Helpful Content to Inform & Engage Customers

Let’s imagine for a second that one of your new customers texts their sales contact at your dealership asking for offshore fishing tips. They add in a follow-up question about wind and its effect on fishing. While some dealers have fishing experts on staff and could answer them quickly and with expert advice, other teams may lack the proper knowledge. What do you do in the latter case?

Helpful Content to Inform & Engage with Customers
Image courtesy of Discover Boating

One method is to use the resources from Discover Boating. In fact, fresh, relevant content is created and shared each month to keep your customers and fellow boaters engaged in the journey as an owner and enthusiast. The content helps businesses connect with existing boaters, so as an industry stakeholder, you are encouraged to share the articles, videos and resources with your customers. You can respond via text as in the scenario above or integrate the content into your social media, e-newsletter and other communication plans.

These stories are meant to save you time and energy while helping you stay in contact with your customers and keep them boating.

Here are some of the top content offerings from August from Discover Boating:

Buying guides:

Travel guides:

Safe boating tips:

Sailing tips:

Other August articles:

Future Discover Boating content will highlight the Norwalk Boat Show, fall fishing and boating tips, boat-buying guides and more. Need additional resources, data and info, check out https://b2b.discoverboating.com/.

Fortify Your Service Department

• ABYC / MRAA Service Management Certification helps dealerships improve their service department’s performance, while advancing their team’s careers.

To keep your dealership operating like a well-oiled machine throughout the market’s ups and downs, you need a service department that is performing at its best.

Whether you have one service manager leading that effort or a range of different positions contributing toward those results, you want to set them up for success, giving them the tools, training and resources to pull their department together to achieve next level outcomes.

Fortify Your Service Department

That’s the opportunity presented by the Service Management Certification Program, built in partnership between the MRAA and the American Boat & Yacht Council (ABYC).

Here are seven reasons to sign up your key service leaders to become Service Management Certified.

1. Enhanced Customer Satisfaction
When you become Service Management Certified, you gain training on how to help your team fix the customer first. We’re living in the customer experience generation! All of your service customers want the same reassurances of top-notch treatment, complete transparency and trustworthy results. This certification program is designed to improve your processes to deliver quality and consistency, while instilling trust. It equips your service management professionals with the tools, know-how and confidence to manage your customers’ expectations and drive up their satisfaction. Customer experience and retention is huge for your dealership, and your service teams plays a vital role in helping you win in both areas!

2. Improved Operational Efficiency
You want your service department employees, including your service managers, to be efficient and proficient because it help your business operate smoothly. The Service Management Certification program focuses on critical areas of success, including: key performance indicators, time management and facility management to streamline operations (and reduce employee stress). Help your managers gain valuable insights and training to tackle challenges with poise, purpose and adaptability.

3. Financial Benefits
Strong processes often lead to better results. However, service management also involves understanding the drivers behind key departmental metrics so you can work to improve financial performance. This program helps your team members generate cost savings and increase profitability.

4. Career Development
Supporting your employee’s professional development inspires higher levels of loyalty, while creating buy-in for positive change. By offering programs that advance their learning and growth, you’re investing not only in your dealership, but also your employee’s career with your business. While you’ll generate immediate returns, many of the program’s offerings will continue to pay off throughout their career, helping them set better goals, identify opportunities for continuous improvement and better coach and manage others. By offering them a chance to advance in their role at the dealership, it can help your business grow. Their newfound education, confidence and leadership can take everyone to new heights.

5. Better Communication Skills
Active listening is a strength that can benefit managers, employees and customers. This program offers education in effective communication strategies and tools to enhance results both internally and externally. By improving their communication skills, your service team can prevent misunderstandings, avoid delays and reduce confusion with customers, while creating better teamwork across dealership departments.

6. Proactive Management
Ready, willing and able! The Service Management Certification training helps transform your service department from reactive to proactive! Managers learn to help their entire team prepare for and even prevent issues before they arise. They have the confidence and attitude to help others improve while keeping operations running smoothly.

7. Comprehensive Training and Resources
Service managers benefit from an extensive list of tools and education, including an 11-course online training program, downloadable resources, printed study guide and proctored examination, all developed with guidance from experienced service managers. Once they earn their Service Management Certified badge, they can proudly share it with their team, customers and manufacturers to show their commitment to professional excellence. This investment in education advances the marine industry as a whole, one service manager and one department at a time. 

Strength & Stability in a Soft Market
By helping your Service Department get stronger, you provide stability to help your dealership navigate a soft boat market. Service Management Certification participants gain the training and tools to fine tune their results at a time when dealerships need it most.

The next training opportunity begins Wednesday, Sept. 18! Don’t miss the opportunity to fortify your department and dealership, getting them both on track for greater profitability and success. Enroll today to begin your journey to becoming Service Management Certified!

Representative D’Esposito Visits Strong’s Marine

• Chairman of MRAA Board Builds Relationship with Local Member of Congress

FREEPORT, NEW YORK, September 9, 2024 – Strong’s Marine, a proud member of the Marine Retailers Association of the Americas, was honored to host Congressman Anthony D’Esposito (R-NY-4) for a visit to their Freeport location on August 28, 2024. The visit provided a unique opportunity for Representative D’Esposito to engage with the local marine industry, discuss important issues facing small businesses and marine retailers, and continue to build the Congressional Boating Caucus.

Representative D’Esposito Visits Strong’s Marine
(From Left) Jeff Strong, Owner Strong’s Marine, Representative Anthony D’Esposito and Dante Grover, Owner Al Grover’s Marine met to discuss recreational boating, small business and marine advocacy.

During the visit, Rep. D’Esposito toured the facility, met with staff and spoke with Strong’s Marine Owner Jeff Strong and Dante Grover, Owner at Al Grover’s Marine, about the economic impact of the marine industry in New York’s 4th district. Rep. D’Esposito also had the chance to hear firsthand about the challenges and opportunities facing the recreational boating industry, including the proposed Right Whale Vessel Speed Rule, growing the marine workforce and the importance of having Federal fisheries and navigational information available digitally for recreational boaters while on the high seas.

“After Jeff testified in support of my bill, the MAPOceans Act during a hearing in the House Committee on Natural Resources in June, I knew I had to visit and spend some time with Jeff in his element. Strong’s Marine at Grover’s is a cornerstone of our community, contributing to both our local economy and to the joy of countless families who enjoy time on the water,” said Rep. D’Esposito. “It’s important that we support businesses like this that not only create jobs but also enrich our way of life. I look forward to continuing to work with Jeff and his team as I focus on how to support the 4th district’s reactional marine industry and boating enthusiasts alike.”

While Strong’s Marine has locations across Long Island, Strong’s Marine at Grover’s has quickly become a fixture in the Freeport community, bringing Strong’s legendary customer service, sales expertise and line of vessels to Grover’s, which has been a hub of boating activity in Freeport since 1950.

“We were honored to have Representative D’Esposito visit us and witness the passion and dedication that goes into what we do every day at Strong’s,” said Strong, Chairman of the MRAA Board. “This visit underscores the importance of solid relationships between local businesses and our elected officials, and we look forward to continuing our work together to support the recreational marine industry on Long Island and nationwide.”

The MRAA is committed to advocating for the needs of the marine retail industry and visits like this one play a crucial role in connecting industry leaders with policymakers. To learn more about how to set up a visit with your member of congress, reach out to Chad Tokowicz, MRAA Government Relations Manager, at Chad@mraa.com.

About the Marine Retailers Association of the Americas
At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit MRAA.com or contact us at 763-315-8043.

Dealers Share Pre-Owned Boat Sales Strategies

In the August 2024 MRAA Pulse Report, a monthly marine retailer survey we partner with Baird and Soundings Trade Only to produce, we found that 2024 continues to be challenging due to soft retail demand, high inventory levels, inflation, consumer hesitancy to purchase and more. This has led to a continuation of negative industry sentiment for 2024 and in the 3- to 5-year outlook.

These shared insights speak to the challenge of pre-owned sales, but also a slight rise in consumer interest. An anonymous dealer reported, “We have seen an increase in customers looking for pre-owned units, but many are looking for heavily discounted units – and still not choosing to purchase. We are spending a lot of time discussing price versus value with customers on pre-owned units, helping them weigh the different options of pre-owned versus new. There are a few sales, with ‘few’ being the optimal word.”

Dealers Share Pre-Owned Boat Sales Strategies

While many participants shared that they have seen retail declines and have too much new and pre-owned inventory on hand, others could benefit from and move more units in both segments if they could secure more inventory. Four percent of those surveyed reported new boat inventory was too low and 13 percent pre-owned inventory was too low! While 61 percent of participants said pre-owned boats were in decline in August, 20 percent reported growth. Even in tough times, there is light in the perceived darkness.

Here are three examples of bright spots from three random participant responses:

  • “No real issues with pre-owned. The price of new remains a challenge for many prospective buyers, leaving late-model, pre-owned boats more attractive than ever, especially if they still carry a manufacturer’s warranty.”
  • “We move pre-owned rather easily, just don’t have a lot of inventory.”
  • “We are very low on used boats. What we have started moving in August.”

To understand how certain dealers are having success in the pre-owned market, we asked them this question: “What strategies are you using in a challenging market to move pre-owned boats?” While the responses varied, five tactics emerged from their responses. They are below:

  1. Aggressive Pricing Strategies: To improve the attractiveness of pre-owned boats, dealers have instituted aggressive price drops, special pricing and heavy discounts. Some shared that they have even adjusted prices to meet current market demand. “We are buying them much more aggressively so that we can sell them at a decent margin and still be below average retail, ” a dealer shared. One team’s tactic is to lower the price until it generates enough leads and a buyer.
    MRAA advice: In some cases, it is as important for dealers to get used boats off of floor plan as it is to clear floor plans of new boats. Selling used boats late in the season may be financially beneficial as opposed to paying interest on them through the winter season. Keep track of your floorplan numbers and compare the possible costs between new and used as you move toward heavy discounts and aggressive price drops.
  2. Marketing Efforts: “We are using every marketing technique possible and getting very aggressive on price,” reported a dealer. Even in tight times, dealers are investing in their digital marketing efforts. Tactics include social media, online platforms like Facebook Marketplace and Boat Trader. Other marketing plans include in-house or in-water boat shows. Others mentioned targeted email blasts to reach potential buyers. “(Hosting) Customer test ride days. Events at dealership,” said one respondent.
    MRAA advice: A used boat demo day can work nicely as there is no concern that you are taking a new boat, finishing rigging and prep and putting hours on it. The pre-owned boat just gets used a little bit more, not decreasing value but increasing the possibility of the sale.
  3. Going the Extra Mile: To make pre-owned units more attractive to buyers and to enhance their value certain dealers offer better options and increased services. One survey respondent shared, “We are working with customers to get specific boats that fit their needs, being especially aware of pricing, budget constraints and especially finance terms, rates and payments.”
  4. Additional Services: Many shared that detailing and fully servicing their used fleet is mandatory. Others include dealer warranties and additional financing options. “Getting additional warranty on used boat. Also providing repower options. Sometimes painting the hulls,” revealed a dealer.
  5. Managing Inventory & Trade-Ins: Even though it’s considered a buyer’s market and some dealers seek more pre-owned inventory, they are being selective about what vessels they take in via trade. They avoid older or mechanically questionable boats. Some have sold units at a loss, while others have added brokering to their arsenal. “We are being conservative on our trade numbers to allow for flexibility in selling price without losing money. We also offer to broker boats for customers that would prefer to not trade in their boat,” remarked on survey participant.
    MRAA advice: Offering brokerage allows you to help the customer when perhaps their boat is not one you want to take in on trade or even when they want a price that is beyond the value you want to consider. 

These five common themes reflect dealers’ focus on marketing, maintaining quality in their inventory, pricing and trade-in selectivity. MRAA members can view the Ultimate Guide to the Pre-Owned Boat Market to navigate this portion of the market and capture more business.

Come November …
The other theme that also emerged was the concern for the economy and the upcoming election results. Some commented that they will wait for the election results to make further business decisions, while other confessed that they understand the nature of the business and that these things are out of their control.

“We’ve tightened our purchasing and overall business expenses, as a precaution. The boating world is receiving a cold slap in the face of pre-pandemic slumps. Some have forgotten this happens. But we always bounce back. The current economic and political climate has everyone on edge, but regardless of who’s in office, we believe the industry will rebound and stand strong once again,” declared an anonymous dealer.

Members can read the complete MRAA Pulse Report here.

If you are in doubt about any of the processes discussed above, we want you to be able to dig in deeper and use all the tools that we have available. If you are not a member, please contact Sherri Cuvala, Director of Membership, or visit join MRAA. 

5 Benefits of Installing & FOLLOWING a Sales Process

Natural talent and abilities can only take you so far. All one has to do is look at some of the most elite athletes in sports. Talent can take some of them to all-star status. Hard work and additional effort, day in and day out, can then make an all-star into an all-pro or shape them into a legendary-and-elite player bound for their sports hall of fame.

Similarly, some people were born for sales and have a knack for working with customers and closing deals. While others are fueled by their internal desire to succeed and continually feed that fire with continued learning and training, ultimately becoming the best of the best. Still others strive to excel and enjoy sales, but just need more structure and guidance to improve their game.

5 Benefits of Installing & FOLLOWING a Sales Process
A screen grab from the MRAATraining.com archives and the course “Fill the Gaps in Your Sales Process” with subject matter expert Jim Million (pictured) and Bob McCann, MRAA Lead Certification Consultant.

Whether you view sales as an art or a science – one complete with technical how-to steps – or a combination of both, it’s wise to understand that your unique personality and personal magic will only take you so far. It’s better to have an established process that your whole team can use to improve in every aspect of the sales. Ideally you want to install and follow a sales process that gives your team (from newcomers to old hats) the confidence and correct blueprint for winning in sales.

You may argue that you don’t need a sales process, saying that it allows your sales team to operate unrestricted and free. However, the process unites them and your brand’s approach to customized selling and providing an exceptional customer experience.

Here are five benefits of installing a sales process at your dealership that were shared by educator Jim Million and the MRAA’s Bob McCann in their MRAATraining.com course “Fill the Gaps in Your Sales Process.”

  1. Consistent experience for customers: Of course you have a designated sales person or team, but the fact that you’re providing each customer with a unique purchasing experience means that everyone who comes in contact with them is sort of selling your brand, the products and your services. It’s vital to let your sales pros utilize their exceptional skills in selling, but let everyone know the process to keep them on the same page and have a united front.
  2. Enhance your employees’ experience: A sales process creates accountability for all involved and eliminates guesswork and blindly tossing darts, hoping something sticks. People desire to know what is expected of them and having a roadmap of sorts on what to do and how to do it is immensely helpful.
  3. Helps onboard new hires: An extension of No. 2, implementing a proven sales process helps to onboard, train and guide your new hires. Would you rather your sales team be playing together as a symphony or let your newest talent wander around hoping they play the correct note at the right time? Remember, a process supplies guidance and order and reduced frustration.
  4. Coaching culture: Does an NFL head coach provide instructions for every player on the team? No! There’s a literal team within a team designated to coach every specialty area on the field. (O-line coach, D-line coach, special teams, QB coach, etc.). They also have one playbook, which is much like you having numerous sales positions and one sales process. Rather than having your GM and sales manager attempt to coach to several different sales processes, they coach to one proven system to improve your mentoring.
  5. Tracks to run on: Trains follow tracks. Slot cars lock into their groove on the track. By providing your team with tracks (a process and steps), you help them maintain their focus and use their unique abilities within your system. They aren’t running free or derailed by not knowing what to do or how to handle a certain step or situation. And, like a train, your team can stay on course together to your desired destination.

To address that initial question about the need for a sales process again. The answer is that installing and FOLLOWING a sales process benefits everyone in sales, your dealership as a whole and your customers.

Want more from Bob and Jim? MRAA Members can revisit this evergreen sales course, “Fill the Gaps in Your Sales Process,” at MRAATraining.com. They will help you identify your dealership’s gaps and B.R.I.D.G.E. them using Bob’s unique sales process approach. You’ll gain the tools to offer a consistently outstanding customer experience that fits your prospects, customers and culture.

Take the Next Step – Certification!
Standardized processes is a huge component within the MRAA Certified Dealership program. The intention of Sales Process requirement of The Marine Industry Certified Dealership program includes a Sales Process requirement to assure that your entire team is properly taking care of all customers throughout the sales journey. It help you establish your dealership’s unique process and track it to fill any holes that are causing inefficiencies or less-than-ideal customer experiences. Explore Dealership Certification!

Expanded Service Department Special Event Kicks Off Dealer Week 2024

MINNEAPOLIS, Sept. 4, 2024 – The Marine Retailers Association of the Americas (MRAA) today announced an exclusive Service Department Special Event, to be held at Dealer Week 2024 in Orlando, Fla. Designed to help dealership service departments outperform in a challenging market, this educational workshop has expanded from the inaugural service management offering in 2023.

“Because our special service department-focused event last year sold out and participants found immense value in attending it, we’ve expanded it for 2024,” said Mike Davin, MRAA Vice President of Industry Relations. “We are again holding it at Dealer Week to make it convenient for people to attend. This time, we’re bringing together service managers and service advisors for a robust educational workshop to help them work together to operate at the highest level.”

Expanded Service Department Special Event Kicks Off Dealer Week 2024

Dealerships are invited to join Valerie Ziebron, President of VRZ Consulting, and MRAA Senior Education Developer Bernie DeGraw on Sunday, Dec. 8, for the Service Department Special Event: How Service Management & Advisors Can Work Together to Outperform.

The Dealer Week add-on session is designed for anyone currently involved in service management, working as a service advisor or training for one of these roles. It provides teams the opportunity to enhance their performance, streamline departmental operations and improve the flow of information between the front-line service desk and management.

Event participant takeaways include:

  • Valuable marine service department benchmarking data
  • Insights into the drivers of shop performance
  • Proven tactics for success from other leading service professionals
  • A customized action plan to improve your service department’s Key Performance Indicators
  • Never-before-shared Golden Nugget Best Practices for attracting, keeping and growing technicians

“This unique event offers you a rare opportunity for all levels of staff in your shop to gain insights into what makes a superior service department operate,” said DeGraw. “It will provide exceptional value and learning opportunities aimed at increasing your revenue, decreasing your stress and, most of all, making your customers happy. I am confident that your team will gain new insights to help them make informed decisions and quick, significant changes in your shop that not only support their professional development, but also drive the department and dealership forward.” 

When: 9 a.m. to 3:00 p.m. on Sunday, Dec. 8 (lunch included) — Space is limited.

Cost: MRAA Members, $149 / Non-members, $199

Add this session to your Dealer Week registration today!

About the Marine Retailers Association of the Americas
At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit MRAA.com or contact us at 763-315-8043.

National Powersport Auctions Partners with Northpoint Commercial Financing 

POWAY, Calif. (September 3, 2024) – National Powersport Auctions (NPA), a leader in powersports remarketing and auction services, has partnered with Northpoint Commercial Financing to provide enhanced financial flexibility and options for marine dealers. This collaboration aims to streamline the buying and selling process for marine inventory. Dealers and businesses can now enjoy a broader range of turnkey financial choices when purchasing marine inventory through NPA.

About Northpoint Commercial Financing
Northpoint Commercial Finance, with offices in Alpharetta, GA, and Burlington, ON, is owned by LBC Capital, a subsidiary of Laurentian Bank of Canada. Northpoint combines experience with advanced technologies, fresh ideas, streamlined processes, and a customer focus formed specifically for the varied needs and goals of each business. Northpoint’s inventory finance offerings drive sales, enhance cash flow, and improve profitability for both manufacturers and dealers. More information about Northpoint and its offerings is available at www.northpointcf.com.

Floorplan Advantages
Dealers buying at NPA who secure a floorplan from Northpoint can significantly improve their cash flow, making inventory purchases smoother and faster. This financial arrangement with NPA and Northpoint allows dealerships to expand their inventory more rapidly, thereby attracting more buyers and increasing sales. The flexible payment terms offered by Northpoint ensure that dealerships can maintain a healthy financial position while growing their inventory. An increased inventory not only boosts buyer interest but also enhances the overall sales potential of marine products.

Marine Financing
Marine dealers and businesses now can explore the financing options available for marine auction purchases. For more information on this partnership and the financing program, reach out to Shannon Bennett, NPA’s RV and Marine Sales and Admin Coordinator, at sbennett@npauctions.com. NPA is committed to supporting your marine inventory needs and ensuring a smooth sailing purchasing experience.

This exciting collaboration between NPA and Northpoint Commercial Financing marks a significant step forward in providing marine dealers with the resources they need to thrive. With enhanced financial solutions and streamlined processes, dealers can focus on what they do best – growing their business and serving their customers.

About National Powersport Auctions:
Established in 1990, National Powersport Auctions (NPA) is the world’s leading provider of powersport vehicle remarketing services. NPA’s nationwide footprint serves the industry’s largest financial institutions, manufacturers, and dealers through their premier live and online selling platforms. NPA offers comprehensive data services, including the NPA Value Guide™, the industry’s most accurate wholesale valuation tool. NPA has company-owned and staffed facilities in California, Colorado, Florida, Georgia, Ohio, Oregon, Pennsylvania, and Texas. NPA is a wholly-owned subsidiary of Copart, Inc (Nasdaq: CPRT). For more information about NPA, visit: www.npauctions.com.

Learn more about partnering with the MRAA.

Promote Safe Boating Practices

• Discover Boating provides boating safety resources for industry stakeholders to educate customers
Promote Safe Boating Practices

Heading into the Labor Day holiday weekend, help promote boating safety by sharing resources and tips with your boating customers. Below is a collection of resources to share in showrooms, on websites and social media platforms so people can responsibly enjoy getting out on the water.

  • Discover Boating has compiled numerous articles and resources covering a variety of recreational boating safety topics, including the recent five-part safe boating video series, in collaboration with Progressive Insurance®. The video series covers safety topics that all boaters need to be aware of for a worry-free day on the water.
  • The Safe Boating Campaign is a worldwide effort focused on responsible boating led by the National Safe Boating Council and offers a variety of safety tips and resources.
  • The Water Sports Foundation has put together a boating safety education section to help boaters maximize fun and safety this Labor Day holiday.

For more resources and articles, visit DiscoverBoating.com or view Discover Boating’s Boating Safety Basics Videos here.

MRAA Adds Freya Olsen to Growing Team

• Olsen assumes the newly created role of Senior Director of Engagement.

MINNEAPOLIS, August 28, 2024 – The Marine Retailers Association of the Americas has hired Freya Olsen as its Senior Director of Engagement, the association announced today.

With nearly 20 years of marine industry-based association experience, Freya brings a wealth of proven expertise in marketing, membership, education, industry relations and program management. Most recently, Freya held the position of Director of Industry Relations at the National Marine Manufacturers Association, where she served as one of the leads for Discover Boating, working side by side with manufacturer and dealer stakeholders since the program’s inception.

MRAA Adds Freya Olsen to Growing Team
Freya Olsen, MRAA Senior Director of Engagement

“In MRAA’s continued growth and evolution, adding someone of Freya’s caliber helps us multiply the ways in which we serve our industry and impact the success of our members,” says MRAA President Matt Gruhn. “I believe that her leadership and her presence on an already incredibly strong team will help to elevate MRAA to new heights in all areas of our business.”

As Senior Director of Engagement, Freya will oversee the creation and implementation of MRAA’s membership engagement strategies, leading a team of professionals to increase participation in MRAA member programs and services used to serve, support and protect their businesses and the marine industry at large.
“I have long admired the work of the MRAA and am thrilled to have the opportunity to serve the dealer segment alongside a team of talented and passionate professionals,” Freya says. “Matt Gruhn and the entire MRAA team inspire me with their unwavering commitment to creating growth opportunities to help elevate marine dealers across North America, all while prioritizing kindness, integrity and authenticity within their work and culture.”

Freya continues, “In my new role, I’m eager to leverage my marine industry and association management experience to develop a strategic approach to member engagement. My goal is to meet both potential and current members exactly where they are and help get them to where they want to be, by supporting their business goals through access to MRAA’s impactful resources and dedicated staff support.”

MRAA Membership programs offer Bronze, Silver and Gold Memberships for dealers – which provide escalating access to MRAA’s vast catalog of online education and Dealership Certification program benefits. For Partners, MRAA offers Standard, Platinum, Education Champion and Strategic Partner levels for membership consideration. MRAA Partners – manufacturers, suppliers and service providers to dealers – can select their level of engagement and gain access to more and more benefits as they grow their participation.

MRAA’s Retail Membership business has grown by more than 100 percent since 2019, while MRAA’s Partner Membership business has grown by more than 80 percent. To learn more about MRAA membership, please visit www.mraa.com/join-mraa.

About the Marine Retailers Association of the Americas
At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit MRAA.com or contact us at 763-315-8043.

Adding Value to Your Sales Retail Extended Service Contracts (Extended Warranty)

A guest blog by Jason Cochran, Vice President, Global Product Protection

Adding Value to Your Sales Retail Extended Service Contracts
Global Marine Insurance Agency is an MRAA Education Champion.

In any economic climate or retail market, dealerships that adopt best practices prevail. One example is structuring your organization to offer as many goods and services as your customers need to participate in boating. If you are selling boats, retail finance is a critical piece of this equation.

As demonstrated by leading dealers, Finance and Insurance (F&I) is an essential element of success, elevating their organizations from the average. Customers will benefit from understanding their financing options, but finance alone is just one piece of a comprehensive business office. An applicable set of products to accompany retail financing can drive significant revenue and improve customer ownership experience. Product examples include insurance, extended warranty, pre-paid maintenance, GAP and surface protection.

There is tremendous value in extended coverage for expensive complex products. Boats can break down, and when they do, they can be very costly to repair. With this understanding, your dealership can provide solutions to mitigate these risks with applicable marine-specific extended coverage. Offering extended coverage is no different than helping your customer select the right boat in order to create the best ownership experience.

Adding Value to Your Sales Retail Extended Service Contracts

Offering extended coverage is just the beginning, however. Here are a few factors to consider when selecting a partner, choosing a product and preparing your business for long term success.

Factors for Consideration

1. Partner/vendor and product selection
Not all companies and products are equal. You will want to make sure you have selected a reputable company offering applicable products, administration and support.

  • Potential partners need a positive reputation in the marine industry. Ask your peers about their experience and ask potential vendors for referrals.
  • Your ideal provider will be primarily focused on marine coverage. If marine coverage is only a small portion of their overall extended coverage portfolio, boats may not be their core competency.
  • Consider organizations with marine experts on staff. Marine professionals will create and maintain applicable marine products, help you sell and accurately decision claims. A robust auto or powersports portfolio, although valuable for some clients, does not always translate into the best marine customer and dealership experience.
  • Consider partners that offer a variety of partnership structures to fit different business needs. As your business grows, higher volumes should open up your dealership to more favorable structures. Establishing an extended warranty portfolio with a partner that cannot evolve with your business can be detrimental in the long term.
  • Carefully read through and discuss all available products with potential providers. Coverage levels, peripheral benefits, pricing and overall administrative performance should align with the brands you carry and the service level your customers expect.  Involve the service department early in the product selection process, to gain their buy-in and input. Their evaluation of coverages will likely reveal any potential product deficiencies and confirm the importance of the service department in the product lifecycle.
  • Ensure your business and service managers have direct contacts they can call on, someone committed to helping them successfully offer the product and process claims.
  • Trust your gut. With coverage terms reaching eight-plus years, this is a long-term partnership. Trusting your partners with your customers’ experience is critical.

2, Organizational adoption
Dealers with maximum long-term success achieve total organizational adoption. Every dealership function has been trained on product and product-performance expectations. Ownership is committed! The sales team has been trained on features and benefits to the consumer and the organization, and the service team has been trained on product function and the claims filing process.

  • Above all, your business manager needs to be committed to product sales. A successful track record of high sales penetration is ideal, second would be a commitment to establishing the same. Business manager compensation structures must support product sales. Some sales professionals will do what they’re asked, most will do what drives the highest compensation. The right structure is critical to driving adoption and sales penetration.
  • The sales team must be proficient in the warranty coverage benefits for the customer and warranty sales to the business. Successful sales team adoption is a critical conduit to the business office.
  • Your service team needs to know all features and benefits of the warranty products being sold to thrive. Your service team will spearhead product use and customer experience, make sure they are well trained. They need a clear expectation of:
    • What coverage will do.
    • What coverage will not do.
    • The claims filing process.
    • Who to contact with questions.

3. Proven Processes/Best Practice
Great partners, products and training won’t drive maximum success unless the right processes are in place and followed.

  • Have your sales team provide the customer with a high-level overview and endorsement of your business office. A warm turnover for EVERY SINGLE customer is required for high sales penetration and to reduce legal risk due to discrimination. Get your sales manager and business manager in lockstep on how the sales team soft sells the business office and the turnover process.
  • Equip your business manager with resources for every credit profile and personal financial position. Include features and benefits for different ownership cycles and watercraft applications in their presentation. Identify common business risk scenarios and implement correct processes and mitigations.
  • To enhance customer experience, the service department needs to:
    • Speak of extended coverage in a positive manner and advocate for the customer with the warranty administrator.
    • Quickly and efficiently work with the administrator to resolve claims and/or customer inquiries.

As marine industry veterans and professionals, we understand the peaks and valleys of boat ownership. Knowing common pain points, and proactively offering products and services to solve for potential issues, can dramatically improve our customers’ ownership experience and drive dealership revenue. Happy customers buy more boats and refer their friends and family!

Adding Value to Your Sales Retail Extended Service Contracts
Jason Cochran

About the Author:
Jason Cochran, Vice President of Global Product Protection, is focused on extended service contract and limited warranty products and administration for marine dealers and manufacturers. With more than 16 years of experience in financial products and services in the marine industry, serving some of the largest entities in the industry, Jason brings a wealth of knowledge and experience to the retail and limited warranty conversation.

Over his 27-year career in the recreational marine industry, his roles have included: master technician, retail sales, customer service, claims manager, product manager, sales manager and general manager/director.

He lives in Northern Illinois with his wife, two boys and Vesta, their golden retriever. Outside of work, he enjoys family time, volunteering at the local American Legion and exploring all things outdoors — boating, fishing, hunting, land management and powersports.