• Webinar and panel discussion with host Performance Brokerage Service, Morgan Stanley and Matt Gruhn, MRAA President
By Jon Couwenberg, Partner & Director Marine Division, Performance Brokerage Service, an MRAA Platinum Partner Member
Are you contemplating the future sale of your marine dealership? Like many of your fellow dealers, you might find yourself with more questions than answers. If you’re interested in understanding how dealerships are being valued post-COVID or learning how to prepare in advance for a successful sale to maximize its value and minimize the pitfalls, this webinar is designed for you.
In today’s ever-changing economic landscape, the process of selling a marine dealership can seem daunting. To help you navigate these uncertain times, host Performance Brokerage Services (MRAA Platinum Partner Member) created a webinar and panel discussion with Morgan Stanley, featuring Matt Gruhn, MRAA President.
Webinar Highlights
The Key Components to a Business Valuation: Our experts will break down the components that contribute to a dealership’s value, including assets, inventories, financial performance, and the intangibles, as well as share insight on how buyers are valuing dealerships post-COVID.
How MRAA Membership Can Enhance Your Dealership: Discover the benefits of MRAA membership and how active involvement can increase your dealership’s performance and long-term value. From industry advocacy & education to business support services, MRAA offers resources that can enhance your operations and make your business more attractive to potential buyers.
Steps to Prepare for a Future Sale: Preparation is key to a successful sale. Our panel will guide you through the necessary steps to ready your dealership for a future sale. From improving operational efficiency to organizing financial records, learn how to present your business in the best possible light to prospective buyers.
How to Minimize Taxes to Increase Sale Proceeds: Tax implications can significantly impact the proceeds from the sale of your dealership. The speakers will discuss strategies to minimize tax liabilities and maximize your net proceeds from the sale.
Key Factors Buyers Analyze in a Dealership Purchase: Understand what buyers are looking for in a dealership acquisition. Our panel will highlight the critical factors that potential buyers evaluate, including financial health, market presence, customer base, and growth potential. Knowing these factors can help you position your dealership more effectively for a successful sale.
Meet Our Expert Panel This team of industry experts will provide you with the opportunity to seek answers to your most pressing questions.
Jon Couwenberg and Jesse Stopnitzky of Performance Brokerage Services
About the Author Jon Couwenberg is a Partner and Director of the Marine Division for Performance Brokerage Services, North America’s highest volume dealership brokerage firm advising on buy-sell activity for automotive, RV, marine, powersports, trucking and equipment dealerships. Jon is also a proud MRAA Platinum Partner.
After 30 years, 900 dealerships sold, and with a 90% closing rate, the company’s reputation remains unmatched and governed by the utmost honesty and integrity. Contact John at 949-412-4740; jon@performancebrokerageservices.com.
NORCROSS, GA., July 1, 2024 — APCO Holdings, LLC (APCO), a leading provider and administrator of automotive Finance & Insurance (F&I) products and home to the EasyCare, National Auto Care (now EasyCare), GWC Warranty, and Crystal Fusion brands, has acquired Capital Administrative Professionals, LLC. This strategic acquisition is one of two the company closed today (Rider’s Advantage,) and marks the third acquisition in 2024, following the acquisition of Crystal Fusion in May. These acquisitions demonstrate APCO’s commitment to protecting what moves dealers, agents, and lenders and further strengthens its position in the F&I industry.
Capital Administrative Professionals (CAP) is an F&I administrator providing innovative and flexible products to automotive, RV and powersports agents and dealers across the country. Started in 2021, CAP supports over 700 dealers with innovative products, training, wealth building, and best-in-class service.
“We’re thrilled to welcome CAP to the APCO family,” said Tony Wanderon, CEO of APCO Holdings, LLC. “This strategic move strengthens our market position and aligns with our vision of delivering innovative products and solutions for dealers. We look forward to working with the talented CAP team and leveraging their expertise to drive growth and value for our customers.”
“Acquiring CAP broadens our product portfolio and allows us to deliver what dealers and agents need from their F&I provider,” added Courtney Hoffman, APCO’s Chief Revenue Officer. “Michael and his team will fit seamlessly into our business, elevating how we support our growing channels.”
“We’re excited to join APCO as it allows us to better support our agents and dealers across channels.” said Capital Administrative Professionals President Michael Hunter. “The resources unlocked by this acquisition are unparalleled in the industry.”
CAP is one of two acquisitions the company announced today. APCO has also acquired Rider’s Advantage, the powersport industry’s most comprehensive F&I agency.
About Capital Administrative Professionals Capital Administrative Professionals works with providers and agents to deliver F&I products, services, wealth building solutions, and training to dealers in the automotive, RV, and powersports industries. For more information, visit capadminpros.com.
Rider’s Advantage
The addition of Rider’s Advantage marks a significant milestone as APCO further expands its product portfolio for powersports dealers, agents, and lenders.
Rider’s Advantage is widely recognized as the powersport industry’s most comprehensive F&I agency that provides a deep portfolio of products and training services. Since its inception, Rider’s Advantage has built a deep portfolio of products sold by over 1,000 powersports, marine, and RV dealerships.
“We couldn’t be more excited to welcome Rider’s Advantage to the APCO family,” said Tony Wanderon, CEO of APCO Holdings, LLC. “This acquisition increases our ability to deliver the products and services powersports dealers want and need, plus enhances our ability to support dealers across multiple channels.”
“The addition of Rider’s Advantage deepens our expertise in the powersports space—growing the value we offer to dealers and agents,” added Courtney Hoffman, APCO’s Chief Revenue Officer. “I am confident that Rob and his team will make immediately impact in this segment of our business and I’m excited to see how we come together.”
“Joining APCO allows us to provide an unprecedented level of value and support to the industry, while growing and preserving the integrity of our brand.” said Rob Hefner, President of Rider’s Advantage. “We are incredibly honored to be part of the APCO family.”
Rider’s Advantage is one of two acquisitions the company announced today. APCO has also acquired Capital Administrative Professionals, an F&I administrator.
About Rider’s Advantage Rider’s Advantage offers RV and powersports F&I products, services, training, and technology to dealers, agents, and financial institutions. For more information, visit riders-advantage.com.
About APCO Holdings, LLC Since 1984, APCO has grown to become a leading provider and administrator of F&I products for the auto industry. Built on a foundation of financial security and a commitment to understanding our customers’ needs, APCO is a trusted partner to some of the most well-respected insurers, highly successful dealerships, and leading auto industry players in the country. The company markets its products using the EasyCare, National Auto Care (now EasyCare), GWC Warranty, Crystal Fusion, and other brands, as well as other private label products, through a network of independent agents and an internal salesforce that specialize in consulting with and servicing the automotive dealership markets. EasyCare and GWC Warranty F&I products are the only “MotorTrend® Recommended Best Buy” in the industry. They also carry an A+ rating from the Better Business Bureau, support over 8,000 dealers, protected over 23 million customers, and have paid over $3.7 billion in claims. For more information, visit apcoholdings.com.
We own a 14-foot 1936 Lonestar fishing boat with a low-horsepower outboard named “Crappie Style.” My son, Sam, just celebrated his golden birthday, turning 15 in June. One of his summer goals is to pass the online course from BOATERexam.com, approved by the Minnesota Department of Natural Resources, so he and a friend can create their own fishing memories (Or should I say tales?).
The author’s son, Sam, who hauled in this small northern pike last year, is taking the initiative to become a well-informed and licensed boater.
The four-step process includes signing up, studying materials for an exam, printing off a temporary boating license and legally operating a boat. He’s currently managing his progress in step two of the exam. BOATERexam.com reports it has certified more than 2 million boating students — an impressive statistic!
I shared this personal story because while reading through the test with him, I saw a chapter on boat navigation lighting that discussed everything from sailing vessels to mandatory lighting situations as well as light colors, passing guidelines and other rules of the waterways. Like personal flotation devices (PFDs), lighting can be an unheeded topic for new boaters. Thankfully, my son has been on enough fishing trips at dusk with dear old dad looking for that last northern pike bite to know the significance of properly lighting a boat AND wearing a life jacket.
I also bring it up because Discover Boating, powered by the National Marine Manufacturers Association (NMMA) and MRAA, recently shared the fifth episode of its “Top Safe Boating Tips” series, produced in collaboration with Progressive Insurance®. The video Know Your Navigation Lights: Essential Tips for Safe Night Cruising, covers the proper use of navigation lights.
All these videos are designed for dealers and other industry stakeholders to share with customers and boating enthusiasts to educate, inform and create safer boating practices to enhance boating for everyone. That means sharing the link in one of your consumer touchpoints, such as follow-up emails, socially, or in your dealership newsletter!
And, as a parent, it’s reassuring to know videos like this exist. Boater education and safety tips are critical to help provide young operators more confidence while eliminating on-the-water mishaps. I’ll leave you with wisdom from Monica Fuentes, Discover Boating Ambassador, who says in the new video “Safety is our anchor. Always light up your boat responsibly and do your part in keeping our water secure … stay safe and boat wisely!”
• Testimony Highlights Benefits of MAPOceans Act and H.R. 8704 for Marine Retailers, Emphasizes Concerns Over Right Whale Vessel Speed Rule
WASHINGTON, D.C, June 27, 2024 – The Marine Retailers Association of the Americas announces that Jeff Strong, MRAA Board Chair and President of Strong’s Marine, testified before Congress on Capitol Hill regarding the MAPOceans Act and the Right Whale Vessel Speed Rule. His testimony provided key insights into how marine retailers stand to benefit from various bills before the committee while highlighting the shortcomings of the proposed Right Whale Vessel Speed Rule and the impact it stands to have on marine retailers.
Jeff Strong, MRAA Board Chair and President of Strong’s Marine, testifies Thursday, July 27 on Capitol Hill,
Strong, a leader in the recreational marine industry and advocate for marine retailers, spoke before the House Committee on Natural Resources, Subcommittee on Water, Wildlife and Fisheries. Testifying in support of the MAPOceans Act (H.R. 7925) and H.R. 8705, his testimony provided key insights as to how these pieces of legislation will provide more information to recreational boaters on the high seas and how increasing the availability of information pertaining to federal fisheries regulations and the ability to locate and detect Right Whales is crucial to ensuring that recreational boaters are good stewards on the water.
“Throughout my 51 years in the industry, I have seen firsthand the value that our coastal regions provide, not just as critical habitat but also as recreational spaces that support local economies,” said Strong. “The MAPOceans Act will address the need for standardized and accessible data relating to the public use of our waterways. By digitizing information about these waterways, like fishing restrictions and regulations, we are taking a step towards ensuring the safety and enjoyment of recreational boaters and anglers and the conservation of sport-fish populations. I again thank Representatives D’Esposito and Levin for their leadership on this important piece of legislation.”
Jeff Strong advocated for retailers and the marine industry during his testimony on Capitol Hill.
Strong also emphasized the importance of H.R. 8704, introduced by representatives Carter (R-GA) and Peltola (D-AK). This bill would pause any changes to the current North Atlantic Right Whale Vessel Speed Rule until 2030 while also establishing a grant program to foster enhanced coexistence between recreational boaters and North Atlantic Right Whales. Strong highlighted the economic impact that the currently proposed rule stands to have on marine retailers and the need for technological solutions to help conserve the North Atlantic Right Whale. He shared recent survey results done by the MRAA with the committee to showcase that the proposed regulation could have an overall impact of $2 billion for marine retailers down the Atlantic coast.
“The MRAA is committed to being the voice of marine retailers and ensuring that our concerns are heard at the highest levels of government is one of our top priorities,” said Matt Gruhn, MRAA President. “Jeff Strong’s leadership and dedication to our industry is invaluable, and his presence on Capitol Hill underscores our commitment to advocating for marine retailers, as we take every opportunity to educate lawmakers on how proposed regulations and legislation, like the Right Whale Vessel Speed Rule or MAPOceans Act, stand to hurt small businesses along the Atlantic coast or benefit recreational boaters and our member businesses.”
As the MAPOceans Act and H.R. 8704 continue to move throughout the legislative process the MRAA will continue to support these important policy initiatives while working closely with policymakers to advance the interests of our members and the broader recreational marine industry. For more information on MRAA’s advocacy efforts and how to get involved, visit MRAA.com/advocacy/ or contact MRAA Government Relations Manager Chad Tokowicz at Chad@mraa.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.
• Checking in with 2016 MRAA Educational Foundation Duane Spader Leadership Development Scholarship Recipient Ashley Read, Colorado Boat Center Co-Owner
A lot has happened in Ashley Read’s (Smith) career since she received the MRAA Educational Foundation’s Duane Spader Leadership Development Scholarship eight years ago. She married, bought a lake house and succeeded her parents as Colorado Boat Center’s co-owner along with her brother and GM Eric Smith. She also learned how to lead, remove emotion from situations and put the customer first, always!
Ashley Read (Photo courtesy CBC)
Q: What has your marine industry career been like since receiving the Duane Spader BusinessDevelopment Scholarship in 2016?
Read: I was in a pivotal year when I applied for the scholarship for the first time. My first application showed my apprehension in committing to the marine industry as a career. The next year was a lot of soul-searching, and I reapplied. My brother, Eric and I signed our succession papers for our family dealership the day I jetted off to the first Spader course. The course took me from a full-time salesperson to a leader within our organization.
Q: Why should the Duane Spader Leadership Development program be viewed as an investment?
Read: Change doesn’t happen overnight. It takes time to establish and adapt to new habits. The commitment to the program is a commitment to yourself and your organization. The way that Spader maps it out over a long period, allows the participants to learn in a classroom, take it back to their organization and implement changes. As participants, when we returned to the classroom, we would openly share what worked and what didn’t. The entire group was doing the work, and you had peers to celebrate your wins and brainstorm what didn’t work and what might work better next time.
Q: What sort of best practices did you retain from the Leadership Development program that still plays a role in your day-to-day at Colorado Boat Center?
Read: On the daily, favorable and unfavorable situations. I don’t have to pull the chart out as much as I used to, as it’s become second nature, but I use these to manage employees and to work with customers. This tool takes the emotion out of the situation.
Q: How important is it to engage employees to keep them invested in the business throughcontinued training, certification, or scholarship opportunities?
Read: When your employees invest themselves in learning the ins and outs of the dealership and want to know how they can contribute to the success of the dealership, it’s a win-win for everyone involved. We regularly have meetings about the overall health of the dealership and break it down by department while allowing team feedback. We’ve found that our transparency has improved our culture. Rarely do we have to ask our employees to take training courses. They’re usually the ones to ask us. They take more ownership when it’s their idea.
Q: Will you explain what it’s like to be an integral part of your family’s business and how you juggle the work/life balance with parents and siblings?
Read: You would laugh if you compared my family’s DiSC personality profiles. We’re a mix of high I, D and C — off the charts in all and in 97%. If it weren’t for the DiSC profiling, we’d probably not work well together, but it’s quite the opposite. It took COVID for us to realize how important work/life balance was for all of us. We cut our days of operation from six days a week to five. It made us all realize there was more to life than just the family dealership. We encourage each other to make time for passions outside of boating and take time off, whether as a family or individually. It has improved the overall health of our family and the dealership.
Q: As a women professional and co-owner, how can your success help inspire your workforce and other women to keep pushing for their dreams?
Read: Being a woman in the industry doesn’t define my role and/or fuel my success. I’ve learned so much from both men and women in the industry, two of which are my parents, who have taught me so much. I’ve learned how to leverage my success by knowing the advantage of being unique in a male-dominated industry. When you’re a woman and you can talk about motors and boats intelligently, you win the praise of your male clients and the trust of the women. For anyone in the industry, it’s hard to fake the passion of boating. You either love it or you don’t. If you don’t, it will show in your results.
Q: Will you describe a customer experience that has helped you change or adapt your approach to selling?
Read: It was a Saturday afternoon in the middle of June. We’d already turned off the open sign and were getting ready to run into the weekend when a family walked in the side door that hadn’t been locked yet. They were in town for a softball tournament and decided to look at boats during a break between games. They had never owned a boat, so they weren’t sure if they would even have the time to go boating. They wanted to know everything. My mind was already on the weekend, and I was struggling to turn the attention off of myself and onto this family that thinks maybe they want a new boat. They were very energetic, and it was hard to keep them all rounded up as they were distracted by all the shiny boats we had on display. I was losing control of the sale.
At that time, I mustered up every ounce of energy I had left, shifted the focus to them and adapted to the situation. Soon after, the rapport came easy and we were all having fun. I did not close the sale that day. I beat myself up pretty hard, wishing I’d been more on point and focused on why they came in. I felt it was going to be a hard lesson learned.
The following business day, I got a phone call from this same family, which turned into another dealership visit and then them purchasing the most expensive boat in the showroom. To this day, this family is one of my most loyal customers and has since referred more customers to me. In one of their CSI surveys, which they gave us 100%, they mentioned coming in after hours and how I spent so much time with them when I could have told them we were closed.
In the leadership program, we learn how to adapt to different situations and change them by adjusting ourselves. Whether it be your attitude or personality, there are ways to shift one or both to have better engagement with your customers. I still think I got lucky that day. If I hadn’t had the tools to adapt and change the situation, it could have been someone else’s lucky day.
(From left) The Smith family in Tom, Nancy, Eric and Ashley Read (Smith) has led the Colorado Boat Center, an MRAA Gold Member and Certified Dealership, since 1990. (Photo courtesy CBC)
Q: Your dealership is on its second generation, as are many of your clients, so what does it mean for your business to maintain your family legacy and second-generation loyalty with your customers?
Read: There are so many pain points for everyone involved in succession, not limited to just family, and like our situation, one day it finally clicked. It is important to respect the first generation and honor the blood sweat and tears it took to establish and make the business successful in the first place. As a second-generation-owned business, the goal isn’t to reinvent the wheel but to carry the same values while implementing new ideas that speak to the new generation doing business with us so they, too, have a great experience.
Q: Will you describe a perfect day on the water?
Read: “Sunday fun day” with my husband, my brother and my sister-in-law. I’m blessed to live on a private lake that allows us to take full advantage of boating without the hustle and bustle of the public lakes on the weekend. Our day starts at 7 a.m., with waterskiing. We break for breakfast, have an afternoon surf session and top off the day with a sunset pontoon cruise.
Q: What keeps you busy when you’re not working or on the water?
Read: Time with family and friends, my cat, Pilates, baking, reading and traveling to a new destination each year.
• Catching up with 2018 Duane Spader Leadership Development Scholarship recipient, Chad Taylor, President and General Manager, Taylor’s South Shore Marina and MRAA Board Member
Chad Taylor, Taylor’s South Shore Marina President, General Manager and second-generation owner, oversaw a relocation to a new, larger facility in 2018, the same year he received the MRAA Educational Foundation Duane Spader Leadership Development Scholarship. From the stage to the front office, Taylor’s journey over the past six years has included numerous learning experiences, leadership opportunities and consistent hard work!
Chad Taylor (second from left) attended the 2024 American Boating Congress in Washington with the MRAA staff (L-R: Mike Sayre, Mike Davin, Matt Gruhn and Chad Tokowicz) and fellow MRAA Board Members Jeff Strong and Joe Lewis (far right).
Q: As a second-generation owner, success doesn’t come easy, so how have you maintained your determination to succeed and carry on your family’s legacy?
Taylor: When I was in high school, one of our sports teams had T-shirts made with the slogan, “The only time success comes before work is in the dictionary.” I have never forgotten that slogan.
Q: What crosses your mind when you think about your father, Tom, starting his career as a 17-year-old?
Taylor: I think about that all the time. My father came from a very poor background and needed to work at an early age. He has always been a seven-days-a-week kind of guy. His work ethic is something myself and my brother carry on to this day.
Q: What did the big relocation to a new facility in 2018 teach you about yourself, your team and its preparedness?
Taylor: It taught me that I did not know how to prepare properly! LOL. I joined my 20 group once the expansion was already in motion. I think life might have been a little easier had I been active in my 20 group for a couple of years prior to the expansion. However, we prevailed and the team grew. That’s what really matters.
Q: You were the sixth recipient of the Duane Spader Leadership Development Scholarship in 2018. How did that opportunity for career growth help you and help you to help others?
Taylor: The program was pivotal in teaching me who I was and what we needed in team members. Once I really understood how to hire and interview better, our team shined. In addition, I learned what I should be managing on a day-to-day basis, and what I should not be handling. Time is the one commodity we never get back!
Q: What was the Duane Spader Leadership program time commitment, and how would you say it impacted who you are today as a person and leader?
Taylor: The time commitment was not terrible. To be honest, I was so happy to be going through the program, that I don’t even remember it being an issue. The time is the hardest thing for leaders to set aside. They should make a commitment to themselves and prioritize this time.
Chad Taylor
Q: You’ve witnessed growth at your dealership and significant changes, both the controllable and the uncontrollable, over the last five years, so how has your leadership style improved during that timeframe?
Taylor: For me, it has been learning how to develop the younger staff members. The Duane Spader Leadership Development Program helped me realize that if you hire capable people, the job can get done better than you would do it.
Q: How would you rate Taylor’s South Shore Marina culture today vs. 2018 before you entered the Spader program?
Taylor: We have always had a good culture, but it is stronger today than in 2018. Our staff has more clarity now and they operate more efficiently as a team.
Q: How can these MRAA Educational Foundation scholarships help businesses retain valuable employees?
Taylor: These two scholarships will allow dealers to polish the key people in their operation. These are master’s degree-level training that many dealers do not have the funds to set aside. The LDP training will elevate not only the participants but everyone around them. I encourage everyone interested in being better to apply.
Q: The MRAA Educational Foundation scholarships honor people who have made a lasting impact on the industry and nurture our future leaders, so how can our industry help others carry the torch?
Taylor: Being a good leader requires you to give back. I believe the Educational Foundation is that vehicle that gives back to the industry. A better-educated dealer body simply means we all make more money. Dealers should focus on getting better, not bigger.
Q: You spent time on Capitol Hill at the American Boating Congress, so what messages did you want to make clear to lawmakers?
Taylor: Boating is big business! We represent a very large portion of the outdoor recreational industry. So it is important that they listen to our needs.
• Marine Webinar Series: Part Three on July 16, 2024
POWAY, Calif. (June 17, 2024) – National Powersport Auctions (NPA), the leading provider of powersports remarketing and auction services, is taking the mystery out of condition reports in the final session of its Marine Webinar Series. The session at 10:30 a.m. PT, on Tuesday, July 16, will explain NPA’s Condition Reports in detail to provide more confidence when buying at auction.
Auctions present a dynamic opportunity for dealers to efficiently manage their inventory. A vital component of the auction process is condition reports, also known as inspections, which assist in making informed decisions. This webinar will provide a comprehensive analysis of the proprietary NPA Condition Report score and evaluation process. Tom Wilkinson, NPA RV and Marine Operations Production Supervisor, will lead the session, guiding attendees through how NPA builds a condition report, understanding the overall score, and interpreting important sub-category information. This valuable session is open to all marine buyers and sellers, including NPA members, who want to improve their knowledge of condition reports. It’s a complimentary, interactive forum where dealers can ask questions and gain valuable insights.
“The goal of the NPA Marine Webinar Series is to inspire marine dealers to view auctions as a gateway to new opportunities and solutions. Auctions can be a sustainable profit center for inventory management,” stated Matt Amata, Vice President of RV and Marine. “This event is focused on educating dealers and buyers about the benefits and details of NPA’s Condition Reports, which are critical to the buying and selling decision-making process.”
Easy Registration Interested participants can register online for the free All About NPA Condition Reports webinar on the Webinar Registration page. Dealers can reach out to NPA’s dealer support at 888.292.5339 ext. 923308 for further inquiries.
NPA Marine Webinar Series This informative series educates marine dealerships and businesses on the pivotal role auctions play in the pre-owned market. To view recordings from previous webinars in the series, visit NPA’s YouTube channel for valuable insights on “The Profitability of Boat Auctions,” webinar No. 1, here:
And and “How to Participate in NPA Auctions,” webinar No. 2, here:
Free Marine NPA Membership Marine dealers or distributors new to NPA auctions are invited to take advantage of a free annual membership. Dealers interested in participating in auctions, exploring inventory, or utilizing the various services and tools available to NPA members can apply online or contact the Dealer Registration team at 888.292.5339 ext. 923301 or via email at dealer-reg@npauctions.com.
About National Powersport Auctions: Established in 1990, National Powersport Auctions (NPA) is one of the world’s leading providers of powersport vehicle remarketing services. NPA’s nationwide footprint serves the industry’s largest financial institutions, manufacturers, and dealers through their premier live and online selling platforms. NPA offers comprehensive data services, including the NPA Value Guide™, the industry’s most accurate wholesale valuation tool. NPA has company-owned and staffed facilities in California, Colorado, Florida, Georgia, Ohio, Oregon, Pennsylvania, and Texas. NPA is a wholly-owned subsidiary of Copart, Inc (Nasdaq: CPRT). For more information about NPA, visit: www.npauctions.com.
• Tactical solutions to help your dealership overcome key challenges and enhance your profitability
By Chris Kulaga, Product Manager, Lightspeed
As the marine industry continues to evolve, your dealership has already seen new opportunities and challenges in 2024. Along with being able to adapt, your team must maintain your primary goal to provide customers with high-quality boats while efficiently managing your inventory. This article outlines essential strategies for acquiring and managing 2024 and 2025 boat inventory, ensuring profitability and maintaining operational excellence.
In today’s competitive market, marine dealers must adopt a proactive approach in order to thrive. By addressing critical challenges in inventory management and utilizing advanced tools, dealers can enhance their operations and profitability.
With average unit margins tapering off for the industry, it is even more important to review your individual brand and even model margins using reports from your dealer management system (DMS) or Lightspeed.
4 Key Challenges and Strategic Solutions
CHALLENGE 1: Maximizing Profits When Acquiring Used Boats
Making informed decisions when buying used boats is crucial for maximizing profits. Today’s marketplace requires your trained service team technicians to do inspections of all trade-in vessels. It requires due diligence on your part and helps you better integrate trade guide valuations and customer photos and unit descriptions within your process:
Black Book
JD Power
NPA
Action Steps:
Assess the Right Value: Use trained technician boat inspections and industry guides to determine actual cash value for pre-owned boats.
Fair Trade-Ins: Ensure fair trade-in values to attract more customers.
Price Competitively: Set competitive prices to move inventory efficiently. Realize some customers, in particular those who bought during the height of the Pandemic, may be upside down owing more than what their boat is worth.
CHALLENGE 2: Enhancing New Inventory Management Managing new inventory requires strategic ordering, effective selling strategies and a deep understanding of the market:
New Model Year Ordering: Analyze inventory turns year-over-year to make informed decisions.
Industry Benchmarks & Reporting: Utilize comprehensive monthly reports from Industry Partners & Benchmark Reports. These reports provide insights into national competitor pricing and performance data, helping you make informed decisions for better performance and profitability. Keep in mind to cross check your data to understand where you can accept lower margins on certain vessels.
Custom Reports: Utilize tailored reports to evaluate the true cost of makes and models sold, considering factors like invoice price, transportation, freight, PDI (Pre-Delivery Inspection) and age.
Inventory Aging: Track inventory aging using reports. Re-evaluate units that hit 90-day increments in aging to adjust selling prices and incorporate more comprehensive marketing strategies.
Action Steps:
Estimate Demand: Order the right quantities based on demand forecast estimates.
Utilize Custom Reports and Benchmark Data: Cross-check your data. Balance low-margin models with high sales against high-margin models with fewer sales for informed decisions.
Track Inventory Aging: Identify trends and adjust strategies accordingly.
Re-evaluate Aging Units: Adjust prices and marketing efforts for units at 90-day increments.
Balance Availability and Cost-Efficiency: Find the optimal balance to ensure profitability.
CHALLENGE 3: Effective Floor Plan Management Effective floor plan management minimizes costs and maximizes turnover:
Free Flooring Programs: Take advantage of programs that offer free flooring for a limited time.
Interest and Curtailment Management: Monitor and manage interest rates and curtailment schedules to avoid unnecessary expenses.
Sell the Right Unit First: Prioritize selling units with higher flooring costs or longer age to maintain profitability.
Action Steps:
Utilize Free Flooring Programs. Reduce costs with available programs and consider transferring units nearing the end of the free floorplan to lower-interest lenders.
Monitor Financial Terms. Have your sales staff closely manage all aspects of the sale to avoid high interest rates and penalties.
Strategically Sell Units. Prioritize selling higher-cost and older units first.
CHALLENGE 4: Enhancing Operational Efficiency with a DMS A Dealer Management Solution (DMS) is indispensable for consolidating all inventory and financial information. By ensuring you have a strong DMS, this enhanced reporting capability enables dealers to track trade-ins, new inventory orders, floor plan details and cost analysis with precision. One of the other benefits of having a DMS is that all transactions can flow seamlessly to your financial statements. And at the end of the day, it’s what your P&L has to say that can really help you determine how to measure your profitability.
With industry unit margins declining, it’s vital to review individual brand and model margins using DMS reports or tools like Lightspeed. Below is market data we’ve pulled that illustrates these trends:
Year
Segment
Unit Margin %
2020
Boat
20%
2021
Boat
25%
2022
Boat
25%
2023
Boat
21%
2024
Boat
18%
2020
PWC
14%
2021
PWC
19%
2022
PWC
20%
2023
PWC
16%
2024
PWC
13%
Action Steps:
Implement a Robust DMS: Centralize all operational data.
Generate Detailed Reports: Use the DMS to create detailed reports for informed decision-making.
Leverage Historical Data: Predict trends and optimize inventory management using historical data.
Current inflation rates are driving up the cost of new boats, making strategic planning and inventory management critical. Adapting to these market dynamics is essential for profitability in 2025. Accurately forecast demand, use custom reports and benchmark data for informed decisions, and track inventory aging to adjust prices and marketing efforts promptly. Additionally, take advantage of free flooring programs and prioritize selling higher-cost and older units to manage finances effectively.
By focusing on these strategies, you can thrive in this economic environment. Embrace available tools and insights to guide your dealership toward sustained profitability and operational excellence.
About the Author As a Lightspeed Product Manager, Chris Kulaga is dedicated to understanding and addressing the product roadmap needs of marine dealerships. With more than five years of experience at Lightspeed, he has held various roles, demonstrating his deep expertise with the Lightspeed solution and his commitment to helping customers achieve their business objectives.
Before joining the tech sector, Kulaga served in the Air Force, where he developed strong leadership and technical skills. These skills are now applied in his current role, where he is responsible for defining the product vision, strategy and roadmap, particularly for the marine industry.
His passion for all things marine drives his continuous learning and enthusiasm for the industry. Kulaga resides in Tri-Cities, Wash., with his wife and two pets. Outside of work, he is an avid cook, weightlifter and explorer of new places.
• Discover Boating, in collaboration with Progressive Insurance®, launches new video in Top Safe Boating Tips series to help your customers become a pro at trailering
“Trailering trailering might seem like a chore but when it’s done right it’s all smooth sailing from the driveway to the docks,” says Monica Fuentes, Discover Boating Ambassador, in the latest installment of the Discover Boating, powered by NMMA and MRAA, “Top Safe Boating Tips” series.
Recently launched, the fourth video — Master Boat Trailering Like a Pro — in the five-video series, in collaboration with Progressive Insurance®, helps boaters improve at trailering. From essential trailering safety tips to trailer maintenance to loading and retrieving a boat, the video serves a great safety reminder for boat owners.
The five-part Top Safe Boating Tips series teaches boaters good safety habits and best practices for success on and off the water, helping them to create a more worry-free day on the water. Here are the 2024 topics:
The short-form videos (in addition to longer versions) were created by Discover Boating and Progressive Insurance to engage boaters and the next generation of boating enthusiasts and owners. Discover Boating will share the new videos socially, via consumer email distributions and on its websites in the U.S. and Canada. Discover Boating will also promote the video(s) on the Discover Boating blog, DB TV section, and b2b.discoverboating.com.
Image courtesy of Discover Boating
Marine retailers and other industry stakeholders are encouraged to share them. Here are six places to share the safety videos to engage your customers and prospects:
Website
Social media feeds
Newsletter
Emails
Text (w/permission)
Showroom screens
Looking for different topics? Check out the 2023 Top Safe Boating Tips here. Learn more about Discover Boating.
Heading into peak summer boating season, Discover Boating website content is focused on providing a variety of safety and lifestyle-related resources, engaging current and new boaters in the U.S. and Canada with timely tips and reminders.
To mark National Safe Boating Week last month, Discover Boating sharedessential safety tips for boaters in a blog post and through daily updates on all social media channels. To provide further safety information, Discover Boating also shared an updated guide on the importance of using the engine cut-off switch properly.
Throughout the month of May, Discover Boating also covered a variety of topics relevant to boaters, including ways to celebrate Mother’s Day on a boat, that provided tips on how boaters can plan their own on-water celebrations and highlighted why boating is a fun family bonding activity.
In honor of Asian American and Pacific Islander Heritage Month, Discover Boating published an updated article showcasing individuals in the AAPI community who are making significant contributions to boating and related industries. Check out their inspiring stories here.
Photo courtesy of Discover Boating
Articles published to the Discover Boating website in May included:
Marine retailers and other industry stakeholders are encouraged to share these articles with their customers via social, e-newsletters and other communication channels.
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