Dealer to Dealer: August 2019

As we push toward the end of the prime selling season, what is the one goal you want to accomplish by the end of the year?

“Figure out why our new boat sales are lacking behind 2018 when every other aspect of our business are well ahead.” – Joe Lewis, Mount Dora Boating Center

“The one goal I’d like to accomplish would be to reclaim my sanity. Somewhere between Memorial Day and Labor day, all normal sanity was sucked out of my mind. Hopeful some cooler days and smooth sounds will restore my fried brain cells.” – David deAndrade, White Lake Marine

“Top of my list is to reduce the inventory. Our inventory is high for this time of year and the manufacturers are asking for new 2020 orders to either met or exceed last year’s orders. Being in this business for over 40 years we know that every election year the business tapers off towards election time. But after the elections, whether a Republican or Democrat is elected, there is business as usual. So we will adjust our inventory accordingly in 2020.  

Also we are training in house for new technicians. We are using our older tech’s to train the younger new tech’s and compensating the older tech’s for their training.” – Jim Wiborg, Bob Hewes Boats

“Be billing 80% of paid trades payroll hours.” – Jim Dragseth, Whiticar Boat Yard

“We’ve outgrown our current location, both in size and scope. Our goal is to secure a bigger, deep water location that will allow us to inventory more boats, expand our service operations, accommodate more employees, add a full-service marina component, and more. Ideally we would migrate to the new location during 2020.” – Roger Moore, Nautical Ventures

“We need to sell through our overstocked and aged inventory. There’s also a challenging time ahead so far as inventory planning and management goes. Our primary goal is to identify when and where to shift our ordering and delivery dates, as well as volume of inbound orders.” – Greg Knop, Family Boating Center

What do you want to accomplish in the upcoming months? Tell us below in the comment section!

NMLA Releases Annual Statistical Report

Portfolio boat lenders expecting positive business during 2019; boat loan delinquency performs below 1% for 7th straight year.

The most comprehensive marine finance market study of lending trends and operations in the United States has been released by the National Marine Lenders Association (NMLA). The 2019 Annual Statistical Report provides detailed data relating to the industry’s two leading retail business line entities — financial institutions who originate and hold retail or floor plan boat loans and service companies who originate and broker consumer boat loans to financial institutions. The report is a compilation of information from 50 lenders who represent a sizeable share of the marine finance market.

As specified in the Report, the recreational marine finance industry continues to experience strong economic health. Performance statistics reveal that boat loan delinquency has remained stable since 2012 and that 78% of portfolio financial institution’s boat loan customers were in the 35-54-year age group. Average boat loan turnover rate was reported at a healthy 48 months.

The entire 101-page 2019 NMLA Annual Statistical Report is now available for purchase in PDF format.

Continuous Certification: It’s Like Learning How to Swim

Last week, MRAA Lead Certification Consultant, Bob McCann, used the analogy of learning how to swim during our MICD Certification consultant training.

You can imagine it… You’re a kid in a pool. A trusted adult is standing a few feet away and motions you to swim toward them. At the last second they take a step back. What?! You were almost to the finish line and they made a step backwards that challenged you to go farther, to do more.

The MICD Continuous Certification curriculum is kind of like that. Each quarter offers new content that is designed to challenge the way you run your business. We want to make you think.

In Q1, Jim Million takes a step back and provides information on how you can work toward a coaching and mentoring culture that will lead to a more effective workplace.

Q2 addresses the productivity of your leadership team. Ty Bello takes a step back and identifies the areas that may be blocking you from being productive.

Liz Walz and a panel of experts take a step back and help you reconsider how you allocate your staff’s time and talent in sales, marketing and customer service and how your departments collaborate to grab the attention of prospects and customers in Q3.

And if you have caught on, you would guess that Q4 is sure to push you further and challenge the way you run your business in order to bring greater success, as Theresa Syer shows you how to understand and influence your customer’s Key Emotional Drivers.

We hold our Certified dealers to a high standard. They have proven that they have the desire to be the best and be a dealership that continues to strive to be better. So we will continue to take a step back and challenge you to swim.

Tiara Yachts | Tiara Sport Makes Three-Year Commitment with MRAA on Dealer Certification

Tiara Yachts and Tiara Sport along with the Marine Retailers Association of the Americas have partnered together to bring the Tiara dealer network a pathway to delivering a greater customer experience through a 3-year commitment to the Marine Industry Certified Dealer program.

To encourage participation by their dealer network, Tiara Yachts and Tiara Sport will offer a per boat incentive to dealers who complete the Certification process and maintain their status through the Continuous Certification program.

“We are very excited to partner with the MRAA on this program and launch it to our Tiara Yachts and Tiara Sport dealer network at our 2019 Dealer Summit. Working towards continuous improvement, education and training helps to build an all-around stronger Tiara Dealer network,” says Dave O’Connell, Vice President of Sales and Marketing for Tiara Yachts and Tiara Sport.

MRAA’s Dealer Certification Program provides boat and engine dealers with a proven roadmap for dealership success, focusing them on continually improving their organizations through an emphasis on operations, employee engagement, and customer satisfaction. In addition to commiting to the Certification program, Tiara Yachts and Tiara Sport have signed on to be an MRAA Platinum partner.

“We are ecstatic to partner with the Tiara Yachts and Tiara Sport dealer networks through the Marine Industry Certified Dealership program and MRAA partnership,” says Liz Keener, MRAA’s Certification Manager. “Tiara continues to put focus on creating a culture of continuous improvement by encouraging and rewarding marine retailers who invest in education and training, specifically through the MICD program.”

The MRAA team will be in attendance at the Tiara’s 2019 Dealer Meeting to highlight the partnership with Tiara Yachts and Tiara Sport and the Marine Industry Certified Dealership program. For more information on the program, please visit MRAA.com/Certification or contact us at 763-315-8043.

A Peek Behind the Curtain

Do you know about the people who show up every day to do work on your behalf – advocating for the marine industry and the talented people who work the front lines? We are your marine trades associations and collectively we are the National Marine Trades Council.

Last week, around 30 marine trades association professionals, gathered in Anacortes, Washington to continue to push the industry forward with our pooled expertise. We touched on important topics like workforce & talent management, sharing resources to support our members, continuing education and association best practices. We welcomed back Canadian associations to the council this year, which was a great addition. Having insight from the community with the shortest boating season in North America was insightful.

Building a community of trusted friends that understand the challenges and rewards that come out of your daily activity is rich with benefits. We share similar pains, we celebrate aligned victories and we keep showing up to support each other to achieve the best results we can.

Who is your community? Is it your 20 Group, local area dealers, MRAA members or your local MTA members… whoever you build community with, I encourage you to show up and share your expertise with others. You never know when you might be offered a nugget of valuable information in casual conversation that could change the way you operate.

Edmonston Elected Chairman of Sport Fishing and Boating Partnership Council

BoatUS Vice President of Government Affairs Chris Edmonston has been elected chairman of the Sport Fishing and Boating Partnership Council. Senior-level representatives from state and federal wildlife agencies, saltwater and freshwater fishing organizations, recreational boating groups, recreational boating and fishing industries, conservation organizations, tribal representatives and the tourism industry comprise the 18-member body. The council advises the U.S. Secretary of the Interior on recreational fishing, boating and aquatic resource conservation issues.

Edmonston and the council will work on items such as improving access to recreational activities on America’s waters, conserving fisheries and waterways, combating invasive species, and a wide array of other topics that impact boating and fishing.

Throughout the council’s 26-year history, its members’ advice and recommendations have played a vital role in helping the U.S. Fish and Wildlife Service shape its fisheries and boating programs that are funded by boater and angler tax dollars. This includes the recent funding of $20.6 million in Boating Infrastructure Grants for 56 projects in 35 states that will create and improve transient dockage facilities for recreational vessels 26 feet in length or greater, offering hundreds of new slips and improved amenities for visiting boaters to safely tie up for the afternoon or night.

Bridge Marina Hosts Representative Mikie Sherrill

Bridge Marine is an active MRAA member and represents the association on the BoatPAC Board of Directors.

Last Friday, Representative Mikie Sherrill visited Bridge Marina in Lake Hopatcong, New Jersey to discuss the controversial closure of the lake because of harmful algae blooms.

Ray Fernandez, President of Bridge Marina indicated that the New Jersey Department of Environmental Protection (NJDEP) is overstating the algae issue, leading to an unnecessary level of concern. “NJDEP standards are twice that of national standards and of neighboring states, such that the current levels that cause NJDEP to shut down beaches would be acceptable in other states and the federal government,” said Fernandez.

During her visit, Rep. Sherrill discussed communication issues with the NJDEP, met with constituents – including the mayors of Hopatcong and Jefferson Township – and inspected the water quality issue firsthand. Local elected officials encouraged Rep. Sherrill to help direct additional funding for protecting and improving the lake’s water quality.

While on the docks, Ray Fernandez highlighted the lack of boat traffic. “The rental business has been down about 90 percent since this swimming closure started. We have spent about 40 hours answering calls from the public, boating club members, and slip members because of the issue.”

For more information regarding harmful algae blooms in New Jersey, visit the NJDEP website.

ORR, NGA Launch Outdoor Recreation Learning Network to Promote Economic Growth

The National Governors Association (NGA) today announced the launch of the Outdoor Recreation Learning Network – of which the Outdoor Recreation Roundtable (ORR) is a founding sponsor – to help governors and their staff leverage their states’ unique natural, cultural and historical outdoor recreation resources to advance economic, workforce, health and environmental benefits.

“ORR is proud to partner with the National Governors Association to launch the game-changing Outdoor Recreation Learning Network,” said Jessica Wahl, executive director of the Outdoor Recreation Roundtable. “This partnership will ensure that the outdoor recreation sector has the support it needs at the state and local level to continue to grow, providing jobs, outdoor access for all, and health and quality of life benefits for generations to come.”

ORR has been working with states across the country to set up Offices of Outdoor Recreation. Thanks in large part to the actions of ORR members, and our partners Outdoor Industry Association and REI, fifteen states across the country now have outdoor recreation offices or task forces dedicated to growing this essential part of the economy by increasing collaboration, investment and more. In the past few months, Nevada, New Mexico, Virginia and Wisconsin established their own Offices of Outdoor Recreation.

To promote these offices and provide support and coordination for the creation of new offices, the NGA Center for Best Practices will partner with state outdoor recreation directors to convene governors, their staff and other state officials. Through peer-to-peer exchanges, the network will spotlight strategies states can use to advance outdoor recreation. It will focus on key issue areas, including conservation, stewardship, education, workforce training, economic development, infrastructure, public health, equity and wellness.

“Oregonians share a special connection with the outdoors; our communities and economies are built on its natural beauty and bounty. People flock to our state both for its majesty and for the progressive policies we have put in place to preserve it,” said Governor Kate Brown of Oregon, which established an office of outdoor recreation in 2017. “But you can’t just protect the outdoors, you have to enable access too. Our outdoor recreation industry is thriving and still has enormous potential, and I am pleased to join my fellow Governors to support this sector that contributes so much to our health, to our spirits, and our livelihoods.”

Governors launched the network at NGA’s annual Summer Meeting in Salt Lake City, where state leaders share best practices and hear from experts in various fields. In addition to Gov. Brown, participants included Maine Governor Janet Mills, Montana Governor Steve Bullock, Nevada Governor Steve Sisolak, Utah Governor Gary Herbert, Vermont Governor Phil Scott and outdoor recreation directors from many states.

“NGA’s decision to create an initiative solely focused on supporting and expanding outdoor recreation opportunities across the country is an ironclad endorsement of our industry’s rapidly increasing economic significance,” said Thom Dammrich, president of the National Marine Manufacturers Association. “The Outdoor Recreational Learning Network will provide states with vital resources to help our industry – and cherished American pastimes – continue to thrive and we thank NGA for leading the way on outdoor recreation issues.”

“Fifteen state governments have established high-level staff positions or task forces to focus on increasing outdoor recreation opportunities and fostering the growth of outdoor industries, including bicycling,” said PeopleForBikes president Tim Blumenthal. “The Outdoor Recreation Learning Network will ensure success for these recently designated leaders and the many who will follow by establishing best practices and facilitating information sharing.”

“The RV industry applauds the launch of the Outdoor Recreation Learning Network and the commitment NGA is making to recognize the strength of the outdoor recreation economy and prioritize its continued growth,” said Craig Kirby, interim president of the RV Industry Association. “The learning network represents an unprecedented opportunity not only for outdoor recreation as a whole but for the 30,000 RV business across the nation who contribute $114 billion to the US economy, support 600,000 jobs and pay over $32 billion in wages.”

“The powersports industry, including motorcycles, ATVs and ROVs (known as side-by-sides), is a $40 billion industry in the U.S.,” said Tim Buche, president of the Motorcycle Industry Council. “The Motorcycle Industry Council salutes our nation’s governors for their commitment to preserving access to public lands for responsible riding opportunities that generate billions of dollars in state and local revenue.”

“The sportfishing industry is excited for the Outdoor Recreational Learning Network to help states better collaborate on strategies for improving outdoor recreation,” said Glenn Hughes, president of the American Sportfishing Association. “Recreational fishing consistently ranks as one of the most popular outdoor recreation activities, with 49 million recreational fishermen supporting over 800,000 jobs and contributing $125 billion annually to the economy.”

The founding sponsors of the Outdoor Recreation Learning Network also include REI Inc. and the Outdoor Industry Association.

Wisconsin Establishes Outdoor Recreation Office

Wisconsin Governor Tony Evers signed the state budget bill into law, which subsequently created the Office of Outdoor Recreation within Wisconsin Tourism – an important initiative that will help expand outdoor recreation opportunities in the state. With this measure, Wisconsin becomes the 14th state to establish an outdoor recreation office, a testament to the growing understanding of the industry’s economic importance across the country. MRAA, and other outdoor recreation industries, actively advocate for creating outdoor recreation offices, including in Wisconsin, and is a top priority of the Outdoor Recreation Roundtable (ORR).

Tourism Secretary-designee Sara Meaney said, “Our goal is to leverage the Office of Outdoor Recreation into more travelers, greater economic impact for local communities and new career opportunities for Wisconsinites. We consider this to be a game changer for Wisconsin. With one unified voice and shared priorities among stakeholders and resources, the sky’s the limit in growing this segments economy.”

Like the outdoor recreation offices and initiatives in 13 other states, the Wisconsin office will work to engage a new and diverse generation of Wisconsinites with the outdoors while focusing on growing local economies through recreation and tourism. Wisconsin is one of the first Midwest states to create a recreation office.

Outdoor recreation is a vital part of the economy, accounting for 2.2 percent of total gross domestic product (GDP). In Wisconsin, outdoor recreation is an economic powerhouse which generates nearly $17.9 billion in consumer spending, contributes $1.1 billion in state and local tax revenue, and directly supports 168,000 Wisconsin jobs.

Multiplying Success Through “Interdependence”

Sometimes, though you can’t take any credit for it, you find yourself doing the right thing at the right time.
 
That was the case this past week. The “right thing” was reading a classic book: “The 7 Habits of Highly Effective People” by Stephen Covey. And the right time was rocketing through the air on a flight to join MRAA’s Dealer Development Manager Nikki Duffney at the National Marine Trades Council meeting in Anacortes, Washington.
 
The part of the book I was reading was on what Covey calls “the maturity continuum” – one in which we start life with physical, emotional, mental and financial dependence, then move to independence, and eventually – on a quest to achieve our greatest success – may reach the pinnacle of maturity, interdependence.
 
The way Covey explains it, “interdependence is the paradigm of we – we can cooperate; we can combine our talents and abilities and create something greater together.” In our society, we often put independence on a pedestal as the ultimate goal – but the author does an excellent job of reminding us that idea is misplaced.
 
“Interdependent people combine their own efforts with the efforts of other to achieve their greatest success,” he writes.  
 
I’m not telling you anything new. Most of you actively practice interdependence. For one, you experience the benefits of collaborating with your team to strengthen your business. You also might be a member of a 20 Group. And if you’re reading this, chances are you’re a member of a marine trade association. Or two. Or three. Take, for instance, the marine dealer with a marina who was a member of three of the associations in attendance at the meeting. He belongs to his state association, the MRAA and the Association of Marina Industries – each of which offers unique education and benefits to fuel success for that business owner and his team. Talk about 1 + 1 + 1 = 5!
 
It doesn’t hurt to be reminded of how much more we can achieve together than alone. The book was my first reminder this week, but it came to life again and again working alongside the brilliant and dedicated people who run the industry’s marine trade associations.
 
There are many ways in which we were already collaborating with the national, state and regional association professionals in the room. For example, we partner with the National Marine Manufacturers Association by sharing a political action committee, called BoatPAC. Many of us at the NMTC event co-host the American Boating Congress, which is produced by NMMA. MRAA collaborated with Wendy Mackie, her team at the Rhode Island Marine Trades Association and others to launch the Strategy 10 + 1 publication, a Guide to Growing the Workforce, and the MRAA Guide to Apprenticeship. And on a personal level, I’m deeply grateful for the opportunity to work with Barb Caster of the Boating Industries Association of Upstate New York to serve those marine businesses in my local community.
 
One final example, inspired by the value of working alongside our marine trade association peers to serve you, is a co-host program at the Dealer Week event this December in Tampa. Five associations have already signed on as Dealer Week Co-Hosts, and after meeting with our peers to explore the value of this opportunity to our organizations and you, several more have expressed interest in co-hosting.

Thanks to NMTC leadership, there were lots of seeds planted that will sprout new opportunities for all of us who participated to practice interdependence this week, which multiply our ability to fuel your success.

To learn more about co-hosting at Dealer Week, MRAA’s annual conference and expo, reach out to Allison Gruhn or visit our partner page.