Stop Chasing Shiny Objects—Start Sharpening Your Axe

In a digital age bursting with tools, platforms, and promises, used car dealers are often bombarded with shiny objects—those enticing new software solutions or digital tools that promise to solve every inventory, marketing, or sales challenge. The real issue isn’t a lack of software—it’s a lack of insight.

Let’s unpack the wisdom from the podcast episode and get to the core message: how dealers can increase gross profit and efficiency by focusing less on the flash and more on the fundamentals.

The Tool Belt Mentality: Software Isn’t the Savior

John Anderson shares a powerful analogy passed down from his mentor: a carpenter wears a tool belt, but he doesn’t use every tool all day. He uses the right tool for the right job—and only when necessary.

🛠️ “The carpenter doesn’t use his tape measure eight hours a day. He understands the purpose of each tool and uses it with intention.”

Many dealers fall into the trap of believing the next piece of software will be the magic bullet. Instead of chasing the next best thing, the message here is to deeply understand the tools you already have. Just like a carpenter doesn’t carry tools he doesn’t know how to use, you shouldn’t onboard platforms without proper training and application.

Sharpen the Ax: Efficiency Over Excitement

Renaldo Leonard adds another layer to the analogy with a classic lumberjack story: one lumberjack stops each day to sharpen his ax, and as a result, he outperforms his peer who chops nonstop with a dull blade.

💡 “If you don’t know how to apply your tools, you might as well be swinging a dull ax or using a hammer to chop down a tree.”

The actionable insight? Use downtime—or better yet, build time into your schedule—to sharpen your operational “ax” by learning how to use your tools better. Training, reviewing data insights, and calling platform providers for walkthroughs can create tremendous gains in efficiency and profitability.

Dealers Are Not Short on Software—They’re Short on Insight

A quote from the car dealership guy sparked the podcast discussion: “Dealers aren’t short on software. They’re short on insight.”

This is the heartbeat of Episode 27. Tools don’t create results. People who know how to use tools effectively do. Whether it’s your CRM, DMS, digital retailing platform, or inventory management system, it’s not enough to have them—you must master them.

Key Takeaway:

Pick up the phone. Call your providers. Ask for advanced training. Most will offer it for free. Insight starts with education.

Stop the Squirrel Syndrome: Prioritize What Matters

Chris and John talk about the “squirrel” effect—how easy it is to get distracted by tabs, notifications, and multi-tasking. Many managers are drowning in open tabs but failing to act on what actually moves inventory and drives gross.

🎯 “There’s a difference between what’s important and what’s urgent. A live customer on the floor is urgent. That report can wait.”

Set daily priorities. Acknowledge that distractions are real—but they’re robbing you of productivity. Stick to what’s mission-critical.

What Dealers Can Do Today to Increase Gross

Renaldo gave a striking real-world example: a dealer had a turn rate of 10 per year, but their lot-ready cars (priced, with a description and 16+ photos) had a turn rate of 26.

🚗 “If I just take my phone and shoot 16 photos the day a car hits the lot, I can double or triple my inventory turn.”

This simple action could mean the difference between a 45-day turn and a 14-day turn, impacting both holding costs and cash flow. What’s the cost of inefficiency? The average holding cost is ~$55 per vehicle, per day. That’s over $1,600 a month for a single unit.

Create a Scorecard: Know the Metrics That Matter

John references a powerful lesson from the book Traction: you need a scorecard—five to fifteen core metrics tracked weekly that give you a pulse on your business.

📊 “If you’re not measuring your age buckets, your lot-ready percentage, and your acquisition-to-retail timeline, you’re being reactive. That costs you money.”

Suggested scorecard metrics include:

• Average days to market
• Lot-ready percentage
• Inventory turn rate
• Age bucket distribution
• Cost-to-market and gross margin
• Daily holding cost

Don’t wait for your financial statement at month-end to course-correct. Be proactive.

Final Thoughts: It’s About Execution, Not Excuses

Whether you’re walking your lot every morning, following up on leads, or analyzing your photo-to-sale ratios, the takeaway from this episode is clear: do the basics better and get the most from the tools you already have.

🚨 “Be honest with yourself. Nobody in this business knows it all. If you’re bringing ego to the table, you’re edging greatness out.” – John Anderson

Action Steps for Dealers

1. Audit Your Software – List all tools you’re using. Are you and your team trained on each?
2. Call Your Reps – Get more than a login. Get insights and best practices.
3. Establish Daily Priorities – Know the difference between urgent (live customers) and important (admin tasks).
4. Track Key Metrics – Build a scorecard and review it weekly.
5. Sharpen Your Ax – Regular training and operational review will yield long-term gains.