• Your fellow dealers share effective strategies for conserving cash, managing inventory, connecting with customers and more
As a dealership owner or manager, it would be easy to view the glass of marine retailing today as half empty, particularly when compared to the spike in demand during the pandemic.
Case in point, one dealer recently wrote: “Nothing is really working. We can’t give away some new boats at cost,” as part of their response to the June MRAA/Baird/Trade Only Marine Retailer Pulse Report, a member-only resource available now for download.
With 49 percent of respondents reporting retail declines in June, that dealer is certainly not alone in facing some serious challenges. However, we know from experience that while it takes real focus and energy to adopt a proactive mindset and view the glass as half full, it can make a real difference in dealership performance.
One dealer who displayed this kind of positive, solutions-based approach wrote: “Year to date, our sales are down. We’re not deep in the red. However, our focus is on implementing optimal strategies to enhance our daily operations, ensuring we remain agile during this challenging phase in our industry.”
In fact, many respondents to the survey shared what they are doing to take advantage of opportunities and use creative strategies in areas like managing their spending, moving inventory and growing their customer relationships. Here are 21 examples.
- Seek new and innovative products to separate you from the masses and get customers through the doors and on the water to see and demo the vessels.
- Know your selling season history and match your boat ordering to limit surpluses during your slow season and match your peak selling times.
- Evaluate and control your dollar spending to retain enough earnings to remain comfortable.
- Service adjustments: Have enough techs to process customer boats rapidly.
- Right-size your sales team. Some dealers have replaced “order takers” in sales with new sales staff who enjoy selling and have a fresh approach and attitude.
- Find your social media star and “go-to” channel. Let your sales team post your dealership content on their personal feeds, like TikTok or Instagram. Video is still king and can help create inventory awareness, showcase sales and bring foot traffic to your business.
- Sell boat repowers to help move the needle and keep the customer engaged. Some of these even include manufacturer incentives. One dealer held a promotion, without OEM support, offering a 25-percent discount off MSRP for trading in old two-stroke engines of 40 HP or higher.
- Strengthen your customer follow-up!
- Take full advantage of OEM promotions.
- Host events that engage and create opportunities for customers to use their boats.
- Work with your brands to avoid cookie-cutter product overload and help dial-in inventory that works for your dealership and region. You need to order what sells and what your customers want!
- Explore every possible floorplan lender and plan closely to determine if you need to change or shift certain inventory to a different lender, even if for the short-term.
- Consider offering major discounts to cash-buying customers with desirable pre-owned boats, enticing them to upgrade. Some dealers have focused more on pre-owned vessels and less on new boats. This strategy has paid off and lets them fill small holes in their lineup with new units of a particular size (less than 20-foot runabouts) rather than blanket coverage of every size and shape.
- Take customers on test drives. Be easy to work with — kindness makes a difference.
- Establish a rental system to engage first-time boaters and non-owners, offering your support while building a stronger relationship and creating a pathway for ownership.
- Consider creating on-water guided tours to create a steady stream of new visitors, many new to boating. You open the door to future tours, further engagement and possibly ownership.
- Educate your service customers about service plans and costs upfront. Share with them the benefits of buying new(er) vessels and engines vs. older boats with aged powerplants.
- Sell thyself. Stick to your mission, vision and core values. Go above and beyond at every touchpoint while showcasing extreme levels of transparency.
- Consider staying open during holiday weekends to provide service help for customers.
- Explore opportunities for expansion through dealership acquisition. Some dealers can be buyers and gain market share, while others are ready to sell.
- Prep every boat you touch, new or used, as though it is going out the door soon! You will help your sales team in the delivery process and improve the customer experience.
While there is a wide range of strategies that are working for your peers, they share one thing in common: They all involve focusing on what you can control to create a business that outperforms the competition.
Want more proven solutions and best practices? Join us for an expanded education lineup at Dealer Week 2024. Learn more at DealerWeek.com.
