EXPERT ADVICE for STRENGTHENING YOUR BUSINESS <<
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>> EXPERT ADVICE FOR STRENGTHENING YOUR BUSINESS << Master the non-verbal Get back to the basics Send the right message Operate with a plan Learn from the prosperous Focus on your strengths Exceed expectations Capitalize on opportunities A BOATING INDUSTRY WHITE PAPER CONTENTS THE POWER OF THE NON-VERBAL 5 REASONS WHY STRONG 3 By Matt Gruhn with Duane Spader 11 DEALERS PROSPER By David Parker, Parker Business Planning GE’S SIX TIPS FOR SURVIVAL 5 By Matt Gruhn FOCUS ON YOUR 13 STRONGEST BRANDS EFFECTIVE MARKETING IN By Phil Dyskow, Yamaha Marine Group 7 A TOUGH ENVIRONMENT By Dale Barnes, Yamaha Marine Group 15 EXCEED EXPECTATIONS By Debbie Davis, Waypoint Group, Inc. 9 OPERATE WITH A PLAN By Noel Osborne, Consultant MYRIAD OPPORTUNITIES AVAILABLE 17 By Phil Keeter, Marine Retailers Association of America Back to Basics hen the economy is booming and boats Business basics seemingly sail out of the dealership, it’s easy W to forget the trials and tribulations that pre- can sustain marine ceeded this period of prosperity. Like most retail channels, the marine industry is dealers — even cyclical. But the huge investment in inventory and staff required to run a successful dealership can turn sour during tough times. when the economy isn’t so hot, as many dealers are find- ing out. Reactionary measures may sustain a dealer in the short-term but aren’t likely to help in the long run. Boating Industry spoke with top consultants and industry experts to get their take on surviving and thriv- ing during all economic conditions. Although the experts vary widely among their positions in the industry, a num- ber of common themes emerged from their responses. Most involve sticking to one’s business plan while looking for quality growth opportunities in closely relat- ed areas, concentrating on marketing and advertising, taking a critical look at each employee should layoffs For the latest need to happen, asking manufacturers for help with cus- news and data tomer appreciation functions and taking steps to move regarding industry older inventory. trends, subscribe Now’s not the time to panic. Now’s the time to heed to the Boating Industry e-News the advice of experts and refocus your efforts on your and visit dealership. >>>>>>>>>>>> boating-industry.com. www.boating-industry.com WHITE PAPER - Boating Industry 2 BOATING INDUSTRY WHITE PAPER The power of the non-verbal How the right attitude can help you survive the tough times. CONTENT FOR THIS ARTICLE ith the current economic condi- mind you. Trying the ol’ rah-rah-hoop-de- tions at the forefront of his doo doesn’t work. It’s like the old mantra WAS DERIVED FROM A W mind, the No. 1 thing Duane Spader has taught for years: Good habits CONVERSATION WITH Spader began telling people last year, was are formed during tough times; bad habits DUANE SPADER that dealer management had to be responsi- are formed during easy times. ble for the non-verbal portion of its opera- It’s an attitude of professionalism and OF SPADER BUSINESS tions. Sounds a little too philosophical, but it respect for one another. It’s a message of MANAGEMENT. makes sense. And dealer principals need to teamwork that took years to build. It’s much understand the effects of the non-verbal. more than just trying to give away boats at a BY Often in tough times, business owners low price. It means cleaning up the facility to MATT GRUHN. begin looking for the one instant answer to improve your appearance. It means making solve all of their problems. And let’s be hon- sure the bathrooms are clean. It means greet- est, with the Middle East turmoil, gas prices ing every customer who walks through the and a resulting economic condition that does- door. It’s improving those 1,000 different n’t seem to favor boat buying, times could aspects of your operation. definitely be considered tough. So it’s impor- Does your dealership succeed with the tant to pay attention to what Spader coins as non-verbal? Evaluate how your employees the non-verbal. And that amounts to a com- talk about each other. And what their atti- bination of many things. To Duane, it’s the tude toward management feels like. What’s Your Non-Verbal message he’s been sending to all of the suc- the attitude among different departments? Essentials Checklist cessful dealerships he’s been working with for The attitude should be one of confidence K Exhibit confidence years: It’s not the one thing that you do 1,000- … that you and your employees are doing K Display professionalism percent better that matters, it’s the 1,000 the professional things that can be done. K Show respect for other things you do 1-percent better. It all starts with the understanding that Not all dealers are doing poorly during customers buy one boat at a time. And employees & customers these times, either. The truth is that those they want to buy that boat as opposed to K Ensure a clean facility dealers that are doing those 1,000 things being sold a boat because of a cheap price. K Greet all customers better make more money during soft times And it sure is easier to talk and write about K Improve every aspect of than they do during good times. That’s this than it is to implement it. But if price your operation because they are doing all those things bet- selling is happening, you’re just com- K Sell one boat at a time ter and the non-verbal of the dealership is pounding your problems. better because everyone is productive. In There is a methodology to it that dealers K Tackle the cost-cutting soft times people still want to buy, but they really have to concentrate on, and that’s sell- K Advertise your strengths want to buy from dealerships where the ing one boat at a time. Typically, what hap- non-verbal is good. pens when the market goes soft, dealers for- The non-verbal message that a business get that, and they try giving away one boat at elicits is its attitude. It’s an aura of confi- a time, rather than selling one boat at a time. dence that is visible and obvious to anyone And giving it away creates more of a nega- who walks through the front doors. It’s the tive effect than selling it. By giving it away, solid confidence that says, “things might be the sales rep is selling only price and empha- tougher, but we can do better.” It sends a sizing to customer that the industry is soft: statement that says, “times might be tight, “Other people are not buying, so you but we don’t have to give up.” Instead of shouldn’t buy even though the price is giving up, it says “we have to do better. We good.” Selling is based upon addressing cus- can do better. And we’re going to put more tomers’ needs and being positive about it. efforts into doing the right things.” That Customers don’t want to be sold; they want doesn’t mean the gimmick of the month, >>>>>>>>>>>> www.boating-industry.com WHITE PAPER - Boating Industry 3 THE POWER OF THE NON-VERBAL During tough economic times, what is your No. 1 focus? During tough economic times what is your No. 1 focus? 8% Hold margins 33% Reduce inventory 24% Cut costs 15% Create additional revenue streams Increase revenues from existing 25% products/services Other 10% 0%5%10% 15% 20% 25% 30% 35% Boating Industry magazine polled dealers in a number of to buy. When we get into price selling, it’s areas focused on surviving in tough economic conditions. company is demoralized. And that is actu- the salesman selling and not letting the cus- In all, 221 dealers responded to this survey. Of these ally chasing customers away from the dealers, 74 percent had only one location, 21 percent had tomer buy. two or three locations, and 5 percent had four or more dealership. It’s also subconsciously telling locations. Additionally, 29 percent of these dealers noted When it comes to evaluating the cost- their annual revenues to be between $2 million and $5 customers, don’t buy here. You have two cutting side of the business, you need to million; 31 percent were less than $2 million; 35 percent types of employees: productive and busy. were between $5 million and $20 million; and 7 percent first understand where your costs are were $20 million or greater. When tough economic times Everybody starts getting busy and nobody hit, 33 percent of these dealers focus first on reducing associated and which are the largest. The their inventory. becomes productive because of lack of No. 1 cost in a dealership is people. No. 2 direction and dedication to the work. They is interest. No. 3 is advertising. You can right time to buy from a strong business. will often get busy just looking busy. When tackle all the nickels and dimes, which are Without advertising, you will be less likely to employees know someone should be let important, but if you don’t tackle those move boats, and if sales are dropping and go and the owner does it, then they go three, you’re not going to make progress. you have excess inventory, your problems back to work. They are the toughest, yet Those three make up about 65 percent of are compounding because the interest rates the most important, decisions and should- your total expenses, if you’re managing continue to climb.