Editors Pick: BMC Boats

At the beginning of the application BMC Boats created for the 2010 Top 100 Dealers Program is a page listing the company’s guiding principles. The importance of customer service is stressed over and over on the 16-point list. But the item that really sums up the work the dealership did in the past year is this:

“Make a vow to let your competitors be your competitors and do everything you can to not be your own competition.”

With this philosophy in mind, BMC put a tremendous focus last year on bettering its operations companywide, working through an impressive list of improvements and working toward an ambitious list of goals. And in a year when most companies saw revenues decline, BMC Boats increased its revenue and posted a robust net profit.

The Longwood, Fla., dealership realized a 15-percent savings in both fixed and variable expenses after going through every expense line item of the budget and re-bidding or eliminating many key vendor agreements and accounts. BMC reduced expenses in 17 areas, including a 30-percent reduction in both floor plan interest and fuel expenses and a 40-percent reduction in boat show costs.

The company used several strategies to increase business from its existing customer base, including e-mail campaigns targeting 10,000 customers to drive traffic to the dealership throughout the various events it hosts during the year.

To build customer loyalty, BMC implemented a program that required every sales person to personally escort prospects or sold customers around the dealership and “brag” about the company and its traditions and relationships with its customers. Salespeople were required to make introductions to the sales, service and parts managers. In conjunction, training classes were held to teach each manager sales and closing skills to empower them to sell either a service or product while the customer was at the facility.

“We stress the importance of customer retention in the long term and what it means in dollars,” says BMC Owner William T. Fulton Jr. “Over five years, the total life value of our customer is estimated at $66,500 representing a gross profit of $16,652 per customer based on a 25-percent gross profit. Adhering to this philosophy and by measuring repeat business, we at BMC have been able to increase sales in our ship’s store and service department with fewer customers.”

Another very specific technique BMC used to increase business in its ship’s store was to set up a display stand showing old water pump impellers and pictures of water depths. This was used as a sales tool by the parts clerk, who asked customers if they knew the condition of their impellers. They then looked at two pictures: one of shallow water and the other of deep water – with the depths on the backs of the pictures – and were asked to guess which photo showed deeper water. The display proved to be a great way to sell first-time boat owners a depth finder or other boat gear.

One initiative to improve service business was the implementation of a quality control inspection report that is reviewed with the customer when a boat is picked up from service. The report reflects the condition of the boat’s systems, equipment and items in need of service. The customer is then offered a coupon with a discount if they schedule an appointment that day for the repair.

BMC also became highly specialized in overseas boat sales and shipments and says it is now a “turn key” overseas export company. The dealership is able to provide a customer a complete menu of services including: CE certification, ocean freight, containerization, shipping cradles, freight and transportation to the port, handling all administrative and financial matters including bills of lading, shrink wrap, and boat set-up to meet overseas export requirements.

BMC has now shipped boats to at least 20 other countries and says the additional profit center helped provide sales to offset the sluggish domestic boating economy.

“In light of the more severe economic environment that has hit Central Florida, and the impact of the BP oil problems, BMC Boats has continually remained profitable, maintained most of its staff, maintained two sources of wholesale flooring credit lines, and maintained one of the best reputations in Central Florida,” says Fulton Jr. “While other local dealerships are pulling in their horns in survival mode, BMC has demonstrated that we know how to remain profitable and beat the odds.”