Dealer sentiment on current conditions dropped in May (31 vs. 38 in April), and the three- to five-year outlook also dropped to 32 (vs. 34). These figures are both below the neutral outlook of 50.
For this month’s Pulse Report, Soundings Trade Only, Baird Research and the Marine Retailers Association of the Americas asked 55 marine retailers to assess recent trends in North America. More dealers reported retail declines in May (57%) than growth (18%), similar to the survey’s recent checks. Dealers also reported lower used-boat retail, with 44% reporting declines and 35% reporting growth.
Dealers again cited tariffs, economic uncertainty, affordability and access to credit as headwinds to demand. Some also noted that poor weather in their regions didn’t help buyer enthusiasm. The month of May typically represents approximately 16% of annual retail sales.
“Uncertainty is the main thing looming over everyone’s head. It feels like this season there aren’t many tire kickers,” one dealer noted. “The folks who are calling and coming in are out there looking because they want to buy, so we are trying to exercise each prospect as much as we can until they buy or kick us to the curb.”
Dealers again reported that new-boat inventory was higher than they prefer. In May, 69% of dealers reported new-boat inventory was “too high,” compared to 10% that reported “too low.” Dealers reported a more balanced to slightly lean used-boat inventory, as 30% called used inventory “too low” compared to 23% who responded “too high.”
One dealer commented, “Supply and demand dictates price. We need to all stock less inventory right now.”
When asked what was working, dealers mentioned the importance of tracking leads and following up.
“Personal follow-up is about the best thing we have going now. New leads are few and far between,” one dealer said. Another said, “Marketing on Facebook marketplace has been a great hit for used inventory.”
Some dealers also noted optimism. One wrote, “Activity, shoppers, calls, web activity and foot traffic have all picked up, with more people coming into the showroom, many of them buying. We are starting to see the results of a more robust marketing plan targeting family and fishing models.”
When dealers were asked what was not working, many comments centered on rising costs and lack of manufacturer incentives to move inventory. The lean times are putting pressure on other aspects of dealer businesses, in addition to the balance sheet.
Summing up the pressures, one dealer said, “Having reduced staff is putting more and more weight on the owners to take on bigger work demands. The single technician we’re down to is having to move their own boats around the yard, where previously he had a porter, a second technician and an apprentice to spread the work around to. The fear of burnout is real.”
A few dealers mentioned softness in the pontoon market. One said, “Pontoons in general have been extremely slow and low turn. OEMs have rebates but have not been doing a great job advertising them nationally.”
When asked about the types of tools used to support sales performance, many dealers reported using a customer relationship management system, along with virtual/augmented reality boat showings and mobile sales support tools. Sales tools such as digital catalogs and inventory systems, online financing calculators and website chatbots were also reported, but were not as commonly used.
Asked about sales strategies for the peak summer season, responses centered on getting inventory out the door. “Getting the inventory out of here, no matter the profit or not. Must go down the road and off the books, period,” one dealer said. Another echoed, “Do not lose a deal. Focus on selling through all non-current inventory as quickly as possible.” A third said, “Work every prospect as thoroughly as we can. Try to flush out and overcome any hurdle in the way to get to the sale.”
