Boat Dealers Need to Learn to Do More With Less

By Chris Kourtakis, Owner, H20 Limos Marine Service — As the marine dealership community enters a new decade, it will be looking back on the worst year of business in at least the last 50. Looking forward, dealers and OEMs need to share more information so they can do more with less.

There can no longer be barriers between dealers and manufacturers. Everyone needs to be on the same page and some decisions need to be made together, rather than reading about them on a faxed memo or in Boating Industry’s e-newsletter. Manufacturers have a responsibility to their dealers and need to be upfront and honest in their current state.

For their part, dealers need to be open and honest to the OEMs concerning inventory, floor-planning assistance and the overall viability of their facilities. There is nothing worse than an OEM receiving a phone call from a floorplan financing company asking when they are going to pick up leftover inventory and how they are going to disperse and sell it.

The dealers who make the change now will come out leaner, smarter and with the realization that they can’t do what they have done before.

A local marina has downsized its organization, moved its facility to one of its smaller lots, sold its showroom and purchased a floating office. Now, how smart is that? They are utilizing space, saving money on overhead and have eliminated a majority of their tax burden because the office has registration numbers and is considered a boat versus a building.

If you have not already, start cross-training your employees to ensure that they are not one-dimensional and can perform more than one duty. Training costs now are a cost savings in the future. Ensure that your technicians are trained and certified to properly address your customer’s needs. If you are not already, look into the marine industry certification program and, if possible, join a 20 group of some sort. You are not in this alone. Hear what others are doing to stay competitive in the current conditions.

Adapt and adjust to what your customers want as well as how you communicate with them. If you are not using social media effectively, you are missing out on potential revenue. There are companies such as 360° Industry Solutions out there that can help you set up, maintain and be competitive in your local market. Don’t continue to spend your marketing budget the same way you have in the past just because that is the way you have always done it.

Many dealers have limited the number of the shows they attend or have minimized their display space due to costs. However, we are seeing an increase in open houses and VIP events. This is a great opportunity to get your customer one-on-one on your terms for a fraction of the cost that you may have spent on your boat show display.

Making a few simple changes can affect your revenue in a positive way. Continue what you have always done, and you may not have to worry about revenue at all.