And how to treat the customer and questions to ask that are all customer centric and not me centric. I can we can change this business. It's a decision.

[00:32:47] We can change the managers. We can change the FMI department. We can we can literally have we can literally have a residual pay plan with quarterly bonuses for sales and service. If the customer buys a car and he gets an RO quarterly, I want to go ahead and I want to give the salesperson something and tie it back into sales because they're going to get that introduction in the service, which they don't do now. But I also want to tie the service advisor. And if they buy another car, I want you to get something out. It's not something I'm going to pay monthly.

[00:33:16] I believe we should pay a quarterly. Oh, my God. I got residual income coming in. Now, can I keep talent? They've got they've got 200, 400, 600, a thousand customers that they've sold over five years. Does that reason quarterly residual check mean something to them now? Yeah. Man, that changes the dynamic of this business. Yeah. It's the strong will survive and the strong will get better. And I and I see it because I see it in other industries.

[00:33:46] Yeah, I agree with you on so many points. When I first heard about you, I actually went and tried to watch a couple of your other shows. Unfortunately, I got the one where like you just started. I was like, I hope he's not scared to be on my show. And then because you've been talking to Badgie the whole time. This I think it was your very first one. And I don't I was waiting for the book. I thought it'd be here three days ago. Showed up today.

[00:34:13] So I have a ton of stuff still I want to talk about, but I don't like to do a show more than 30 minutes only because the viewer doesn't really stay on with us that long. So if you're good with it, I'm good with it. I'd like to finish up. I want to come back to this. Last question. What do you think about some business switching from in the near future where the manufacturer just cuts out some of these dealers?

[00:34:41] How do you think that you think that's going to happen in our next five years? I think I think I think the automotive lobby is too big and they have a state issue with franchise laws. I don't see it coming, at least while you and I are still working. Do I think it's going to come eventually? Yes. Can China do something with that? Probably as a new manufacturer. I think that they've fought it for 100 years. I don't know that they're going to lose it in the next five. I agree with you.

[00:35:10] The auto lobby is probably the meanest lobby that you can run into because they've been playing this game. They got an awful lot of power. Yeah. A long time they've been playing. I just get that question all the time because I hear about did you hear about the place in Denver? Did you hear about the dealer? I hear I must get that email. I don't know, 10 times a week. Do you think that my because like I said, I hired a lot of guys. So I get a lot of emails, a lot of phone calls. Do you think our jobs are in jeopardy as the manufacturer?

[00:35:40] No, I don't think so. Not for not. Not while I'm even. I don't work anymore. I am retired. So but not while I'm alive. I don't think it's going to happen while I'm alive. I got about 15, 20 good years left. I think that's about how long you guys got. So it was Chuck. I really enjoyed talking with you. I think it's going to be great. The next one. We're going to do a number two, Badgie. And we're going to do a part. We're going to do a part two probably next week. So look out for that.

[00:36:08] And part one of that really good conversation. For those of you who want to get the book, it's going to be in the comments section below. You'll be able to get a link to the book. Order it. And we'll see you again next time. Thanks, Chuck. Guys, thank you so much. You too. Bye-bye for joining in. Great to speak to you. Bye now.

[00:36:28] Thanks for listening to True Confessions of a Car Guy. Download this podcast on all your favorite podcast platforms and follow us online at trueconfessionsofacarguy.com. Bye now.