Issue link: https://read.dmtmag.com/i/264625
www.BoatingIndustry.com March 2014 | Boating Industry | 27 IF NOTHING ELSE, the last few years have brought home the fact that simply relying on boat sales was a recipe for disaster for most dealers. While some dealers relied more heavily on storage and service revenue, others are finding ways to expand even beyond those core compe- tencies. Whether it's running a restaurant or bar, selling more gear or opening up a supercharged webstore, it's all about finding more customers and increasing the revenue from existing ones. Untapped potential At Parks Marina, diversification has been an important part of the culture for years under owner Butch Parks. The Parks strategy is that anything that brings people to the water is good for the business. "We still have a lot of reasons for people to come see us, even though this may not be their year for a boat purchase," said Parks CFO Dar- ren Anderson. "From a financial aspect, even if boat sales stay flat, and the rest of those profit centers make gains … that all contributed to gross profit in years that we had the potential of boat sales dropping off." Parks has managed double-digit growth over the last several years, even through most of the downturn. At the same time, the company's margins have stayed solid. A lot of that can be credited to the company's diversified offerings, Anderson said. For example, in 2012, boat sales represented about two-thirds of the dealership's sales dollars, but less than half of its profit margin. Parks is now known as a little piece of the tropics in Okoboji, Iowa, where visitors can get a drink at the Barefoot Bar or buy branded merchandise at the store, surrounded by palm trees and Tiki huts. But that tropical oasis started out as one simple Tiki bar where the Parks team could sit down with a prospect and get a drink while talking about a boat. Growing it took a team effort. "It did not come easy when we started," said Debbie Parks. "We threw a little Tiki bar out on the lakeside. We all had a part in it, we all emp- tied the garbage, we all changed the tables. As a group we had to grow with it." Having a team that buys into the vision is an important of any plan to diversify. By involving the entire team, you'll get the best creative spirit – and ideas – out of everyone, Butch Parks said. The Barefoot Bar gives boaters a place to come on Lake Okoboji, drawing them to Parks when they are not in the market for a new boat. "In the boating business, the most important thing is for boaters to have a purpose, a destina- tion," Butch Parks said. "It gets boring really fast if you're just driving around in circles, but if you have a place to go …" Simply by creating excitement in the lake re- gion, Parks has been able to draw more people to the area, whether it's to grab a bite to eat or take a cruise on one of the company's seven excursion boats. "We're just in front of them all the time with all the things we do," said Debbie Parks. "The more things you offer, the bigger customer base you have." If there's a good idea for growing the busi- ness, Parks will pursue it. "You'll never know unless you try," Butch Parks said. "You've got to be willing to give it a chance. If it doesn't work, move on to some- thing else." He cites the example of the company's boat fleet that started with a single vessel, the Bare- foot Barge, in 2006. Parks is now working on its eighth boat for the fleet, a two-story cruise boat featuring palm trees and a Tiki theme. "I just found out our entire fleet is already "You'll never know unless you try. You've got to be willing to give it a chance." — Butch Parks, Parks Marina Gage Marine's Pier 290 restaurant has increased traffic to the Wisconsin-based marina. P26x31-BI14MAR-ProfitCenters.indd 27 2/7/14 10:26 AM