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THEMARINERETAILERSASSOCIATIONOFTHEAMERICAS

HowtoAdjustYourServiceBusiness

Liz Walz, Vice President, MRAA Mike Davin, Brand Director, MRAA

Valerie Ziebron, President VRZ Consulting

Reminder:

Type in your best practices, comments and questions as they come to you …

As an industry, we’ve dealt withrecessions and 9/11, but a ‘pandemic’ is uncharted territory.

How do we make decisions based on facts, not fear?

Peoplearestressed!

Yourteamandyourcustomersarebeingbombardedwith24/7badnewsthatmakesthem…

• Worriedabouttheirfamily’shealth• Concernedaboutthemarketandtheeconomy

Peoplearestressed!

Yourteamandyourcustomersarebeingbombardedwith24/7badnewsthatmakesthem…

• Worriedabouttheirfamily’shealth• Concernedaboutthemarketandtheeconomy

Thesearedeeplypersonalhotbuttons.

‘Stress’ by definition

• Stress is a specific reaction by the body to a stimulus that interferes with normal behavior

‘Stress’ by definition

• Stress is a specific reaction by the body to a stimulus that interferes with normal behavior

• Expectpeopletoreact- Betheirshockabsorber• Lookforwaystoprovideservicesthatcatertothenew‘normal’

Sam mentioned in the webinar yesterday that the leader sets the tone for the organization.

What advice can you share for how dealers can best lead and serve their customers and their team right now?

Howwillyourespond?Howcanyoubestserveyourcustomersandyourteam?

Howwillyourespond?Howcanyoubestserveyourcustomersandyourteam?

Buyintothepanic• “We’realldoomed”• Hideandhopeitpassesyouby• Lookforcomfort• ‘Survive’Mentality

Becalminthestorm• “Thistoshallpass”• Dowhatyoucan- Lettherestgo• Lookforopportunity• ‘Thrive’Mentality

“BenotconformedtothisWorld;butbetransformedbytherenewingofyourmind.”- Romans12:2

One of the best pieces of advice we’ve heard during this crisis is to focus on what you can control and try to let go of the rest.

You’ve done a lot of the work for the dealers listening today in terms of making that list for them, particularly when it comes to the service department. Can you share that with us?

OutsideYourControl:

Howlongthislasts:Let it go.

Whatthegovernmentdoes:Letitgo.

What the news reports:Let it go.

What customers do or say:Let it go.

How much TP people buy:Let it go.

WithinYourControl:

SocialDistancing:• Pickup/deliveryofboats• Onlinescheduling• Texting,e-mailingcommunication• Staggeredshiftsforteam

CleaningandDisinfecting:• Adjustboatdetailing• Marketit

AdjustingYourBusiness:• Revenuegeneratingtasks• Revenuegeneratingpositions• Adjustjobdescriptions• Adjustprocesses• Adjustpayplansandincentives• Lookingfornewopportunities

The experts at the CDC and the WHO have told us our path to staying safe is social distancing.

What can shops do to practice social distancing for the health of their teams and customers?

• Staggered shifts (possibly less hours)• Lean on technology (online schedule, parts requests,

etc.)• Man the fuel dock – control the environment – no

self-serve• Run all techs like mobile service, which means:

1. Less work done inside the actual shop 2. Each tech has his own wheelbarrow to take

parts/tools to boat location

In some ways, the situation we find ourselves in is similar to recessions of the past, and in other ways, it’s different.

What did dealers learn about running their shop in the last recession that can helpthem now?

• Strengthen your cash position1. Get paid now!2. Go after your receivables

• Knee-jerk decisions hurt the business. 1. Determine your revenue generating

positions – don’t cut them! 2. Tweak jobs so that more positions are

revenue generating.3. Everyone is in sales and marketing.

This represents a tremendous opportunity for service.

• People still want to be out on the water, but they may boat differently.

• There are opportunities, if you are nimble and engaged.

So, what did we learn about HOW to go about adjusting our dealership and, specifically, our service business?

Adjust Your Business

• Re-Evaluate Priorities

• Determine Revenue Generating Positions

• Add Revenue Generating Tasks to Jobs Descriptions

• Adapt New Processes

• Re-Focus Creative Marketing of Available Services, Parts and Accessories

• Pay Plans and Incentives

You mentioned revenue generating activities earlier. Specifically, you said more positions should be involved in those activities in tough times.

Can you give us some examples of revenue-generating activities?

• Turning wrenches on billable work• Getting paid on warranty claims• Getting work orders closed out and paid• Selling additional service and accessories• Follow up on rainy day work• Open recall reports• Safety inspections• Reach out to customers about to be outside of warranty• Upgrading electronics, sound systems, props, etc.

So, we talked about how we could apply what we learned from the last recession to this situation.

How do you see this impacting the shop differently than a recession?

• More fluid – Daily changes require increase in communication

• More important than ever to keep ourselves healthy

• Social distancing

• Creative solutions like staggered, shortened work shifts

One of the key ideas that you and I have discussed is also something Sam touched on yesterday: The importance of Communication.

Can you expand on this?

Communicate:WithYourTeamandYourCustomers• Thingsarechangingsoquicklyithasneverbeenmoreimportanttosendoutupdatestoyourteamandcustomers…

• Whatyouareoffering• Howtobestdobusinesswithyou

What else do you think might be different about this situation vs. the recessions we’ve been through?

Hope for the best, plan for the worstBest Case Scenario: This is a tight V and we’re back in business soon.

What do you need to do to be ready for this?What can you be doing NOW?

How about what our prospects and customers want? How do you expect this situation to impact that?

Now,morethaneverpeoplearespendingtimeonline.

Connectandtellboatingstories.

Connectandsellboatingservicesandaccessories.

Offeranalternativetothissortofthing…

Customers Want:

•Exceptional service from knowledgeable experts

•Someone they can trust to help them make educated decisions

•Boating made more convenient:

• Storage solutions

• Mobile service

• Boat detailing

• Pick up/delivery

Inform

Inspire

OfferSolutions

One of the topics our team has seen a lot of demand for over the last year or two is adapting to changing customer behavior and expectations.

What else do you think customers will expect from service departments during this unique time?

Make boating more convenient, easy and safe! Create or fine-tune your service menu and then market it.

“Sellingservicepackageshasmadeabigdifferencetoourshop’scashflow.”

One of the common mistakes of leadership is failing to take advantage of the knowledge and experience of their team on the front lines.

We often do it with good intentions. We want to protect our people from worry!

What do you recommend? How should we engage our team and leverage their talent and ideas?

• Don’t shoulder this alone – lean on the team

• More important than ever to track and share numbers: “How much did we bring in this week?”

• Go on a “treasure hunt” and find $$$

• Adjust pay plans

In times of great challenge, there is often great opportunity.

What opportunities have you identified that shops can use during this time?

• People want to be on the water

• Supply chain disruptions are a possibility: Get in front of them and create a sense of urgency.

• Be sure to get paid for parts/accessory orders up front if you are not already.

Any final thoughts?

• Our bodies are strong and designed to fight. Put them in the best position to do so by getting plenty of sleep, healthy food and drink and gentle exercise.

• Our minds are powerful – they amplify what you put in. Limit your news intake. Read, listen and watch positive things.

• Create structure for yourself and your team. Get things accomplished.

• Boating is a wholesome activity people are going to want to continue doing.

• Our economy is resilient but don’t focus on things outside your control. Focus on your economy. Provide solutions, and you will come out ahead.

Now it’s YOUR turn.

Type your questions, comments and best practices.

Resources:• MRAA Resource Page: MRAA.com/COVID19• MRAA Resource Center: Coming Soon: A Guide to

Safely Selling to and Servicing Your Customers• MRAA Resource Center: Guide to Building a Service

Menu• MRAATraining.com: Reducing Repair Cycle Time• COMING SOON! Continuous Certification course

Contact Us• Valerie Ziebron: vrzconsulting@yahoo.com• VRZConsulting.com• Mike Davin: mike@mraa.com• Liz Walz: liz@mraa.com• MRAA.com

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You’re invited! Join us for upcoming editions of “Ask the Expert,” including …

TOMORROW: How to Market During the Coronavirus Pandemic, featuring Danny Decker of Marketing Simplifed