Let’s face it — we like the news that inflation is finally trending down. But yesterday’s action by the Federal Reserve to not raise the fed rate, with a likely move to bring three cuts next year, isn’t great news for dealers selling boats this winter. Many of the customers we sell to are rate-sensitive and will hold off buying until rates are lower for consumers.
NMMA president Frank Hugelmeyer nailed it in the December issue of Soundings Trade Only:
“Heading into a new year, we are trending toward an oversupply of small, entry-level boats, partly driven by a lack of consumer credit. This oversupply has been exacerbated by the lag in our industry compared with the RV industry, which is already grappling with a significant oversupply of recreational vehicles. As a result, marine dealers have adopted a more conservative posture.”
Adopting a more conservative posture is sound management, of course. But as the old maxim goes, you can’t save yourself into prosperity. So dealers must still seek sales revenues, and the winter boat-show circuit can play a key role.
Exhibitors in boat shows have a competitive advantage. Nothing can deliver the big numbers and the power of face-to-face interactions that shows deliver to sales personnel. Moreover, we know boaters love shows and will come through the gates despite economic conditions.
Remember, we’re selling durable hard goods — a boat is not a commodity. So buying is highly personal, mostly driven by the prospect’s expectations of what the boat will do in their life. This kind of selling is a contact sport, and customers want and respond positively to personal interactions. Shows meet that need.
Boat sales hit a 13-year high during the pandemic. While that ship has long sailed, it’s critical that dealers work to retain those customers by continuing to generate excitement; boat shows can be key to achieving that. Those customers are very likely to be attending shows, and welcoming them to your exhibit and chatting them up sets strong groundwork for a continued relationship.
In addition, boat shows have the power to impact the next generation of buyers. We know newbies are attracted to “experiential” lifestyles. Boat shows offer exactly that because they include opportunities to climb aboard boats, hands-on activities, educational presentations, entertainment and more.
The exhibit is about more than just selling boats. It’s also a great opportunity to up-sell services and aftermarket products, all of which enhance the boating experience. The show is an opportunity to interact with the dealership’s service team, some of whom should be greeting customers as they come into the exhibit.
Remember, no dealership should be considered a stand-alone business. Marinas and clubs depend upon dealers to fill their docks. The same is true for accessory service providers, boating-oriented resorts, waterfront restaurants and many other businesses. Dealers can seek support from these other interests with offers like advance show ticket sales, restaurant coupons or gift cards, special equipment for a drawing in the dealer’s exhibit, and more.
Boaters seek out our winter shows to bridge the winter gap, and shows provide a way to keep connections with your customers, who will surely be cruising the aisles when their boating opportunities are in storage. It’s their carefree escape to taste what next summer will bring.
It’s less than four weeks to the kick-off of the winter show circuit in Chicago, and space in your local show may be sold out. If you don’t already have a space, make a call today if you want to boost your winter sales.
