Best Practices as You Move Old Inventory Out to Bring New Boat Inventory In
By Edward MacFawn, President of BiT Dealership Software, an MRAA Platinum Partner
As part of the MRAA’s partner-contributed education series, this article outlines five practical steps marine dealers can take to manage aging inventory, improve interdepartmental coordination and prepare for a smoother model year transition.
Model year transition can be an exciting yet daunting time for any boat dealership. Manufacturers begin introducing those sleek new model year designs and as the official new model year cycle kicks off, it’s important for boat dealers to have their proverbial house in order. That means making sure sales, service, parts, accounting and marketing are all on the same page.
When departments maintain separate spreadsheets or keep their records in operational silos, boats can be incorrectly priced, advertised, rigged or promised for delivery, and that can impact your dealership’s bottom line. Use these five tips with your dealer management system (DMS) to prepare for a smoother model year transition.
1. Get a Bird’s-Eye View of Aging Inventory
Before deciding which boats to promote or discount, review your current inventory.
Run a unit inventory report organized by model year, acquisition date and days in inventory. The report should also show each boat’s recorded cost, current price and physical location.
Classify each unit as:
- Available and ready to sell
- Available but needing preparation
- Under deposit or pending
- Used as a demo
- Sold but awaiting delivery
Verify the information for each one. Compare the physical boat with its DMS record, website listing, deal record, open work orders and accounting records. Identification numbers, trailers, colors, options, locations, photos, specifications and documents should all match. Confirm that the unit’s recorded cost is accurate before setting its clearance price.
2. Squeeze All the Juice You Can From Your DMS’s CRM
Your next customer may already be in your customer relationship management (CRM). Model year transition is a good time to reconnect with prospects who have not yet purchased. Review open leads, unsold quotes, salesperson notes, trade-in discussions, previous conversations and lost sales. A customer who was not ready several months ago may reconsider when presented with the right offer.
Instead of sending the same promotion to every contact, create targeted follow-up groups based on boat type, model, price range or other expressed interests. Assign each opportunity to a salesperson, set the next contact date and record all calls, emails, texts and responses. This keeps the sales team coordinated and prevents multiple employees from contacting the same prospect.
3. Ensure Every Boat Is Delivery-Ready
As you know, just because the boat is on the lot doesn’t mean it’s ready for delivery. Review open work orders and prep requirements attached to each boat, and confirm whether the unit still needs rigging, warranty repair, detailing, accessory installation or a pre-delivery inspection. Designate a team member to move each boat through the delivery-readiness process.
With your DMS, you can assign the work, schedule the service and track all aspects of the process, such as labor, parts, tech assignments and completion status.
4. Double-Check Your Numbers Before Applying Discounts
Once the work is done, use the boat’s DMS record to verify its original cost and all expenses added since acquisition. Freight, preparation, rigging, installed parts, repairs and other boat-specific costs add up fast. Also consider floor plan interest and any curtailments that apply as the boat ages, especially after an initial manufacturer-sponsored interest-free period ends.
It never hurts to double-check the accuracy of these numbers before applying discounts. Compare the complete unit cost with the proposed clearance price, manufacturer incentives and expected gross profit. Then consider how applicable floor plan expenses affect the deal’s overall profitability and coordinate finalized transactions with your accounting system and floor plan records. This prevents managers from approving discounts based on incomplete cost information.
5. Ensure Your Website Aligns With Your Boat Inventory
If your DMS syncs inventory with your website, updated unit information should automatically flow to your online listings. Verify that prices, model years, options, locations, specifications, photos and availability match the records in your DMS.
If your systems are not connected, regularly compare your website with your current inventory. Remove sold boats promptly, update pending units and publish approved clearance pricing so customers and salespeople are not working from outdated information.
Bring Every Department Together for a Smoother Transition
New models may grab the spotlight, but clean data and coordinated departments keep inventory moving. Use your DMS to give every aging boat a clear status, a responsible owner and a next step. The goal is simple: move the old models out without letting the new ones create new problems.
About the Author
For more than 21 years, Edward MacFawn, President of BiT Dealership Software, has helped boat dealers and marine service centers increase profitability by bringing greater efficiency, visibility and control to their operations. Drawing on his background in finance and operations, including experience with KPMG and Honeywell, Edward has focused BiT on solving the real-world challenges that affect marine businesses every day.
Under Edward’s leadership, BiT has helped dealers connect sales, service, parts, inventory, slips/storage and customer communication through one integrated system. He spearheaded what industry reporting identified as the first web-based marine dealer management system in 2013 and later championed embedded two-way text messaging within the DMS. These innovations have helped marine businesses reduce administrative friction, improve customer responsiveness and make better decisions using more accurate, accessible information.
Today, Edward continues to guide BiT in developing practical technology around the way boat dealers and service centers actually work. His mission remains clear: Give independent marine businesses the tools to operate more efficiently, serve customers more effectively and build stronger, more profitable companies without sacrificing flexibility or personal service.
To learn more about Clearance and Model Year Transitions, visit the MRAA Spotlight page.
Editor’s note: MRAA publishes partner-contributed articles to provide marine retailers with practical education, subject-matter expertise and industry perspective. MRAA maintains editorial oversight of partner-contributed content and may edit submissions for clarity, relevance, AP style, search visibility and alignment with MRAA’s dealer-first educational standards. Recommendations should be considered alongside each dealership’s goals, processes, team capacity and business needs.
