Over 45 years ago I made an investment that has been paying really good dividends every year. It is an investment I recommend to everyone. In fact, I recently recommended this investment to the Senior Vice President of the bank we do business with.
What is this wise investment that I made and recommend? Continue reading A Great Investment
With boat and motor sales down due to the Great Recession, more and more dealer emphasis has been put on parts sales and service work. It has certainly kept many dealerships alive over the past couple of years. When I owned a new car dealership, the parts and service departments were significant profit centers for my business. I learned early in the car business, about a term, “Service absorption rate.” It might still be used today. Service absorption rate is the percentage of the total dealership’s overhead that can be absorbed by profits from the parts and service departments. Top car dealers in my day could absorb as much as 70 to 90% of their total overhead from profits generated by these departments.
Certainly, dealers in this seasonal boat business can’t expect the same “Service absorption rate” as new car dealers. But there is no question parts sales have been, and will continue to be, significant profit centers for marine dealers. And maintaining a good parts inventory affects not only parts sales and profits, but also the productivity of the service department. A major repair can be delayed simply by not having the right part or parts on hand.
A good, well-managed parts department is an integral and vital part of any marine or auto dealership. And how well a parts department and its staff perform greatly determines how customers will perceive a marine dealer. Over-the-counter customers expect parts department personnel to know or to be able to quickly determine which parts are needed for specific DIY repairs. Equally as important is how the parts department staff handles customers. How they greet customers, their overall appearance, attitudes and basic communication skills are essential elements in keeping customers satisfied and coming back.
Soon after becoming a Chevy dealer, I quickly learned the following tips on boosting my parts department sales and profits. Continue reading Tips on boosting parts sales – part I
According to a recent news article, Americans are buying smaller cars as a result of the upwards of $4.00 per gallon for gas at the pump. In my Wisconsin market, two weeks ago we were paying as much as $4.25 a gallon for gas. Currently the pump price is a bit lower and we can now buy gas for $3.75 a gallon.
The autos and trucks that are getting a healthy boost in sales are those offering 35 miles per gallon or better, like the Chevrolet Cruze and Ford Focus. And many of these economical cars being sold are powered by very efficient four-cylinder engines that give excellent performance. Apparently, buyers are impressed not only with the better economy of the smaller cars; they like what the auto companies have done with styling and amenities to make them much more than just cheap, economical cars.
Another news article talked about how prices at the gas pumps are painful for 4 in 10 Americans. And many Americans have said that the high gas prices have caused them some hardship. And regardless of the pump prices at gas stations, boaters have always experienced even higher gas prices at marina pumps.
This all leads me to think that now, more than ever, it is time for boat companies to offer smaller boats with lower horsepower engines. Continue reading Higher gas prices = smaller cars & boats??