Boat dealers who are willing to use the latest forms of communication, such as social media, email marketing and texting, were closing deals at the end of 2023.
“Social media marketing is generating activity with both buyers and shoppers,” one dealer said in response to this month’s Pulse Report survey. “Many are looking for heavily discounted units and seem to be more serious buyers.”
Another added: “Facebook marketing has done really well compared to other forms.” A third said, “Facebook marketing is working to create attention. Staffing is no longer a problem.”
In this month’s Pulse Report, Soundings Trade Only, Baird Research and the Marine Retailers Association of the Americas surveyed 65 marine dealers, asking about retail sales trends, managing inventory, digital tactics and customer communications.
A majority of dealers, by far, said social media marketing was generating the most attention. That was followed by email marketing and pay-per-click advertising. Texting led the way for customers’ preferred communication method, followed by phone calls and emails.
Marine retailer sentiment on current conditions pretty much held steady in December at 43 after checking in at 45 in November. A neutral outlook is 50. The three-to-five-year outlook was a little higher, 27 compared with 24, with dealers concluding that they were going to have to work hard to make sales coming into 2024.
Inventory continued to be a thorn in most respondents’ sides, with 86% reporting that they had too many new boats on their lots. Only 2% said they didn’t have enough. Preowned inventory levels were in better shape, with 33% of dealers saying inventory was too high and 28% responding that it was too low.
“Inventory levels being high, manufacturer pressures, overall competition, interest rates and decreasing demand are driving down margins,” one dealer said.
Many dealers also acknowledged that the pandemic sales surge is over. One said that 2024 “will be reminiscent of 2018-19. The easy money seems to have dried up. We are going to have to work for it now. All the sins that were easily buried during the pandemic are going to become more and more prevalent if not addressed in the immediate future.”
The economy remained a concern for other respondents, with numerous mentions of interest rates being a headwind for consumers who are teetering on the purchasing fence. “Interest rates have taken a toll on the few shoppers who are interested in units,” one dealer said. “Higher rates, stricter underwriting and its impact on debt-to-income ratios have caused many buyers to be disqualified. Coupled with much higher unit pricing, many buyers are being squeezed out of the market. Cash buyers remain king.”
Finally, dealers ended 2023 continuing to criticize manufacturers for increased prices on new boats. “Prices were raised way too much in the past few years by the manufacturers,” one dealer wrote. “Now there’s a glut of nearly new used boats for sale. Buyers have options of purchasing nearly new boats at a lesser price than we can sell a new one for.”
This article was originally published in the February 2024 issue.
