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1. Increase Labor Rate. When MasterCraft Boats of Arizona started in its current 20 Group, its labor rate was $75 an hour. The company immediately bumped that to $95 following the first 20 Group meeting it participated in, then increased it to $110, and it now stands at $125 an hour. How many complaints have been received about those higher prices? Not one. “The only time I find that someone will make a big deal out of a rate increase,” Parker explains, “is if someone at the dealership makes a big deal of it.”
2. F&I Profitability. When it comes to financing new units, MasterCraft Boats of Arizona used to just give boat buyers the buy rate. The company now starts its F&I quotes with the highest maximum rate allowed. A very small percentage of customers ask for a better rate, so the dealership’s reserves are much stronger than they used to be. Additionally, you can charge a document fee for the sales process, and MasterCraft Boats of Arizona currently charges $245 per boat.
3. Brokerage Bucks. In the past, MasterCraft Boats of Arizona didn’t charge for brokerage sales. The company now charges 10 percent of the selling price for any brokeraged boat for becoming the agent for the seller. The company has set a minimum of $2,500 for its brokerage fee.
4. Keep Techs Busy. Many dealers layoff technicians for a period of time during the offseason. At MasterCraft Boats of Arizona, the company keeps its techs employed and benefits from it by having them pre-rig all new boats. This way the new boats are ready to go when the customer signs on the dotted line.
5. Discount Diligence. MasterCraft Boats of Arizona used to automatically discount every boat by 13 percent before any negotiations with the customer. All dealers discount their boats, but MasterCraft Boats of Arizona has changed its discount to 10 percent, raising the company’s overall gross margin by two-to-three percent. With a number of 2007 model year carryovers at the beginning of the ’08 selling season, Parker recommended starting 2008 models with a seven-percent discount and discounting the non-currents more heavily.