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ProfitTime in Practice: ‘The Gambler’ Gives A Lesson

“You’re saying the same thing Kenny Rogers did in that song, ‘The Gambler.’”

A used vehicle manager made this observation after I finished talking about how Provision ProfitTime offers a better, new way forward for dealers to manage the investment value of their used vehicles in today’s margin-compressed market.

I asked the manager what he meant, particularly since I’ve long made the case that dealers shouldn’t be speculators, but retailers.

The song talks about knowing when to hold ‘em, and knowing when to fold ‘em, the manager said. He viewed ProfitTime’s investment score and Bronze to Platinum precious metal designations as a better way to know exactly what to do with every car, from the moment you acquire it to the price(s) you set for its retail sale.

That’s interesting, I told him. I added that while I remembered the tune, it’d been years since I heard it.

On the way home, I played the tune on Spotify and found myself singing along to the chorus:

You’ve got to know when to hold ’em
Know when to fold ’em
Know when to walk away
And know when to run
You never count your money
When you’re sittin’ at the table
There’ll be time enough for countin’
When the dealin’s done

Indeed, I thought, the manager made an astute point. ProfitTime does tell you the very thing that you’d never really know without it—the cars that hold sufficient investment value and allow you to hold for gross, and the cars you should sell fast because they lack a meaningful gross opportunity.

The listen and lyrics also made me think the song offers another relevant take-away for dealers in today’s market: Perhaps the best time to count the money is when all the dealin’—from the trade-in appraisal value, to the payment and purchase price, to the F&I and the reconditioning RO—is done.

The post ProfitTime in Practice: ‘The Gambler’ Gives A Lesson appeared first on Dale Pollak.

About the Author

Dale Pollak serves as executive vice president for Cox Automotive, a position he’s held since the company he founded, vAuto, became part of the Cox family in 2010. At Cox, Dale helps drive integrated innovation across the company’s auction, media and software divisions to help dealers increase efficiencies, sales volumes and profitability. The latest innovation, Provision ProfitTime™, debuted at the 2019 NADA convention, helping dealers embrace an investment value–based used vehicle management methodology. Prior to Cox, Dale led vAuto to become the premier inventory management solution provider for franchise and independent dealers. Dale pioneered the Velocity Method of Management®, which has been adopted by thousands of dealers. Dale has written five books, the latest of which, “Gross Deception,” was released in 2019.

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