Eric & Kelly’s Story
Here at our ActionCOACH Business Coaching Firm, Team Sage, we firmly believe that having the right systems in place can move your business from a place of surviving to a place of thriving. Our work with Eric’s Outboard, a certified Yamaha engines, parts and service company here in Miami, demonstrates this belief quite well. When I met Kelly and Eric of Eric’s Outboard, their part sales had plummeted from the year before, when their sales manager took their client database and opened up a location nearby. Sales were down by almost a million in parts sales. To make matters worse, they didn’t have a firm grasp on their inventory.
First Step: Assessing Their Sales
When Team Sage came onto the scene, obviously we had to stop the bleeding and started by assessing the “part sales” side of their business. First, we profiled the sales team members with a sales skills index. Then we helped the team set monthly sales goals and began tracking their progress towards their goals. We coupled this with a redesigned sales compensation package and helped each member of the team determine how to reverse engineer what sales they needed in order to reach the compensation level they wanted to reach. We nailed down the profit margin on their products and determined how much in discounts the sales team was extending to their customers. Our approach led to quite a successful outcome. Eric’s Outboard recovered those lost sales within 15 months and have grown overall sales by 54% in 3 years!
Second Step: Tackling Inventory Issues
Once the sales side was gaining momentum, we started tackling the inventory issues. We hired an experienced inventory manager who helped determine inventory par levels based on sales history. This allowed the company to make wiser purchases and take advantage of manufacturer incentives. The barcode system we installed removed the need to manually count inventory every year – a process that previously required closing the business for a week and resulted in lost sales. This was a time-consuming and costly process for a single inventory count that was used one time by the accounting department to adjust inventory levels on the balance sheet. Today, there is a dynamic, real-time inventory count at Eric’s Outboard where they maintain up-to-date inventory numbers for increased accuracy and consequently, profitability.
Third Step: Success
There are countless more stories where this one came from! If you see yourself and your business in this story we would love to connect with you to explore how we can work with you to increase the efficiency and profitability of your business. Visit our website today and sign up for a complimentary strategic coaching session. We’d love to hear from you! We succeed when we help your business succeed.
Did you like this story? If so, you might also enjoy this recent blog on managing business growth! Check it out here!