Profit-Making Ideas
Published on May 1, 2019
There is absolutely no question that all in business would like to add to their profits. Some are more successful at it than others. Perhaps one of the most successful direct marketers to customers is Disney. And who are the motivators? Well, the kids, of course. And how are they motivated to urge the purchasers (parents) to buy an almost endless variety and supply of goods? In large part, it comes down to strategic planning. At the end of every activity, customers have to navigate through a maze of displays with many items for purchase, all placed at just the right height for their targeted audiences. Then, as you head to the next attraction, there are the ice cream and other enticements placed along or in view of the long lines of customers waiting to get in. It does work well. I suspect they also can count on parents being more inclined to give in to those purchases for their children to keep them satisfied in what is meant to be the happiest place on earth!
Zabars is a world renowned delicatessen/gourmet foods store in New York City. The attractions may originally have been the owners and their style, building a clientele of high-end food lovers. However, it also became a major example for retailing. Every area was continually measured for popularity and profitability per square foot of display area. If it did not work for that area – it was changed. And if it worked for a time but then was seen to be lagging, they would not hesitate to change it as tastes (no pun intended) evolved. They continually monitored customer trends, were not afraid to try something different, and if it did not work as desired – to replace it with something else.
The Target Audience
One of the take-aways is that both are constantly seeking to better understand their target audiences and studying what motivates them – and thinking strategically. Is there a way to have your customers exit through the gift shop?
I am not suggesting marinas should line every dock with stuffed toys, but I am suggesting that marina operators would be well advised to pause and take a fresh look at their customers, their changing attitudes and expectations, as well as the attributes and challenges of one’s facility.
Can you add elements along your customers’ path of travel that might entice them to buy something, and/or is there a way you could better guide your customers to where they might have more opportunity to buy something? A picture of a juice or other drink, a sandwich, sunglasses, sunblock, first aid on a small cute sign can trigger impulse buying. One marina‘s sign caption read “Don’t forget anything – have a great time on the water.”
No one likes to wait, but when your customers are waiting, whether at the office, the fuel dock, for their boat to be launched or even on the phone, are there goods or services you might be able to sell them. At the fuel dock it might simply be a sign for your ship’s store and where to find it, or perhaps coolers full of beer and bait for sale. Many service docks display sun block – a large seller.
One marina we have been working with had a snack bar set fairly far back from the water. It did OK but was often overlooked. By extending an outdoor seating area out to one of the main pier entrances, it was able to greatly improve its visibility and patronage. One thing led to another, and now they not only have the outdoor tables but also put up a seasonal tent and have bands playing on the weekends. Off season it all goes away and is available for winter storage.
While visiting another facility and taking a tour with the owner, we came to the upper end of the marina with no boats. He was bemoaning the fact that it was dead space, primarily due to lack of water and boat navigational issues.
I looked at it as a potential for turning it around as a profit center. The area was not large or deep but would be great for a launch or storage area for paddle boards, jet skis, canoes, kayaks and other personal watercraft. We put together some quick numbers and showed that not only could the minimal investment be paid off in one year, but that area could also be turned into a desirable profit center.
A mistake that is often made is that one thinks of profit centers as having to be major contributors. While major profit centers are certainly desirable and needed – there are lots of potential areas and activities that are viewed as wasted space or just too insignificant to be turned into desirable profit centers, but they can be with a little innovative thinking.
For those providing repair services, one of the most successful approaches that has been employed is calling the customer as work is being undertaken and offering to meet the customer at the facility in the evening or weekends at their convenience to show the progress. An alternative is just to discuss the progress on the phone. If there are things that could use attention, but are not on the service order, point them out, and this can result in more work. More importantly customers many times forget to relate the “small’ things that bother them and once a dialog is created – one might be surprised at the additions to the work orders.
More Millennials
As we increasingly move into the Millennials era, there are more and more studies attempting to ascertain their tastes. And while the answers may change with various cultures, climates and locations, there are also common trends, including the following: desiring instantaneous satisfaction; very demanding; wanting everything to work; not interested in excuses; enjoying showing off their toys; and seeking a more informal lifestyle but with all of the accoutrements.
When it comes to the recreational marina, they are looking for an enjoyable hassle-free time. Boats are expensive, many times more than their cars, as is the operation and upkeep of the boat. They like being catered to, and if they are happy with the results are happy to pay for it.
Having employees on the docks trained to interact with boaters to ask them if there is anything they need from the store, snack bar, office, etc., caters to the Millennials’ desires. Combined with neat, clean and bright outfits, this produces meaningful results.
This opens the doors for various profit making opportunities, but once again they revolve around knowing the customers desires and expectations. Oceanco certainly made a splash this year at the Dubai Boat Show with its 345-foot Esquel concept superyacht – billed as a superyacht specifically catering to potential Millennial buyers, and incorporating just about everything one could imagine.
On a much more mundane level, but important for attracting Millennials and maybe even most everyone else, are the basic decisions marina operators need to make relative to pricing for the most normal activities at the facility, such as water, electricity, Wi-Fi, trash collection, dock hand assistance, etc. Does one want to have all-in pricing, à la carte pricing, or a combination? It may not seem like it should be a big deal, but it can be.
Pricing Strategies
I recently visited a marina where the owner was explaining that he was having trouble attracting new customers to his facility, even though it was in good shape, clean, friendly and pretty inviting. He had chosen an à la carte menu – and at the top of his list was charging for Wi-Fi. I happen to have a personal bias against being charged for Wi-Fi and other basics. When I walked the docks without the owner, one of the biggest complaints I found was the à la carte menu, and boaters had no hesitation of talking about it. What was interesting was that they were willing to pay more for their slip rental with free Wi-Fi, electricity and other basics – rather than being “nickel and dimed.”
That does not mean that one gives everything away, but it does mean one should selectively look at extra charges. And if one selects all in pricing, do not be bashful at advertising it and continuing to talk about it. It does make a difference, and customers will talk about it on the social circuit.
As I have often mentioned, running events, regattas and other happenings can generate traffic at the facility and more boat usage. The buzz will create increased discussion among boaters, applying to both existing and potential customers.
Providing a concierge service, whether it is for transients or seasonal boaters, is a most appreciated service for customers. After all, we all have times when that extra assistance is meaningful, and it can be a way to not only promote what’s available beyond your facility, but at or through your facility as well.
For those marinas that have upland amenities such as a swimming pool or other sports facilities, it might make sense to create a “club” and allow non-boaters to join. These types of shared approaches are becoming increasingly common, and can be particularly helpful where a marina’s clientele alone might not support having some of the extra amenities. And any time you can get non-boaters to the marina, there is always the chance you may be able to convert them.
After all, once you are down the waterfront, how can one resist! It’s as hard as saying no to your three year old daughter who really wants that mermaid T-shirt at the gift shop.
Happy boating.
| Categories | |
| Tags |