How have you made purchasing decisions (for the next model year) at recent dealer meetings based on your current inventory levels?
I have brought in 2020 inventory, so that combined with my existing 2019 inventory, it will match my inventory level that I had last year heading into Q4. The primary difference being, last year at this time, I had less leftover 2018 inventory, where as this year roughly 30% of my inventory is MY 2019. Ultimately, my dealer meeting orders are down YOY. – Quinn Bellamy, Silver Lake Marine
We are backing are orders off by 20%. To much inventory and don’t think It will be a problem to find next year. – Ken Toby, Marine Sales Kentuckian
There has been lots of talk of 30% more inventory in the field than last year and I feel that it has a lot of people scared and dumping inventory at low margins. The explanation in my opinion is two factors. The obvious one is bad weather for the first part of the year. The second is not as clear to many dealers and you guys maybe have a better handle on this and can shed some light. Many dealers I talk with or sell against will often say sometime in May that they are sold out of new boats and can’t get orders fulfilled, etc. This has gone on for years. The often heard (and misguided) response to that is, “ that’s a good problem to have!”. The fact is that it is not at all a good problem, it is poor planning plain and simple. So now that the economy and consumers have proven over the past 7 years that things are good, dealers have ordered to accommodate demand. And to do this you need to have stock over the summer when people are using and buying boats. Just because 2020’s are now on our lots does not mean that you should be clear of all 2019 models. It takes time to build inventory so if you were to be sold out in June and 2020s start slowly rolling in to your dealership in July, you will not have a full stock until winter. The “overstock” of inventory is merely a correction of past “understocking” combined with a later start to the selling season. No need to panic! Just my .02. – Stuart Litjens, Boulder Boats
Yes, we did make ordering decisions based upon current inventory levels and the compressed selling season we experienced in 2019. The year began with political and economic news that, to some extent, hindered very early-season boat sales. We went into a dark, wet, cold, long spring before boaters saw any real sunshine around July 1. – Tighe Curran, Pier 33
After reviewing our current inventory we have made a decision to cut back on the initial 2020 orders. There are many dealers that have more inventory than previous years. This means there will be a glut of left over inventory and unfortunately dealers are willing to “blow out” their product below normal pricing. Also in the last few months it seems like the retail sales have slowed a little. Also election year is next year and I have seen for the last 45 years the boat sales slow up every four years just before the elections because of the uncertainty but after the elections business as usual. We will be cautious for the next 12 months but by no means cut back on our normal inventory levels. You can’t sell it if you don’t have it! – Jim Wiborg, Bob Hewes Boats
Very carefully, still have ‘18s in stock. – Von Skinner, Cozy Cove Marina
Manufacturers have been forcing us to take on more, and in turn put our store into a volatile market. Our area/competition has high inventory levels for this time of year, and if the economy turns we will all be in trouble. While reps share our concerns, they can’t do as much as they could in the past. The continued rising price of new boats, and the cost of warranty to deliver a product in confidence to the consumer is higher. We are now in a situation where it requires more employees just to deliver on the same principles we have in the past, because of poor quality control from the factory. We have scaled back on ordering 2020 product because of this. – Anonymous
The amount of purchasing I’m doing is based on what has turned. I have 4 lines. [Our] purchasing decisions were made based on the idea that it will be a flat or slightly down year – Joe Hoffmaster, Hoffmaster’s Marina
We have, and in most cases we’re anticipating an increase. We doubled the order for one of our best-selling brands, from 40 units in 2019 to 80 units in 2020. – Roger Moore, Nautical Ventures
How have you made your purchasing decisions for next model year? Tell us below in the comment section!
