With the economy still lagging at the start of 2023, boat dealers continued to report sales declines, but the decline-to-growth ratio improved in February, with 43% down and 36% up, compared with 82% down and 3% up in November 2022.

“We have been pleasantly surprised that recession woes have not dampened interest in our products,” a dealer replied in the monthly Pulse Report survey. Another added: “Boat shows back to normal. Selling our dealership and selling value for their dollar. High-end models/brands doing best.”

In this month’s report, Soundings Trade Only, Baird
Research and the Marine Retailers Association of the Americas surveyed 61 dealers, asking about retail sales trends, pre-sale follow-up, and how much parts and accessories sales contributed to their bottom lines.

Dealer sentiment on current retail trends improved by one point to 42 in February, compared with 41 in January. The three- to five-year outlook dropped slightly to 47 in February versus 52 in January. A neutral rating is 50. Retailers reported slight declines in new- and used-boat sales, with 37% reporting a decline and 27% saying they saw growth.

Government inaction or action continued to take the biggest blame for retail headwinds, followed by new products and trade-in activity. Access to credit improved in February, as did the dealers’ view of the economy.

New-boat inventory appeared to have been replenished, with 58% of dealers reporting that they had too much, while 5% said it was too low. Used-boat inventory was slightly more balanced, with 40% of retailers saying it was too low, compared with 28% who called it too high.

Commenting on what worked for boat sales in January, one retailer said it was “getting back to the basics of selling.” Another added that having manufacturer support helped, as “OEM representation in our booth at a show made customers feel confident in what they are buying.”

On the negative side, one dealer said, “Sales have slowed and not rebounded as quickly from the winter season as expected, with expressed concern about sticker shock over pricing.” Others said they were not getting enough help from manufacturers. One dealer vented, “Boats continue to be significantly higher priced than previous years, with a number of manufacturers shipping boats with missing items or poor fit and finish.”

When asked about pre-sale customer follow-up tactics, 27% of dealers replied that they were using one-on-one sales appointments. Time-sensitive offers and on-water demos each represented 20% of the responses, and 18% said invitations to the dealership were working.

Finally, the majority of dealers said aftermarket parts and accessories made up less than 10% of their business. To increase revenues in this area, one dealer said he built a website to sell parts. Others were cross-promoting specific accessories. “Planning a promo to install Power-Poles and power Bimini tops,” one dealer said.

Using a tried-and-true up-sell strategy, one dealer said, “We push by offering incentives during the sale of a boat for accessories and parts and pro shop.”

This article was originally published in the April 2023 issue.