How to Increase Gross Margin$
on New & Used Boat Sale$
By
David Parker
Parker Business Planning, Inc.
How many in this room are
making 20 to 25% or more
on your New and Used
Boats on a regular basis?
Would you like to know how
other peak performing
dealers are doing it in
today’s market?
“Sales is the transfer of
enthusiasm from one person
to another.”
Enthusiasm is an Emotion!
------------The Purchase of a Boat is an
Emotional Decision…
Rationally Justified.
Sell the Sizzle (First)…Not the Steak!
The Five Step Sales Process for
Increasing Gross Margin$...
1.
2.
3.
4.
5.
Sell Yourself
Sell the Dealership
Sell the Boating Lifestyle
Sell the Product with Enthusiasm
Sell the Price with Feel Good Discounts
and Trade Over-Allowances
To Increase Gross Margin$ the
Emotions have to be Engaged First!
1. Sell Yourself First…
A. “Let me tell you why I love
my job!!!” (Love is obviously
an Emotion.)
B. “I am passionate about my
job!” (Passion = an Emotion)
C. “I get to help families have
the most fun.” (an Emotion,
etc, etc.)
Other examples?
2. Sell the Dealership Next…
A. “Let me tell you why I love
working here!” (Again, Love
is an Emotion.)
B. Brief history of Company
and owner’s passion for the
business is appropriate here.
2. Sell the Dealership Next…
“Continued”
C. “We have the best products
in the industry and a fantastic
service department to back
them up.”
“I can’t wait to tell you more
about them!” (Implies
enthusiasm and passion
about where you work.)
Other examples?
3. Sell the Boating Lifestyle third…
A. Sell the “fun” of boating.
(Fun is an Emotion.)
B. Memories with the family /
kids = Emotion
C. “Being on the water is so
relaxing!” (another Emotion)
Other examples?
People enjoy (feel more secure)
when doing business with
people who love what they do
and love who they do it for.
Excitement and Enthusiasm are
contagious!!
Make sure you ask somewhere in
the sales process something like
“Where do you do your boating
now?” to see if there is a trade
looming!
4. Then sell the product…
A. Feature/Benefit (Most of you
already know how to do this.)
= Rational but sell it with
Enthusiasm!
5. Lastly, sell the Price…
A. Rational with “Feel Good”
discounts and trade overallowance
If you do a good job with the
Emotions of the first four…
If the customer Likes:
You
Your Dealership
The Boating Lifestyle
And the Boat
Price will be of secondary
importance!
In other words!
You will have changed your boat
from being a commodity where
price is the only thing that matters…
to a “Prized Possession” where
price is secondary.
I promise…
Guaranteed…
“Honest Injun”
Scouts Honor!
Are you getting the point!
Grief Process
3 Stages
1. Shock & Denial
A. I can’t believe this boat is
that much!
2. Adjustment (Transition)
A. Anger
B. Bitterness
C. Blaming others, God, etc.
D. Bargaining
3. Acceptance
A. Ready to move on (to
purchase or to let it go).
Grief Process example:
Client – on a trip, had car
trouble and decided to
buy a Cadillac Escalade…
He said, “I complained about
the price for 3 days… and
now I’m bragging about it!”
Your customers will do the
same thing…just allow them
time (and reasons) to get
through the Grief Process.
Deal Workup Spreadsheet
Will demonstrate a pricing
process that will increase the
gross margin$ on your deals.
Most customers will negotiate
an additional 3% - 7% down
from the first seriously quoted
price…
So you must start higher to end
higher!
See
Excel Worksheet
Let’s Summarize
1. The purchase of a boat is an emotional
decision, rationally justified.
2. Engage the emotions to sell yourself,
the dealership and the lifestyle BEFORE
you sell the product with enthusiasm
and price with “feel good” discounts.
3. With Gross Margins you have to start
High in order to end High… remember
to negotiate in 100’s not 1,000’s.
Customers always respect a well
trained & professional sales person…
they will cut them much more slack
than a “sloppy” sales person.
I hope this form provides the
opportunity to add Professionalism
to your presentation and help take
the guess work out of your sales
process.
Customers are more confident when
dealing with professionals.
Questions Often Asked?
1. How long should I hold inventory?
A. New –
1) 9 Months – Start Discounting
2) > 12 Months – GET RID OF IT!
Be Ruthless!!!
B. Used –
1) > 90 days by July 31st – GET
RID OF IT!!!
If you would like a copy of the
Deal Workup Spreadsheet with
notes of slides…
Send me an e-mail requesting a copy.
[email protected]
Questions?