how to increase gross margin$ on new & used boat sale$ by david parker parker business planning,...
TRANSCRIPT
How to Increase Gross Margin$on New & Used Boat Sale$
ByDavid Parker
Parker Business Planning, Inc.
How many in this room aremaking 20 to 25% or more
on your New and UsedBoats on a regular basis?
Would you like to know howother peak performingdealers are doing it in
today’s market?
“Sales is the transfer ofenthusiasm from one person
to another.”
Enthusiasm is an Emotion!
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The Purchase of a Boat is anEmotional Decision…Rationally Justified.
Sell the Sizzle (First)…Not the Steak!
The Five Step Sales Process forIncreasing Gross Margin$...
• Sell Yourself• Sell the Dealership• Sell the Boating Lifestyle• Sell the Product with Enthusiasm• Sell the Price with Feel Good Discounts
and Trade Over-Allowances
To Increase Gross Margin$ theEmotions 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 productsin 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…
• Rational with “Feel Good” discounts and trade over- allowance
If you do a good job with theEmotions of the first four…
If the customer Likes:You
Your DealershipThe Boating Lifestyle
And the Boat
Price will be of secondaryimportance!
In other words!You will have changed your boatfrom 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 Process3 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
• 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.
1. With Gross Margins you have to start High in order to end High… rememberto negotiate in 100’s not 1,000’s.
Customers always respect a welltrained & professional sales person…they will cut them much more slack
than a “sloppy” sales person.
I hope this form provides theopportunity to add Professionalismto your presentation and help take
the guess work out of your salesprocess.
Customers are more confident whendealing with professionals.
Questions Often Asked?
1. How long should I hold inventory?
A. New – 1) 9 Months – Start Discounting2) > 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 theDeal Workup Spreadsheet with
notes of slides…
Send me an e-mail requesting a copy.
Questions?