The conversation covers a wide range of topics, including car prices, housing, car payments, autonomous driving, AI, and the impact of oil prices on the automotive industry. It also delves into the use of AI in the automotive industry and the need for adaptation and change to keep up with the evolving market.
Takeaways
Car prices and gas prices are impacting consumer behavior and vehicle preferences.
The use of AI in the automotive industry is crucial for staying ahead of market changes and customer demands.
Chapters
00:00 Impact of Car Prices and Gas Prices
05:53 The Rise of Autonomous Driving and AI in the Automotive Industry
21:14 Adaptation and Change in the Automotive Industry
29:09 The Future of EVs and the Impact of Oil Prices
"...their, their trucks and getting rid of them. then Prius is we're like five grand over sticker. you know w..."
Impact of Car Prices and Gas Prices
The Rise of Autonomous Driving and AI in the Automotive Industry
Adaptation and Change in the Automotive Industry
The Future of EVs and the Impact of Oil Prices
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Chris: All right, how you doing? It's Chris Martinez, Zach Fritz, ⁓ Automotive Informants. We go through ⁓ last week or this week's headlines we give you a real take, real operator take on how you can actually win in today's market based on hearing all this noise or what we actually see through this to understand how to pull and execute in any environment. Zach, how you doing,
Zach Fritz: You're doing pretty well. What about yourself?
Chris: I'm doing really good. You know, had some pretty good response last last episode, you know, but was at some of the new latest and greatest today, right. And it's funny because I initially saw this one about housing in the United States.
And then I looked and it was talking about how, how or how much you have to actually make in a, to buy a brand new home. And said, okay, well, let's, let's put the two and two together. So I did some research and found that, you know, what's it actually take to buy?
What do you, how much do have to make in every state to buy a new car? Cause as you know, new car prices have hit all time highs. I think the last estimate was $737 is the car. Every one in every five people, pay a thousand dollars or more a month on a new car.
And just getting kind of crazy. What do you think about that?
Zach Fritz: mean, $1,000 a month, in my perspective, is what it used to cost to own a Ferrari or a Lamborghini if you didn't have the money to pay cash. So, $1,000 a month, and I see what's on the road, what out there is exciting enough to justify $1,000 a month? That's my question, other than an exotic.
Chris: You Right? Well, it's just I'll tell you there's there's a lot of exciting cars for $1,000 a month. But still, it just it seems pretty, pretty high now, you know, I remember, you know, some Mercedes cars back in the day, the you could get some lease payments for 500 bucks, 600 bucks, and now those same lease payments are $1,000, you know, so I think when you see
Chris: what it actually costs across every state. For example, in the state of Hawaii, you have to make $165,000 a year just to afford a new car in California, 157,000. Florida's 107,000, Texas 104,000. So when you think about what it takes to actually afford a new car, it's a it's up there, you know ⁓ the average consumer. What's the average consumer make a year?
Zach Fritz: I mean, the irony here is you're not even talking about a brand new, you know, 70, 80, $90,000 car. You're talking like a new semi-trimmed out Toyota Highlander. If you're actually doing it, you know, 20, 40, 10, or whatever the math was on car payments, how many people should split it up according to financial gurus online. That's what we're basing this off of, which is the crazy part. But I mean, average consumer, mean, I guess minimum wage has gone up.
Zach Fritz: So you're seeing a rise in kind of what the middle class is. think the last time I looked, it was like 104,000 was kind of your dead even middle class now. And so.
Chris: Well, the average consumer according to Google, right, is like 69,000 a year, that's actually, thought, actually, it's according to the national average wage index for Social Security Administration. 2024 showed $69,000, which I thought that was pretty high. You know what saying? that's, actually, what's that?
Zach Fritz: Good luck. ⁓ it's lower. Yeah. Okay, that's way lower than I thought. That's way lower than I thought.
Chris: Yeah, that's the average income though, you know, so. middle class, maybe you're probably thinking household income.
Zach Fritz: I'm like, yeah, here in Colorado it's high. It's ridiculous.
Chris: Yeah. Yeah. Yeah. That's yeah. Anymore. mean, everything is just up there. Right. And the problem is all these prices, housings have gone up. I'll tell you, you know, I remember 2005 buying my first house and I want to say I paid like $200,000 for it.
And that same house, you know, my daughter who's now 29 when she, when I was 25, I bought my first house and she's 29. There's no way she could afford the homes in this, in that same neighborhood today, because they're just, you know, next level.
And, I remember hearing those stories where back in the day you could buy a brand new house for 40 grand and they were at 200 grand. And I'm thinking like, now they're 500 grand. You know what I'm saying?
Like it's, it's not even the same math anymore. They even like the income didn't catch up. Nothing caught up. Everything is just.
Chris: through the roof. And so when you think about like car prices, you're just thinking, what point does this all just, you know, stop or is this is going to be the new norm? Now? You're just the you talk about the renter community. that the same thing that's going to happen on new cars or even used cars that you don't you can no longer like buy a new car anymore? Like you have to rent it? Like it's that's just the way it is now.
Zach Fritz: That's the scary prospect, right? Is... ⁓ yeah, pay cash. that's kind of the scary thing is at what point does it not make sense and at what point are you ever even paying a car?
Zach Fritz: leasing against depreciation and then.
Chris: Well, yeah, because now you got to go 84 months, most consumers now are 72, 84 month loans. And like we saw last time, we discussed 120 month loans. So it's getting up there.
Zach Fritz: It's Same thing with housing affordability, currently kind of got a sure bet against it because I'm trying to go completely liquid right now and dump any house assets that I have. Because I don't believe that the market is going to support what prices currently are.
But a lot of people have mixed opinions and don't feel that way. And I kind of feel the same way about cars in a certain respect, know, some models excluded. it's to be really interesting to see what happens because it will come to a point at which it's no longer affordable to buy a house or drive a car.
And I think we're seeing this difference in renting versus ⁓ owning both categories.
Chris: Yeah. Yeah, it's going to be, it's going to be interesting to stay the least. And then you, got companies like Cadillac coming out with these new models. Um, and there's one interesting model that just came out. Zach, what do you think about this? New? I don't even know what they, I don't know if it's a call the wagon or, or what it's called, but it's, it's an interesting look.
Chris: Let's say the least. really don't get me wrong. I really like Cadillac. I love the Escalade. Amazing models, right? This one though, I think it reminds me of Ford's Thunderbird when it came out. Remember that Ford Thunderbird that came out?
Zach Fritz: Are you talking the second iteration that was all rounded and bubbly? Yeah.
Chris: Yes, they made it look like it was like a 64 Thunderbird. They brought it back and this was going to be like the the top of the town.
Zach Fritz: Those... at first, right? It's kind of like the... the Prowler was ugly at first. The ⁓ was terrible to look at.
Chris: Actually, you know, the prowler, I always liked that. I just thought it looked cool.
Zach Fritz: I did too. I did too. It was just ugly enough to be pretty, you know. It's kind of like the face that only a mother could love, the face that only a car enthusiast could love.
Chris: Well, people say the same thing about the Cybertruck I'm driving.
Zach Fritz: Well, I mean, mean, cyberstructures are atrocious, but we won't go there. This catalogue though... ⁓
Chris: ⁓ You know, it's funny because it looks like a big refrigerator. mean, I've heard it all, but I still think it looks cool, man, especially because I've got it wrapped black. So I feel like it's like the Batmobile, you know, so I'm sticking to that story.
Zach Fritz: ⁓ Cadillac is I that in renderings we saw they were going for this kind of classic shooting break body line which is beautiful a lot of European cars do this but instead of a shooting break I think we wound up with like a shooting fake and it is ugly as I'll get out I cannot stand to look at this car I hope it doesn't get produced but
Chris: Well, according what I read, is, it's going to be. Evie it's going to be the whole thing, but, you know, first glance, maybe when I look at it in person, it looks better, but at first glance, not something I can ⁓ see in, some might like it. You know, I think, you know, it's a Cadillac, so I'm sure it's got some cool tech. but yeah, I'm not.
Chris: I'm not sure sir, but I don't know that someone's going to want to take that one to the bar. Like that other tech, you know what saying? I don't know if you heard about that and it's a sad deal and don't get me wrong. I've had people take cars from, you know, employees take cars and we've had to let them go and things like this. This one hits a little different. think this is why it actually got more like headlines in the news. because this
Chris: technician decided to take a car that he knew and technicians are known for taking extended test drives because you got to run the, have to drive them. They've got to go through and, you know, go through and put you just, sometimes you have to put miles on cars to identify and diagnose certain things.
This wasn't that case. And it might've been that it's probably started out at that case. And then ⁓ decided, you know what? I'm on the way home. I'm going to stop at a bar and just, you know, have a couple of
Chris: Yeah, would just have a couple, toss a couple back and let's, let's have a good night. Right. Well, the problem with that is a customer ended up getting ⁓ right. That the GPS told her, Hey, your car just moved.
And so she was like, ⁓ my God. So then she goes and goes to the bar, finds the technician. And I guess the store just kind of like, kind of downplayed it really just didn't take ownership. And, and I think that's what.
really triggered the, you know, the news and media and all that. So just not a good look. And so these things happen. Don't get me wrong. It's, wouldn't say gone a bar. Well, maybe ⁓ come to think about it maybe one time, but we had to let the people go and customers, we told them and Hey man, we're sorry.
And when you're, you know, empathetic and you know, trying to do right by the customers that goes a long way. And, it reminds me of the book, by the guy who created, the Ritz Carlton. I don't know if you've, you've read that book.
⁓ excellence wins is the name of the book. Great book, by the way, how he took Ritz Carlton to that whole level, like that experience. ⁓ Right. And talked about that specifically. Sometimes it, all it takes is just having a real conversation with people and being, you know,
Chris: empathetic. they may not even sue you, right? Or in this scenario, it sounds like there's going to be a lawsuit. That's essentially what I read anyway. But if you to just, you know, talk to them, you know, be genuine about it, trying to help and understand and give them appropriate corrective, like let them know there's going to be some consequences as a result of what happened and someone's gonna pay the price because that's not a reflection of how we do business.
They, if they went down that path, that's probably what I never gotten the attention it did. when they downplayed it, that's where unfortunately it happened. but you know, this is just from third party.
I don't know exactly what happened. I'm just whatever the headlines on this news ⁓ were. So, and read the story and that's essentially what they said. But what are your thoughts on it?
Zach Fritz: It's tough. It's tough. Because a former technician, I mean, I can tell you what goes on behind the scenes. You know, a lot of dealerships ⁓ good, right? We don't do extended test drives.
don't, you know, do anything stupid. But I've also worked for very well-known dealerships with multiple dealers across state lines. That, yeah, you had technicians going to lunch at, you know, Twin Peaks or those restaurants and you know the service manager buying shots for everybody and then people going back to work for four or five hours in the afternoon.
Chris: So are those are those places I've never been to those places are they bars or what is that?
Zach Fritz: Yeah, like the bars where, you know, the girls are wearing short skirts and all that. Just what you would expect from an automotive service department sometimes. ⁓
Chris: That's terrible. Well, I think you that was big in the ⁓ with sales too. mean, like people took cars to the bars and I mean that like you see the old movies like that was like lunch hour, like, hey, I'm gonna have a drink. that's not I things have changed drastically since then for sure. Because now even looking at this new generation up and coming, they're not really going to bars and drinking as often.
Chris: You know, like that's not that's like a non event now. And I'm like, interesting to see, you know, because I know growing up in my time, I even hate saying it that way. Really of feels like it dates me. But it's amazing that, you know, like that was the that was everybody lived for that, like, hey, we're gonna do this. And now it's like, it's just not that which I think it's it's better ⁓ but
Chris: I don't know, think COVID changed a lot of things. And so it's just it's just interesting, but
Zach Fritz: What would you have done if this was a technician at your dealership?
Chris: Yeah, he would, we would have had, we had to part ways for sure. that's this.
Zach Fritz: the hard race with the technician and up a G wagon or something as, ⁓ a. ⁓
Chris: It would have been, we would have definitely taken care of that customer. There's no, no doubt about like, would have, you know, I, you know, no one likes having those conversations, but you have to get in front of them or else things like this happen.
You know, it's, unfortunate, but you know, I think about, know, reputation is everything. That's another book you need to read. ⁓ the, it the 48 laws of power? Have you read that one? Check that book out.
One of the quotes or one of the laws is, know, basically protect your reputation at all costs, protect character all costs. Like that's like one of the things because you only have one, right? Like you want to make sure it's good.
But, you know, if you're in politics, ⁓ it's different, Like now it's, it doesn't matter what kind of craziness happens somehow. ⁓ one side or the other is gonna like you. You know what mean? It's just the craziest.
Zach Fritz: Yep. The more polarizing the better. That's the... It has started to be less about...
Zach Fritz: you, who are you as a person, and it's more about how polarizing can you be towards a certain issue or topic or subject, whatever the case may be. that sells too.
Chris: Well, you know, it's, it's unfortunate. Like it does, but let's, let's make it a little lighter before we kind of wrap up here in a few. a, here's another story. Here's a cool story. well, I don't know if you like it.
I like because you know, it's, you know, technology and things like that, Waymo, I don't know if you've heard of Waymo. so they're basically. ⁓ They're, talking robo taxis. Uber is talking robo taxis, Volkswagen, Mercedes, Chinese AV leaders like Baidu and Pony.
everybody's pushing that direction because they're seeing, you know, the renter economy style. Imagine you can get that cost down to, you know, next to nothing, just to get a ride share then
Chris: you'll see, especially in bigger cities, you'll see more people doing that. Especially if they don't have to drive with anybody, if it's a, just a robot that comes picks you up and then leaves. And if it average time takes, you know, two minutes to pick you up, then do you need a car? it, is it more effective or more cost effective to pay $300 a month by having this type of deal versus going that other direction of buying a brand new car?
Zach Fritz: thought about that actually last night. So I was driving out to dinner and I had a phone call in the middle of this drive that I had to be on and I'm driving on the phone, driving down the highway and I'm like, you know, it'd be so much easier if I could actually focus on what this person's talking about while not having to focus on the road, you know, a little bit of autonomous driving and then I get to where I'm going and parking's a disaster and I've got to find a place to park my truck and I got to park super far out and walk into downtown and I'm like...
It would be so much easier if I had a ride share or something to drive me and I didn't have to care about it. I would definitely pay for that. And I can see the merit, especially being in a big city and having to pay for parking, which still blows my mind, right?
And there's a lot of value there. Now it's about getting that price point down though. That's the key.
Chris: Yeah. And that's where I think when you think about it, right? Like they're not paying for gas. They just got to charge it. If they can, instead of paying $757 a month and you can, and maybe you're paying 300 a month in ride shares all month, like, and you don't have to have insurance. know what saying? Like it starts to pencil. You know I'm saying? So then you start saying, well, look,
Chris: Now it's, it'll be different for families and things like that. But if I was, you know, single person, I'm, I might even do that, go that direction, especially if, if it pencils that much, you know I'm saying?
Cause you like anymore, like even now I don't really drive as often. Cause you know, I have my own office at home and things like that. and it, it's, it's, it's unreal to just, when you think about it, like, What I love about what I do is because of autonomous driving.
So what you're saying, don't, I, I actually have that capability because I don't have to worry about it. But let me tell you, it is amazing. Like you just push the push the coordinates and it drives you wherever you need to go.
And, uh, and I'm just having conversations and. You know, it's still not to the point where I can be on my phone the whole time, but.
Zach Fritz: As ugly as a Cybertruck is, man, I am a little jealous of that.
Chris: every now and then it's easier to check your phone from time to time without you're going to miss an exit like because it's just going to take the exit and do whatever it needs to do to get you where you need to go.
Zach Fritz: Exactly. I mean, you can kind of pull your attention a little more than, you know, driving on the highway. Like last night, I'm worried about the Tahoe in front of me, the Corvette that's right on my trailer hitch, and then I'm trying to get over because a semi is going to block the exit coming up in a mile, and it's just...
there's so much going on that it makes it hard to concentrate on anything else, which, yes, distractive driving, but that's the way that everything's going. Everybody's mobile, everybody's on their phones, everybody's...
working 24-7 to afford these crazy astronomical car payments and cost of living. So, it's what we gotta do. I think this is a new story.
Chris: Well, you know, I didn't want to leave without talking about this one last topic. And it's lot of news in the media today about losing jobs to AI. Right? Like, that's a real thing. 30,000 people from I think, Amazon or UPS or I don't remember who it was.
It was there's a lot. So you're seeing a lot of that in the media today. Where I think dealers can learn I to a podcast the other day. I think this was five days and the former of, ⁓ of Tesla was interviewed and they asked them, I forget how the started, but what the ⁓ premise was, Elon Musk him ⁓ one day and said, look, how much, how many clicks does it take to buy a Tesla?
And he said, and so they did the math. was 64 clicks. And then he said, okay, well, how many clicks does it take to buy Domino's pizza? And so went online and figured it out. was 10 clicks, 10 clicks to buy pizza.
He saw, he said, let's get it down to that. And so they out through their research that 44 of those clicks were the retail installment contract and things that, you know, dealers have. customer sign. And ended up what he what they found was they had their whole legal team look at it.
What they found what was that most that the dealers are asking you to sign, it's just that, you know, attorneys language that you don't even need them. You didn't even need this stuff. And so they brought it down.
And when I think like innovation like that, and what this guy really tries to do, is he asked the questions that seemed super basic. But because he's not in that, like he wasn't in that industry, you know, initially he has he's looking for a fresh set of eyes.
So he's asking these different questions. And so when I bought so then rewind six, seven months ago, I don't remember, maybe eight months ago when I bought my truck. I remember ⁓ or filling up the information online and I signed it.
online I thought a couple boxes I don't even know what I how I do it and then I get to the store they have me signed to two pages and it was like a form to I think they were DMV forms those are the only two that you still need a wet signature and so I signed and then he showed me the car and the and then he said all right you're good to go and I was like okay I don't get a contract I mean he's a no no you already did that online and I was like ⁓ wow like I didn't understand it.
I still haven't even looked to see if I even got a contract. But isn't that amazing? all of that and now in automotive, like why aren't lenders, you know, trying to simplify that for dealers and things like that?
Because why? What is the words that dealers say all the time? It's because we've always done it that way.
Zach Fritz: you Yeah, it is. It's that old mindset that unwillingness to change and look at any great company, it's the more you can reduce the friction during the buying process, the smoother everything goes. Now the one caveat that I have with that is we are seeing people take 84, 120 month, you know, payment terms. Is it a good idea for lenders to make it even easier? Or is that going to get more people into some kind of sticky financial situations? I don't know.
Chris: Well, I think it's the same thing. They still have criteria, but instead of having 44 signatures, you have one. You know what saying? Like, do you really need to have that many signatures? You know I'm saying? So I think, I think they're right on in doing that because the only thing you be focused on in traditional environment would be selling product. And then, you know,
Chris: with all this disruption that's happening. I read somewhere another guy online was talking about, if I was running a store, Chris Sladen, I think is his name. Yeah, yeah, yeah. It was Chris that I'm trying to think of which posts I read.
And, and he was like, man, I just like, redo the whole thing and just start putting AI wherever I could. And I was like, and he's not that far off. Like, really? I mean, where could you put, you know, pieces in and this this piece right here?
would be like there's no reason why you could, if they could figure it out, I could figure it out too. And we can do it now. You've got to get things passed through the lenders. so maybe they had the lenders they use, they've, they've talked to them and say, Hey, this is what we're going to do.
And they said, okay. And so as long as they've done it, then you should be able to do it. So it's actually, it's not far off. think, you know, with how technology, how easy it is to build today, there's there's a lot of disruption that's that's coming.
It's you know, transportation seems like, you know, one of those things. But I think there's no industry that's like, not going to be safe unless you're like a plumber, roofer, you know, things like that.
Zach Fritz: Even then for Legion, AI for Legion at that point.
Chris: Well, it's just going to get better, right? You'll see, if anything, more consolidation in those spaces because then that's where these VC companies are those, I forget the name of those. I forget the name. not VC, not venture capital. It's
Zach Fritz: Are you talking just aggregators that will take everybody and lump them? Yeah.
Chris: Yes. Yeah. Yeah. I forget. There's a term for that. I just can't remember what it is, but I think, I think, there's definitely a lot of, a lot of, disruption that's gonna happen. It's, it's coming.
Zach Fritz: It's the speed of doing business has changed, right?
Chris: But I think me, the good operators are going to lean on and amplify it. Like wouldn't be like trying to figure. mean, yes, I'm going to try to figure out ways to cut expanse. Don't get me wrong.
But with AI, where I'm putting it in my company, we can plug all ⁓ the gaps to amplify your current team. So it's not like I'm going to go in. you know, cut my sales staff because AI is doing this. I'm actually like, no, I need you guys because I'm going to create more business because of it.
You know what saying? So that's my thought process.
Zach Fritz: Well, I look at products, you know, anything in business, is reps and volume is what it comes down to when you're trying to scale, you know. It's the same way. If you want to lose weight, do more reps and more volume, right?
Walk more, run more, lift more weights. If you want to get better at sales, you've got to make more phone calls. You've got to work more leads. and then products like yours, you know, rolling out these AI agents, you're now able to do that at such a more rapid pace than a human ever could, with more consistency and actually collecting all the information that it's supposed to, that other people really don't stand a chance.
I mean, when you try to put a human against it, you'll never match those results.
Chris: Yeah, and I look at the direction where everything's going, those EV cars are starting to make a lot more sense again, right? Because what's going on in the East,
Zach Fritz: don't even know what's going on at this point. don't think anybody knows what's going on.
Chris: I don't think anybody knows what's going on, but do have one more we can cover. And it's Iran conflict ⁓ and it's global conflict now because it's affecting oil, right? And so what's happened to oil, what's happened to gas prices.
And I'm not generally one to about politics, but this affects automotive specifically because You know what happened? I remember last time gas prices spiked crazy. Everybody came to the stores and were dumping trucks like they're like, man, I can't afford anymore.
My truck gas used to be 200 a month. Now I'm paying 500 a month. And so people just were coming in and turning in trading in their, their, their trucks and getting rid of them. then Prius is we're like five grand over sticker.
you know what saying? Because you couldn't like you couldn't sell enough of those things. Right? Because people are like, man, I just can't be paying this gas so much. So is this a way to now you're going to look at your EV models and think, okay, well, maybe I might want to keep one or two, you know, I'm saying before you may not want to be but think if you're a dealer, you should be trying to carry at least some a couple of Tesla's anyway, because you know, I think it's it's a fast turning model and it just makes all the sense in the world especially if you have some EVs
Zach Fritz: It's interesting to me. I I have my own theory with what's going on in regards to oil. I think that oil's going to... I think the U.S. will probably become... stop exporting as much. mean, especially because the entire Middle Eastern region is unstable. So I think it's going to flip to that and you see what happened in Venezuela with all of their oil reserves. think that there's more.
Chris: Yeah, I haven't heard much of that, that part. mean, are we still like controlling that or I don't even know what's going on there.
Zach Fritz: Yeah, that's what I thought. Yeah, what happened to it? So are we just trying... my big wonder. Is oil just being destabilized from Middle Eastern producers so that we can then dominate oil or what?
I mean, there's gotta be a bigger picture. But at the same time, you're right on the EVs. ⁓ filled up yesterday and I spent $80 to fill my truck up and I still burned through a quarter tank. So I'm like...
It's not affordable to drive. Where's those $300 a month, you know, chauffeur car services like we were talking about earlier? That would be really convenient right now. You know, nuts. ⁓
Chris: Hey, I'll tell you my EV right now in my cyber truck is as goofy as it looks. think it's pretty cool right now. You know, it's, ⁓ know, especially when it drives me wherever I need to go, man, you know, it's, ⁓ just, that's what minute you ⁓ do, do that.
Zach Fritz: Yeah, don't rub it in. It hurts a little. Yeah, yeah, okay.
Chris: you're going to be like, why didn't I do this sooner? Like this is just, it just makes, especially if you're like me, I hate driving. I don't like, after 30 minutes of driving, I'm ready to fall asleep. It's like terrible. Like, I don't know if it's cause I got like ADHD or whatever. It's just, just never been a fan of driving. You know what saying?
Zach Fritz: 30 this year and it's it's to become that way where I used to love driving and I'd be like hell yeah let's load up and drive across the country just because we can it's fun now get 20 minutes down the road, three or four songs on the radio and I'm like, I'm over this, this sucks.
Chris: Isn't that funny? That's funny, man. Well, we've had a lot to talk about. So we talked about car payments. We've talked about quite a few things. How could you tie everything that we've talked about today into like a nice little bow and be like, all right, like this is what we've seen.
This is what we heard. Like for me, I think of everything that we've talked about, like prices, the lawsuit, the oil, things like that. Like it's all like making sure that you have, you know, things in play to ensure that you can one safeguard certain things and you have process and you can't be afraid of certain things.
but then also educate your, your sales teams and service teams and things like that so that understand like, these are some of the things that can happen. But it's also for me, it's always a good reminder, refresher to have these conversations with my team today.
Because yes, you have that, but without that over communication with your team, there's no way they're going to remember any of this stuff. So me, this would be a good time for me to, hey, look, guys, this is what happened at this store.
What protocols we have in place? What are we doing to? mitigate things like this. And if it happens, do you know how to handle this conversation? Do you know how to talk to the customer? What is the game plan?
What are we going to do? And have that in place. And then like you see gas prices going as high as they are, maybe not put all the money in the trucks right now, them up a couple grand. Be cautious. Maybe at a couple EVs that move fast like a Tesla if you're going to buy any EV by the ones that are moving the fastest and then still if you're looking at these high prices and what you people have to afford in their market you probably need to focus on some cheaper trucks cars under 25 gram and when you have a car that's 18 grand 15 grand don't be afraid to put some money in it because it's hard to replace and they're the fastest turning cars right now
Zach Fritz: Yeah, yeah. I mean, I think you have a much larger market segment that can afford these cheaper cars. mean, just that's how it works. I think to your point of kind of trying to wrap all of this up, it really is about having ⁓ in place, right?
Knowing what is your strategy going forward? You know, we can't, we're no longer in an industry where we can just throw our hands up and say, well, we don't know. I mean, let's just keep doing it the way we've always done it.
That doesn't apply anymore. Now's the time to adapt, now's the time to change and start moving forward with the times because the industry is either going to leave you in the dust or you're going to pick up the pace and keep up with it because it's not stopping.
Chris: A hundred percent, especially when it comes to AI and when you think about all of those that are being lost, if you're an operator today and you're not immersed in AI and how it can improve, change your business, someone do it and take ⁓ over business.
or take you out, like put you out of business. You know what saying? So that's, that would be my, my last piece of ⁓ advice. make sure that you're You're not just, you know, having unreal expectations.
You need to have like, Hey, what do I need to learn? How can I get better? And that's how you stay ahead of it in any market.
Chris: Alright, cool, Zach. Well, it was fun. was good times until week. You got any last last parting words today? You're go fill up your tank? What's that?
Zach Fritz: hope these gas prices drop. Yeah, it's got my fingers crossed, but you know, it's ⁓
Chris: you Yeah, we don't who knows what's gonna happen on that sir.
Chris: But all right, cool. Well, be praying for you and everybody on this. And ⁓ look forward to the next week. You a great weekend, We'll talk soon. Take care.
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