Fine-tune the service department into a money-maker
By Henry H. “Skip” Hegel
The current economy is testing all forms of business, and the marine industry is no exception. The challenge facing boat and motor dealers is to find ways to survive the current downturn so they can thrive in the upturn.
A slow business climate presents real opportunities for dealers to grow their businesses by gaining a bigger piece of the smaller pie, which is short for increasing their market share.
To gain market share, dealers must return to the basics and emphasize the value of their services, especially those of the service department. Instead of reducing the size and scope of their service departments, dealers need to invest in their current and future operations. By fine-tuning its service department, dealers will become the “go to” dealership for quick, efficient, and professional service in their area.
 Boaters are out there
Consumers who love boating will find the means to continue their pursuit of the boating lifestyle. The major difference will be how they do this, some of which may include:
- Practicing greater frugality––They may boat closer to shore or trailer their rigs closer to home, but they will find the water.
- Investing in maintenance—Boaters will put their money into their current rigs to keep them running at peak performance while postponing new boat purchases.
- Adding accessories—Boaters may even add a few accessory baubles and bangles to dress up their vessels.
Given these characteristics, dealers need to invest the time and money to fine tune their service departments. Because more and more boaters will bring their prized possessions to service departments, they will choose the ones that are efficient, capable, sales-oriented, and consumer friendly.
Tips for attracting service customers
- Provide a greater, more efficient service level than your competitors—Know what your competitors offer and exceed it in as many ways as possible.
- Offer a first-rate service experience—Do it right the first time. Be highly organized, well-run, and hire certified and competent technicians. Don’t be afraid to charge the “full boat” because customers will respond with these familiar words, “They might be a little ‘pricey,’ but they’re worth every penny!” These are sweet words for your ears.
- Ask for the business—Remember, dealers have no right to expect to receive service-related business unless they ask for it and are ready, willing, and able to support the consumers’ expectations. Think outside the box. Ask government agencies for additional service contracts or visit the state and local police, fire, and rescue departments to promote the service department’s offerings and seek their business.
 Running a profitable service department
If the service center is billing fewer hours or consumer complaints are growing, dealers need to ascertain why and get that fixed. In today’s economy, service departments are as important, if not more important, than front-end retail sales.
A highly trained engine technician will not be operating efficiently if he is taken off repair jobs to move boats in the yard, pick up lunch, run errands, wash boats, etc. If he is providing those services for you, then he is not providing “billable hours” for your dealership. This will obviously cost you profits.
Competency goes hand in hand with efficiency, so:
- Carefully assess how you are running your shop facility.
- Implement the necessary changes that will use the technicians’ knowledge and skills.
- Use the wisdom of your employees in designing the workflow process. They want you to be successful, so ask for and use their knowledge to make your business run better.
 Benefits of a sales-oriented service department
If dealers buildup their service departments now, they can use that top service status as a marketing tool to attract customers away from their competitors that do not offer the best service. Use the service center to promote accessory sales, technical service inspections and tune-ups. “Let us spruce up your existing rig…make it like new!”
Dealerships with a “low price” and poor service reputation will suffer from consumer apathy, a lack of confidence, and will lose customers to those dealerships that sell high-quality service. When money is tight, your service department is more important than ever.
Boaters know they are dealing with a high-quality service department if:
- Technicians are well trained and up-to-date on current products, as well as older models.
- The facility has the proper diagnostic equipment and special service tools on hand.
- The service department adds value to its customers by offering “service clinics” that promote accessory sales of greases, lubes, oils, cleaners, etc. Let the service department start selling for you!
Those dealers that have fine-tuned their service departments will gain a competitive advantage over those that have paid little or no attention to this important business area. Remember that old adage: “Sales sells the first boat, but service sells every one after that.”
In this economy, remember to keep a strong emphasis on value-added customer service. It will help your dealership through the rough times and propel you into the good ones.
Henry H. “Skip” Hegel is a former director of service for Mercury Marine. He can be reached by phone at 910/295-6015 or via e-mail: hhhegel@nc.rr.com.
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