Cabin Fever Challenge - Build the Perfect Dealership

[Mark Hofman]

The recent comments about dealerships and salespeople, and the fact that our area boat show is coming up, got me to thinking.



If you were in a position to purchase or establish a Tracker/Nitro dealership, and run it the way you think a dealership should be run, what would it be like?



I'm naming my dealership "Quarterdeck Marine". I just like the sound of it for a dealership or even a boat brand. I'm only starting this dealership because in my dream world I win the $160 Million PowerBall and can do anything I want in life.



Quarterdeck has a large indoor showroom for boats 21 feet or less, and a covered outdoor showroom for pontoons and larger runabouts. The lighting is bright (translucent panels on the roof of the outdoor area). In a side area (also fairly large), you would find OEM and aftermarket accessories, electronics, PFDs and all the other boating paraphanalia to tempt the new owner. A parts counter would be along the back wall.



Potential customers are greeted with a smile, and asked if they were looking for something specific or just browsing. They are walked to or given instructions about where to find specific kinds of boats and the accessories department. Then they are left to kick tires and poke around. A sales staff member is closeby, but not hovering, and would periodically ask if they had any questions or need help.



The sales people are initially paid a flat (modest, but livable) salary, with an annual performance review and increases in salary based on sales volume and customer satisfaction. Within 7 days of a sale, the salesman contacts the new owner to touch base and see if there were any problems that popped up once the boat got home. A customer service rep would call the new owner within 14 days to go through a customer satisfaction survey and to describe the options/procedures for service, warranty work, adding accessories, etc.



In the back there is a large parking lot and pull-through for customers bringing boats in for service. The service bay could accomodate up to four boats at one time. One bay is for rigging. Another is for hull-work. Another is for either rigging or hull work. The fourth is for service on motors. There is also a water trough for testing motors. Service techs are certified, or in a program of education leading to certification. There is a prep/review area where the service manager and the customer can do a walk-around and boat assessment, and an area to park boats ready for pickup to avoid congestion. There is an area to store boats waiting for service or delivery, but it's behind a tall privacy fence.



When a boat is rigged and ready for delivery, the customer arrives at the store and is escorted to the boat. A complete walk-around inspection is done to insure that there are no defects in the boat, trailer, motor and accessories. Any complaints are registered, the boat goes back into the shop, and the process is rescheduled. If the boat is physically acceptable to the owner, the staff member does the orientation and break-in lecture. The boat is at the water-trough and the outboard starting procedure is reviewed. The owner is given an owners packet which includes various lists and checklists, maintenance schedules and owner tips. Questions are asked and answered to the satisfaction of the customer. The boat leaves the lot with a full full and oil tanks and a fresh charge on the batteries.



If the boat is being sold to a first-time boat owner, the dealership would keep a list of current customers with experience who would volunteer to spend a few hours on a nearby body of water, helping the new owner learn the basics. That mentoring would be coordinated by the store, not the responsibility of the owner, and would be made available but not shoved down their throat. I'd have an "owners association" and use it to solicit volunteers for this kind of a program, and also personally invite se

 

[Mark Hofman]

Cecil, in a way I agree. The owner/manager also plays an equally huge role in determining the quality and character of the people who work for him.

 

[TrepMan]

MO - You just described the Atlanta BPS/Tracker store!!



Then even greet me and my boys by name (I know it's been too cold lately, been in the store a bunch



Only things I would add are:



- Require a follow-up survey on every repair/service 14 days after the completion of the work. BPS did that a year ago, didn't get one this time. Could be phone or mail-in. Though i'd rate it excellent as usual!



- Offer some kind of special days at the store (like get in 1 hour prior to regular opening on sale days) for current Nitro/Tracker owners. I get these all the time from Furniture stores, come get free coffee and donuts and browse before the public get's in!!



- Blend the Outdoorworld points with the boat dealer, at least for service and parts, if not purchase.



Oh and move the store about 40 minutes closer!!!!

 

[James D.]

cool post MoFish. i would add a customer seminar once a month to have a time for customers to come in and get additional questions answered after they have had their boat for a while and fully explain maintenance services. i bought a car and went to one of these and thought it was great. good time to build personal relationship with the service dept. and to display level of customer satisfaction committment. i would add some more service bays if possible as there is always something to be fixed. if i owned a dealership, i would want to have a great reputation with the buying public and also with the mfg. i would also want a committment from the mfg to provide warranty assistance locally such that if there was a problem with the product and couldn't be handled over the phone, the mfg would send a rep and get the problem solved without months goin by. also, i'd try to include turnkey services, such as fiberglass repair, trailers, electronics and trollin motor installations for all makes and models.



jd

 

[Scott Hammer TOXIC]

I'd sell dinghys out behind a Hooters and get rich!! Really though....make sure you include an indoor playground for the kids...keep em' busy while Dad shops, and an expresso bar, and a casting pool, and a l ohhhhh I gotta stop I'm gettin dizzy....What makes retail work?



Good Price

Good Selection

GREAT Service @ a Good Price

Honesty

Make the Customer #1

Integrity



My wife once had a service manager try to sell her an entire exaust when I knew all she needed was a muffler. Pretty woman + Servicework = screwjob (normally) so I had prepared her for it. Long story short, the owner of the dealership called her personally to apologize and told her that on average people who have a bad experience tell 7 others. People who have a good experience tell 1. Those are not too good of odds if you make your $$ in service and you do a crappy job!!



TOXIC

 

[Tony Payne]

For the first time owner: (or even an "antsy" repeat owner)



an offer to take them to the nearest water hole to show them proper launch procedures, safe motoring procedures, and loading procedures.



It also takes that one step further of showing them the boat is "up to snuff".

 

[Texas Transplant]

Simple rule. Do what you say you're going to do, every time, all the time.



End of story.



Tex

 

[TrepMan]

I love the kids area Tox, we buy all of our cars at CarMax (with the exception of Honda Odyessy vans, one so far but I KNOW she really wants another one). Carmax not only has the play area (TV, VCR, Video games, Slides, Toys, Ball pit..) but they PAY teenagers to WATCH the kids in a safe/clear glass room while you shop, and it's FREE!!!



I like James' idea of a monthly seminar. I'd have loved for someone to teach me about the basics and tips!!

 

[Kenny Lively]

MO,



A super dealership, sounds like all you need is a dedicated Nitro owner to run one of your sponsored boats. A hard working fisherman like myself to work the boat shows for you, take people out on test rides, and promote your dealership the "one" time I might win. LOL

 

[Staci Matheis]

What Mr. Simnitro said.....



When I took delivery of the one new boat I bought, the Service Manager at the dealership spent about an hour with me going over all the switches, etc. But NOBODY ever offered to go out with me..... Did I ever tell you the story about spearing the barge wake on the Mississippi the first time I took the boat out in late February because I had no idea what to do with the power trim..... The water is cold that time of year..... VERY cold.....



Since then, I have twice seen customers from two non-Nitro dealerships in the area meeting with pro-staffers from the dealerships to go out with them for their first ride..... THAT is the way a dealership should treat their customers AND make GOOD use of their pro-staffers!



me!

 

[Mark Hofman]

These are great ideas! I, too, think that developing some sort of mentor program for new boat owners, where they would actually go out in their new boat or in an experienced owners boat to learn the basics of launching, driving, docking, recovery, trailering, etc.... would be one way to demonstrate a commitment to customer satisfaction. You'd find out real quick if a new boat or motor had problems coming out of the factory, or the result of a setup issue. You'd also help boat owners avoid making mistakes that cause damage - damage they might blame on the factory or the dealership.



Treps' and James D's idea about doing something special for current owners - seminars and early sale offers - are great too! And something to keep the kids occupied, that's a good one.



Keep 'em coming!

 

[JAMES MOORE]

It's simple, build yourself a prostaff throughout the local area. Give them a discount on their boats for performing services for the dealership. It's a win win situation for both the dealer and the pro-staffer. Gee think about it, you take your boat home, and a pro-staffer from your local area meets you and takes you out to show you all the functions on your boat. Then lets you drive till your familiar with everything. Talk about good customer relations.

 

[James D.]

another idea came to mind regarding service. around here, especially in the summer, the boats pile up and it takes a while just to get someone to even look at your boat. Covered storage would be good for those long extended stays. having the parts to repair would be good also instead of always having to order stuff in. it is expensive for shops to keep a large inventory though.



I really like the idea of the pro staffer or dealer or service mgr takin the boat out on the lake with you to run it through its paces. I bought my boat used, and had to learn the hard way by trial and error. i learned on this board that you should trim down and then raise the motor. i was doing it the opposite way although it works either way on my boat. there is probably some more things that i just am not aware of.



This one should be VERY popular. How about if you have a new boat and it has a warranty problem that takes longer than, say 2 weeks to fix. How about the dealer providing a loaner out like they do with cars? don't know how realistic this would be, but it would be great for the customer and probably would drastically increase the turn around time or warranty items. i feel for those that miss a whole season of fishin because of a problem with a boat. life is too short.



jd



jd

 

[Bruce Freeman]

Mandatory the first day on the water would be with the new owner/owners and the Service Manager. (Where do I get an application) If it takes a whole day for a newbie or a few min's with a vet. Testing the boat,showing how everything works and should be used, loading and unloading the boat, showing the correct pre-flight check off's (is the plug in) and how to store the boat when they are done for the day. At a succesful dealer ship this may even be a full time job of it's own. But still my 2 cents worth

BF

 

[Marke Cicero]

MO,



Since you won the $160 million powerball, make sure you build the Quarterdeck right on a lake so you can offer test drives. Also have a nice ramp so you can teach loading and un-loading during delivery. The pro-staff idea is good but if the guy is interested in a Targa, a ride in a Nitro isn't going to help.



As far as service goes....Schedule appointments. I can't stess this enough. If my boat has a broken trim gauge or other minor problem I shouldn't have to drop it off and leave it for 3 weeks while it's sitting out side waiting to be looked at. If the boat can't be looked at for 3 weeks then tell me....at least I can still use it or store it in my garage. A boat should never physically be at a dealer for more than 3 to 4 business days.



Marke

 

[Scott Hammer TOXIC]

OK, now let me play Devil's Advocate for a minute. All of these excellent suggestions cost money. Never forget that. Most of the suggestions don't equate to $$ in the bank for the dealership and therefore add to the bottom line. You won't be in business long with paid employees out on the water demonstrating everything from trailering to trim adjustment. Likewise to get the type of service work you are suggesting, the dealership would have to have a very large service staff and once again a large amount of $$ in payroll. Add to that the hard costs of covered service area, playground, discounted boats to pro's, etc., and you have a dealership that most likely would need every boat sale in their respective state to make a profit. Yeah, so you get all the service business and new boat return customers but I doubt it would be enough to make a decent buck, otherwise someone would have don it by now. It's nice to dream but it won't happen as long as you have to make a profit.



TOXIC-bubble buster

 

[Bill McElroy]

Excellent point Tox,..especially on a 5-7% profit margin on a NEW boat sale!!! You gotta sell a LOT of boats just to pay the Gen Mgr's salary...let alone all the techs, parts guys/gals..rigger's, CS people etc..etc. And one more point,...Pro-Staffers are NOT full time employees....they are not even considered employees....they "represent" the company, and most of them have full time jobs other than at the dealership....they earn their "keep" at the boat shows and are only "contractually required" to give @ 40hrs per year of their time to the dealership in exchange for their "Pro-Staff" discount....Some guys give CONSIDERABLY more than that,....some less....it's up to the GM of that dealership to decide how to best use his/her Pro-staffers....speaking from past experience,..Mini and I worked many, many more hours for Neeley than we were required to do,...and most of our hours came from working boat shows from Jan-March....we'd give a LOT more than the req'd 40hrs...but we loved doing it....you have to set your own limitations as to when to say enough is enough. My point is this,..if you have a dealership that requires your prostaff to work shows, and do on the water demo's with each sale......you'll be looking for new pro-staffers EVERY year!!! LOL...It's not a good idea to burn out your "volunteer help". just my opinion anyway...carry on!

Mac

 

[gone bye bye]

Heck I did it last year without a contract!!!!



Mini

 

[Scott Hammer TOXIC]

How True Mac, as a matter of fact, all of my sponsors make me sign an agreement that states I am not an employee and that they cannot be held liable for my actions. Stop and think about it, say I'm a bad guide and get someone hurt on my boat and they sue me........looking for deep pockets.....then sue my sponsors!! If that is NITRO or Gamakatsu or SPRO or whoever....At one time I had a couple and their daughter (5 yrs. old) on board, one was a musician for the Boston Pops and the other played for the Kennedy Center Orchestra. Can you imagine what would have happened if one of them sunk a 3/0 hook into a tendon in their hand?!?! AHHHHHHHH...That is THE scariest part of guiding to me, you've got to deal with John Q. Public and there are some real crazies out there. I do have one sponsor that will pick up my expenses at certain shows and that helps. And you better bet that if I don't show positive activity on those quarterly reports, I'm in danger of losing sponsors. Times are tough.



TOXIC

 

[Bill McElroy]

I hear that,...if I've said it once,..I've said it a hundred times...."Sponsors are EASY to get,...but HARD to keep!"...

I hear ya Mini!!,.....Tracker got a LOT of my time over the last 3 years for that 901!! LOL!!!! Can't get enough of the love though...man I like hangin' out with that Auburn Hills crew!! Great folks!!!

Mac

 

[TrepMan]

Tox - Your missing the point (my view) about this thread. Forget about HOW to fund it or keep that seperate. I like MO's idea about "Build the Perfect Dealership", we brainstorm ideas on WHAT the public wants, and we can also talk about HOW, but that's SOMEONE else's problem!!! LOL



Think about it, 10 years ago if you told someone that you could buy a new or used car from a national chain at a fixed price (and the used ones come with a 5 day money back guarantee and 30 day warranty) they'd likely have told you that NO ONE could afford to do that in the car business. Yet here we have CarMax and Saturn, and all the others!!



Maybe to suplement the small profit margins they sell other stuff? Resturant maybe??

 

[Scott Hammer TOXIC]

Yeah Trep I got a little off subject but I think you have to keep some grasp on reality. It has to be "Do-able" in order to be considered. I mean I would love to walk in a dealership full of bikini clad Hooters girls that know how to fish, rig boats and after the free lunch of wings they (at least 3) take me out on the lake for a "test ride" then it's back to the dealership for free Omaha Steaks dinner wet t-shirt contest and cigars to seal the deal. The Service manager (Playboy playmate of the Year 1999) then comes to my house to pick the boat up for free annual service and fills all the lockers with new tackle and baits. Oh, I almost forgot, when I ink the deal, I get a credit card in the dealers name for fuel oil and incidentials that I might need.



Now that's MY kind of dealership.



TOXIC



and BTW, Car Max does not offer better deals or service. You actually pay a little more....

 

[TrepMan]

Tox - See NOW you got the idea!!!



On CarMax, I read the same report from Consumer Reports. BUT on the "deal" if I remember correctly (assuming your talking dealers not personal individuals selling a car) you saved 2-300 bucks IF you were a HARD negotiator and willing to spend a few hours doing the deal!!! I know it's not for everyone, but i've tried twice to do the hard negotation for a similar vehicle (not telling the dealer till the end that I had a CarMax price on a similar car) and in both cases after over 2 hours of haggling both dealers were still more then $200 over the CarMax price. AND they didn't have supervised playgrounds for my kids OR all their cars and prices on the WEB!! Sorry, i'm SOLD on them!!!



Now back to our DREAM dealership!!!

- They come to your house and PICK UP your boat and return it!!!

 

[Adam Murray]

Apples and oranges, though, Trep. When you're talking about used cars, there's no way you can objectively do an equal cost comparison.



Not denying you are a fan of their processes (just like many were fans of Saturn at first), but overall, this is a dying business model. CarMax same-store sales only rose 8% last year and most Saturn dealers are nothing more than fancy used car lots with a heavy emphasis on secondary financing.



I thought the Saturns and CarMaxes of the world were the wave of the future. The "big-name" dealer groups were gonna greed themselves out of biz.



Boy, was I ever wrong. This became very apparent to me in the last two weeks. Last night, I sat two tables away from Bruton Smith (owner of Sonic Automotive, 6 speedways, Easy Care, First America....) at a Sonic dealer/operator meeting. He gave away 30 Rolex presidentials and countless other awards for sales growth, gross improvement and F&I success. Their #'s were staggering! Economy nothing! These cats are selling more cars, making more money AND continuosly raising their CSI.



Last week it was the VanTuyl group (3rd largest in the country). Same story....



Processes sell cars (and boats). Selling sells cars (and boats). All the other stuff is advertising.

 

[Scott Hammer TOXIC]

Yeah I agree if you don't want to haggle Car Max might be attractive but every car/truck I have purchased in the last 10 years has been reeeeaaal easy. For example...my jeep, brand new vehicle, I call my credit union get the DEALERS invoice amount & Options cost. I went to three dealers and told them, I have a sheet of paper in my pocket with the above info., here is what I want, give me your best offer. In that example, only one was honest and he got the sale (told me he would sell to me at $200 over cost and options at cost). BTW ALL of them said they would have the best deal. I didn't look at the paper until I had all three prices. Used is a little more difficult but can be done. I refuse to banter with salesmen, there's no need to if you are fully informed about your purchase. I also refuse to pay retail.



TOXIC

 

[Texas Transplant]

I agree Tox. A good friend showed me the 'secret' some years ago. I don't do what you do, but get my deal EVERY time.



The secret is determining the price that YOU will pay for the car; not getting emotionally attached to any one vehicle; and then waiting for them to either make the deal that you offered, or you go down the road. Only one time, did I have to go to a second dealership. If they don't want the deal, I simply just shake their hand, say thank you, and leave.



Tex

 

[Mark Hofman]

Remember, in this dream world I've banked the residual of a $160 Million Powerball ticket (or whatever "big" number it would take.) A $100 Million invested, even earning a miserable 3% return is $3 Million annually. In a normal market, you could expect 5% to 8%, so bump your operating budget accordingly.



So, for this little game, take money out of the picture. I can fund the construction, payroll and benefits as a dealer, without relying on sales and service to fund that part of my budget (which is usually the biggest expense).

 

[Mark Hofman]

Let me clarify that a bit. I'm a clone of Bill Gates, and I love boats and fishing.



The property I buy is perfect (like Marke suggested, right on a beautiful serene lake).

The building is modern, BIG and easily accessable from a major highway or road.

My employees are salaried. Their income doesn't directly depend on sales, but on their ability to do their job and please the customer.

Assuming satisfied customers, I can recruit volunteers or pro-staff to provide extra services to owners.



Heck, I even have enough money to buy a Hooters franchise and put it next door, and across from that have a Sportsman's Paradise tackle and gear store.



But what other ideas would make this the best boat dealership in the world?



Off-topic: Tex and Tox (???), I agree with you about negotiating a car price. I determine a price that is fair to me, and can be justified as fair to the dealership. I get pre-approval for financing before I go to the dealership, with terms that are acceptable to me and my wife. Then we walk into the dealership and tell the salesman that we want "X" vehicle and we're willing to pay "Y" amount. The last car purchase we did, the negotiations took 12 minutes from the time we walked in the door until we were signing papers. Any haggling over another $100 or $200 isn't worth the extra time.

 

[Scott Hammer TOXIC]

Then I want my Hooters girls!!

 

[Mark Hofman]

Okay, then my Pro-Staff team consists of Penny Berrymann and a whole bunch of expert bass-boat-operating, bass-fishing Hooters girls. They wear the same style of clothes but in different colors, and they must use a SOSpenders PFD.

 

[Bill McElroy]

Mo....if you won the 160Mill power ball............you BUY Bass Pro Shops and go fishing for the rest of your life,..

Why you'd EVER want to own and run a dealership and deal with all the headaches that will come with the territory,...is beyond my comprehension......but you can bet your last drain plug, if I ever won that kind of money,....I'd NEVER work another day in my life...and neither would most of my friends (and trust me,..I know WHO they are!!..LOL)...Mini....grab that towel...we're goin' fishin'!!!....in the Carribean ,...I just bought it!!LOL

(And I'll tell every ship smaller than a cruise liner to get off of our @!#!@!!!)...ahahaa....

 

[Mark Hofman]

Yeah, that'd probably be true.



But wouldn't it be fun to completely own a dealership (no mortgage), buy the boats up front from the manufacturer in cash, and recruit and retain staff through a liveable salary scale? I'll just bet that, without the pressure of meeting the monthly bills, you could operate a dealership in ways that are normally just not possible. But in the REAL world, how much of what we would want as customers just isn't profitable?



If I really did win a $160 Million PowerBall, this website would be subsidized, my employer would get a $30 Million gift, my neices and nephews would have their education paid for, and I'd live off the income earned by investing the rest. And I'd go fishin'. In a new Avalanche.

 

[Bill McElroy]

Now that's a cool plan...doing something you really want to do is like "not working"..ahaha...it would be fun to have that kind of freedom with unlimited funds. I'd go fishin' too.....but I'd deffinetely need a bigger boat!! lol