MINNEAPOLIS — The Marine Retailers Association of the Americas announces that VRZ Consulting has increased its MRAA support level to a Platinum Partner Member and Dealer Week Host.
Valerie Ziebron, Founder of VRZ Consulting
VRZ Consulting supports the MRAA’s programs and opportunities provided to the dealer body in an effort to fuel the success of the industry. Commitments from Platinum Partners and Dealer Week Hosts like VRZ allow for the expansion of MRAA’s offerings to create a positive, long-term impact for members.
Valerie Ziebron, founder of VRZ Consulting located in St. Augustine, Fla., is recognized within the marine industry for her service department expertise. She is a longtime favorite educator for her easy-to-apply ‘Golden Nugget’ best practices and engaging workshop sessions. This year, Valerie will host the Service & Parts Pathway classroom at Dealer Week 2023. Additionally, she will share insight and knowledge about what dealerships can do to “flip the switch” from being reactive to proactive, with the firm belief that to be profitable, you must be proactive. Learn more about MRAA’s Dealer Week educational lineup, here.
“Helping marine dealerships build customer loyalty and profitability while reducing stress is a passion that VRZ shares with MRAA. I’m so excited to be a Platinum Partner and Dealer Week Service Host,” says Ziebron. “Every year we say, ‘this year is the best!,’ and truly the bar keeps getting higher. That’s what happens when you work with people who are so committed to bringing excellence to the marine industry. I so look forward to seeing you there.”
“We are delighted to welcome Valerie back as a Dealer Week Educator and Platinum Partner Member,” says Allison Gruhn, MRAA VP of Business Development. “I have full confidence in her ability to lead and guide our dealer attendees to greater success at Dealer Week 2023 and I look forward to our continued partnership.”
About VRZ Consulting Valerie Ziebron started in the automotive industry in 1989. She was a sales trainer for General Motors and a service trainer for Chrysler. More than 20 years ago she started working in the marine industry and has been hooked ever since! Ziebron and her team have worked with thousands of dealership and OEM professionals across North America. VRZ specializes in what dealerships and OEMs can do to grow employee satisfaction, customer loyalty and profitability. To learn more, visit www.vrzconsulting.com, or contact vrzconsulting@yahoo.com, (+1) 313-506-8069.
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.
August 10, 2023, ALPHARETTA, GA. – Northpoint Commercial Finance CEO Dan Radley recently announced the appointment of Gary W. Childress to Vice President of Marine Operations.
Gary W. Childress
A marine industry veteran with 30 years of leadership experience in sales, operations and strategic planning, Childress will now spearhead and direct day-to-day operations including initiatives with key Northpoint suppliers to foster stronger customer-focused synergy. He will work collaboratively with Senior Vice Presidents of Business Development Russell Baqir and John Durnien.
“Northpoint is highly committed to ongoing improvement and further developing our customer-centric approach and we believe Gary’s unique skill set and extensive industry knowledge will be a tremendous asset in helping us to drive innovation and achieve our goals,” said Northpoint COO Scott Raymond.
About Northpoint Commercial Finance Northpoint Commercial Finance, with offices in Alpharetta, GA, and Burlington, ON, is owned by LBC Capital, a subsidiary of Laurentian Bank of Canada. Northpoint combines experience with advanced technologies, fresh ideas, streamlined processes, and a customer focus formed specifically for the varied needs and goals of each business. Northpoint’s inventory finance offerings drive sales, enhance cash flow, and improve profitability for both manufacturer and dealers. More information about Northpoint and their offerings is available at www.northpointcf.com.
When I made the walk from the automotive industry to the marine industry in 1999, two areas of concern jumped out at me.
The lack of any effort dealers gave to go after customer-pay service.
The lack of a true used boat sales operation at dealerships.
A Missed Opportunity: Neglecting Customer-Pay Service The observation of a missed opportunity in service was mostly my ignorance of the enormity of the dealer’s role in the PDI (pre-delivery inspection) process and the lack of resources to provide service to customers who bought their boats elsewhere. However, when boat sales all but stopped during The Great Recession, dealers pivoted and survived on providing customer pay service. Regrettably, the additional customer-pay workorders dried up again when boats sales returned and are made worse in recent years with the sales boom that the pandemic blessed us with.
Enough about customer pay opportunities for now.
When Riding the Inventory Roller Coaster, Don’t Forget Pre-Owned Boats Opportunities in the used boat market have reared their ugly head, and I say “ugly” because I’ve found over the years that most dealers have worked hard to dodge the used boat sale more than they’ve worked to embrace it. This is where we find bad habits and poor processes pulling down what could be a lucrative profit center for the dealership.
Reality is, a proper used boat sales operation can’t be developed or adopted based upon market conditions when a used boat is traded in one day and sold the next. Especially when they sell for thousands of dollars over market value with promises to make it right later. Who can argue with wins like that? Why would you want to put anything in the way of record-breaking margins with policies and procedures when the demand far exceeds supply and customers have no other choices?
I’ve been on this roller coaster ride for only a short time compared to dealers who have boat sales experience measured in generations. But, during my times I’ve seen the tides come and go with boat sales and as I expected the tide is turning and boat buyers have choices again. Are your slam-dunk sales methods going to stand up to customers with multiple options when selecting their next boat? I think not!
It’s time to examine this used boat market for what it is — a market more than three-times the size of the new boat market and certainly one that should NOT be forgotten, even when new boat manufacturers are back to full production. This is about the time that the OEMs reading this turn the page and look for something more supportive of their efforts or look for the author to throw darts. I think you want to read on …
Ford vs. GM vs. Marine Industry In an earlier part of my career, I helped Ford dealers sell more cars. During that stint, I was frequently reminded about how Ford lost leadership to General Motors because Henry was set in his ways and too focused on low-cost, mass production and missed a number of opportunities to sell his customers new cars. Frankly, there wasn’t any reason for a Ford owner to buy a new Ford because the new ones looked the same as the one they were already driving, down to the color!
After Ford taught the world to build cars, a guy named Alfred P. Sloan, president of another large car builder introduced reasons for customers to buy a new car — namely, the annual model change, and the idea of a car “for every purse and purpose.” GM started them off in a Chevy and moved them along to other brands until they drove them to their grave in a Cadillac!
Well, the marine industry has been doing well to adopt GM’s marketing philosophies except for one of Sloan’s principles: “He who owns the used car market will own the new car market.”
You see, Sloan understood that new models and colors weren’t going to be all that’s needed to obtain leadership. He knew that the dealership needed to make it easy for customers to drive in with their old car, leave it there and drive out with a new one. So, GM “invented” the used car trade-in and helped its dealers set-up used car operations that maximized the resale value of the used car. That made “The Rational Walk” between the used and new car affordable, and the transaction was an easy one. Therefore, I spent as much of my time with a dealer helping them sell used cars as I did sell new cars.
It has been refreshing to see the efforts of some dealers who’ve recently turned the corner on their pre-owned boat sales. However, I believe it was not for reasons we just wrote about — it appears that it was only a band aid till their new boat inventories reappeared. And now that new inventory levels are in surplus, it appears the focus shifts back to moving new units and forgetting about the true potential of the used market.
No More Missed Opportunities It would be dreadful if this scenario becomes a sequel to the post-recession, customer pay-service business, and we return to the days of missed opportunities with pre-owned boats. But we are certain to return to those missed opportunities unless we learn to better market pre-owned boats. And that begins with trading for or acquiring more of them.
This doesn’t necessarily mean that you must inventory more of pre-owned boats, but you do need to know where you can liquidate them in order to offer full value to your new boat buyer and capture more of those deals.
For the ones you keep to retail, you can’t allow pre-owned boats to be shown to potential boat buyers before the boat is perfectly prepared and ready to fetch top dollar without your sales representative needing to make excuses and promises to fix or detail the obvious. Every excuse or promise your sales team is forced to make devalues the boat in the customer’s mind and either results in a no sale or a reduced margin.
So, these efforts to better sell used boats due to a shortage of new boats have been a good lesson on what could be as well as what needs to continue for dealers and manufacturers to sell more new boats. Curing these ills and embracing industry resources will give your dealership the tools needed to set yourself apart in the high-volume market (an estimated 1.15 million used units were sold in 2021 alone!) for pre-owned vessels, maintain high values and make it easier for new boat buyers to make “The Rational Walk” to a new boat.
Pre-Owned Boat Market Strategies & Tactics
Need more insights and best practices for greater pre-owned boat market success at your dealership? MRAA Members can download the “MRAA Ultimate Guide to The Pre-Owned Boat Market.”
In episode five, “Capacity and Carriage Requirements,” viewers learn about necessary boat capacity requirements as well as safety items needed onboard such as USCG-approved life jackets, a fire extinguisher, sound devices and a first aid kit.
Industry stakeholders are encouraged to share these educational videos on their social media, websites, in showrooms and emails to help educate and connect with customers. The safety video series can be found in the Discover Boating Industry Resource Center, powered by NMMA and MRAA.
Throughout summer, Discover Boating has offered a variety of safe boating content including how-tos, videos and articles through its social media channels, newsletters and website. Subscribe to the Discover Boating YouTube channel for more video content.
Share this entire five-part Discover Boating, Powered by Progressive® Insurance, safety video series with your customers to help keep them confident and in control while boating.
MINNEAPOLIS — The Marine Retailers Association of the Americas (MRAA) announces the addition of Mocama Marineas a new Partner Member.
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.
Mocama Marine, headquartered in Panama City, Fla., designs and manufactures flats boats, bay boats and deck boats across two premier brands. The Action Craft and Southwind brands are leaders in design, quality and performance.
“With the addition of Mocama Marine’s membership, the MRAA has yet another boat manufacturer we can partner with to cultivate marine dealer success,” says Jason Walz, MRAA Director of Programs. “I am excited to welcome these boat brands on board and look forward to seeing them thrive within our dealer network.”
Be sure to take a look at the comprehensive list of companies backing MRAA across all partnership levels. View the full 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.
Discover Boating is looking for new running footage of several different boat types which will be used in Discover Boating creative and media b-roll. With NMMA member help, Discover Boating will be updating its video assets to promote the variety of new boat types available to consumers.
The process to submit footage is easy:
Submit your footage here by simply dragging and dropping your files into the second box (NO password or e-mail needed).
Please provide high-resolution videos, preferably in .MP4 or .MOV format.
The footage submitted, once produced, will be non-brand specific (all reference to specific makes and models will be removed during the editing process).
For more information, contact NMMA’s Sarah Salvatori at ssalvatori@nmma.org.
St. Petersburg, FL. (July 27, 2023) – Priority One Financial Services, a full-service retail financing company for marine, RV and trailer dealers, will host a live online question-and-answer session with industry legal expert, Randy Henrick. The session will take place from 12–12:45 p.m. EST, Wed., August 23.
Henrick has nearly 30 years of legal expertise in consumer financial services, bank regulation, compliance, and privacy/data security. He specializes in FTC Safeguards and Red Flag rules. Henrick has authored 11 auto compliance guides for Dealertrack and regularly speaks at industry conferences.
“Compliance, security and Safeguards are hot topics for dealers right now,” said Nicole Armstrong, Vice President of Corporate Initiatives at Priority One. “At Priority One, it is important that we connect our dealers with the industry experts they need to succeed. Mr. Henrick has participated in workshops for Priority One since 2021, and dealers always show up in masses to seek his advice. This complimentary session will provide 45 minutes for dealers to bring some of their most pertinent questions to a dealer expert.”
The topics discussed in this workshop are not intended to be a substitute for seeking legal counsel from a qualified attorney. Operational procedures are unique to each dealership. Priority One encourages dealers to consult directly with a qualified attorney to certify the individual dealership’s compliance with and application of federal financial regulations. If you need a recommendation for legal counsel, Priority One can refer you to a qualified attorney.
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 and equipment dealers. A division of Forest River, a Berkshire Hathaway company, Priority One’s knowledgeable team brings full-service financing to every customer, helping dealers improve business and move inventory.
Headquartered in Saint Petersburg, Florida, the company also owns and operates Priority One Equipment Finance and Veritas Insurance Group. A Tampa Bay Best Place to Work (2023), One Tampa Bay honoree (2019) and Business of Pride honoree (2017), Priority One values its diverse community of employees, customers, dealers and the surrounding Tampa Bay neighborhood.
• Lenny Sims, VP Business Development/Strategy – Specialty Vehicles for J.D. Power and the MRAA Discuss Insights on the 2023 Q2 Marine Market
Drew Mick
Drew Mick, MRAA: April saw a small decline across all boat types in traffic views. Is there any reason for that dip?
Lenny Sims: When we look at the data, there’s all kinds of comparisons and things that jump out at me; reading between the lines. If you compare it to year-over-year or the last 12 months running, there certainly was a lot more interest in the market than before. There has also been a significant number of new boat sales in the last two years. In most cases we were seeing record-breaking paces and record-breaking demand. A good comparison we’d make in this instance is looking at 2019, prior to COVID. There was a huge jump in interest and volume. It’s starting to level, but it’s still ahead of previous levels that were typical.
Mick: Dealer sentiment may not be as optimistic as a year ago, but values are still holding. What are dealers seeing that is leading to less optimism?
Sims: When you and I were chatting at last Dealer Week, I said how everybody wants to know when this recession is going to hit. When is this hot market going to decline? What should we do now to get ready for whatever is going to happen? A year ago, the market was still on fire at this time, so it’s not going to be as optimistic as then. I think anybody who was considering a recession to happen — myself included — would have thought it would have happened by now. But I want to be careful … I’m not saying it still isn’t going to happen. It’s been holding off longer than most people thought.
Dealers are thankful that it didn’t fall off the cliff. A lot of them still have a lot of inventory that they paid good money for. A lot were wondering if they were going to get caught holding the bag. Dealers now have gone through the bigger part of their selling season. I think they’re cautiously optimistic it didn’t fall off the cliff. I think the big goal for them is getting rid of inventory. There’s a lot more negotiating going on with that. They are seeing interest rates are up as well. And they’re seeing consumers getting back in touch with them to see if they can sell their boat for what they owe on it. Chances are a lot of them overpaid because of the way the market was the past few years. Consumer confidence is dropping and that is leading to this less optimistic feeling.
Mick: In marine categories, there hasn’t been a lot of movement between views this past quarter compared to Q1. Do you ever see drastic movement in that at any point in the year?
Sims: If you looked at typical movement in a pre-COVID year, you would see an increase from January 1 to August, peaking there and declining through to the end of the year. Then beginning January again, it would spike back up. What you see here is the general seasonality of things.
Mick: How are you feeling about Q2 and 2023 now that we are halfway through it?
Sims: Overall, I think things are going to continue to gradually decline. It’s not going to be a cliff fall. Demand is down, inventory levels are up. If you look at nothing more than those two things, that generally promotes a decline in used boat pricing. Here we are a chunk of the way into the summer, and I think the bulk of the sales have occurred. It, again, depends on a lot of things, such as the federal reserve and the interest rates. If they leave ratees alone, it’s probably going to maintain itself and prove itself out through the end of the year.
I think we will experience seasonal adjustments in early fall due to school starting and vacation time ending. Often, you see some people trying to sell their boats later in the year since they won’t be using them for 6 months. If the trend still holds for consumers trying to find a way to exit their loans, that will speed things up. However, right now my projection with the team is we need to keep an eye on it. Watch that gradual decline, however I don’t think we will see that cliff fall.
• Governor Walz announces partnership; goal to make Minnesota a top 10 state in outdoor recreation
[ST. PAUL, MN] – Governor Tim Walz today announced a new partnership to expand Minnesota’s $10 billion outdoor recreation industry. The Minnesota Department of Employment and Economic Development (DEED), Department of Natural Resources (DNR), Explore Minnesota Tourism (EMT), and Iron Range Resources and Rehabilitation (IRRR) will partner to enhance and expand Minnesota’s outdoor recreation economy for the social and economic benefit of all Minnesotans.
“Minnesota’s $10 billion outdoor recreation industry drives our local and regional economies. From the North Shore to the Winona bluffs, tourism is central to telling the story of who we are as a state,” said Governor Walz. “This partnership willhighlight ourworld-class natural resources and outdoor recreation opportunities, while creating jobs across the state.”
The Outdoor Recreation Industry Partnership will combine each agency’s individual strengths — natural resource management, economic development, and marketing — to connect individuals and communities to outdoor recreation resources, build coalitions, and communicate significant benefits of outdoor recreation.
The partnership will build on previous work by the Minnesota Outdoor Recreation Task Force and Governor’s Council on Economic Expansion. This will be a first-of-its-kind effort to bring state agencies together in a partnership dedicated to the economic growth of the outdoor recreation sector. Commissioners of the partnership agencies will meet quarterly to plan and track progress. Staff are currently on a statewide tour to gather feedback and form a strategic plan with 1, 3, and 10-year goals.
“Outdoor recreation is not only a vital industry to Minnesota’s economy, but a fundamental part of our everyday lives,”said DEED Commissioner Matt Varilek.“DEED is excited to partner with the DNR, IRRR, and EMT to build on the existing $9.9 billion industry, and to continue growing our vibrant outdoor recreation workforce and economy.”
“Connecting people to the outdoors is a priority for the DNR because it’s good for the state’s economy and the health and wellness of Minnesotans,”said DNR Commissioner Sarah Strommen.“We’re excited to work with partners across state government to grow opportunities for high quality outdoor recreation and foster future stewards of our natural resources.”
Minnesota’s outdoor recreation economy accounts for $9.9 billion in gross domestic product, 91,336 jobs, and $4.7 billion in overall compensation, according to the latest data from the U.S. Bureau of Economic Analysis. The top activities by economic impact are boating and fishing; hunting, shooting, and trapping; and recreational vehicles. Minnesota is currently ranked 15th in the nation for outdoor recreation GDP. The Outdoor Recreation Industry Partnership aims to move Minnesota into the top 10.
“Year-round outdoor recreation is vital for thriving communities. Amenities such as lakes and trails that may be utilized by anglers, snowmobilers, bikers, and riders have important economic impacts,”said IRRR Commissioner Ida Rukavina.“The Outdoor Recreation Industry Partnership was formed to further support our local communities and families and to attract new residents hoping to make Minnesota their home.”
Outdoor recreation benefits Minnesota communities, with 93% of Minnesotans reporting outdoor activity to be “very” or “somewhat” important, according to the DNR’s 2017 Minnesota Outdoor Activities Survey. It attracts entrepreneurs, skilled workers, retirees, investment income, manufacturing facilities, and new residents. Outdoor recreation also increases traffic to local businesses, tax revenue, local health outcomes, and satisfaction of current residents.
“Minnesota is a great place to visit to enjoy the natural beauty and world-class outdoor opportunities,”said EMT Director Lauren Bennett McGinty.“From fishing for walleye on LakeWinnebigoshishto biking the Root River and Harmony-Preston Valley trails in the driftless region to lake-hopping and urban hiking in the Twin Cities. We will continue to promote these opportunities for the enjoyment of all and the economic benefit of local communities.”
Since launching the Dealer Finder in the U.S. last summer, DiscoverBoating.com has seen nearly 20,000 pageviews and more than 11,000 users of the Dealer Finder, which indicate the interest and need for consumers to be able to easily connect with dealers in their area.
The Dealer Finder tool, which features easy search and mapping functionality to quickly locate local dealers through postal code or city search, as well as a one-touch option to visit a dealer’s website or call the dealer directly, is powered by the MRAA’s database of certified and verified boat dealers. The database, which has been compiled and is refined on a daily basis by the MRAA team, includes brick-and-mortar dealerships located throughout Canada, that have been verified by MRAA.
Dealers looking to update their listing or be added to the Dealer Finder tool, can simply fill out this form and MRAA will reach out to help make changes.
I can help you navigate the site, find resources, and answer dealership questions. Feel free to type your question below or select one of the options to get started!
