Relax at your peril!
THE recession, we are told, is over. Australia has tacked steadily, cannily and resiliently through the maelstrom with nary a tear in a sail cloth to show for it. Now we’re back on an even keel and rampant consumerism can prevail again. Dealers can switch from “batten-down-the-hatches” austerity mode, hire more staff, lease that new ute and buy that building next door that used to house the failed meat pie business. You reckon? Don’t you believe it!
The Skipper has never claimed to be a mental colossus in relation to matters fiscal (in fact, he has never even been able to grasp the fundamental monetary aspect of why a $2 coin is worth more than the larger $1 one), but when we hear countries like Japan talking about a possible “double-dip” recession not so far down the track, we should be very, very afraid. Anybody who has successfully operated a marine business over the past 12-18 months is to be congratulated, and it is probably a given that such people have run lean, slimmer, tighter operations than was heretofore the case. If that is so, then why not stick to that business model? Keep it that way. Change absolutely nothing.
OK, so your remaining staff will be less than ecstatic that their “emergency” workload will not be diminishing after all; your trade-in display might be less alluring than was your previous wont (because you’ve maybe had to prospect in ‘lower-rent” spheres to attract business), and your service dept might have more crap coming through the door - jobs at which they would previously have turned up their noses like a maitre d’ in a Michelin-rated restaurant who has been asked if the sweet trolley had Lamingtons – than they’d like, but you held your own and rode it through. Didn’t you?
Be honest, being a tightarse probably suits you – it definitely suits The Skipper, who unfailingly asks his five-year-old to produce receipts for his $3 tuckshop money! If you were entirely frank with yourself, you want to spend as little as you humanly can. If your business has survived, stayed sustainable and made profit as a result of austerity measures, then you’ve done something right and it’d be foolish to fully relax them. Keep them going as best you can – don’t waver - and watch your bottom line explode once things really begin to boom again.
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reader comments
In an atempt to be a little more serious, and indeed possibly offer some helpfull insights, I would request permission to bore you all with some observations I have made in the VERY short time I have been involved in the marine world. You lot fight like cat and dog! I sometimes wonder at what could be acheived if as much effort was directed into improving your own business as seems to be put into rubbishing the competition, or their products. Also, Re John B`s post, it is all well and good having a flash building with all the bells and whistles, but if the upkeep of same means higher pricing of your products, in the long term you will price yourself out of the market, John is quite correct when he points out good managment as the key to success. A flash building may help in getting the customer in the door, but the thing that determines what he or she takes home with them will almost certinly depend on how much is it going to cost? Remember the 80`s, get big or get out!. We all know that did not end well.
Mark Lowth/Sarina Marine on 19-Mar-10 10:23 AM
Thanks, Mark. Really, chaps, the standard of wisdom now being imparted on here is of a stunningly high calibre.
The Skipper on 18-Mar-10 09:20 PM
Back so soon Skipper, I have barely recovered from the last outing. Now here is a tip for fininacial sucsess in the marine industry that people so affected should take careful heed. After much research, expermintation, and dare I say it, spying, I have a developed a fool proof plan on how you can operate a marine business and still have a million dollars in the bank all at the same time. The answer is so simple I can`t believe it took me so long to work it out. This is it, start with two million in the bank and you will be down to one million soon enough!
Mark Lowth/Sarina Marine on 18-Mar-10 04:59 PM
Thanks for your kind thoughts there, Brian.
The Skipper on 18-Mar-10 10:25 AM
Well Skipper,who ever you are, I hope you do a better job in your full time employment, what ever that may be. Apparently we shall never know.
BrianPoole on 17-Mar-10 08:27 PM
John B, Is The Skupper from Nu Zulland? Shut, no!
The Skipper on 17-Mar-10 11:56 AM
Brian, You have no idea of what you're talking about. Just remember that to "talk the talk", you have to be able to "walk the walk". The skipper can do, and has done, both. And you're missing the entire point of blogs such as this; they're nearly always written under pseudonyms because they are contentious, vigorous and, by nature, opinionated. Plus the writer is probably also in gainful, industry-related employment and does not want a conflict. As for lazy and incompetent, how can the former be true when this writer is juggling a full-time job? As for the latter, what part of this missive indicates incompetence?
The Skipper on 17-Mar-10 11:51 AM
Australian household debt is now $1.2 tillion and the federal government has a debt ceiling of $300 billion. There isn't going to be a lot of spare cash to spend on boats. Instead, money will be paying interest on loans and paying higher taxes to cover the government debt. The housing market in Australia is also set to crash as taxes and living expenses go up and people are forced to sell. With this knowledge I'd hope for the best and prepare for the worst.
James on 17-Mar-10 09:25 AM
Hey SKIPPER!!! are sure you're not a Kiwi, your writing definately has a touch of a NZ accent. Oh hang on, my mistake; you're a Queenslander, because that's where everyone in the marine industry operates out of the flashiest office and the newly built flash factory that was not really required and lets not forget about that leased European Luxury Car. Maybe have a look down South and you will see how to run an efficient cost effective marine business with or without a recession. Skipper come close to the monitor and I will let you in on a little secret as long as you promise not to tell anyone; It's not recessions or GFC's that cause businesses to go under or into recievership ITS POOR MANAGEMENT. We shouldn't have to tighten our operations because of difficult times, we should always be running efficiently and within the rehlms of reality. Too many businesses have been living in a dream world for too long knowing that they are not really answerable for their actions when it gets too tough. We have seen it too often in the form of payouts of a few cents in the dollar to creditors. Its just not on!
John B on 17-Mar-10 07:04 AM
Well done Brian I totally agree
Peter Rhodes on 17-Mar-10 04:32 AM
This is what I call smart arse journalism. It is the "in style" at the moment In reality it is the lazy and incompetent output of some one who makes out that he has been there and done that in the industry and attempts to speak with the credibility that he considers this gives. Always a knocker ,I would be supprised if he ever created,or built anything in his life. Has not even got the guts to put his name to what he writes.
Brian Poole on 16-Mar-10 08:28 PM
tell a friend
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