20 Groups — In Good Times and In Challenging Times

feature

20 Groups — In Good Times and In Challenging Times

by TIADA Staff

You have probably heard the term before, but for those of you who are new to the concept, a 20 Group consists of approximately 15-20 dealers from different geographical areas that come together several times a year to exchange best practices on every aspect of the independent dealer business. These dealers are guided and coached by an industry expert called the moderator and use benchmark data as their foundation. There are 20 Groups for BHPH, Retail, LHPH and also 20 Groups with a narrower focus such as Finance, Collections, Service, Accounting, etc. “Groups are structured to accommodate pretty much any size, time in business, DMS or model,” said Brent Carmichael, a long-time 20 Groups moderator with NCM Associates, a company that has over 5,000 group members in 465 different groups. “We have even developed a virtual 20 Group meeting product for groups that would prefer not to travel at this time,” added Carmichael.

It is during these challenging times that many dealers have turned to their 20 Groups family for continuous support. “I recall the first meeting I had in Sarasota, FL,” says Greg Zak with Dixon Motors in Houston. “There were about 10 of us, everyone in a similar situation in that we all needed that something else in our business because business wasn’t clicking the way that it should. That first 20 Group has been a family to me for nearly 15 years,” Zak added.

With travel restrictions due to COVID-19 many 20 Group meetings are now taking place via online platforms and in quite a different format. Instead of the one to three full days, they have adapted according to the needs. “In the early stages of the pandemic our 20 Group was meeting for two to three hours every two weeks,” said Jon Turan with MCMC in Burleson, a dealership that has participated in 20 Groups since

1996. Russell Moore with Top Notch Used Cars in

Conroe misses the face-to-face time with his closeknit group of 5 years, but they continue to communicate on a regular basis to share knowledge. “I have [received] so many benefits from the group; one of the biggest is my wonderful members that I lean on daily for advice,” Russell commented.

And it seems that many dealers agree on the benefits a 20 Group can provide for their dealership as long as there is a full commitment not only to

actively participate but also to implement the learnings when you return to your dealership. Brad Kalivoda with Fiesta Motors in Lubbock refers to it as the accountability factor: “Knowing that you have verbally expressed your plans to move your company forward to a group of peers helps keep you motivated to accomplish those tasks and report back the results at the next meeting, therefore driving results.”

This is a sentiment shared by longtime 20 Group participants as well as new ones like Kaleb Bryan with Auto Cave in Dallas who joined a group less than a year ago because he was looking to gain wisdom and insight from other dealers who have been in business longer. Bryan expressed that, “No matter how big or small your operation may be, if you come with an open mind, you will leave with valuable information that can directly impact the financial result of your operation. The choice is yours on how you utilize the wisdom gained.”

Blake Ingram with Auto City in Dallas first joined a group 24 years ago as he was coming off one of his worst years in business and felt like he needed to expand his knowledge by getting out of his bubble. “Breaking out of that bubble helps you find solutions you wouldn’t have thought of otherwise. Even after 24 years, I still find new ideas and strategies to tackle this ever-changing business,” shared Ingram.

Despite the benefits, 20 Groups are not for everyone. Some dealers feel they will be sharing too many secrets and would rather hire consultants to come in and focus specifically on their dealership. Many dealers prefer to spend their time and money sending their staff to education that addresses precise issues as they come up. 20 Groups are more of a holistic approach to problem solving at the dealership.

Depending on the 20 Group you belong to it can also be quite costly and time consuming to participate as some groups include trips to lavish locations and, being away from the dealership for several days at a time, several times a year, might also not be feasible for many dealers.

Joining a 20 Group does not mean you make a lifetime commitment and you might find out that breaking away is what your dealership needs at some point. “After many years with the same two groups we felt it had run it’s course. We had a very solid game plan and felt that leaving the office for up to six times a year was only distracting us from staying on course,” shared Kalivoda who recently decided to take a break from his groups. Greg Zak concurs, “Last year I decided to take a hiatus after 12 years of belonging to a group and it has given me the time to really work at my dealership and still put in practice all of the many things I’ve learned over the years.”

Nevertheless, participating in a 20 Group seems to be a common trait among many successful dealers. Chuck Bonanno, a 20 Group moderator with NIADA, gave us an example of the power of 20 Groups pointing out that while 30-35% of small businesses in general got PPP loans, 97% of 20 Group members were able to secure one. According to Bonanno, “There is no better time to join than during uncertain and challenging times. We are in the midst of unique and challenging times and we see more of the same for our future; with the pandemic, potential long-term recession and potential changes in Washington, D.C., there will be challenges and opportunities and we want our 20 Group members to be prepared in any situation.”

Jon Turan agrees saying “this may very well be the best time ever to join one as the pandemic has already drastically changed most independent dealers ‘models’ since March and without question will continue to have effects on our ‘models’ for the foreseeable future. Joining a 20 Group will very likely open your eyes to the weak spots in your business while, at the same time, help you to improve both your efficiencies and profitability.”