Constant change, marketplace uncertainty and outside influences can make being a business owner or manager exhausting. But that’s the current state many dealerships find themselves in, seeking solutions to help them recalibrate and plan for 2024. Not only are they having to reassess their approach to sales training, lead generation and turning their boat inventory, but they have to deal with the continuous demands of resolving their workforce shortages and heightening the customer experience at every touchpoint.
Soundings Trade Only’s Alan Wendt spoke with Matt Gruhn, MRAA President at IBEX about the current state of the marine industry and more. (Image courtesy www.tradeonlytoday.com)
At the MRAA, we understand the current challenges you’re facing. That’s why we remain unwavering in our mission to fuel dealer success by delivering the tools, resources and educational programs you can use to strengthen your business and, in turn, help the industry improve. It’s also why we speak with dealers frequently on the phone, at manufacturer-sponsored dealer meetings and at industry events. We learn and discover industry pain points so we can develop education, resources and programs to help dealers triumph.
Recently MRAA President Matt Gruhn sat down with Soundings Trade Only’s Alan Wendt at the International Boat Builders’ Exhibition & Conference (IBEX) for a one-on-one session to discuss the state of the boating industry, the current issues on boat dealers’ minds and the value-driven framework of MRAA’s Dealer Week 2023 Conference and Expo.
The short, 14-minute interview covers many significant and relevant topics, including:
The importance of customer experience.
The need for a collaborative relationship between dealers and manufacturers.
How dealership success leads to industry success.
Why continued learning is beneficial for any business, but especially dealers.
The relationship between dealers and manufacturers plays a crucial role in building, selling, delivering and servicing great products and meeting customer expectations even amidst market challenges.
“It takes that united, collaborative approach between the dealers and manufacturers to make it happen,” says Gruhn. “The price points that we’re at, from a boating standpoint, we have to treat customers like they’re buying high-end vehicles. There’s a different level of expectation when you’re doing that. We have to up our game and deliver an even better, quality, customer experience.”
The video also highlights MRAA’s recent growth, flexibility and readiness to support dealerships with education, resources and world-class events. Gruhn emphasizes the MRAA’s mission to fuel dealer success and the MRAA staff’s passion for equipping dealers on their pathway to improvement.
The magnitude of Dealer Week and the professional experience it provides has proven to be impactful for attending dealers and exhibitors alike. “Our whole reason for existence is to enable the success of the dealer,” says Gruhn. “Because when the dealer sells a boat, and the dealer takes care of a customer and we win a customer for life in this industry, everybody wins. The whole industry wins. That’s why MRAA exists.”
Soundings Trade Only, an MRAA Partner Member and Dealer Week 2023 exhibitor, recently shared several interviews with other thought leaders within the marine industry.
Author and MRAA Certification Manager Liz Keener and MRAA Membership Manager Sherri Cuvala have built many relationships within the marine industry by attending events.
Time after time we’ve all heard it from great business leaders, inside and outside the marine industry: Relationships are key to success.
Just this past week, at a dealer meeting, Robert Oswell of Roswell Marine shared stories about his Employee No. 1 Richard, his mentor Ralph Meloon and others who had impacted his career. I also watched this week as two long-time industry friends, caught up, sharing how they’ve known each other nearly 25 years.
Relationships are the backbone for any successful person, including dealers. Just a few weeks ago, Sherri Cuvala and I were at a dealer meeting, when a women new to the industry lamented that there just aren’t enough other women at the dealership management level to connect with in the industry. But there are, we told her, as we started rattling off names of some absolute rockstars in the dealership world.
Soon, I ran into one of those standout women, a C-level team member at a four-location dealership. Sherri and I asked her if we could please connect her with this other woman, who was looking for a peer to share with. She gladly said yes, and we were excited to introduce them over dinner that evening. Turns out, that was the best idea. The two women know many of the same people, and they even do their recreational boating in the same area! By the next day, they had exchanged numbers, were texting back and forth and were grateful for having made that connection.
Being willing to put yourself out there and connect with others is key to being a strong leader. These connections can give you an ear to listen to you, a brain to bounce ideas off of, a shoulder to cry on, an arm to lift you up when you’re down, a hand to high-five when you’re winning and maybe even a partner to do business with. I’ve seen deep-seated friendships blossom from a simple hello, and I’ve witnessed business deals made from a genuine connection.
Great leaders surround themselves with strong peers and those they can look up to for an example of success. They call on these connections for help, but also give as much as they take. They are authentic in their motives and committed to small, acquaintance relationships, as well as resilient, long-term relationships.
So this is my challenge to you: The next time you’re at an event, whether it’s Dealer Week, a dealer meeting, a Chamber of Commerce meeting, or something else, sit at a new table, introduce yourself to some new folks, or ask a friend to make an introduction. Sometimes a simple handshake can lead to a big connection; otherwise, you’ll at least learn something new about someone new.
Good luck in making those connections. And let me know if you need someone rooting you on, or a quick introduction to a peer.
Last year, 27 MRAA Certified Dealers earned 90% positive responses on their annual Employee Satisfaction Surveys (ESS). They were honored with an MRAA Great Dealership to Work For award live on stage at Dealer Week in Austin, Texas. This year, on Wednesday, Dec. 6, dozens more Certified Dealers will receive this valuable recognition amongst their industry peers, friends, partners and competitors.
Getting this level of recognition is treasurable for numerous reasons, but I will cover three. The first is that the dealership employees provided the feedback that led to the award. Artificial Intelligence (AI) had nothing to do with the results. True leaders cherish the wholesome, honest feedback for the insight and direction it provides for the dealership. I know because the MRAA staff has done an ESS, and our leadership team studied the results and implemented tactics based on the input. Participating in it gave me a voice and helped me feel more engaged as an employee.
The second is scoring 90% positive responses, which reveals that you must be doing something right by taking care of your workforce. We have all heard the phrase, “employees are the lifeblood of your company.” For many of these dealers, that sentiment rings true. If not, the results would reveal it. In fact, a 90 percent score leaves room for improvement and identifies areas for enhancement even for top dealers like these. As a leader, that, too, should excite you. When you can learn ways to improve your communication and processes and boost staff morale, then your employees, in turn, feel connected and will take care of you and your customers!
Third, Certified Dealerships are already considered top decision-makers and influencers within the marine industry because of a commitment to their staff, business and everyone they interact with, from suppliers to clients to local municipalities. But taking home a Great Dealership to Work For award reinforces why they enrolled in Certification in the first place. They have a growth mindset. Along with the blood, sweat and tears spilled by these teams comes humility, accountability and unwavering trust.
All leaders, particularly those with deep-seated moral integrity, know that they should have goals and objectives in both life and business. They can help their employees take a similar approach by showing empathy and providing encouragement.
“People are built to walk uphill,” says Dr. Jordan B. Peterson, Canadian author, psychologist and podcast host. Essentially, he references our need to reach the mountain top, to take in the view and feel rewarded. However, he adds that it is also natural for us to seek another hill to climb – to go higher still – when we reach the summit because that is where we obtain value.
The MRAA Certification team created an outstanding resource for your dealership to use to start your journey or speed your pace up the hill your team is currently ascending. The seven-page MRAA Dealer Certification Guide to Common Workplace Culture Challenges resource (Members Only) shares more details about the role of the ESS in the MRAA Dealership Certification program as well as three notable pain points revealed by dealership staff within the ESS and solutions to each. Most impressive, these results stem from six years of surveys completed by more than 16,000 dealership employees!
This invaluable resource, complete with data, best practices and implementable solutions, will help you invest in the heart and soul of your business. At the very least, it should inspire you to mountain climb to build a unified front and an indisputably positive culture.
As an MRAA Member, you can take a survey to assess your employee satisfaction and find out how you stack up against others. After completion, you will receive a copy of the MRAA Certification Guide to Common Workplace Culture Challenges. Email Stevie Cook, MRAA Certification Specialist, today to sign up for the survey and begin your journey.
• Create a more efficient, effective and resilient dealership that delivers an industry-leading customer experience
To properly evaluate your dealership, you need to think like an eagle. According to allaboutvision.com, raptors (birds of prey) have superb vision at a distance, but the eagle is supreme with the ability to see roughly eight times as far as humans! Precision eyesight like this allows it to spot and pick off a slow-moving fish swimming near the lake surface from a couple of miles away. The equivalent would be you sizing up that Five Guys bacon cheeseburger, fries and chocolate milkshake sitting in front of you on a food tray. All you have to do now is grab them and enjoy!
The eagle analogy gets you to take flight and soar above when viewing your business and aim finer when gauging your dealership’s current and full potential. As a leader, it’s wise to get in the weeds and get your hands dirty — as long as you don’t micromanage and hamper your workforce’s ability to do great things. That’s why it’s also sensible to pull back and give yourself a broader view to maintain a clear vision, control your emotions and focus on well-defined decision-making.
However, finding the time or committing time to focus on annual improvement is challenging in a boat dealer’s world. It’s even more trying when you lack the process, accountability and tools to improve in a manner you envision. But your development and refinement are necessary to reach the next level and become a true leader in the industry.
That’s why you need the guidance of a structural engineer to help you establish efficient and effective processes and craft your blueprint for success. That’s where the MRAA Certified Dealership Program comes into play. With its seven-week, step-by-step guidance and consultation, you’ll draft a design for improvement that produces more success, generates team harmony and helps you manager customer expectations.
3 Ways Certification Helps Your Dealership Stand Apart in the Marine Market
Standardize and publish your processes: Achieving program requirements helps you establish effective and efficient systems and processes.
Improve Your Team: Learn how to create a continuous-improvement culture and get your team on board while enhancing employee engagement and retention.
Bring in new customers: Certification, a commitment to your customers, helps you generate new business and enhance customer loyalty.
3 Certification Steps to Help Your Dealership Soar Above & Reevaluate Your Business
Guide & MRAA Consultant: Because accountability is essential to Certification, a personal consultant is assigned to walk you through the process.
Weekly Webinars: Work alongside your consultant and an assembly of your peers in 90-minute webinars over seven weeks to learn best practices for earning Certification.
Show & Tell: The hard work and dedication to the MRAA Certified Dealer Program ensure you produce a first-rate customer experience. So you need to tell your customers that their boat ownership and shopping experiences WILL be different when they do business with you!
3 Certification Program Requirements
Employee satisfaction survey (ESS): The ESS is taken annually by dealership staff at Certified locations. It asks employees more than 30 questions about your dealership’s culture, where they rate the dealership on a scale from strongly disagree to strongly agree.
Tracking and trending customer experiences: A close examination of your dealership’s CSI numbers helps you compare your year-to-year numbers and to your competition to create an action plan for improving your customer experience and, ultimately, your CSI scores.
Sharing best practices: Peer-to-peer feedback, which includes business acumen and insightful reasoning, will help bolster Certified Dealers’ operations.
Make the Commitment; Reach New Heights The MRAA Certified Dealership Program provides you with absolute determination to improve the critical facets of your operation. It will help you stay composed and more resilient to change, even when facing market uncertainty. Much like the eagle, striving to aim higher and soar above everyone will make you one of the highest-performing dealers in the marine industry.
The MRAA Certification Webinar Series will help you get there in only seven weeks! You can still enroll in the program, as spots are available in the October 18th and 31st sessions. Fill out the form and get started today!
• A Conversation with Jim Coburn, National Marine Lenders Association, about the 43rd Annual Statistical Report
By Drew Mick, MRAA Research Specialist
As a recreational marine dealer, it’s critical for you to have access to tools and analytics about market data so you can keep your business informed and adaptable. One valuable resource is the National Marine Lenders Association (NMLA) 2023 Annual Statistical Report (ASR).
For more than four decades, our industry’s only report shares insight to help businesses develop, understand and support quality recreational marine loan production and profitability. The annual publication benefits all businesses and associates involved in marine lending, and the entire recreational boating industry by supplying data, management tools and summaries that can be compared to peer performance.
In its 43rd year of publication, the ASR has shared detailed information and trends about:
Banks, credit unions and private lenders who originate and hold recreational boat loans
Service companies who originate, outsource and broker boat loans to portfolio lenders
We recently spoke with Jim Coburn, NMLA Annual Statistical Report Committee Chair, about certain aspects of the ASR data and its meaning. The question-and-answer conversation is below.
Drew Mick:What can we interpret from the slight drop in average turnover for all boat loan contracts? Previous years had it hovering around 47 months, and, in 2022, we saw it at 44.
Coburn: Not much to interpret as it’s been very consistent based on survey respondents’ answers. Expect turnover to shorten during periods of rate lowering where increased sales activity, trade-ins, and refinances would play a role.
Jim Coburn, NMLA
Mick: There are two charts representing both “Average originated term for all boat loan contracts” and “Average turnover for all boat loan contracts” that seem to show different numbers. Will you help me interpret the difference between the two charts?
Coburn: We asked each survey respondent “what was average term for all of your boat loan contracts originated in 2022?” The answer was 183 months, meaning the average loan term was 15 years, 3 months. It’s been consistent over the past 5 years. However, I believe the number will move up slightly as certain events play out, such as economic conditions, affordability, CPI and inflation.
Turnover is defined as the period of time from boat loan’s inception (the contract or funding date) to its payoff date. Over the decades of boat lending, turnover has performed in the 34–54 month range. Lenders like to use this number as a profitability/pricing/yield guide. Dealers can use this as a sales/return sales guide. Turnover has been consistent of late, performing in the mid-40s.
Mick: In 2022, there was a significant increase of boat loan customers in the 55–64 age range. Can we hypothesize what is happening there? Is it people aging into it from the 45–54 group? Is this primarily people buying bigger boats?
Coburn: Yes, aging into it a little bit, and some non-participation for those two special years [2020-2021] could be part of it too. The higher-income, bigger-boat buyer is reflected in the finance broker/service company originator responses on page 43.
I’m always amazed that the 45- to 64-year-old segment has consistently carried the big load in boat finance. It was 95% and 82% aggregate last year and the year prior. It was not really like that prior to the Great Recession (as a point-in-time reference) and way back in the 80s.
Mick: What do you think led to the elevation in 2022 for both delinquencies and charge-offs?
Coburn: Loan volume and outstanding balances dropped a bit. Consumer Lending 101 tells us when this happens, pressure is directed at loan performance. Employment events were “fluid changed” that year as well. The loan performance trend was same for all types of consumer installment loans.
Mick: Is the reason that the majority of delinquencies and charge-offs left at the end of the year is marine? Is it simply that most of the places involved in the reporting are majority marine?
Coburn: No, to your majority question. Most banks and credit unions, with minor exceptions, produce consumer installment loans of all kinds. They are typically auto, some RV, some powersports and other types of secured installment loans.
MINNEAPOLIS, Oct. 9, 2023 — The Marine Retailers Association of the Americas (MRAA) announces the addition of Avid Boats,DIAN Motors, LaVictoire Finance, NauticStar, OneSource Financial, Phoenix Trailers, and Renaissance Marine Group as Partner Members.
Marine manufacturers, suppliers and service providers, through Partner Membership, commit to aligning their brands with the programs and opportunities that MRAA offers in its efforts to fuel the success of the marine industry. Support from Partners allows the Association to expand its offerings and create a positive, long-term impact on MRAA members’ business.
Avid Boats (Armory, Miss.) are aluminum boats built by fishermen, for fishermen, with the best fishing experience in mind.
DIAN Motors, Inc. (Ottawa, Ontario) is a distributor of electric two-wheeled vehicles and recreational products in the U.S. and Canada.
LaVictoire Finance (Annapolis, Md.) works exclusively with industry leaders, allowing them to create customized finance plans based on unique circumstances.
NauticStar (Armory, Miss.) is a world-renowned innovator, designer and manufacturer of performance fishing and durable deck boats.
OneSource Financial (Auburn, N.Y.) is a lending service and product provider to auto, RV, camper, marine and powersport dealerships.
Phoenix Trailers (East Jordan, Mich.) is a recognized provider of custom boat trailers known for their exceptional craftsmanship, innovation and reliability.
Renaissance Marine Group, Inc. (Clarkston, Wash.) is a rapidly growing designer, builder and marketer of welded, heavy-gauge adventure boats.
“These companies demonstrate leadership in their respective industries by joining as Partner Members,” says Allison Gruhn, MRAA Vice President of Business Development. “They exemplify the diverse and dynamic ecosystem that makes the marine industry so vibrant.”
Dealer members are encouraged to explore the list of companies that actively support the MRAA across four partnership levels. View the full list.
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.
By Kendall Rawls, Director of Development, The Rawls Group
In the world of owning boat dealerships, marinas or other recreational dealerships, where the tides of business are constantly shifting, succession planning is one of the most critical yet often overlooked strategies for achieving your goals. While many business owners associate succession planning solely with exit planning, estate planning or family business transition, it is a powerful tool to overcome many challenges impacting your dealership’s success.
1.Leadership Turnover One of the most obvious issues that succession planning addresses is leadership transition. Whether you’re considering retiring, taking on a new role or simply preparing for the unexpected, having a well-defined succession plan ensures a seamless transfer of responsibilities. It allows you to groom and prepare the next generation of leaders within your dealership, ensuring business continuity.
Leadership transition is critical for the ownership position and also crucial for all key leadership positions. It’s important to clearly understand who will step into these roles when the time comes. By planning for the future, you can avoid any potential disruptions or uncertainties that may arise during the transition process.
One of the first steps in devising strategies for leadership transition is to determine your leadership team’s career goals. Having open and honest conversations with each individual will help you understand their aspirations and retirement timeline. By knowing their plans, you can better prepare for future recruitment and/or people development initiatives required in the future.
As the owner, it’s crucial for you to take time to outline your own career trajectory. Consider questions such as: • By what number of years do you want to be out of operations? • What will your role look like during the transition? • What types of skills, knowledge, and experience does your successor need to possess?
You can create a roadmap for your succession plan by answering these questions.
In addition to preparing for your own transition, it’s important to identify potential successors within your dealership. Look for individuals who demonstrate leadership potential, possess the necessary skills and experience, and align with the company’s values and vision. By identifying and grooming these individuals, you can ensure a smooth and successful leadership transition at the appropriate time.
Another crucial aspect of succession planning is exploring various options for the future of your dealership, one of which may involve selling the business. In this case, it is essential to carefully consider several factors, such as identifying the right buyer who aligns with your store(s) and community. If you plan to continue living in your community after the sale, finding a compatible buyer who will take care of your neighbors and customers becomes even more critical. Failure to do so may result in feeling disconnected from your community. By including this option in your succession plan, you can proactively prepare for any conceivable outcomes.
“One core principle that stands out in succession planning for family businesses is that you can’t run a business like a family, and you can’t run a family like a business.” — Kendall Rawls
2. Family Business Dynamics For many boat dealerships, family is the lifeblood of the operation. Whether it’s blood relatives or long-term loyal employees who are like family, the importance of maintaining a strong family dynamic cannot be overstated. This is where family governance succession strategies come into play, as they help mitigate potential conflicts and challenges among family members, ensuring a harmonious environment while running a successful dealership.
One core principle that stands out in succession planning for family businesses is that you can’t run a business like a family, and you can’t run a family like a business. Balancing the needs and dynamics of both can be a delicate task, but it’s crucial for the longevity and prosperity of the dealership. After all, no business gain is worth sacrificing the well-being and unity of a family.
To achieve this delicate balance, it’s important to establish clear boundaries and define expectations for everyone involved. This includes roles, responsibilities, performance standards and guidelines for advancement, stock ownership and perks. By setting these expectations upfront, you create a framework for growth and success while preserving the family bonds that make the dealership unique.
3. Talent Retention Attracting and retaining top talent goes beyond simply hiring individuals; it involves identifying and nurturing talent within the organization to ensure long-term success. This is where culture comes into play – it is the secret sauce for attracting and retaining top talent. To build a strong culture, it is important to have a clearly defined mission, vision and values that all employees are held accountable for upholding. These guiding principles create a sense of purpose and direction, fostering a positive, engaging work environment. When everyone in the dealership is aligned with these core beliefs, it creates a unified team motivated to succeed.
One of the critical aspects of a well-structured succession plan is providing opportunities for growth and development. People naturally seek out opportunities to learn and advance in their careers, and by offering avenues for professional development, you not only prepare individuals for future leadership roles but also foster a culture of growth and continuous improvement. This ensures that key employees are motivated and equipped to take on more significant responsibilities, reducing the risk of talent attrition.
Without people to execute the mission, a dealership is nothing more than a physical structure and merchandise. Succession planning acknowledges the significance of investing in human capital and establishes tactics to foster, allure and retain exceptional talent. This involves identifying employees with high potential, equipping them with the necessary tools and resources for success, and establishing a well-defined path for career progression within the organization. Much of our business’s value is tied up in the quality of your team. By investing in your culture and workforce, you simultaneously enhance the value of your dealership, providing you additional options if the decision is to one day sell.
4. Market Fluctuations, Technological Advancements & Regulatory Changes External factors, or “threats” from a strategic planning perspective, can profoundly impact a dealership’s performance and success. Economic downturns, changes in consumer preferences, technology advancements, regulatory changes and supply chain issues are just a few examples of these threats. However, by engaging in a robust succession planning process, dealers can develop strategies to navigate these challenges and ultimately thrive. Furthermore, dealers need to identify their strengths and market opportunities. By understanding what they excel at and what opportunities exist in their market, dealerships can leverage their strengths to maximize their potential for success.
Without strategic succession planning, dealers are at a disadvantage. They constantly react to external factors rather than proactively develop strategies to thrive regardless of the environment. Using a thorough succession planning process can identify potential threats and help dealers develop strategies to mitigate their impact. This proactive approach allows dealers to navigate challenges and position themselves for long-term success.
Equip Your Business to Remain Steady & Keep Sailing In the challenging, competitive world of marine retailing, succession planning is not just about preparing for your departure — it’s a multifaceted strategy that equips your business to overcome various hurdles. By addressing leadership transition, family dynamics, talent retention, market fluctuations, technological advancements and regulatory changes, you are better prepared to steer your dealership toward a prosperous future.
Succession planning empowers you to mold the next generation of leaders, adapt to changing market conditions and remain at the forefront of technological advancements — all while maintaining strong customer relationships and complying with evolving regulations. Essentially, it’s the anchor that keeps your boat dealership steady in the face of uncertainty, ensuring that your legacy sails smoothly for years to come.
Additional Tools & MRAA Guides
The MRAA team, along with The Rawls Group and other trusted partners, have built an array of educational guides, tools and benefits to help you understand and navigate succession planning using MRAA’s Succession Planning Toolkit.
Kendall Rawls knows and understands the challenges that impact the success of a family-owned business. Her unique perspective comes not only from their educational background; but, more importantly, from her experience as a second-generation family member employee of The Rawls Group – Business Succession Planners. For more information, visit www.seekingsuccession.comor email info@rawlsgroup.com.
Providing education and resource guidance for dealers who need to enhance their sales and retail operations
I recently received a call from an MRAA Member dealership who needed resources for his sales team. His request was for educational videos from MRAATraining.com that pertain to off-season selling and helping his sales teams generate more leads.
The dealer said after a stellar month of August, his September was slower than expected and that customer visits significantly reduced from the previous month. He also called to let me know that they were having an in-house sales meeting and he was hoping to have them watch some videos to gain (or refresh) tactics and strategies for creating leads.
His dealership has previously used our learning management system (LMS), so he was familiar with the education and resources available to his team. But, as a Silver Member, he needed some recommendations and guidance for specific courses to help his sales team with lead generation and his stores with off-season tactics.
MRAA Spotlight Series
Below, I’ll share with your team what I shared with him since you could be facing similar needs at your dealership:
I reminded him of the MRAA Spotlight page and its numerous monthly topics that help dealers address concerns.
Finally, I recommended that he explore MRAA Certification because it could help him establish more efficient and effective processes that lead to a more enhanced sales process for his team and an improved customer retail experience. Currently, MRAA Certified Dealers have access to a Continuous Certification course from Decker called “How to Plan and Optimize Your Digital Marketing Strategy.”
Never Back Down, Never Give Up! My 14-year-old son likes to game in his free time. One of his heroes is a Canadian player and streamer who goes by the gamertag of Nick Eh 30. His motto is “never back down, never give up!” That simple message rings true for you today, even if owning and operating a dealership is infinitely more significant than a video game.
Those six words speak of bringing with you into every challenge you face a proper mindset. That is, being adaptable, resilient and resourceful to help you and your team overcome and prepare for 2024!
Dealers, email me if you need any assistance finding courses or resources to help you survive and thrive during challenging times. We’re here to help.
More than 200 attendees from 87 businesses and 37 first-time registrants connected September 24-26 at the Westin Hilton Head Island Resort in South Carolina
The National Marine Lenders Association (NMLA) just wrapped up its 2023 conference in Hilton Head, S.C., drawing the largest number of attendees in more than 10 years.
Headliners for the National Marine Lenders Association (NMLA) event included Bill Yeargin, CEO and President of Correct Craft, who presented the economics of culture within an organization. He noted that implementing a positive culture should not be realized as an expense, but rather as a high-end return on investment. Matt Gruhn, MRAA President, shared the current mindset of U.S. boat dealers and highlighted examples of how a successful dealership can survive and thrive during challenging times by demonstrating resiliency, creativity and maintaining a “never-give-up” attitude.
Matt Gruhn, MRAA President, spoke at the NMLA Conference about the current mindset of U.S. boat dealers and shared how a successful dealership can survive and thrive during challenging times.
A panel discussion on cyber security, fraud mitigation and loss prevention highlighted top-down tips for organizations and individuals on ways to protect themselves amid the evolving world of AI. Panel member Matthew O’Neill, US Secret Service, reminded attendees that corporate systems can be “hacked” via one person, thus driving home the need for bottom-up fraud policies. Additional breakout sessions and panel discussions covered marine portfolio protection, e-contracting, delinquency, collection recovery, marine industry advocacy issues and Gina Martin Adams’ (Global Head of Portfolio Strategy and Chief Equity Strategist for Bloomberg Intelligence) economic update.
“We thank all our members and industry stakeholders for their participation. Seeing so many first-time attendees at this year’s event was very encouraging. What a strong testament to the growth of the NMLA and the entire marine industry” said Robin Cottmeyer, NMLA’s Executive Director.
The conference is one of the major highlights of the year for NMLA members and the marine finance industry. Next up on NMLA’s educational calendar is the Annual Marine Lending Workshop (March 10-12, Orlando, Fla.), a two-day interactive program offering attendees the opportunity to increase their knowledge base with experts possessing more than 200+ years of combined marine experience.
About NMLA The National Marine Lenders Association is a 501-C non-profit organization that began operations in 1979. Their mission is simple: Promote and improve recreational marine lending in the United States. Membership includes banks, credit unions, and finance companies who offer retail and inventory financing for the boating and yachting industry. Associate members supporting the needs of lenders include maritime attorneys, USCG documentation and title companies, marine insurers, repossession and liquidation businesses, marine technology providers, and industry associations.
As a business leader, you probably have mile-long list of stories you could share regarding your hiring successes and failures, and other issues you’ve experienced within workforce management over the years. Dealers have shared stories with our team of being ghosted altogether by a new hire to dismissing someone from their employment due to improper behavior or lack of performance.
The one story we know that nearly the entire marine industry has dealt with for many years is the lack of workforce. And lack of qualified candidates may be another roadblock you’re seeing in your area, too. A lack of total employees can lead to burnout for those on your staff and create areas of inconsistency and a lack of efficiency in both your processes and potential.
So how do I fix my workforce shortage? That question is one we read/see quite frequently. It’s difficult to answer because the solution is multifaceted. Certain solutions provide you with insight into compensation, while others share tips and tactics for improving hiring and employee retention. Still others involve things that aren’t always in your control, like market conditions and the attitude of the modern labor force.
Just look at the last few years, where you’ve seen a transition from a high-demand marine marketplace with very little inventory to one with product surpluses where your sales teams have to work harder and brush up on their skills to move units. So now what?
We understand the workforce continues to be a pain point for many dealers, so that’s why we compiled these 10 resources to help your dealership find best practices and tools for hiring, retention and compensation.
Below you’ll find authentic dealership feedback mentioning certain pain points. I’ve then made suggestions as to which MRAA resource (some of which require MRAA Membership to access) can help your dealership inspect and correct the problem area.
Staffing is Not Working Dealer Feedback:“Employee candidate applications are increasing but the quality is not there. We are trying to increase staffing to better meet customer expectations, but it is creating more issues that it is solving. It is hard to find individuals with common sense anymore.” — Anonymous dealer
Strengthen Your Dealership’s Workforce We don’t have to tell you that finding outstanding people who fit your business and culture seems to be getting trickier. Ty Bello’s “Strengthen Your Dealership’s Workforce” teaches you to properly recruit, assess, interview and select who to hire and onboard at your dealership. You’ll also learn to improve at attracting the right people in today’s conditions.
MRAA Guide to Growing the Workforce
Marine Industry Guide to Growing the Workforce MRAA worked closely with the National Marine Manufacturers Association and the Rhode Island Marine Trades Association to develop this 10+1 Strategy guide. It includes local initiatives you can consider in developing your workforce.
Attracting New Hires Dealer Feedback:“Finding suitable candidates in the workforce is still an issue. The appropriate candidate is still asking too high a salary for some positions. The job market is still off balance. We’re rapidly looking for better ways to gain attractiveness to our new hires rather than a sign-up bonus. And doing so without increasing our biggest expense, payroll.” — Anonymous dealer
How to Recruit, Work With and Lead People Not Like You A diverse workforce, proven by research to grow business and profits, leads to better decisions and solutions. Because marine dealers have encountered workforce shortages in recent years, it is imperative to successfully recruit and retain a more diverse employee base.
But what happens when employees are different? They may not always agree. And they may take a different approach or uniquely communicate to arrive at a desired outcome. Some of your staff may find comfort in working with technology, while others may not.
They may even differ in the way they are motivated to work or how they view their particular profession. So, how can you, as a leader, and your team all be effective in your roles and show respect even when you’re different? This popular education session from Kelly McDonald answers these questions and offers you specific techniques to apply in your dealership.
Gloria Sinclair Miller
HR Strategies to Fill the Gaps in Your Dealership’s Workforce Chances are you’ve heard the puzzle analogy used when describing a dealership and its workforce. Essentially, you don’t have a completed puzzle if you have open positions and therefore, you can’t feel satisfied until you’ve built the rest of the puzzle.
However, recruiting and hiring isn’t as simple as putting together a puzzle even if the analogy works. That’s because quite often there’s an imbalance between the available candidates and the skills and experience you desire at your dealership. And let’s not forget about the time commitment and effort you put forth only to see it “not work out” in the end. Meanwhile, your departments and current staff continue to work hard to fill your gaps and feel the pressure and stress of it all, too.
If your team puzzle building has gone astray, then Gloria Sinclair Miller, a senior HR leader at the Society of Human Resources Management, and her “HR Strategies to Fill the Gaps in Your Dealership’s Workforce” is a must-watch course. Along with helping you find and develop talent, this session will provide your leaders with proven strategies to search for new groups of workers (military spouses, caregivers, veterans, 60-plus, unemployed youth, and more) that exist outside your normal searches.
Compensation Dealer Feedback: “Staffing is not a challenge, but we have to pay 30% more than the previous years.” — Anonymous dealer
This dealer is not alone, as our dealer conversations have shown that certain dealers have enough staff and others are paying their staff more — especially the qualified, trained and dedicated employees — to retain them. Comments have also said that workforce shortages have led to reduced opportunities, like upselling in service and being more efficient.
If you have concerns about what to pay new hires or what sort of compensation your staff should receive, check out the MRAA Compensation Study and the course by Bob Clements entitled “Develop Compensation Plans that Produce Results” at MRAA Training.com.
MRAA 2022 Marine Industry Compensation Study
Compensation Study Results The 36-page Compensation Study, available for purchase, shares insights into salary and hourly compensation ranges for 37 common marine retail job descriptions. Insights include benefits offered at retail operations, year-over-year compensation increases, additional cash compensation packages, and much more. It breaks down compensation by 25th, 50th and 75th percentiles.
Develop Compensation Plans that Produce Results Retaining your dealership’s rock stars is integral to your operation. That’s why, as a leader, it’s vital for you to get your employee compensation plans right. We also know that payroll is one of your most significant expenses, so it’s crucial to know how much you can afford to pay per position.
This MRAATraining video features Bob Clements of Bob Clements International, who helps dealership owners and managers determine how much your dealership can pay your people.
Keep employees Engaged Dealer Feedback: “Staffing is not working. I have interviewed and hired people and they have quit before they even started. I have never seen the likes of it. Or they last one week and ‘this type of work is not for them.’”— Anonymous dealer
Dealer Case Study: Onboarding Being that your employees are often called the lifeblood of your dealership, it’s critical to help them find more success. Because your dealership’s success depends on employee success. The No. 1 responsibility for dealership leaders is to help bring life to your company’s mission, vision and values daily by preparing your employees.
In this Dealer Case Study with Certified Dealer Alpin Haus (New York) shares with you its own unique onboarding strategy. You can join Valerie Ziebron as she interviews Mark O’Dell, Alpin Haus General Sales Manager, about how his dealership onboards its workforce. You’ll gain tips and insight into how you can modify their strategy for your business, no matter its size.
The Search for Sustained Motivation for Yourself and Your Team The marine industry has had several crazy-busy years and now faces other challenges as we wind down 2023 and take a look ahead to 2024. For many, it started with 2020’s unrelenting pace of business and the high expectations to deliver supreme standards every moment. It was daunting. Everyone, from your owners to your seasonal employees, was overstretched and approaching burnout.
The marine industry saw lean inventory years, parts delays, expanding repair event cycle times, a necessity to enhance the customer experience and more. Now the market has shifted again, showing inventory surpluses and conditions that include inflation, high interest rates and conservative purchasing. Your team has pivoted to refocus on your sales, upselling in service and ways to generate more cash flow in the offseason.
That’s why this course, “The Search for Sustained Motivation for Yourself and Your Team” with expert speaker David Spader will help you, as a leader, rediscover what motivates you personally and professionally (and help your employees do the same). Learning these best practices will also help plan for the year ahead.
Take Control with a Positive Attitude Worrying about the many things in the boating industry that you cannot control, will set up your team for a lot of frustration and despair. You cannot solve inventory shortages or fix the workforce shortage we’ve mentioned. However, it’s much easier to take control of your attitude, actions and negativity! By doing this, you can help determine your success and growth. This MRAATraining session with Matt Booth helps your team make good choices and develop the skills to achieve better results. As a leader, you can enjoy your job more, and positively influence both your co-workers and customers.
Sam Dantzler
A is for Attitude Video One of the most popular courses on MRAATraining.com, “A is for Attitude” with Sam Dantzler of Wheelhouse College, will help you learn how to influence your team’s attitudes and beliefs, boost employee satisfaction, prevent burnout and increase your dealership’s performance.
Is your team filled with passionate personnel or those who simply do enough to get by? Watch this course to gain insight and best practices for enthusing your team and stoking their fire inside to keep it burning bright for them and your dealership.
Need additional workforce resources? • Check out the MRAA Resource Center dedicated to workforce and HR.
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