MRAA Reveals Dealer Week 2024 Theme

MINNEAPOLIS, July 23 – The Marine Retailers Association of the Americas (MRAA) has announced the theme of “Outperform” for its annual Dealer Week Conference and Expo, held December 8-11 in Orlando, Fla.

MRAA reveals Dealer Week 2024 Theme

Economic winds have not been as favorable to boating as a whole in 2024 as they were in recent years. Nor are they projected to be in 2025. However, not everyone has been equally affected by macroeconomic trends. Certain dealers and brands have outperformed the market and show strong sales. At Dealer Week 2024, marine retailers will learn best practices and attain tools from industry experts to help them outperform the trends, the competition and even their own expectations.

“When we were developing this year’s Dealer Week, we knew there were real economic headwinds affecting the boating market, but we were also hearing from some top dealers that they and their brands had been able to outperform the trends,” said Mike Davin, VP of Industry Relations at MRAA. “Our goal is to give everyone who comes to Dealer Week the tools to do that, and if you look at the lineup of speakers that was just released you’ll see some of the ways our experts think retailers actually have an opportunity right now to take advantage of the current market. For that reason, this is a year that we believe every boat dealer will want to be at Dealer Week to set themselves up for success in 2025.”

MRAA has added dedicated Marketing pathway in 2024. The new track will highlight ways that top dealerships are outperforming the market. Topics will include practical ways to leverage AI, how to craft a marketing budget that will turbocharged sales and how to utilize community-based marketing to greatly increase your reach.

Returning educational tracks include the newly renamed Sales & F&I pathway, which will focus on how to close sales and anticipate and overcome objections. The Leadership pathway will offer insights and takeaways for how to get your entire team moving in the same direction, united around a common goal. Finally, the Service & Parts pathway will provide specific examples of how to drive performance both in-season and in the (too-often-overlooked) offseason.

“The Dealer Week educational line-up has been developed specifically to give dealership teams the combination of education and tools they need to outperform the market ahead of us in 2025,” says Liz Walz, Vice President of Education. “Those marine professionals who join us in Orlando are dedicated to not just navigating the pitfalls ahead, but also finding new opportunities. By applying what they learn at the event, they’ll be ready to stand out from the rest, grow market share and set their dealership up to emerge stronger than before.”

Dealers have no control over the larger economy or market downturns, so Dealer Week will help attendees focus on what they can control, identify opportunities for growth and understand how successful businesses have surpassed expectations despite the prevailing headwinds.

Dealer Week 2024 early bird registration is available through the end of September. Industry companies looking to boost their competitive edge can still reserve exhibitor booth space for boating’s only event focused on dealer growth.

About Dealer Week
For more than 50 years, the Marine Retailers Association of the Americas has delivered world-class educational programming to dealers, retailers and service operations that power the boating industry and serve today’s boaters. Dealer Week exists to engage, energize and empower the dealer community. The MRAA envisions a brighter future for marine retail, and Dealer Week is the preeminent means for bringing that vision to life. Learn more at DealerWeek.com.

About the Marine Retailers Association of the Americas
At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit MRAA.com or contact us at 763-315-8043.

Sea Tow Foundation Invites Submissions for 2024 National Boating Safety Awards

Southold, NY (July 22, 2024) – The Sea Tow Foundation, in partnership with its esteemed
Boating Safety Advisory Council, is excited to announce that submissions for the 2024
National Boating Safety Awards
are now open. These awards will be presented at the
International BoatBuilders’ Exhibition & Conference (IBEX) on October 2, 2024 at 4 pm in
the Tech Talk Theater on the Exhibit Floor.

Sea Tow Foundation Invites Submissions for 2024 National Boating Safety Awards

“The Sea Tow Foundation is committed to elevating boating safety to new heights,” said Gail R. Kulp, Executive Director of the Sea Tow Foundation. “The National Boating Safety
Awards are pivotal to our mission, spotlighting the groundbreaking innovations and unwavering commitments of industry leaders. These awards recognize that safe boating practices are not merely recommendations – they are essential to our collective well-being on the water.”
The 2024 awards will spotlight outstanding safety initiatives across various sectors of the
boating industry. Any business that is or represents a for-profit entity within the boating
industry is welcome to apply in one of the following award categories:
● Marine Manufacturer (Boat or Engine)
● Gear/Equipment/Accessories Manufacturer
● Media Outlet
● Retailer/Distributor with up to 3 Locations
● Retailer/Distributor with 4 or more Locations
● Social Media Influencer
● Marine Trade Association
● Community Boating/Boating Education Program (for profit)
● PR/Marketing/Advertising Consultant or Agency
● Other type of group not listed above – this could apply to charter companies, boat
clubs, insurance companies or any other group that does not fit in another category

Applicants are encouraged to submit their entries for their boating safety efforts conducted
between January 1, 2023, and July 1, 2024. Applicants are welcome to apply for efforts that
have previously earned them an Award, but the applicant will be required to document
enhancements or new additions to the effort and ensure it took place during the given
dates.
There is no cost to enter the awards, and the application process is designed to be quick
and easy, taking less than 10 minutes. Applicants are welcome to enter multiple efforts
under separate entries.
For more information about the National Boating Safety Awards, and to apply, please visit
www.boatingsafety.com/awards. The deadline for submissions is Saturday, September 7, 2024.

About Sea Tow Foundation
The Sea Tow Foundation – a 501(c)(3) nonprofit organization – was started in 2007 by Captain Joe Frohnhoefer, founder of Sea Tow Services International, after he witnessed too many preventable accidents and fatalities on the water. Through its flagship programs which include the Life Jacket Loaner Program, Sober Skipper Campaign, Flare Education, and the National Boating Safety Awards, the Sea Tow Foundation strives towards its vision of a world where boaters are safe and responsible. To learn more, visit boatingsafety.com.

DiscoverBoating.com Traffic Increases Following Successful American Century Championship Activation

Discover Boating marketing efforts were in full swing July 12-14 at the star-studded 2024 American Century Championship (ACC), which draws tens of thousands of fans to Edgewood Tahoe Golf Course each year and more than one million television viewers. As a result of Discover Boating’s TV spots that aired during the tournament as well as through its on-site presence, visual branding, social media and influencer content, Discover Boating saw a significant increase in website traffic last weekend.

discoverboating.com traffic increases with American Century Championship activation
Image supplied by Discover Boating

DiscoverBoating.com Performance Highlights:

  • Compared to the same time period in 2023, there was a 44% increase in homepage views and 31% increase in website visitors (July 12-14).
  • Compared to the weekend of July 5-7, pageviews were up 11% and visitors were up 27%.
  • Compared to the weekend of June 28-30, there was a 10% increase in pageviews and a 46% increase in visitors.

Discover Boating Social Media Performance Highlights:

  • Engagements (likes, comments, shares, etc.) were up 70% compared to the week prior to the tournament.
  • Post link clicks were up 150% from the previous week.
  • Net audience growth across social platforms was up 138% from the previous week.

As part of Discover Boating’s strategy to engage new audiences and reach the next generation of boaters, Discover Boating partnered with ACC and NBC Sports to bring the fun of boating to this iconic event, where the enthusiasm for on-water action matches the excitement on the green.

Discover Boating’s new See You Out Here campaign spots, including “Voices” and “Beyond the Diamond” aired on NBC as well as the Golf Channel during live coverage of the event and throughout its scheduled programming. The spots included a call-to-action at the end encouraging viewers to visit DiscoverBoating.com, which likely helped drive additional traffic to the website.

Discover Boating remained active on social media and shared real-time content from the tournament throughout the weekend, posting 14 times on each of its channels including Instagram, Facebook, X and TikTok. Influencer partners helped generate additional buzz and drove followers to DiscoverBoating.com through their Instagram reels here and here.

For more information about Discover Boating’s partnership with American Century Championship, contact NMMA’s Kevin Williams at kwilliams@nmma.org.

Dealer Week 2024 Registration Opens

Early bird pricing launched for three-day, educational marine industry event in Orlando, Florida, helping dealers OUTPERFORM and stand out

MINNEAPOLIS, July 17 – Many marine dealerships across North America view the industry as declining because of hampered marine retail sales and elevated business costs. However, experienced boating leaders understand that a soft market also affords as many opportunities as conceivable pitfalls. Those dedicated businesses devoted to right-sizing their business know that, through process refinement and strategic investing, they can rise above marketplace issues and gain market share by earning their customers’ trust.

Business leaders and managers must engage in new tactical strategies and education to help them stand out. To help dealerships outperform the market, their competition and their own expectations, the Marine Retailers Association of the Americas (MRAA) announced today that dealer registration for the 2024 Dealer Week Conference and Expo, to be held Dec. 8-11 in Orlando, Florida, is now open.

Dealer Week 2024 Registration Opens

Applying the theme “OUTPERFORM: Vision. Execution. Results.”, Dealer Week 2024 provides dealers with educational programs, training from industry experts, as well as exclusive access to a brimming expo hall, filled with boating’s prominent manufacturers, suppliers and service providers. Dealer Week attendees can capitalize on the abundant touchpoint opportunities to connect and glean best practices from marine professionals and peers.

“We understand the immediate need to help marine retailers outmaneuver the current market conditions and economic uncertainty. Every department at the dealership has the added pressure to produce on a higher level despite surplus inventory and the ongoing market challenges,” explains Liz Walz, MRAA Vice President of Education. “It’s critical for dealers to adapt their business to create more flexibility to help them take advantage of opportunities to expand their market share, improve customer relationships and truly ride out the storm. The Dealer Week 2024 ‘Outperform’ theme emphasizes the need for vision and execution to deliver the necessary results so dealers can gain traction to emerge even stronger in 2025!”  

Event attendees will gain access to trending strategies, prime training and verified processes from Dealer Week sessions, helping them steel themselves for 2025. For 2024, MRAA has added a fourth educational pathway, so dealers can find training for various team members. Pathways include: Leadership, Sales, Marketing and Service & Parts, where dealers will receive unbeatable tools, tactics and implementable solutions to help them outdo their professional expectations.

More than 125 exhibitors — displaying boats, engines, software solutions, financing and insurance options along with supportive products and services from industry-leading suppliers — have already committed to attending the conference, with more committing to the event weekly. The Dealer Week program also offers several networking chances, including an awards ceremony, luncheons, cocktail receptions and the admired MRAA Industry Celebration, presented by Kicker Marine Audio.

View the list of 2024 Dealer Week Exhibitors here.

Dealer Week 2024 registration is now open. While all dealers can save big by registering during the early bird period, MRAA Members earn the best rates. Early bird pricing runs now through the end of September. See all your registration options.

About Dealer Week
For more than 50 years, the Marine Retailers Association of the Americas has delivered world-class educational programming to dealers, retailers and service operations that power the boating industry and serve today’s boaters. Dealer Week exists to engage, energize and empower the dealer community. The MRAA envisions a brighter future for marine retail, and Dealer Week is the preeminent means for bringing that vision to life. Learn more at DealerWeek.com.

About the Marine Retailers Association of the Americas
At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit MRAA.com or contact us at 763-315-8043.

Priority One Financial Services Begins Prequalification for Customers 

ST. PETERSBURG, FLORIDA, July 15, 2024 – Priority One Financial Services, a full-service finance company for marine, RV, trailer and equipment dealers, now gives customers the ability to prequalify for financing with no impact to their credit score.  

Priority One Financial Services prequalification for customers

Using prequalification, Priority One finance managers can view credit reports from leading bureaus and discuss payment options that may be available to customers based on current lender programs. The service is complimentary to Priority One dealer partners and comes with no obligation to the customer and no impact to their credit score.  

“Prequalification gives niche dealers a competitive advantage over big box retailers,” said Nicole Armstrong, Vice President, Priority One. “Customers want questions answered right away – often before they even step foot in the showroom. Using prequalification, a dealer can connect a customer with Priority One early in the buying process so that by the time they walk into the showroom, they have an idea of what they might be able to afford.”  

Dealers can refer a customer to prequalify with Priority One by directing them to the homepage of their Finance Resource Center, through an in-store kiosk, or via text message with Kenect. When a customer completes the prequalification form, a Priority One team member will call to discuss their needs and begin the prequalification process. 

Currently in beta testing with select dealers, prequalification services will be available for all Priority One dealer partners at the end of July. Learn more at p1fs.com/prequalify

About Priority One Financial Services, Inc. 
Founded in 1987, Priority One Financial Services, Inc. offers flexible, business-ready finance and insurance solutions for marine, RV, trailer, powersports, park model and equipment dealers. A division of Forest River, a Berkshire Hathaway company, Priority One provides full-service retail financing to customers through industry-leading technology and award-winning service. 

Headquartered in Saint Petersburg, Fla., the five-time Tampa Bay Business Journal “Best Place to Work”honoree also owns and operates Priority One Equipment Finance and Veritas Insurance Group.  

For more, visit p1fs.com


Priority One Financial Services is an MRAA Platinum Partner Member.

125-Plus Exhibitors Already Committed to Dealer Week 2024

Momentum builds for boating’s only event focused on dealer growth

MINNEAPOLIS, July 15 – The Marine Retailers Association of the Americas (MRAA) announces a record number of exhibitors, at present, have secured booth space for the association’s Dealer Week Conference and Expo Dec. 8-11 in Orlando, Fla. The 2024 event continues the momentum generated by last year’s record-setting conference, and sets a new bar for most exhibitors committing to attend by July 1.

125-Plus Exhibitors Already Committed to Dealer Week 2024
Dealer Week 2024 is slated for Dec. 8-11 in Orlando, Fla.

“With more than 125 exhibitors confirmed as of last week, surpassing last year’s numbers at this time, this year promises to be monumental for the MRAA,” says Allison Gruhn, MRAA Vice President of Business Development. “Our dealer attendees can look forward to an unparalleled experience with a diverse and expansive range of industry-leading exhibitors. This milestone highlights the tremendous growth that Dealer Week has experienced since its 2019 rebrand.”

MRAA’s 2024 Dealer Week Conference and Expo Exhibitor Numbers & Categories (thus far):

  • 17 Technology & marketing service companies;
  • 18 Boat builders;
  • 20 F&I companies;
  • 22 Parts/accessories manufacturers;
  • 23+ Service providers & other vendors.

“We commend the MRAA for the impeccable organization of the event. The seamless flow of activities, well-structured sessions and the overall attention to detail were evident throughout the conference,” says Jon Couwenberg, Performance Brokerage Services, Inc., an MRAA Platinum Partner. “It is clear that a lot of effort and planning went into making Dealer Week a resounding success. Our experience was great. The location of our booth was amazing. It allowed us to meet and further our relationships in the marine industry.”

Boat manufacturers Centurion & Supreme have already committed to co-locating their 2025 model year dealer meeting at the 2024 event in Florida, which presents their attending dealers with valuable education programming and business opportunities. Dealer Week 2024 will be in West Halls D2&E of the Orange County Convention Center. With more than 250,000 square feet of Expo Hall space, exhibitors can build a display space to meet their goals and objectives, with size options from 10×10 to 100×100 and everything in between.

A year ago, all 150 Expo Hall booths and 18 dock slips sold out at Dealer Week, which helped to create the largest show floor in the event’s history. More than 40 first-time exhibitors showcased booths at the Tampa Convention Center and 45-plus boat brands. Marine retailer registration opens in mid-July.

Plenty of booth spaces are still available for the 2024 Dealer Week event in Orlando. Book your booth today! Have questions? Email Allison Gruhn or call  763-333-2419.

About Dealer Week
For more than 50 years, the Marine Retailers Association of the Americas has delivered world-class educational programming to dealers, retailers and service operations that power the boating industry and serve today’s boaters. Dealer Week exists to engage, energize and empower the dealer community. The MRAA envisions a brighter future for marine retail, and Dealer Week is the preeminent means for bringing that vision to life. Learn more at DealerWeek.com.

About the Marine Retailers Association of the Americas
At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit MRAA.com or contact us at 763-315-8043.

Impel, Zodiac Event Displays Commit to MRAA as Partner Members

MINNEAPOLIS, July 15, 2024 — The Marine Retailers Association of the Americas (MRAA) announces the addition of Impel and Zodiac Event Displays as its newest Partner Members.

Marine manufacturers, suppliers and service providers, through Partner Membership, commit to aligning their brands with the programs and opportunities that MRAA offers in its efforts to fuel the success of the marine industry. Support from Partners allows the Association to expand its offerings and create a positive, long-term impact on MRAA members’ business.

  • Impel (Syracuse, N.Y.) offers an end-to-end customer lifecycle management platform that enables marine retailers of all sizes to deliver seamless customer experiences at every touchpoint.
  • Zodiac Event Displays (Denver, Colo.) is a boutique branding agency specializing in soft signage and event marketing materials.

“We welcome Impel and Zodiac Event Displays as our newest Partner Members,” says Allison Gruhn, MRAA Vice President of Business Development. “These companies’ expertise in innovative AI technology and event marketing will elevate our dealer members’ customer interactions and brand experiences. Their support strengthens our mission to drive success in the marine industry.”

Dealer members are encouraged to explore the list of companies that actively support the MRAA across four partnership levels. View the complete list.

About the Marine Retailers Association of the Americas
At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit MRAA.com or contact us at 763-315-8043.

Data Mining & Projections

By Bob Bense, President & CEO, Superior Boat Repair & Sales

For the 2025 model year order commitment, I’m looking at all the data available to me to help me project my 2025 model year commitment with my boat brands. This includes three critical steps, which I’ll share with you now.

1. I’m looking over the rolling 12-month data from Wells Fargo for my territory for each of the boating lanes I participated in.

A.   E.g.: Ski / Wake, Runabout and Pontoon

B.   Are these boating lanes for my market growing, declining or neutral?

C.   I compare my market share to the manufacturer’s national market share. I’m I ahead, below or equal?

2. I look at my current inventory for each boat brand and my inventory turns.

A.   Are my inventory turns below 2? If so, and my YTD sales are behind in unit sales, I have too much inventory

B.   If my inventory turns are above 2 and my unit sales are ahead of last year, I may not have enough inventory
3. Once I have this data, I can determine what is the commitment for model year 2025 with each boat brand.

Below is an example to clarify my strategy and process.

Boat Brand A:

  • Current boat lane has decreased by 10%.
  • All units sold in the past 12-month period is 130 units.
  • National market share for this boat brand is 15.4%, so this equals 20 units for my market.
  • My local market share is 20%, so this equals 26 units.
  • Current 2024 inventory equals 20 units.
  • Based upon this sample information, and if my market stays equal for the next 12 months (doesn’t decrease or increase), I have about 80% of what I need for this brand in inventory for the next 12 months. Thus, I should only commit to six to eight units for 2025.

Share My Process with Brand Rep
Going through this exercise with the boat brand rep, helps them understand what my annual commitment for 2025 should be. Any decent boat brand will except this commitment. In this scenario it is much lower. You do this to create a collaborative relationship with superb communication and clearer expectations.

Data Mining & Projections by Bob Bense
Bob Bense

About the Author
Bob Bense and his wife Kathy started Superior Boat Repair & Sales in July of 2009 after a long career working for Nautique Boat Company. He grew up in a boating family and learned to water ski on Folsom Lake as a young boy, which helped to develop his passion for boating and water sports. When he’s not working at the dealership, Bob enjoys spending time with his family in Lake Tahoe and water skiing out on Folsom Lake, early in the mornings with his ski buddies. He also serves on the MRAA Board of Directors.

Navigating the Waters: Adapting Strategies in a Changing Market

By Jason Oakes, General Manager, Crestliner Boats

Much like making sure you have enough life jackets for all passengers and double checking your supplies before heading out on the water, figuring out the best path forward for your business takes thoughtful planning to guarantee success. But both boat dealers and manufacturers alike are feeling some uncertainty as we adapt to our post-COVID world and adjust to what will be considered our new normal. The buyer demand during the pandemic was a welcomed anomaly where we could barely make boats fast enough to keep up with dealer and consumer needs. Now, we face unusual economic pressures that are different to what we experienced the last few years. However, there are ways to not just survive this wave of economic uncertainty but to thrive.

Return to Selling
While the boating industry has traditionally been cyclical, the current inflation figures and interest rates are some that many dealers have never seen. The numbers, especially coming off the peak of COVID sales, are understandably causing many dealers to approach 2025 orders with caution. It’s true that for the past few years we’ve essentially been order takers and boats barely made it off the truck before they left the lot. That is no longer the case.

It is imperative for dealers to have a highly trained and dedicated sales team. Sellers must take a consultative approach, listen to the customer, understand their needs and guide them to the few products that would best fit their requirements. If you listen well, the consumer will tell you the brands and models or styles they are comfortable with and exactly what they are looking for. Let the customer tell you what they want or how they plan to use the product and then focus on those needs. One of the best things you can do is to listen and help remove any confusion they may have. In this environment, and to help move through inventory, we really must get back to the basics of selling.

Mind the Gap
For dealers preparing to order 2025 models and that feel best purchasing with a conservative approach, I’d recommend first identifying gaps in your inventory lineup and focus on filling those gaps. For example, if your current product inventory is missing a particular model, consider adding that model to fill a hole. Also, if there is a new model available for the model year, you’ll probably want to stock one or two of the new models because customers really like to see what’s new. You’ll always want to have a solid assortment to choose from. Provide your customers with variety to make their shopping experience and time invested by coming to your showroom as positive and productive as possible. Doing a consistent review of gaps in your inventory whether it be model, size or floorplan, will help prepare you for that next customer walking through the door.

Know your Area
As a manufacturer, we are constantly monitoring where we are heavy and where our dealers are heavy with specific products. We use this data to determine our consumer incentive planning. We are continually evaluating and putting special consumer incentive programs together to help our dealers move the right inventory and enable them to replenish or order newer product. However, dealers can and should take a proactive approach in this same way and reference trends in previous years to see what buyers in the area want most. COVID buying patterns aside, the data from prior years can paint a strong picture of consumer demand, allowing dealers to stock their inventory more appropriately with what will move fastest.

Fueling the Passion
The current economic climate can make planning for next year’s inventory a bit challenging. We want our invaluable network of channel partners to feel comfortable and confident that our products will support their sustainable success. The next months and years will require a different strategy, a much more connected and thoughtful approach with advanced planning of inventory and progressive training of our sales teams. And while the future may look different than what we have seen since in the last four years, passion for fishing or boating remains at an all-time high and it is our responsibility to fuel that passion with the right models at the right price.

Navigating the Waters: Adapting Strategies in a Changing Market
Jason Oakes, GM Crestliner Boats

About the Author:
Jason Oakes is the General Manager of Crestliner Boats, a leading manufacturer of aluminum fishing boats and business within Brunswick Corporation. Oakes is a 14-year marine industry veteran, previously served as Director of Marketing for Lund Boats and has grown the Crestliner brand to be one of the most sought-after brands among anglers. Prior to joining the Brunswick organization, Oakes served in a marketing leadership role at Andersen Corporation.

Reducing Inventory – What Works

By Bill Yeargin, CEO, Correct Craft

Our Correct Craft companies work with hundreds of marine dealers, giving us a unique view into what works and what doesn’t. By no means does that make me an expert on dealership management, but it has resulted in some interesting observations, particularly related to the management of inventory.

In June 2024, 74% of boat dealers thought their inventory was too high. This was down from 90% in May, but the consensus is clear: boat dealers believe they are overstocked. Our team understands this situation and wants our dealers to be healthy; without good dealers, we have no manufacturing business. I am confident you will never read an article about our companies forcing dealers to take products they don’t want.

However, is stopping new product orders the best way to reduce inventory? Probably not.

One thing that is certain to result in trouble for a dealership is not having stock on hand that customers want to see and buy. If there is one lesson I have learned over my career, it is that new products drive people to the showroom. Often, the best way to sell older inventory is to have people come in to see new products.

I spoke with a dealer about this exact problem a few years ago. He had some old, slow-moving inventory, but one of our boats companies — for which he was a dealer — introduced a new product that was getting a lot of attention. He had a couple of the new products delivered to his showroom, and people started coming to see them. The people who came to see the new product ended up buying the older product, which was perfectly suited for the customers’ boating needs and available at a better price. Sure, it took some work on their part to convert the prospects to the older inventory, but it ended up being a win for both the dealer who sold the older product and the customer, who still got a great boat.

So, what should dealers do?

First, make sure you have new products people are curious about available for prospects to view, and be prepared to sell them on the value they offer compared to the other products you have in inventory.

It is important to adjust inventory to the current market level, but it is a huge mistake to do that by not stocking new products.

I remember a case study in graduate school about an art gallery that went out of business, and basically, it was because they refused to keep fresh inventory in stock. The gallery quickly sold their popular art but didn’t want to acquire new art in stock until they had sold the slower-moving products. This put the gallery out of business because they stopped getting people who wanted to see new art through the door. This meant they lost all their prospects, including those who could have easily been shown older stock that they would love.

Don’t make this mistake. It is important to adjust inventory to the current market level, but it is a huge mistake to do that by not stocking new products. Sure, be careful how much you buy, but make sure you have items in your showroom that people want to see. Then, use your sales skills to create a win-win scenario for you and the boat buyer.

Having the right balance of old and new inventory is hard, but successful leaders do the hard things.

Reducing Inventory - What Works by Bill Yeargin

About the Author
Bill Yeargin is the CEO of Correct Craft and author of six books including the best seller, Education of a CEO.