Extended service agreements are a win-win for dealers: They not only allow the dealership to better service its customers by offering additional protection on their new and pre-owned boat and engine purchases, but these agreements also can generate a significant revenue stream by contributing directly to the business’ bottom line.
Membership in the Marine Retailers Association of the Americas makes it easier than ever for dealers to take advantage of the CSI and financial benefits that extended service agreements provide by giving both MRAA members and Marine Industry Certified Dealerships rebates on these agreements through American Guardian Warranty Services, an MRAA Platinum Partner and the association’s exclusively endorsed extended service agreement provider.
As a benefit of both MRAA membership and participation in the MICD Program, AGWS is offering cash-back rebates on the sale of its Compass Marine extended service agreements based on the following three levels of criteria: MRAA members that also are Marine Industry Certified Dealerships will receive a $40 rebate on the sale of each engine agreement and a $20 rebate on the sale of each stand-alone package agreement; MRAA members that are not Marine Industry Certified Dealerships will receive a $25 rebate per engine agreement sold and a $15 rebate on the sale of each stand-alone package agreement; and Marine Industry Certified Dealerships that are not MRAA members will earn a $15 rebate per every engine service agreement it sells and a $10 rebate on the sale of each stand-alone package agreement.
MRAA members gain exclusive access to AGWS and Compass Marine through the MRAA Rewards Program, which includes more than 30 tangible benefits that members can take advantage of for their $300 annual investment in MRAA membership.
“This new MRAA Rewards benefit we’re offering through AGWS and Compass Marine is a superb value for our members,” says Sonja Moseley, MRAA director of benefits. “Not only does it address the all-important customer service aspect that agreements such as these help bolster at the retail level; but at the same time dealers are better addressing customers’ needs with added coverages, they’re also adding to the dealership’s bank account. Rebates dealerships receive on the sale of Compass Marine extended service agreements help generate additional income that can be reinvested back into the business. Plus, with the way the rebate program is structured, it rewards MRAA members who also are Marine Industry Certified Dealerships with the best rebate returns.”
Compass Marine is administered by AGWS and offers extended service agreements on both new and pre-owned boats. Customers’ new boats are eligible for 5- or 6-year extended coverage agreements, while pre-owned units up to 10 model years old (currently 2003 models) can receive up to 3 years of coverage.
Among the many benefits to customers that purchase Compass Marine agreements is extended coverage and protection that’s not necessarily available through standard manufacturer warranties on a new boat. Compass Marine covers items on new boats that many manufacturers’ warranties do not. With the Consequential Damage option available on new boats, items such as burnt-out pistons, carbonized engine rings and worn valve seals, to name just a few, would now be eligible for coverage.
“These are the internal engine components and are very expensive to fix,” explains Kurt Harbeke, AGWS national sales manager. ” With coverage through Compass Marine, dealership customers can potentially save thousands of dollars on future repairs and associated labor costs.”
Additional Compass Marine benefits include towing assistance, pick-up and delivery service, and hoist/lift-out assistance. Should any of these actions be required due to a breakdown of a covered component — either on land or water — Compass will reimburse extended service agreement customers up to $100 per occurrence. Customers that purchase a Compass Marine extended service agreement also have choices regarding how they wish to pay for coverage. They can have the total cost factored into the boat loan payment; make one lump sum payment for the cost of the agreement; or choose a 12- to 18-month finance-free payment plan that simply requires a small administration set-up fee to get started.
“This type of flexibility works for customers and dealers alike,” Harbeke explains. “Boat buyers love options. The fact that Compass offers coverage and payment option choices makes it more likely that they will purchase an extended service agreement from the dealer and, ultimately, be more satisfied with their purchase. This creates brand and dealer loyalty, not to mention helps marine retailers earn some extra money in the process.”
Compass Marine quotes and contracts are generated in a single data entry, which simplifies work for dealership sales and/or F&I department personnel, reducing the cumbersome and time-consuming paperwork that was formerly completed by hand. Compass Marine provides a virtually paperless process from start to finish; dealers are paid their rebates at the end of each month, and an invoice can be automatically generated through the dealership’s existing dealer management software (DMS) and sent directly to AGWS for payment.
“It’s all about improving efficiency,” says Harbeke. “Dealers want to know: ‘What can I get done in how much time, and how can I make the most of my man hours?’ With Compass Marine, we allow dealership sales and/or F&I departments to maximize their valuable time. Our extended service agreements offer a way of both satisfying the customer and providing a lucrative additional revenue stream for the dealership. It’s the best of all possible outcomes.”
Compass Marine easily integrates with most dealership’s existing DMS; dealers simply input the deal into current software, and it automatically fills out the necessary information. Sales and/or F&I department personnel can future-date contracts, so busy managers don’t have to drop what they’re doing to get a deal done. All contracts are saved in the AGWS online system so that changes can easily be made after the fact and contracts can be revised. Generated quotes that customers choose not to buy stay in the system, so dealers can reach out to them during the slow months and encourage them to get signed up.
“There’s always an opportunity available for dealers to boost their bottom line through Compass Marine, even after the initial sale,” Harbeke says.
To learn more about the Compass Marine service agreements program, stop by the AGWS booth #400 in the Rewards Pavilion at 2014 Marine Dealer Conference & Expo, taking place Nov. 16-19 in Orlando, Fla.
To learn more about MRAA membership or to join, contact MRAA membership coordinator Hannah Muerhoff at 763-333-2420 or hannah@mraa.com.
About the Marine Retailers Association of the Americas
At the Marine Retailers Association of the Americas (MRAA), we believe that for the marine industry to thrive, the companies that interact with the boater in their community must thrive. Those businesses determine the boater’s experience and are the leading factor in the industry’s success. MRAA works to create a strong and healthy boating industry by uniting those businesses, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit About American Guardian Warranty Services Inc.
American Guardian Warranty Services, Inc. (AGWS) is a leading provider of extended service protection for the recreational vehicle and automobile industry across the United States and Canada. AGWS was founded in 1998 and services contract holders in excess of one million issued to date. American Guardian offers products insured with A-Rated insurers and maintains an A+ rating with the Better Business Bureau. AGWS offers dealership representation by highly experienced and professional agents. They can help improve dealership profitability, improve customer retention and repeat business, and provide outstanding dealership service. For more information, visit agwsinc.com or call 800-579-2233, ext. 4213.
###
