Ask, what do successful dealers do?

No matter how successful you are in your own right, there is always someone, somewhere doing something effective that you could learn from during tough market conditions. Here are some lessons to be learned from successful dealers who have encountered more than a few challenges through the rough seas of the boating industry.

-Admit that it is rough: This is not the time to bury your head and hope it gets better. Nor is it wise to try to downplay the situation, or worse, try to paint an unrealistic, pretty picture. Just be HONEST… No more, no less. The next point will help with this.

-Get specific with the numbers: They do not lie. You must know EXACTLY where you sit with operating expenses, floor plan, inventory, efficiency, etc. Having these numbers in the forefront of your mind gives you the upper hand in making important decisions during this crucial time.

-Make it as visual as possible: Use a highlighter on your chart of accounts, profit and loss statements, and every other document you track. Utilize a color code to track inventory age. Put a jar on your desk with beads in it to represent excess debt YTD. Experiment to see what makes the numbers come alive for you.

-Brainstorm game plans with trusted mentors and team members: People who are comfortable talking about money usually find it easier to understand it, generate it and grow it. Get comfortable discussing finances and develop a team of trusted advisors. This will help prevent you from getting overwhelmed and losing focus. It also provides new perspectives, insights and solutions. When talking, notice who gives you solutions and who just likes to commiserate about the bad state of affairs. You don’t have time for that.

-Create small, tangible goals that your team can reach: Screaming “sell more boats” rarely improves the situation. Give specific goals for making customer contacts, follow up, arrange additional sea trails, make sure you get paid on warranty, increase efficiency in service, add hours per repair orders, etc. These actions can help improve the bottom line. Set the goals and take notice of team members that are achieving those goals.

-Create and foster hope: Protect your employees from sensationalized negative thinking and talking. Communication is vital during tough times. Group meetings to rally the troops and individual time spent hearing concerns and discussing solutions are key to boosting employee morale.

-Be conscious of your spending and its impact to both morale and the P&L: If the owner shows up to the dealership in a new luxury car, don’t expect talk of no bonuses to go over well! Saving the dealership money is a team effort. Some spending provides vital return on investment. Having the proper new stock that you can hold margins on and keeping a current parts inventory to fix things efficiently are two examples. Ask yourself what the return will be on all of your spending so your dollars are working hard for you.

-Try new methods and approaches: Necessity truly can be the mother of invention. Are there some potential profit centers in your dealership that you have been putting off exploring with any sincerity? Were you considering some new marketing ideas? Can you use members of your team to help drive new traffic that you have not yet tapped into? New actions tend to get new results.

-Constantly monitor progress and setbacks: Diligence pays off. Almost anyone can do well when the market is singing, but it takes constant readjusting to make it pay in challenging markets. The quicker you see what is helping and what is hurting, the quicker you can adjust accordingly.

-Learn from the experience: Make notes and reevaluate your business plan. Some dealers do an informal journal right in their day-timer in addition to their accounting notes. Reviewing this will make you better able to not only survive, but actually gain market share and thrive in down markets.

Few people look forward to tough times, but it can be extremely satisfying to be able to pull off success regardless of market conditions. I hope these tips are helpful as you steer your business through the ever-changing and challenging waters of the marine industry.

Valerie Ziebron began her service-focused career in the auto industry and expanded to technology, computer, retail, marine, real estate and more. Her clients include Daimler Chrysler, GM, Yamaha and Correct Craft. She has delivered more than 3,000 presentations and has worked with more than 500 dealerships to create powerful training courses. Valerie Ziebron is an instructor for Yamaha Marine Univ., a comprehensive education program for Yamaha marine dealers.