MRAA Joins Group Fighting Invasive Species

MRAA has joined on to the Boating and Fishing Aquatic Invasive Species Coalition, which is comprised of stakeholder organizations from around the country. The coalition was formed to present a united front on Aquatic Invasive Species (AIS) policies at the federal level.

During the first meeting on Monday, July 23rd, the coalition unanimously agreed to support the U.S. Army Corps of Engineers’ (USACE) Brandon Road Study, a report evaluating options to prevent the spread of AIS from the Mississippi River Basin into the Great Lakes Basin and steps to speed up USACE’s study timeline. The Great Lakes region is home to more than 3.1 million boaters and accounts for 26.8% of all registered boats in the U.S. 

In addition to the MRAA, the following organizations participated in the coalition meeting: American Sportfishing Association; Association of Fish and Wildlife Agencies; Association of Marina Industries; B.A.S.S. LLC; BoatUS; Congressional Sportsmen’s Foundation; Kentucky Department of Natural Resource; Michigan Marine Trades Association; Lake Erie Marine Trades Association; National Marine Manufacturers Association; and Trout Unlimited.

If you have any questions about legislative issues, or something happening in your state, please contact Will Higgins.

Soundings Trade Only To Host Roundtable Event & Reception at Ibex

On Monday, October 1st, 2018 from 5:30 – 7:30pm, Soundings Trade Only will host a roundtable event during the IBEX show at the Marriott Tampa Waterside followed by a reception. The roundtable will focus on the future of marine aftermarket, boats and components. It is being sponsored by Mercury Marine and Attwood Corporation.

“From mergers and acquisitions to the sharing economy to the impact of e-commerce, technology, and adjacent markets, the landscape of marine aftermarket is quickly changing,” said Michael Verdon, Editor in Chief of Soundings Trade Only. “We believe it is the right time to bring together an experienced and diverse panel to discuss where this segment of the market is headed, and IBEX is an ideal place to do so.”

The confirmed panelists include: Ron Japinga, CEO and President of Guitar Center and former Executive Vice President of Merchandising, Planning & Logistics at West Marine, Tom Schuessler, President of Land ‘N’ Sea Distributing, John Giglio, Founder & CEO of Freedom Boat Club, Larry Russo, Sr., Senior Vice President, MarineMax Russo, and Joe Lewis, Owner of the Mt. Dora Boating Center and Chairman of the MRAA and Grow Boating Board of Directors. Additional panelists to be confirmed.

Seating is limited. Easy registration for the event is available on the IBEX website.

Connecticut Waters Welcome Boating Enthusiasts with Lower Tax Rates

With a provision within Public Act 18-81 lowering the sales tax on boat purchases, boating enthusiasts across Connecticut had been eagerly anticipating the bill’s July 1 effective date to get out on the waters in new boats just in time for the July 4 holiday week. The first two weekends in July and the holiday did not disappoint, with dealers from all parts of the state reporting brisk sales of boats of all sizes, motors and trailers, which are affected by the bill’s tax reduction.  

“Boating in Connecticut has become more affordable with the passage of this bill, and it couldn’t have come at a better time for Connecticut marinas and dealers who have been losing customers and jobs to neighboring states. Coupled with a somewhat delayed season, this past weekend really announced the opening of the season and a re-invigoration of boating in our state,” said Kathleen Burns, Executive Director of the Connecticut Marine Trades Association (CMTA).   

The provision lowers the tax rate on the sale of boats, motors and trailers from 6.35% to 2.99% effective July 1, 2018. The new tax rate applies to all boats – new or pre-owned, motors and trailers, whether purchased separately or as a package.

Throughout the holiday week, marine dealers were posting on social media and emailing the news of active sales. “The incredible buying activity that is taking place right now is amazing! We have provided a reason to buy and the success of the new lower tax rate has been a bit overwhelming. We are thrilled with the success,” reported Don MacKenzie, Vice President and General Manager of Boats Incorporated in Niantic only two days after the reduction went into effect.  

The buying action continued as the heat wave drove people to the water, marinas and dealers. “What a difference almost three percentage points can make. With the new tax rate we are back to being competitive with boat dealers in our surrounding states. We are looking forward to finishing out the season strong!” said Mitch O’Hara Jr, Vice President of Candlewood East Marina in Brookfield.

“The economic reality of this tax reduction is that it will help to re-create jobs that have been lost in past years within the marine trades in Connecticut, ” Burns said. “It’s been noted that over the past years when our tax rate was above 6% and higher than every other state on the east coast without a cap, that about 40% of our boat sales left the state taking with them their service work, slip, mooring and storage. The calculations show that for every 16 Connecticut boat registrations lost, the equivalent of one full time job in the marine trades is also lost and the decline has been impactful,” she continued.  

Tasha Cusson, owner of Atlantic Outboard and Westbrook Marine Center in Westbrook related that their sales were indicating that purchasers were intending to keep their fishing and cruising type boats in Connecticut. “Almost every customer that bought a boat this past weekend asked for slip availability,” she said

The tax cut effectively reduces the sales tax by 53%, and with the tax savings calculated at around $1,000 per $30,000 purchased. The reduction now helps Connecticut be more competitive with neighboring states such as Rhode Island, New Hampshire, and New York in attracting boaters. Burns says that “Connecticut has over 618 miles of tidal shoreline, 180 inland lakes and hundreds of miles of rivers offering varied opportunities to get involved in recreational boating, and we are so pleased to be able to welcome back boaters who may have left the state in recent years as well as encourage new boaters to experience our waterways for the first time.”

According to Bob Petzold, owner of Petzold’s Marine Center, in Norwalk, “We had a customer come in unannounced and said the savings [in tax] was enough to change their minds.”  Petzold went on to say that in order to keep up with demand, “We have been buying inventory from other dealers and recently went to Virginia and Maine to pick up boats for customers.”

The National Marine Manufacturers Association reported that in 2016 there were 93,364 registered boats in Connecticut, with the annual retail sales of new boats, engines and marine accessories in Connecticut accounting for $157.7 million, which support over 7,300 jobs in the state in 537 small businesses which facilitate the purchasing, storing, servicing and caring for boats. That year, the state’s recreational boating industry has an annual overall impact of more than $1.3 billion.  

Citing efforts in other states, Burns said that “In every other state that has enacted similar tax reductions, the marine industry was able to reverse the loss of registrations within the first year – which could create more tax revenue for our state by this time next year.”

About Connecticut Marine Trades Association:
The CMTA is a not-for-profit trade association representing boating and related marine industries throughout Connecticut, from the Long Island Sound to the state’s rivers and lakes. Founded in 1954, the CMTA has over 330 member businesses and is dedicated to the well-being of the industry by promoting the interests of recreational boating, improving industry condition, monitoring legislative and regulatory issues, and advancing boating education throughout the state. The CMTA annually produces the Hartford Boat Show, and the 50th Annual Hartford Boat Show will be held at the Expo Center at Mohegan Sun, January 17-20, 2019 as the first winter-season boat show in the Northeast.

River Valley Power & Sport Acquires Bill’s Bay Marina- Colvill Park Marina

River Valley Power & Sport’s President, John Wooden, announced the acquisition of a 62 slip marina and fuel dock facilities known as Bill’s Bay Marina-Colvill Park located at 507 Nymphara LN in Red Wing, MN. The acquisition also included a showroom & marine repair facility on Hwy 61 at 1708 W 3rd Street in Red Wing, MN.

The 62 slip marina, is adjacent to beautiful Colvill Park, complete with several accommodations and entertainment: large water park, walking trails, tennis court, basketball court, picnic and BBQ areas, playground equipment, party and gathering areas, and other rental facilities. Mr. Wooden plans to initially operate the marina as normal, but sees an opportunity to update the assets of the marina, to make what River Valley believes will be one of the nicest marina settings on the upper Mississippi River: “The Gateway to Lake Pepin”. The marina will also offer River Valley Power & Sport, a Boating Industry “Top 100 Marine Dealer”, the ability to have a floating showroom and on water demonstrations.

Furthermore, River Valley intends on retaining the “family first atmosphere” of what would be deemed as one of the finest marina locations in North America. They plan on continuing to invest heavily in all their facilities over the coming years. In addition to this new marina in Red Wing, John Wooden has been an owner of the 98 slip Browns Bay Marina on Beautiful Lake Minnetonka since 2014. That marina Wooden stated “My partners and I have invested heavily in, remodeled and have a lengthy waiting list for slip availability. Our plan is to do the same in Red Wing.”

The showroom and service facility located at 1708 W 3rd St (HWY 61) in Red Wing is a very modern, highly visible building that provides easy water access to Red Wing’s upper harbor and gives River Valley the ability to expand their large boat sales, parts and service. River Valley plans to house their fiberglass lines: Monterey, Blackfin, Yamaha, Centurion, Supreme, and luxury pontoons: Bennington and South Bay in this location.

River Valley will now have (3) locations in Red Wing: 3859 Hwy 61 W (old Ford building) which is used as the main powersports, pontoon, and fishing boat facility. Their marine center at 3399 South Service Drive, Hwy 61 houses corporate offices, lawnscape, rigging and repair facilities. The new addition creates the ability to separate powersports, aluminum, and fiberglass will be a great opportunity.

Marina services offered: docks slips, fuel dock, convenience store, bait-tackle, laundry, and showers. Marine Dealership: new, used & brokerage boats, finance, as well as service repair, parts, boat storage and winterization services. As well as the only Tow Boat U.S affiliation on this part of the Mississippi River and Lake Pepin.

River Valley intends on staffing all or most of the current Bill’s Bay Marina staff. Longtime Manager, Zach Paider will oversee Brokerage Sales, as well as the long-time service & marina staff will be retained.

River Valley was recently named to the prestigious Boating Industries, Top 100 marine dealer list. They have quickly become Minnesota’s largest volume marine dealer, top BRP Evinrude dealer in North America, Yamaha Jet Boat largest dealer in US, Monterey Boats 2nd largest dealer in North America, and a Top 10 Bennington Pontoon dealer. With a staff of over 100 dedicated individuals and the locations well positioned in Red Wing, Rochester, and on Lake Minnetonka, River Valley is positioned well for future growth & success. In addition to expansion in Red Wing, River Valley is currently building a new 20,000 sq ft marine facility adjacent to its existing 22,000 sq ft powersports facility in Rochester MN. This expansion will be know as: “Destination Marine Center-Rochester”.
 

MRAA History: MRAA Conference Booth

Throughout the 40 years of MRAA’s Annual Conference, the MRAA booth has been known by many names — MRAA Info Center, MRAA Rewards Pavilion, etc. — but no matter the name, MRAA’s team has always stood ready to support our dealers — at the conference or otherwise.

MRAA History: The Decade of the Dealer

In 1989, MRAA celebrated its 8th Annual National Conference, with a look ahead to the 1990s, a decade that we called the “Decade of the Dealer.” MRAA President Phil Keeter was quoted in this article as saying, “The retail marine dealer is the linchpin of the industry.” Today, we just consider every decade as the Decade of the Dealer!

Fact or Fiction? Customers Will Give You Their Contact Info

According to research conducted by Discover Boating in its “First Time Boat Buyer Research,” the answer is, “FACT,” for 66% of buyers. But only after they have purchased from you. Which makes it obvious, that trust is an issue.

Members of the MRAA team attended a presentation by David Horsager, and we can tell you that 1. There’s a reason he calls himself a “trust expert,” and; 2. It is the exact reason we’ve chosen him to be our 2018 MDCE Opening Keynote. He taught us that in order to successfully build trust amongst consumers, it first starts with your employees and their relationship building skills with those customers.

Relationships are built on asking the right questions, showing your genuine desire to find them exactly what they want. Consumers are looking for a unique and personalized experience.

I know, I know, you have heard this before. But are you actually taking the time to ask the right questions to build that relationship and in term, their loyalty?

Once a positive relationship is built, you are one step closer to having their loyalty. But not until then. After you have their loyalty through relationship building, they’ll refer to you as the expert and share that positive experience with everyone they know. And therefore, your business has greater success.

Supreme Court Rules States Can Collect Sales Tax on Online Purchases

On June 21st the U.S. Supreme Court ruled that states are allowed collect sales tax on remote Internet sales. This decision represents a significant victory for brick and mortar marine retailers.

Last year, the South Dakota Supreme Court ruled that a 2016 law requiring out-of-state internet retailers to collect sales tax violates a 1992 U.S. Supreme Court decision that said retailers are not required to collect sales tax in states where they do not have a physical presence. The state appealed the decision, and the Court reversed its 1992 decision today.

Prior to the decision some online retailers did not collect sales tax, creating a competitive disadvantage for traditional retailers, especially for higher priced marine parts and accessories.

You can learn more about e-fairness issues at www.efairness.org

If you have any questions about legislative issues, or something happening in your state, please contact Will Higgins.

Senators Introduce Consensus Legislation to Address National Park Service Maintenance Backlog

Interior Secretary Zinke, Conservation & Recreation Groups Praise Bipartisan Consensus Legislation to Address $12 Billion National Park Service Backlog in Deferred and Overdue Maintenance

WASHINGTON, D.C. – U.S. Senators Rob Portman (R-OH), Mark Warner (D-VA), Lamar Alexander (R-TN), and Angus King (I-ME) introduced the Restore Our Parks Act, bipartisan legislation that would address the nearly $12 billion deferred maintenance backlog at the National Park Service (NPS). The consensus proposal is the product of bipartisan discussions among the senators who had previously introduced similar bills, the National Park Service Legacy Act (Warner/Portman) and the National Park Restoration Act (Alexander/King). In addition to these four members, Senators Shelley Moore Capito (R-WV) and Cory Gardner (R-CO) are cosponsors of the bill.  This consensus legislation has been praised by U.S. Secretary of the Interior Ryan Zinke.

“Since my confirmation hearing, I’ve been adamant that we must address the nearly $12 billion maintenance backlog in our National Parks. I’m happy to see Senators Portman, Warner, King and Alexander teamed up to craft a very strong and historic bill to rebuild our national parks,” said U.S. Secretary of the Interior Ryan Zinke.? “Park infrastructure is about access for all Americans. ?In order for families, children?, ?elderly grandparents?, or persons with disabilities? to enjoy the parks, we need to rebuild basic infrastructure like roads, trails, lodges, restrooms and visitors centers. This is not a Republican or Democrat issue, this is an American issue, and ?I think that the bipartisan body of lawmakers who put this bill forward is proof. I look forward to working with my colleagues in the Administration and Congress to see this come to fruition.”

The Restore Our Parks Act would establish the “National Park Service Legacy Restoration Fund” to reduce the maintenance backlog by allocating existing revenues the government receives from on and offshore energy development. This funding would come from 50 percent of all revenues that are not otherwise allocated and deposited into the General Treasury not to exceed $1.3 billion each year for the next five years.

Read the full press release here.

If you have any questions about legislative issues, or something happening in your state, please contact Will Higgins.

Boating’s Fundamental Shift

Every so often, we witness major fundamental shifts in the way an industry operates. Look no further than the music industry evolving to digital delivery; peer-to-peer home sharing changing the hospitality industry; or clothing and grocery delivery altering the retail experience.

While change is hard for those in the industry enduring the evolution, as time passes, those shifts are generally understood as positive developments. They advance their respective industries to keep pace with the needs and desires of consumers, of society and of the larger economy.

Today, our industry is experiencing a shift unlike any we’ve ever seen before. On the outside for us boat dealers, it feels like a shift away from boat ownership to non-ownership. It can feel like the bottom is falling out from under us.

The data doesn’t lie: Even the leading categories in our industry are idling along at 78 percent of their pre-recession peak. Meanwhile, boat clubs, rental operations or fractional ownership are popping up everywhere, offering easier, less costly access to boating. We are enduring a seismic shift.

The problem our dealers are faced with, however, has less to do with consumers’ lack of a desire to own than it does with the failure on our part to deliver what consumers are really looking for in a boat: A memorable boating experience.

You see, as an industry, we have become far too transactional. We order the boat. We find a buyer. We sell the boat. And we move on to the next one. Most of the time, we’re moving on to the next one before the previous boat is sold. But we’re feeling successful because our turns are up, our inventory expense is down, our sales are tracking at or above last year, and our CSI scores are respectable.

The problem is our perception. You see, no consumer shows up at our dealerships because they want to own a boat. They show up because they want a boating experience. The boat is simply the means to engaging in that experience. It’s a slight but incredibly important shift in perspective. The boat is the platform. Boating is the experience. Fishing is the experience. Wake surfing is the experience. And so forth. Boat ownership allows them to do those things on their own terms.

It seems obvious, I know, but unfortunately, our focus on the transaction makes us lose sight of this reality. And “business as usual” suggests we’ll sacrifice the experience in order to make the sale.

So, I’m authoring this blog today to start the conversation on how you can shift from “business as usual” to something more experiential. Something that will create customers for life and give you a competitive advantage that no product, service or transaction could ever offer you.

This is the first in a series of blogs on the power of experiences. We here at MRAA believe that this is so critical to the success of your business — no matter if its sales, service, rental, clubs, fractionals or otherwise — that we want to invest the time in underscoring its importance. We want YOU to lead that fundamental shift.