Making software work for you

Efficiency is the key to profitability for today’s marine dealers. A careful matching of work to employees, efficient accounting and inventory systems, accurate order taking in the sales, service and marina departments, an enhanced Internet presence and direct access to F&I people are critical aspects of a successful dealership.

Fortunately, software for marine dealers continues to evolve, incorporating new technology and best practices into robust systems that can handle nearly all facets of the business seamlessly.

Software providers such as DockMaster, for example, offer a product suite that allows customers to “completely control and monitor all aspects of a business,” says Clark Beaty, the North Palm Beach, Fla.–based company’s VP of sales.

“A full-service facility may receive a new sales lead into LeadMaster, sell that prospect a boat through the Sales Module, add equipment through Service and Rigging and then lease the customer a slip through our Storage Module. Recurrent billing along with all customer and boat history is maintained in the system. A comprehensive system allows total business management.”

Marina Quest software is used by marinas, dealerships and marine repair and service facilities to help control costs, standardize procedures and ease operations from general accounting and inventory to sales and service, says Keith T. Kuhns, president of Capitol Computer Systems Inc., Hartford, Conn. “We incorporate the best practices and suggestions of our clients into the fabric of the package, for the benefit of all our users,” Kuhns says. “By not charging for customization of the package we enable each client to maximize the use of the package.”

The Lease & Loan Master package from Los Angeles-based F&I Systems Inc. is being used by dealers, lenders and national F&I services, says Ivan H. Blume, president and CEO. “Our powersports and marine clients use our product to calculate sales and/or leasing transactions, finance terms, insurance and extras, typing retail installment contracts, maintaining inventory of boat, trailer and two motors as well as accessory items,” says Blume. “Our product helps them be able to quickly draw up documents and close a sale before feet are given a chance to get cold, keeping them in control of the deal as options are added and changes are made.”

FishingWorld.com Inc. designs custom Web sites for dealers and offers such upgrades as the vDealer System, which directs users to product inventory, company information and in-house credit applications, explains Larry D. Thompson, vice president of sales and marketing for the Lindale, Texas-based company.

Regardless of the software package purchased, proper training is crucial to derive maximum benefits, says David Bledsoe, sales and marketing director at Tacoma, Wash.-based Paulson Computer Systems Inc., which makes Marinesoft and Inventrakk.

“Those who are willing to learn and apply all the functionality the software can provide reap the benefits of a more cost effective operation and professional appearance to their boating customers,” says Bledsoe. He notes that most Paulson clients use the inventory tracking customer base and work order functions to save time while increasing accuracy and accountability in day-to-day operations.

Innovations keep coming
The MSHOP for Windows product is utilized to store work orders and estimates that can be used as templates for future repair jobs such as winterizing and tune-ups, says Tony Castillo, vice president and technical director at MSHOP Software Inc. based in Canton, Ga.

For 2008, MSHOP has developed a price book conversion utility allowing the user to update pricing files to reflect true product cost, regardless of the number of changes made by manufacturers, Castillo says. In the past, most manufacturers made one major price change per year, but many are now doing so weekly or quarterly.

Wallace Software Design has added several new tools to its software package, including Web site shopping cart integration, gift card processing and automated email transmission. “The goal is to help our users work more productively and serve their customers more effectively,” says Walter M. Conklin, sales manager at the software developer based in Riverside, R.I.

Despite the widespread availability of accounting and payroll products tailored to the marine industry, the use of QuickBooks for these functions remains widespread, says Robert Huggins, president of Huggins Outboard Computer Programs Inc., Raleigh, N.C. QuickBooks cannot interface OEM systems for price updates, automated purchase orders and electronic parts catalogs, but Huggins has developed solutions allowing dealers to use it while adding those critical interfaces.

“Software can enable a marine business to manage the capital investment required for operations by moving old stock and restocking required inventory,” says Huggins. “Better information enables smarter purchasing decisions.”

Best practices to maximixe profits
In addition to a full series of software modules that allow its customers to manage all aspects of their businesses, Watch Captain LLC, based in Mattapoisett, Mass., is also able to share with them a number of best practices the company has crafted itself or picked up during its time in the industry. The company’s daily control reports and interactive list views give clients the capability essential for managing day-to-day operations.

“Our approach as a company is not to slide a software CD across a desk and expect our customers to bend their business activities around our software,” says Tony Pimentel, the company’s chief operating officer. “Instead we work closely with our customers as part of our implementation process to configure our software to better help our customers achieve their business goals.”

Some of BIT Marine Software’s clients are using the company’s integrated customer service/follow-up module to generate customer letters, e-mails and surveys. “Since the process is integrated and automatic after a boat is sold or a work order is closed, the dealers easily, inexpensively and consistently maintain valuable touch with their customers,” says Edward MacFawn, president of the Knoxville, Tenn.-based company.

“I have seen clients use BIT’s sophisticated matrix pricing to maximize profitability by selectively setting list prices above MSRP where possible and under MSRP where appropriate in a way that the mix drives more sales and improves profitability,” MacFawn says. “With low pricing on a few visible items and higher pricing on more common but less visible items, the net effect is higher total margin.”

A proper software solution should be able to manage purchasing decisions based on season, rather than simple min/max purchase points, says David Farrell-Garcia, president at Whidbey Island Software LLC, Oak Harbor, Wash. “Tight control over ongoing jobs is an absolute requirement in order to reduce costs and increase productivity in the service area. “Parts control, resource management and job scheduling are essential to bring order to an otherwise chaotic segment of the business.”

In addition to cost reduction, Farrell-Garcia says features should manage prospects and existing customers in order to mine the data for sales opportunities. While a number of applications on the market target this need, having this feature built into the software solution is a huge advantage.

The thought of moving to a software system can be a scary prospect for some dealers, but the advantages far outweigh any concerns, says Hank Meyne, CTO at DealersCircle Inc., Jacksonville, Fla. “The primary best practice for our boat builders when joining DealersCircle is simply to take that final step into the online era, and move their entire dealer network over to the system,” he says. “Some dealers are concerned initially that it will interfere with or change how they sell boats, but they quickly find that it doesn’t. Simply stated, the system provides its maximum benefit only when everyone embraces the technology and gets on board – that’s when the business process can move to the next level.”

A must-have
Due to the marine industry’s small size in comparison to other industries, the cost of software has been out of reach for many small businesses, says MSHOP’s Castillo. “MSHOP Software’s marine program is specifically priced for the small to medium-sized repair business, giving them a distinct competitive advantage,” he says.

More than half of Smith Software’s customers had already used a business management software that proved either too hard to use or lacking in technical support, says Nannette Smith, vice president of the Birmingham, Ala.-based company.

“Dealers really need a system that is easy to use, but they also need help when they call,” Smith says. “Another big complaint is that they have been promised features for a long time that the current provider just never provides. The only reason we even have a dealer management system is that we found a customer and listened to him, then another and another. Our system was truly designed by the dealers.”

Smith Software maintains open lines of communications with its dealers, both on a one-on-one basis and through board groups, comprised of dealers who volunteer to meet and discuss how the company can further refine its products.

Although the industry has been slow to adopt full software solutions, that trend has changed dramatically in the past few years. “Today, most marine business know the advantages and are simply looking for the best solution,” Farrell-Garcia says. “Our strongest recommendation is to buy the best fully-integrated system (front office/back office) that fits your needs, rather than a hodgepodge of applications coupled together.”