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How to Increase Gross Margin$ on New & Used Boat Sale$ By David Parker

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

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How to Increase Gross Margin$ on New & Used Boat Sale$ By David Parker

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  1. How to Increase Gross Margin$ on New & Used Boat Sale$ By David Parker Parker Business Planning, Inc.

  2. 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?

  3. “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.

  4. Sell the Sizzle (First)…Not the Steak! • The Five Step Sales Process for • Increasing Gross Margin$... • Sell Yourself • Sell the Dealership • Sell the Boating Lifestyle • Sell the Product with Enthusiasm • Sell the Pricewith Feel Good Discounts • andTrade Over-Allowances • To Increase Gross Margin$ the • Emotions have to be Engaged First!

  5. 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?

  6. 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.

  7. 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?

  8. 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?

  9. 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!

  10. 4. Then sell the product… • A. Feature/Benefit (Most of you • already know how to do this.) • = Rational but sell it with • Enthusiasm! • Lastly, sell the Price… • Rational with “Feel Good” • discounts and trade over- • allowance

  11. 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!

  12. 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!

  13. Grief Process • 3 Stages • Shock& Denial • A. I can’t believe this boat is • that much! • Adjustment (Transition) • A. Anger • B. Bitterness • C. Blaming others, God, etc. • D. Bargaining • Acceptance • A. Ready to move on (to • purchase or to let it go).

  14. GriefProcess 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 GriefProcess.

  15. 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!

  16. See Excel Worksheet

  17. Let’s Summarize • The purchase of a boat is an emotional decision, rationally justified. • Engage the emotions to sell yourself, the dealership and the lifestyleBEFORE you sell the product with enthusiasm and price with “feel good”discounts. • With Gross Margins you have to startHigh in order to end High… remember • to negotiate in 100’s not 1,000’s.

  18. 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.

  19. Questions Often Asked? • 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!!!

  20. If you would like a copy of the Deal Workup Spreadsheet with notes of slides… Send me an e-mail requesting a copy. david@parkerbusinessplanning.com

  21. Questions?

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