In March, marine retailer sentiment on current conditions decreased to 36 from 41 in February, and the number for the three-to-five-year outlook dropped from 34 to 32. A rating of 50 is considered neutral.
To prepare for the upcoming boating season, most dealers have a realistic mindset, according to those who responded to this month’s Pulse Report survey. “We are focusing on moving aged units and inventory control moving forward,” one dealer said. “It’s a good time to right-size the business after the Covid boom.”
Another said: “We are paying close attention to our buyers and service customers, and are ready to pivot with pricing, marketing and a strategy to conform to the changing market.”
Soundings Trade Only, Baird Research and the Marine Retailers Association of the Americas surveyed 75 dealers about managing inventory, finding help and how they’re getting ready for the summer boating season.
Inventory continues to be a sore subject, with 82% of dealers reporting that they have too many new boats on the lot and 4% saying inventory was low in March. The numbers for used-boat inventory weren’t as disparate, with 31% of dealers saying they had too much and 43% wishing they had more.
“We are having trouble moving pontoon inventory, and fiberglass fishing and pleasure boat inventory,” one dealer replied. “We may look to reduce some of these lines in the future.”
Another dealer said: “We are trying to reduce inventory levels due to the cost of floorplan and insurance. Only ordering presold or most popular models. Still trying to liquidate 2023 inventory.”
Financing also remained an uphill climb, with a respondent writing: “New-boat loans are hard to get, and interest is high. You end up buying a boat and a half with some of the rates.”
With regard to the upcoming season, most dealers said they were using ongoing staff training to keep personnel current, and were offering incentives for performance. Many were also focusing on improving the consumer experience. “We are trying to increase staffing and put better processes in place in all departments,” one dealer said.
Unfortunately, finding experienced, certified technicians seemed to be a continuing problem for most dealerships. “We lost three certified technicians last year,” one dealer responded.
Another said: “We’ve been searching for one additional technician all winter with very limited success (some inquiries). This is the way it is in the local industry — very limited available tech personnel despite our trade association setting up numerous effective training programs across the state.”
One dealer took a pragmatic approach: “I revised every job description in the dealership. I met with all our team members to make sure each of them understood their job. Then we went over all these with the entire staff to make sure everyone knew what their co-workers are responsible for. Some changes were made after this meeting that really dialed everything in.”
This article was originally published in the May 2024 issue.
