SERVICE CENTER BRINGS PROFIT CENTER

Diversifying your marina revenues is important to profitability. Few, if any, marinas have the luxury of relying solely on slip fees. With additional profit centers ranging from ship stores to fuel docks, how do you choose what services or amenities to add?

Here are 4 reasons you should consider adding a service center:

1. Diversify your customer base beyond your number of slips.
2. Build trust with your boaters as a full-service marina.
3. Achieve relatively high profit margins.
4. Make your marina more attractive for boaters.
5. Generate additional out-of-season revenues with year-round maintenance.

Boatindustry.com highlighted the service center at Woodard Marine, a boat dealer, located in rural western Vermont. The service department is responsible for 25 percent of overall revenue, but is the source of 40 percent of the company’s net income. Woodard Marine has identified a few keys to the success of their service department:

1. Personal touch. A service member or dealer owner will personally review repairs or recommendation with the boat owner.
2. Each customer is provided a sheet with recommendations for future service including dates and quotes. This allows boat owners to be proactive without the service department seeming pushy.
3. Service menu. Providing customers with a menu of prices makes the process simple for customers. All pricing includes a 5% buffer, so that additional minor repairs can be covered without increasing the cost to the customer, while assuring each service will be profitable.

Read more about how Woodard Marine, Clark Marine, and Alberta Marine run successful and profitable service shops.