For the month of November, 82% of retailers reported declines in new-boat sales, a noticeable drop-off from October statistics. Additionally, dealer sentiment declined on current conditions and on the three- to five-year outlook.
For this month’s Pulse Report, Soundings Trade Only, Baird Research and the Marine Retailers Association of the Americas surveyed 69 dealers, asking about their expectations for the off-season and about their compliance with a Federal Trade Commission Safeguards Rule that goes into effect in June and is designed to protect consumer information.
Some 34% of dealers said they were unaware of the rule, while 31% said they were working toward compliance. Another 27% said they were fully compliant. Only 8% replied that they had no intent to pursue compliance.
Dealer sentiment on current conditions declined from 30 in October to 22 in November. Typically, 50 on a zero-to-100 scale would be a neutral outlook. For the three- to five-year outlook, the number also dropped from 41 in October to 33 in November.
Similar to reports about new-boat sales, 74% of dealers reported a decline in sales of used boats, while 6% reported growth. Typically, November represents 3% of annual retail sales. The majority of respondents blamed government action or inaction, followed by lack of access to credit.
Manufacturers appeared to be catching up on new-boat inventory, with 42% of dealers reporting that new-model inventory was too low, and 17% saying it was too high. For used-boat inventory, 36% of dealers said it was too low, while 30% said it was too high.
“Starting to get in boats we ordered 15 months ago, but kind of nice to see a full showroom,” one dealer responded. “Now we just need some customers to look/buy them.”
Offering a road map to boost sales, another wrote, “Our online social media marketing, e-mail blasts and electronic prospect and customer communication is generating more interest than other forms of advertising or current manufacturer promotions. Consumers seem to have moved toward mainstream acceptance of online shopping for major purchases.”
A dealer in the Northeast said the seasonal slowdown in sales was expected but added that he did a search-engine marketing campaign for one brand. “We did surprisingly well with it. It was more to stay relevant before show time, but it worked out very well.”
Concerns about the volatile economy and inflation were voiced frequently, along with complaints about high prices. “Large price increases from the manufacturers” and “highest interest rates on recreational loans in 30-plus years” were the two primary gripes for a dealer who seemed to be speaking on behalf of most who commented negatively.
Because a large portion of the country is now in the boating off-season, dealers are seeing the traditional shift in business from sales to service, repowers, equipment upgrades and storage. “Electronics and technical support staff have a strong future,” one respondent said. Another said: “Service is strong as usual. We are busy in that department. Repowers are good.”
This article was originally published in the January 2023 issue.
