Issue link: http://read.uberflip.com/i/792771
www.BoatingIndustry.com 24 | Boating Industry | March 2017 I f you don't see your service department as a profi t center, it may be time to revisit the numbers. For many dealers, a service department provides a vital source of income during economic downturns – particularly this last one – by selling repowers, routine maintenance and more for existing customers who aren't ready to upgrade their old boat just yet. "Dealers that were balanced and had a strong, well-managed ser- vice department, in the last market downturn it was very clear – there were the haves and the have-nots," said John Spader, president of Spader Business Management. "It's one of the best things you can do to get yourself bullet- proof for when the next recession hits." And make no mistake – it is a matter of when, not if. It may not be as devastating as the Great Recession, but there is a natural ebb and fl ow to economics and it will even- tually turn downward from our current upward trajectory. When that time comes, making sure your service numbers add up to maxi- mum profi ts will help you survive and thrive. Profi ciency in effi ciency and productivity Tracking effi ciency is typical in most service departments, as it allows dealers to keep an eye on how much cash they are truly generating for every hour they pay a technician. It is equally important, however, to be looking as well at the productivity rate, which is the actual hours worked on a job by a technician. A technician can be incredibly effi cient for two hours of his or her day, especially if that's all the work they have. And if the work is completed in one hour, that's a 200 percent effi ciency rate. But if a technician is punched in from 8 a.m. to 4 p.m. and only UTILIZING SERVICE DEPARTMENT METRICS FOR MAXIMUM PROFIT "It's one of the best things you can do to get yourself bulletproof for when the next recession hits." — JOHN SPADER, PRESIDENT OF SPADER BUSINESS MANAGEMENT