Marine retailers who put in extra effort in October saw positive results, with premium boats and midlevel preowned models continuing to sell. When asked what was working, one dealer said, “Focusing on the client in front of you. Solving their problems, addressing their needs. Demonstrating you care and showing I have skin in the game, too.”
Another added: “Higher-dollar boats are generating the most interest and lead activity. Much stronger fall for newly written deals than last year. Encouraged by the activity and continuing to keep the foot on the gas so the trend continues.”
Overall dealer sentiment increased by a point, at 39 versus 38 from September, while the three- to five-year outlook was down four points, from 26 to 22. A neutral outlook is 50.
In this month’s Pulse Report, Soundings Trade Only, Baird Research and the Marine Retailers Association of the Americas surveyed 89 dealers about retail sales trends, how they are managing inventory, and their strategic marketing plans for the coming year.
October remained tough for revenue, as 60% of respondents reported sales declines compared with 19% saying they increased revenue. Used boats were worse, with 66% of dealers reporting a drop, and 13% saying that sales grew. October typically represents about 4% of annual retail sales.
Many dealers in the Northeast had more shrink-wrapped boats on their lots than they would prefer, requiring them to pay floorplan interest to carry the inventory. Nearly 90% of dealers said inventory was too high, and no respondent said it was too low. Used-boat inventory was a little better, with 51% of retailers saying it was too high compared with 19% saying it was too low. Trying to stay positive, one dealer said. “We are blessed to have inventory to show this year compared to last year.”
Half of the responding dealers said they planned to maintain their marketing budget for 2024, while about 35% planned to increase their investment. Just under 15% said they would spend less.
Seeing the big picture has helped some dealers realize that their customers might not be ready to sell or step up, so they help those customers take care of their current boat. “Cleaning products and maintenance parts are what we continue to see selling,” one dealer said. This respondent and others also said that finding quality, motivated help continues to be a challenge, especially in areas with a high cost of living. “We’ve acknowledged this and will factor it into our next cost-of-living increase first quarter, if not sooner,” the dealer said.
Sales tactics that have worked included establishing realistic trade-in values and partnering with boatbuilders on incentives. Fall boat shows have been strong selling venues for some dealers, but even then, it’s taking extra effort to close the deal.
“There are no more quick sales,” one retailer said. “You have to spend time with the customer now and try to win them over. Good ol’ salesmanship.”
This article was originally published in the December 2023 issue.
