How to capitalize on the seasonality of your RV dealership or marine business
- November 7th, 2011
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RV and marine businesses all over the country operate with a “seasonal trend” in sales and revenue. Some dealerships see as much as 80% of their sales occurring within a 4 or 5 month season. Managing the incoming cash and budgeting for 12 months worth of expenses is a delicate balance most of our customers face.
So, how can you stretch out your season and keep customers buying into the off-season months? Here are some tips on keeping cash coming in, even after the weather has turned:
Capitalize on your other assets… your customers
When there is snow on the ground, few customers are thinking about buying a new RV or boat. However, those that already own an RV or boat, are thinking about taking care of it. They need things… equipment, service, storage, etc. Offer it to them in easy, accessible ways. Send them reminders and specials for scheduling early. Remind customers of the consequences and costs associated with not ensuring their unit is winterized or stored correctly. Highlight disasters that your business has seen on units that were not properly prepared for the season. Display a difference in cost between preparing their unit before a catastrophe, and the cost of repairing it after.
Offer a do-it-yourself clinic by holding a workshop that demonstrates the process of winterization or de-winterization. Make the tools and accessories that the customer will need to do the job themselves available for them to purchase during the clinic. Use the opportunity to build loyalty and ongoing relationships with your customers.
Remember the holidays
Shoppers are always looking for that “little something special” to put in their RVer’s or boater’s stocking. Assemble some prepackaged gifts for the holiday season of the most popular parts and accessories in your store. Put a display rack of gift certificates near the point of sale terminal or the receptionist desk. Offer free shipping for those customers that want to send gifts to loved ones in other areas. Full time RVers also need you to be flexible with shipping options to earn their business.
Don’t wait for them to call you
Use your off-season to tend to your existing customers, without a flood of new traffic streaming in the doors, sales people have time to reach out to previous customers and relationship build. Customers that bought a couple of years ago maybe thinking about trading up next season. Use the off months to give them information that will help that decision and buying process.
Communicate with your customers about new products they will find interesting and useful, giving reasons for them to come back to you. Send email campaigns and electronic newsletters. Using your RV dealership software or marine management system to export CRM data will help you manage these communications and keep a current customer list.
Help customers plan for next season
While their RVs and boats are packed away for the season, customers are busy planning for next season. Planning family reunions they may need to travel for, summer family boating vacations, National Park tours, and the list goes on. What are they going to need to make those plans, and how can you help them? Tires, maintenance, and added accessories are all suggestions to present to customers that can be purchased in the off season before the hustle and bustle of summer sets in, for both them and you. Remind your customers that appointments in the heat of the season can take much longer to get due to demand, and give them an incentive to spend the money now.
Focus on who is paying the bill
Use the off-season to remind customers of manufacturer recalls and warranty items that can be addressed, free of charge for the customer. A call to a customer to let them know of a manufacturer issue, not only is a good way to bring in cash but also a good customer service effort. Once the customer comes for their warranty appointment it is a great time to do a free service inspection to see what other issues and revenue opportunities the customer may have.
There is an unending list of work that can be done on any business during the off-season. Internal training, capital enhancements and lead building are all important areas of focus, but when cash is tight, don’t forget there are still money making opportunities even when the phones are not ringing.
Cam, great article! On Sales Opportunities in Slow Season – Extended Service Contract Review Process > just a reminder for sales staff & Service to review the year’s Sales that did not purchase extended warranties and solicit with invite and quote before their door of opportunity closes (and ahead of the 9 month Mfg solicitation). Many manufacturers have a six month on non-currents and twelve months on current model years as the TIME LIMIT to sign a OEM Service Contract. So you can solicit your existing customer sales for extended warranty income, before the manufacturer does so on their own and keeps the profits for themselves from our missed opportunities. Thanks for great reminders – the team at FAYS MARINA BoatShop.com La Porte Indiana
Cam,
Good post! Thanks for sharing.
The do-it-yourself seminars throughout the winter months are great ways to keep people engaged with your company, bringing them through the doors and into the facilities.
This helps increase accfessory sales in the spring and potentially getting to think about a new unit when they are in the store.
You also bring up a great point that no one should be sitting back waiting for the customer to contact them. Sending customers email videos of what if going on throughout the winter gets your brand infront of the customer. Using Facebook, blogs and other social media channels is another great way to continue the conversation through the slower months.
Thanks for sharing.
-Chris