6 / 20
6
MARINE TECHNICIANTODAY | WINTER 2015
A
nother year is
on the books
and I hope
your year was
successful. Based on what I’ve seen this past year
it has been somewhat of a mixed bag; some up,
and some down. Some areas of the country have
done very well, while others are still suffering due
to a slow economic recovery or weather-related
issues. The summer storms were very rough for
some areas of the country and I hope all is well for
those who suffered as a result.
As we move into 2016, it is important that we
reassess our business plans. For most of you, the
last few years of service business has been up, as
new boat sales were still soft, however we have
experienced a drop in the number of technicians
signing up for training. You would think that
training would be increasing with the amount of
service work that is being done, but we are seeing
the opposite. I am sure the major reason for the
drop in training is related to the cost of travel.
However training should be part of your cost of
doing business. Therefore training expenses really
shouldn’t be an issue. If you budget your finances
properly, there is no reason you shouldn’t have the
funds available when training is offered. We all
know training for service is done in the months
of January – March, so it’s not like we are taken
by surprise. Now I realize no one likes increased
expenses, but if the expense is necessary in order
for you to stay relevant in the trade, and successful
at what you do, then you need to make it happen.
Let’s face it, if your rent goes up there isn’t much
you can do about it except to bitch and moan, but
you would come up with the money somewhere.
Being out on the street wouldn’t be an option. So if
education is so important to improving your skills
and efficiency, why are so many members cash-
short at the end of the year? Again, it’s not like you
didn’t know it was coming.
Every business should reevaluate its budget every
year. Once you determine your overall needs to do
business, and you know the expenses required,
you should then revise your budget for the coming
year. If you are short, then you have two options;
1) increase your labor rate for the services you
provide, and/or 2) cut costs so revenue meets your
required business expenses. It’s really that simple,
but it takes some discipline to do it.
Training expenses should be part of every service
company’s budget just like rent, utilities, fuel for
your vehicles, insurance, salary, etc. Once you’ve
determined what you require to meet these
expenses, divide them by your actual billable hours
to determine what your realistic labor rate should be.
Most businesses determine their labor rate based
on what the competition is charging in the area.
Unfortunately most don’t even know if their rate is
profitable or not. If you are not tracking your actual
required expenses, and gauging them against the
amount of money you can actually bill the customer
for then you are doing yourself a disservice, and you
are not being a very smart business person.
And while we’re on the labor rate issue, please stop
playing the labor-rate game with your potential
customer. When you are asked what your labor
rate is, do yourself and the customer a favor and
don’t just answer with what your labor rate is.
Instead, drill down and find out why the customer
is asking. Chances are they have no idea, or they
feel they need to comparative shop. It’s your job
to educate the customer and let them know that
finding a qualified service provider has more to do
with it than just the amount of money they charge
per hour. You need to convince the customer that
you are the company to service their needs, and
that your competency and professionalism will
provide them with the best service available. If the
customer feels you are the most qualified shop
to do the work, then the labor rate you charge
per hour will have no bearing on selecting your
business to do the work.
Joseph J. De Marco
President/Executive Director
Todd Larson
Vice President
Wisconsin Indianhead
Technical College
David Eastwood
MCTINA Education Committee Chairman
Carteret Community College
John Bernier
North Atlantic Marine Services
Matt Gruhn
Marine Retailers Association
of the Americas
Robert Hoard
Retired marine instructor Oakland Tech
and former Mercury Marine instructor
Art Johnson
WyoTech-Daytona
Conrad Kreuter
Moriches Boat & Motor
John Mosetti
Boats Unlimited Performance
Larry Porche
Brunswick Boat Group
Darren Ragsdale
Jasper Engine and Transmission
Richard Schneider
API Marine
Henry Schreiber
Master Tech Marine Services
JarrettYoung
Yamaha Motor Corp.
BOARD OF
DIRECTORS
MESSAGE FROM THE PRESIDENT
Greetings!
AMTECH is a nondiscriminatory
association open to all regardless of
race, religion, or national origin.