We live in a world full of buzzwords, with "transparency" high on that list. Everybody uses it to describe their process or way of doing business — but "transparency" means different things to different people. Each of us defines this word differently, through our own eyes and our own personal life experiences as a lens.
I could ask ten different people for the definition of transparency and get ten different answers. It's like an onion: the deeper you go, the closer you get to the core, but there are many layers along the way. There are thousands of different levels of transparency, varying widely from one dealership to another — but it doesn't stop everyone from using the "T" word as a broad stroke to describe their business practices.
Peeling the Onion
You might think the first layer of the transparency onion is simply telling the truth — but it's not that simple. Sometimes the truth is used to manipulate, by stating it in a way designed to leave a false impression. This means telling some of the truth while withholding enough information that the other party doesn't clearly understand the offer or proposal they're considering.
Before I worked for myself, I worked with a man who was skilled at spinning the truth. On a day of dealer calls in his market, he walked into a store owned by AutoNation, handed a marketing kit to the receptionist with instructions to deliver it to the general manager as soon as possible, then left — a 60-second investment in total.
Two hours later, he was telling a prospective dealer that AutoNation was currently reviewing the same product he was pitching to them. This was nothing more than creating a means to spin the truth. He felt this was completely reasonable because it was "technically" true — the receptionist, an AutoNation employee, had seen the materials and promised to pass them along.
He was very convincing. Lots of dealers felt his confidence and signed up — only to be disappointed by his lack of follow-up and genuine concern. I disagree with his methods, but I will acknowledge the power that comes with knowing you are telling a "truth." People feel it. And that's what makes it so dangerous. Because when the complete story comes out, the let-down is proportionally larger.
Trust Is Felt
When I began writing this story, it was about the differences between one-price and negotiation sales models. But my focus shifted when I met Terry Poole.
How many dealerships can boast about winning the President's Award for CSI 33 out of the last 34 years? Or achieving nearly 70% VSC penetration consistently — with under 45-minute transaction times? Or showing year-over-year growth in profits, even during recessions? Or retaining employees for 30-plus years?
These are the dividends of a culture of trust. The secret sauce at Long Lewis Ford in Birmingham, Alabama, is exactly that. Poole, who serves as general manager, started there as a salesperson in 1997 and is one of many employees who have been there more than 20 years. Since 1996, they've had a one-price sales process — not just on the car, but on their F&I products too. This "fairness to all" approach weaves through the fabric of the dealership, and customers feel it.
"Completely satisfied customers don't shop around. They just go right back — and they send their family and friends."
They have a phrase at Long Lewis: "Transferring the Trust." It's what they call the process of introducing the customer to F&I. On average, they run nearly 70% VSC penetration, with consistently better-than-average closing times. One-price F&I products remove the haggle. Of course, there is sometimes a conversation about value — but not dropping the price keeps the conversation clearly focused on why the product is worthwhile.
Create a Culture of Trust
In the 1990s, Xerox did a study to understand the difference between "satisfied" and "completely satisfied" — specifically the gap between four-star and five-star ratings. They learned that four-star meant very little for future behavior. But five-star — completely satisfied — meant that when it was time to replace their current unit, customers didn't shop around. They just went right back to Xerox and purchased.
Without trust, people hesitate, which causes transaction times to slow and gross to fall. As a counter-measure, sales managers lower prices to inspire the customer to trust that the "number" is fair. This works for logical customers because prices are easy to compare — but at a cost to profit. If we don't wish to engage in the race to the bottom on price, we must compel people to feel trust for the organization early in the relationship, by earning it the hard way and then working to keep it.
Imagine waiting in line at the bank and finding yourself standing next to a customer from a few months ago. If you were transparent, seeing them would be a positive experience — feelings of mutual respect. But if you had been less than honest, you'd probably want to avoid them. The scenario is instructive: transparency isn't just about business outcomes. It's about who you are and how you show up.
Self-Trust Comes First
To inspire trust in others, we must first find self-trust. We must do the right thing, even if it means we might miss a sale. This can be very hard to do sometimes — but ultimately, you'll inspire more people to trust you if you always do the right thing. As Lee Iacocca said, "The speed of the leader is the speed of the team." Transparency creates trust, and trust leads to speed.
Poole at Long Lewis isn't worried about the Carvanas of the future because he's not competing against them. He's competing against himself — looking for ways to improve processes, profits, and the customer experience, with the understanding that real transparency is a behavior that keeps people coming back without shopping around.
The question isn't whether transparency is a good idea. Everyone agrees it is. The question is how deep your transparency actually goes — and whether the layer you're currently operating at is close enough to the core to actually earn the loyalty your business needs to thrive.
