Your Future and Being on the Right Track

By Peter Granata, president, Granata Design — Will Rogers once noted that “Even if you’re on the right track, you’ll get run over if you just sit there.”

So if you’re sitting there waiting for your customers to come back let’s explore a few thoughts.

There are opportunities in some, as yet, undiscovered areas of boating. The thing to remember is that your product, or service, has to adapt to a new style of appeal. Today’s customer requires a visual reinforcement of his/her current values from your product.

The current economic times have created numerous changes in buying decisions, and it will continue to become increasingly obvious that many boats have priced themselves above their intended market (sometimes it’s not smart to listen to everything the customer wants). A long list of manufacturers are hopelessly waiting for the “same” customers to return as before this economic downturn. Without acknowledging it, they are expecting buyers to be interested in the same old thing that is “dressed” a little differently. Big mistake.

Here are some things to consider as you develop a new product or service.

Recent surveys show that the population is migrating to geographical areas that are nearer to coast lines. Job salaries have declined and the workforce is experiencing a diminished psychological relevance in terms of their value in the work place.

For men this is an especially important element that defines them. While women define themselves by their relationships and put “security” above all else, men need to feel relevant and significant in all areas of their life.

As such, it is imperative to address these feelings in any new product.

Many boaters are financially unable to buy a boat that is equivalent to what they would have purchased before this economic downturn. According to marketing experts I spoke with, this diminished purchase capacity on the part of many consumers can leave them feeling less significant and keep them away from purchasing a boat.

In order to offset any feelings of financial inadequacy and restore the buyer’s feeling of significance, automobile manufacturers are responding with new categories of transportation. Crossovers, mini’s, Value cars (Small but high near luxury content), electric cars, hybrids, etc. Anybody can buy one of these and hold their head high in their social group because it’s different and also meets the buyer’s financial capability.

A common assumption made by producers of new products and/or services is that the consumer is going to want what they have always wanted, except they will want it at a lower price.

If you count yourself in that group, it’s time to re-think your strategy.

Nowadays a boat (even a service) has to be made to appeal to the eye, the mind, the wallet, and the prevailing social environment. Buying a boat is no longer a decision that is made on one of those requirements, it needs to have an undeniable appeal to all of those requirements.

The key is going to be a configuration that has great versatility. Product versatility equates to a better value in the mind of the new consumer and allows for a greater social acceptance of the purchase.

Ask yourself, “Does my product offer the customer a broader range of use and is it a purchase that can have a broad social appeal?”

Your company’s future is vested in your customer feeling good about his decision to buy your product. Time to get a move on.

Choo-Choo!

Boating Industry Magazine May 26, 2011 

It’s Only a Matter of Time

By Peter Granata, president, Granata Design — Just as “clocks” were incorporated into every imaginable electronic instrument a few years ago, so too are more sophisticated electronics being incorporated into daily use electronics, like your phone.

The telling of time has become so accessible to us today that many of us have stopped wearing wrist watches. In many cases, the once utilitarian watch has been relegated to little more than a piece of jewelry. Our phones keep perfect time and even change time zones automatically as we travel. Separate timepieces have been marginalized.

Other items long considered a stand alone item have become marginalized as well.  One such item would be a camera. Just a decade or so ago 24 hour Photomats were all the rage. Today, electronic cameras come in all versions, even on a keychain. The simplest among them take excellent snapshots, such as the ones currently “incorporated” into our smart phones, and we are in charge of developing our pictures. We still love to take pictures but Photomat is extinct.

Over the past summer I took a long weekend and visited an area of Florida. While there I had the use of a small runabout sans GPS. I found an app for that! (an app is an online application that can be downloaded to your device … in case you aren’t keeping up with the lingo.)

For a download fee less than $50 I was able to download a full set of charts that mapped out all of the waterways I would ever visit. It turned my iPhone into one of the most complete GPS’s on the water you could want. Tide info, direction, speed, waypoints, everything you might desire of a GPS was there on my tiny little screen. I had to remind myself that as small as this screen was, it was not short on information.

Which brings me to the iPad, its 9.7” screen, and the subject of electronic redundancy. Why would I buy a $3000 GPS when a $600 iPad loaded with a $50 app could do everything most GPS’s could do? And when I was finished using it on the boat, I could take it with me. I use the iPad for many multiple uses in daily life. I use it to read books, correspond in e-mail or social sites, create presentations, listen to my tunes, etc. Oh yea! Tunes, did I mention satellite radio? There’s an app for that too!

We’re living in one of the most exciting times anyone could have imagined a decade ago. We’re also beginning a re-education of simple economics in our lives. People still want to have fun. They just don’t want to spend as much doing it. So, just keep your iPad dry, eliminate as much electronic redundancy as you can, and enjoy the extra money. Build smart. Boat smart. Wait until you see my next concept boat.

Boating Industry Magazine October 5, 2010 

A Positive Outlook

By Peter Granata, president, Granata Design  — This morning I was scouring the newspapers and came across what’s wrong with a lot of business.

As business leaders we try and stay abreast of what’s in the news so we can make well-informed decisions for our companies today and in the future. Maybe we’re looking in the wrong place.

This morning I noticed two separate and distinctly different views on the same information from two different news organizations.

Reuters News led with the headline: “Higher GM and Ford sales point to steady recovery.” I was glad to hear that news, but then I noticed Bloomberg News reported on the exact same story and led with the headline “GM, Ford sales in July come in below expectations.” Same news, different story.

It reminded me of the story my dad told me about the value of a positive outlook and how damaging it can be to have a negative outlook on the future.

The story my dad told was of this little old man who had a hot dog stand and worked hard enough to send his son to college (back then this was not something to be taken for granted).

The son returned in the midst of the Great Depression and was shocked to find his dad had so many hot dogs. The son convinced his dad that this was a great depression and that if he continued to inventory so many hot dogs he would surely go broke. Being sure that his son had received the best education and was therefore more insightful about business than he was, the old man got rid of much of his inventory.

Soon after, with less to sell, his daily receipts began to tumble. Within a short time the old man was out of business and became convinced that his son had saved him from the great depression.

The bottom line is that the little old man listened to the fears and created his own depression. Now you can tell me you’re not doing what the little old man did and you can tell me all of the things you’re doing to avoid going broke, but, can you tell me what you’re doing to sell something?
Or are you waiting for better news before you invest in your business’s future?

Boating Industry Magazine August 10, 2010 

Ideas are Currency

By Peter Granata, president, Granata Design  — Does success follow a company that decides to replicate or assimilate someone else’s products? Imitation is the sincerest form of flattery but will it be competitive?  Every time a company elects to take the easy way out and copy a someone else’s idea, aren’t they forced to compete on price alone?

When a company copies what is popular they can only expect that a small percentage of the market will be attracted to their product, either because it’s out of brand loyalty, or convenience, or price. (Read that again, a small percentage of the market.) If one is really trying to do the best thing for their company’s stakeholders, one would endeavor to succeed in the market with the least amount of competition. It’s about creating distinction. And it’s about building a good reputation.

In many cases the niche market offers more opportunity for success than the broader market.

Success in the specialty arena allows better profits, does more toward establishing brand loyalty, and distinguishes the company in ways one could never afford to advertise with the press. It allows one’s company to stand out from the rest.

Not to be overlooked: by competing in a niche market one sends a very energizing message to the workforce, a message that encourages them to explore and find unique ways in which to make the company and the product more successful.

The companies that continue to replicate what someone else has already brought to market do not have a future in this economy. For proof, look at China and how it’s affecting our markets. Anybody with a business sense and a valid passport can travel to China and within a reasonably short time find a company that will be willing to replicate anything we sell here for less money.

At this moment the advantage goes to companies here in the States that continue to research and develop new and unique product, or at least, updated product every year. We have that advantage because each new model year we can create something new to offer the market. The copycats will take those good ideas to China and have them built for less by the next model year. That means the product they sell will always be a year old.

Old product that is cheaper may have its advantages, but it also speaks volumes about how and what your company thinks of its customers. That’s a message that no one wants to broadcast.

In case you haven’t already decided to change the way you do business, now may be an excellent time. Invest in the Research and Development you need to lead your niche with new product opportunities.

Innovation = Ideas! These are the currency in today’s business world. Invest wisely.

Boating Industry Magazine July 27, 2010 

Why new boats were originally introduced in July

By Peter Granata, president, Granata Design  — Before history gets rewritten, I wanted to offer a glimpse into why new boats were introduced in July rather than September.

There appears to be some momentum behind introducing new models in September rather than July. Some who are calling for the later introduction appear to be attributing the early introduction to the manufacturer’s greed. To be fair, you should know that boat manufacturers started introducing new boats in the middle of summer at the request of the dealers.

What happened “decades ago” was that local banks controlled the floor planning for local dealers. At the end of the typical selling season, in the fall, the banks would send out someone to do a physical inventory of what boats had not sold by checking the serial number on the boat for the model year number. If a boat was determined to be “unsold” for that model year the dealer was required to pay a curtailment to the bank of an additional ten percent.

The banks, in essence, forced the dealer to demand from the manufacturer an early release of new models so the dealer would not to be forced to buy “old” inventory when he needed it in July or August and pay a curtailment.

In the current economic climate, it might make sense to hold the release of new models until the end of the summer selling season. Maybe. You have to be the judge as to how it would impact your business.

My sense, however, tells me that once sales return to a quicker pace, we may well want to return to buying new boats in the middle of summer. After all, if and when you need to replenish your inventory it only makes sense to floor plan a new product versus a product that will be out of date in 30 days.

They say we are doomed to repeat history when we fail to take notes. I just thought I’d pass along this note. So noted.

Boating Industry Magazine May 14, 2010

Lower Price vs. Higher Design

By Peter Granata, president, Granata Design  — If the product you are selling needs a price cut in order to sell, then it’s very likely that the design appearance of the product does not measure up to the asking price.

We base almost all of our choices on how something looks! From spouses, to houses, to cars, to boats.

“That looks expensive” or “That doesn’t look like it’s worth it” are only two common refrains that you often hear when a judgement is based on something’s appearance. We, as consumers, make those judgements every day. Yet when a manufacturer decides on what he will build, does he “settle” or “strive” on the appearance? If he “settled” then it’s very likely that the design of the product does not measure up to the asking price. If he has simply waited too long to redesign the product, the impact to the consumer is the same. The product just doesn’t measure up.

Good design is the only tool that can elevate a product in the hierarchy of product desirability. Bad design, in turn, will denigrate it to a point to where the manufacturer of the product needs to lower the price of the product. However, excellent design creates a sharp-looking and appealing product that can cut across price points with “gotta have it” desirability.

So, take a look around your showroom, does anything need to sell for less? If so, contact your manufacturer immediately and tell him you need a design increase or a price decrease.

In this economy, as with every economy before it, product is king.

Boating Industry Magazine April 19, 2010

Small Dealer, Big Idea

By Peter Granata, president, Granata Design  — If you’re a boat dealer and you’ve managed to survive this downturn, now is the time to consider what you must do to thrive. One question you will have to ask yourself is, “Do I, and will I, have the right product at the right price?”

Answer this with the understanding that when the values of a people are shaken as hard as they have been over the course of this recession, the ideas of how they spend their time and money will change. In order to answer the question, you must analyze your product line offerings.

First, do you have the right mix of boats for a changing and future market? Do the boats you have on your floor right now reflect and respond as to how they will enjoy boating in your area in the future? Will your sales be dominated by fishermen? What kind? Maybe your market will begin to cruise more, or maybe the changing demographic will involve themselves more with water sports.

Second, are your boats priced competitively with other dealers’ product offerings in the area? Is your product priced in line with what your awakening market will bear?

Third, and lastly, whether you are satisfied or not with your current product offering, you have to determine how these boats will need to change and stay relevant in the future because the future will define how successful you will become. Do you think the manufacturer is accurately planning for your boats to advance along with the aspirations of the new consumer?

In many cases, the boat manufacturer will listen intently to the requests of their largest (sales) dealer. Too often, they ignore the opportunities available to them in a market that has a greater potential than the one represented by their “largest” dealer. Is that you? Are you one of a group of smaller dealers that could provide real growth to a manufacturer? If you are, then consider banding.

As a small volume dealer unable to capitalize on the volume purchase discounts some manufacturers provide to their largest customers, this may be the time for you to band together with one, two or three other dealers of like mind and circumstance. Create your own buying group to capitalize on those discounts and gain an influential voice in the product’s future. The benefits outlined by banding together a small group of selling dealers can be endless, and you don’t all have to be in the same area.

Now is the time to take an aggressive measure to not only to make a smart business move coming out of this recession, but also insure the future of what you have worked so hard to protect over these last months and years.

Move forward. Surprise the future. Band together.

Boating Industry Magazine March 29, 2010