As dealers, we have all heard a lot this year about diversifying our revenue and increasing our income streams. We hear a broad range of ideas on what to sell and how, how to market and when, and where to get financing and floor plans with different rates. During these unusual times a main area of focus is to improve service. Sales are down, so improve service. And for each of us all those things, from the ideas to the input, come with their own challenges.

For example, if we are small, how do we find the time to improve service? If we are large, how do we find the time to improve service? Another thing to contemplate is our service numbers. We know the sales numbers are clearer — inventory is up, sales are down, interest rates are up, while financing numbers show fewer people want to do it. But what are the numbers in service? Where are they? What are they? How do I use them?  

So with all of that in mind, I wanted to share a few items to consider for service. Reflections with numbers attached to add to their credibility. You want to make a difference in your service department. I have three things to help now. In part two of this blog series, I’ll share with you three things to help in the coming year. They may be random but do seem reasonable in terms of time and effort.

Step 1
Let’s start here with a data-driven insight. The MRAA’s Service Management Special Report showed that dealerships that use written and shared job descriptions have a 14% higher gross profit margin than those that do not have them written and shared.

First, you don’t have to start from scratch. We have job descriptions available at MRAA.com for most service-related positions. If you already have job descriptions, take the time to ensure that they are up to date. Otherwise download them from MRAA and adjust them to fit your specific service positions.

Second, remember, the special report said written and SHARED! They are only effective when shared. Sharing means to make them available for everyone on your service team and at your dealership. You need your team to understand each other’s role, as well as their own, in order to gain some of the percentage points in gross profit margin.

Third, it’s crucial that all your shared job descriptions make sense to the service team. They are likely to have some changes to suggest for themselves and their peers. They may discover key roles and responsibilities for their coworkers and also suggest areas for improvement in teamwork.

Step 2
Upsell for the offseason. Sounds simple right? I know from experience that sometimes service managers, or advisors will see this as an added stress heading into the busy crunch of getting boats and customers ready for the end of the season and in many locations winterized and stored away.

But, it actually is a fairly simple two-step process I call “ask and offer.” Every customer must be asked if they need anything improved or repaired on their boat during the offseason. And each customer should be offered some service specific to their boat. This generates a list that is kept for the work to be done once the peak season is over and the slower season rolls in.

Asking is as simple as having the question on a storage form. Here’s a sample ask: “Are there any concerns you have with your boat that we can address so your boat is ready for fun in the sun once winter ends?”  It is a more powerful “ask” when done in person or via text, as a response is far more likely. 

Offering can be extensive with a long list of options you can provide to make boating better for your customers or even better, directly targeted at the specific customer and their boat.

For example: Have a go-to list of offers. Here is a short list:

• Replace Impeller
• Bellows Inspection/Service
• Prop Shaft Seal Inspection/Tighten/Replacement
• Blower and Vent Line Inspection/Service
• Upgrade Lighting, Underwater, Courtesy, Docking, Spotlight
• Shift and Throttle Control System Inspection/Service

A targeted idea may work better for you if your advisor really knows your customers and their boats:

• They may need a new name on the back of their boat. Have your sign guy come and make them a new one over the winter to install in the spring.
• They may complain about their stereo, offer upgrades in amp, speakers etc.
• Perhaps the customer worries about water in their bilge. You could offer a check of all thru hull fittings to make sure there are no leaks, and you could offer a check of moisture content and check engine mounts and stringers.
• The list of customized offers is almost endless if your advisor knows their customers and their boats.

Step 3
This third step is currently the simplest step. Get your Service Manager Certified! The MRAA and ABYC teamed up to create the Service Management Certification program, which will launch again soon. The course provides your service manager with an opportunity to learn, improve their skills, ease stress and to make the entire dealership more money.

The first class had rave reviews from program participants for its structure and what they were able to implement as a result of the course. Implementation is the difference in this program and other MRAA certifications. The MRAA wants participants to take a course, gain best practices for success and use the program takeaways to implement proactive initiatives in service.

The Service Management Certification program has a window of 90 days for the participants to take the course. It won’t take the full 90 days, but that timeframe provides a chance to implement the key steps as they go, allowing them to stop, implement and then come back. It also has a live, proctored exam at the end, so you don’t ever feel like you have to look over your employee’s shoulder to make sure they are truly learning. The exam, the proctor and their implementation of learning will assure you that your investment in the program paid off.

Service Department To-Dos
Dialing in your service processes is crucial for enriching revenue, empowering your team, and helping your business outperform the competition. Start by refining job descriptions to align every role with the goal of improving your gross profit margin. Encourage your team to embrace upselling with the “Ask and Offer” approach during every customer interaction. Finally, invest in strong leadership by getting your Service Manager certified through the Service Manager Certification Program. By focusing on these areas, you’ll create a service operation that consistently exceeds your business goals.

Next Steps

• Read part 2 of this blog series for tips to improve your service department for the coming year.
• MRAA Members can download this handy PDF sharing Key Elements of a Service Department Process Map.