One of Discover Boating’s strategic media partnerships as part of its 2022 national marketing campaign is with VICE TV, aimed at further amplifying the joy of boating among the industry’s growth and emerging target audiences. As a leading network among 18-34 year olds, VICE TV reaches 65 million homes, helping Discover Boating invite the next generation to experience life on the water.
Running on VICE TV are two of Discover Boating’s videos—‘Anthem’ and ‘Hooked’—as well as a custom short documentary connection to fishing aboard a personal watercraft.
“VICE brand partnerships and video productions resonate in youth culture because they tell stories through the lens of connection, culture and identity,” said Kevin Williams, NMMA’s vice president of marketing. “With more than three-quarters of our target audience looking for brands who engage with their audience through that very lens, partnering with VICE helps us build a connection between Discover Boating and what ‘see you out here’ can mean to the next generation of boaters through a familiar, authentic and human-centric voice across platforms and formats.”
Additional Discover Boating strategic media partnerships this summer include ESPN and Ebony Media.
For more information on Discover Boating’s media partnerships, please contact NMMA VP of Marketing, Kevin Williams at kwilliams@nmma.org.
As Discover Boating works to engage the next generation of boaters, the brand has established a number of strategic partners including Ebony Media, one of the most highly trafficked platforms and respected media within the African American community as well as the Black Entertainment and Sports Lawyers Association (BESLA), a nationally recognized leader in legal education and professional development for lawyers and professionals in the entertainment, sports, and related industries whose members represent top talent, networks and brands. The partnership with Ebony is helping Discover Boating connect with a key segment within our industry’s growth and emerging target audiences and has provided an opportunity to elevate and extend our industry’s voice and reach more potential boat buyers.
One of the key activations of the partnership was an event in Oak Bluffs Marina on Martha’s Vineyard the week of August 15 where influential and affluent guests from across the African American community joined Discover Boating and Ebony to experience life on the water. From cruising to networking and book signing events—all related to boating—guests spent quality time onboard enjoying the boating lifestyle and learning about Discover Boating.
Notable attendees included Uptown magazine, Shallow Waters author Anita Kopacz and numerous entertainment and brand executive influencers.
NMMA Vice President of Marketing Kevin Williams (center) attended the Discover Boating / Ebony Media boating event.
To learn more about Discover Boating’s strategic media partnerships, contact NMMA Vice President of Marketing, Kevin Williams at kwilliams@nmma.org.
In an effort to improve the customer experience and root out deceptive business practices, the Federal Trade Commission proposes sweeping changes to dealership operations across the country. If passed, the way you do business will change forever.
Rule Changes Apply to Boats, Cars, Motorcycles and RVs
By a 4-1 vote June 23, the FTC issued a notice of proposed rulemaking which if passed, will change the way you interact with your customers forever. The regulation, dubbed the “Motor Vehicle Dealers Trade Regulation Rule” would apply to cars, boats, motorcycles, and RVs, and is primarily aimed at removing deception and other unfair business practices from the motor vehicle market. The FTC put forth this regulation as they have taken more than 50 enforcement actions related to automobiles in the last 10 years and have also received more than 100,000 consumer complaints annually, over the past three years, related to the car buying experience.
Contents of the Rule
At face value the proposed rule increases disclosure requirements and necessitates dealers make known all costs and sale conditions upfront. Furthermore, it will also prohibit dealers from making deceptive advertising claims or misrepresentations about the cost of the vehicle, cost of add-on products and services, and the financing terms. Dealers would also be prohibited from selling add-ons that offer no additional benefit to the consumer, like “nitrogen filled” tires. The rule would also increase recordkeeping requirements and mandate that dealers keep detailed records of their compliance with these new processes for two years.
At the core of the proposed rule is removing deceptive practices from the marketplace primarily with regards to financing, advertising, and add-ons. The FTC is attempting to increase transparency during the buying process and increase competition between dealers. This section would not only bar the dealer from being deceptive toward the customer, but also prohibit dealers from misrepresenting any “material information on or about a consumers application for financing.”
Disclosures – Offering Price and More
The proposed rule also requires dealers to make key disclosures in a clear and conspicuous manner. For example, upon customer inquiry, a dealer must be able to disclose the full cash price for which a dealer will sell or finance the motor vehicle to any consumer, excluding only government charges. These disclosure requirements would also apply to financing information as well, for example, a dealer must inform consumers that a lower monthly payment will increase the total amount the consumer will pay, if true. The rule would also require the dealer to create an “Add-On List” which discloses “on any website, online service or mobile application … a list of all optional add-ons and the price of each add on.”
Add-On — No ‘Junk Fees’
The FTC is also focused on stopping dealers from charging consumers for “junk fees,” and the rule strictly prohibits dealers selling items to the consumer that provide no benefit. Under the rule, dealers would be required to disclose, and offer to close the transaction, for the cash price without optional add-ons — itemizing the Offering Price, any discounts, rebates, or trade in valuation, and required government charges. If the buyer declines to purchase, they must sign the form as proof that the dealer has provided the required Offering Price to consumers before including optional add-ons in a sales transaction.
Recordkeeping –Two-year Requirement
Dealers would be required to create and retain records showing compliance, including advertisements, price lists, customer correspondence, financing documentation, LTV calculations for all sales of GAP coverage and customer complaints.
Next Steps and What to Expect
The Proposed Rule is currently open for public comment until September 12. The MRAA, along with several other trade associations including the RV Dealers Association, have submitted a request to extend the comment deadline by an additional 120 days.
Regardless of if the extension is granted, the MRAA and our state MTA partners will be submitting comments. Furthermore, the MRAA is going to deploy a Boating United action alert and we will encourage all our MRAA members to engage.
If you have any questions pertaining to this proposed rule or would like to provide insights as to how this will impact your business, please contact Chad Tokowicz, Government Relations Manager, at Chad@mraa.com.
A Service Menu is a great tool to send out with annual maintenance or winter storage agreements in order to streamline the check-in process and increase winter work.
There is a template on the MRAA website that would be a great start to creating your own. Customize it for your products, area of the country and current pricing.
It is laid out in three columns on pages one and two.
Side 1 Select what level of Annual Maintenance, Storage and Detail Packages they want, each with three or four upgrade selections.
Side 2 Offers upgrades with Other Maintenance, Special Projects and More.
Customize your own Menu by clicking on the “Master List” worksheet at the bottom of the Excel Workbook. Start by changing the Hourly Labor Rate in the yellow box at the top. All the pricing of the items throughout the Menu are automatically adjusted with this one change. This Sample Menu was done in 2013 at $120/hour. I hope your hourly rate is much higher than that now. Going rates are $159 to $199/hour and some are up to $225. Adjust the descriptions and hours for each service according to your own shop’s offerings. The goal is to create packages of services to make it easier for the customer to decide.
Once the Master List is finished, create your own packages by pulling in the line number from Column “B” in the Master List into one of the three columns on the left side of page one or two of the Menu. That will create a template from which to do a .pdf print out that can be emailed with annual maintenance or winter storage contracts.
Clients who utilize a Service Menu, experience significantly increased labor and parts income over the winter season. If you are not using one now, I hope this one will help you get started.
About the Author: David Parker’s marine career began at 15 when he gained employment with his family’s Parker Boat Company business, a Sea Ray dealership based in Orlando. Over a 17-year span, he rotated through the ranks from lot boy to rigger, mechanic, parts/service manager, posts in sales and sales management, F&I and eventually accounting. This hands-on experience in virtually all aspects of retail operations provided unique insight that has served him well throughout his stellar 50-year career. Visit: www.parkerbusinessplanning.com/
• Sharks and Minnows: A child’s game of pursuit reminds your dealership to just keep swimming to avoid time robbers in the name of boosting your profits
Do you remember playing tag as a kid? Someone was “it,” and they ran around trying to tag another person to make someone else a new chaser to be it. I recently watched some kids at the park playing a version of this called “Sharks and Minnows.” In this game, two kids were called sharks and they were considered it. The sharks role was to call: “fishy, fishy come out and play.” As the other kids or players, the minnows, slowly approached, the sharks yelled: “Shark Attack!” and gave chase. If they tagged another child, that kid became a shark, too! Finally, the last two untagged Minnows switched roles and became the sharks in the next round of play.
How does this relate to my service department, you ask? Think about the sharks in your department. Are you seemingly chased by the things that call to you daily and rob you of your most valuable resources: efficient use of time and increasing profits?
Here are 7 ideas to reduce the daily “shark attacks” at your dealership:
Managing the Shop: In some smaller marine dealerships, I have seen shop foreman instead of a service manager. Are they reviewing reports for proper scheduling, technician efficiency and productivity? Who is monitoring warranties? How long are units sitting on your property after the work has been completed, waiting to be cashiered? The longer they sit there, the longer before you get paid. That’s a bite in the swim trunks. Hire and train a good service manager or at minimum, empower and set expectations with your Shop Foreman!
Service Writer Training: Are your service writers properly trained? Are your service writers performing a complete and thorough walk-around in order to upsell parts? “If the customer comes in for a routine repair, what other items do you automatically check and communicate concerns or tips to the customer?” This is a soft-sell technique that increases parts sales and incidentally, builds customer confidence in you.
Service Writer Tools: Do they have the proper tools? Three tools to consider are:
• Checklist. Design checklists by make and model so that service advisors don’t miss a thing.
• Mobile App. The use of Mobile Apps allows you to check in customers quickly, efficiently and sign to approve the work.
• Service CRM product. A Service CRM tool can allow you to send follow-up communications for current or future work and communication automatically through email or text.
Service Writer Pay Plan: Even though it is their job, very few service writers make a conscious effort to sell parts unless their pay plan is affected by specifically includes it. Track their performance like any salesperson and provide them with incentives for selling.
Shop Supplies: Do your techs have a limitless supply of nuts, bolts, cotter pins, fluids, oils and greases in their bays that you simply recoup by charging “shop supplies?” When practical, you should be charging the proper part numbers to the repair order. This helps with inventory levels as well as documenting to the customer everything that went onto their unit and that you are getting paid for it.
Technicians: Are your technicians roaming through the parts department pulling the parts that they need? Those technicians should stay in their bays where they make you and themselves money. All parts requests should be handled by the parts department or by a parts liaison to ensure that they get sold properly to the job.
Warranty Processing: Too often, I see money left on the table because warranties are not processed in a timely manner or refiled. Again, the shark of time (i.e.: I’m too busy!) is swimming around your shop. File warranty work on time! IF the OEM denies it or some part of it, refile and fight for your money. As you become more familiar with the OEMs’ expectations on warranty items, you will find more claims approved and money back in your bank!
So, the next time you hear; “fishy, fishy come out and play,” you know it wants to eat your time or your profits or both! Don’t take your eyes off the shark, stay calm, keep swimming, and you’ll avoid be caught, letting your team focus on what matters most, maximizing its time to boost your profits.
About the Author
Dixie Morrow, CDK Lightspeed Client Training Manager, is a trainer, consultant and manager with Lightspeed, with more than 20 years of experience working alongside marine, RV and powersports dealerships of all sizes.
WASHINGTON, D.C., August 24 — Clark Marine, a Marine Retailers Association of the Americas Member, Certified Dealer and multi-year winner of the Great Dealership to Work For Award is featured as a Case Study as part of the Department of Commerce’s Job Quality Toolkit Initiative. Clark Marine was featured among household names like PayPal and Genesis Healthcare, Inc. and the only business in the outdoor recreation economy featured in the report.
The Job Quality Toolkit initiative is focused on creating an actionable tool that organizations can use to improve the quality of the jobs they offer. The toolkit seeks to give employers the ability to identify and improve the drivers that are most valued by workers as this will have a significant increase on their workplace satisfaction and engagement. The Toolkit is rooted in the Department of Commerce’s Baldrige Excellence Framework which has provided a globally recognized and emulated Criteria for Performance Excellence and should allow for rapid use of the toolkit throughout a variety of industries.
“It was an honor to be featured as Case Study in the new Job Quality Toolkit,” said Rob Brown, Owner of Clark Marine. “Ever since we opened our doors nearly 65 years ago, we have been dedicated to ensuring that our employees love where they work and collaborating with our staff to make improvements where we can. We hope this Case Study can help other dealers improve their business practices to retain and attract much needed talent.”
The MRAA was invited to participate and provide input on the Toolkit by the National Skills Coalition and Business Leaders United, entities dedicated to workforce development for small- to medium-sized businesses. The feature is timely because the MRAA and its industry partners are addressing workforce efforts, as a workforce shortage exists in the marine industry that is being felt by many MRAA Members.. The MRAA’s reinvigorated focus on workforce development presents to the dealership community one of many tools it can use to turn the tides on workforce.
“The Department of Commerce deserves praise for including Clark Marine and featuring a part of the outdoor recreation industry in its new Job Quality Toolkit,” said Chad Tokowicz, MRAA Government Relations Manager. “The MRAA, our industry partners and the Outdoor Recreation Roundtable are committed to improving the outdoor recreation workforce. These industries can provide individuals with well-paying jobs, which provide work-life balance as well as a career ladder. We await our continued work with the Department of Commerce and other Agencies to bolster the workforce behind the outdoor recreation economy.”
If you have any additional questions about the Job Quality Toolkit, current MRAA workforce efforts or want to get more involved in MRAA workforce development or advocacy efforts, contact Chad Tokowicz at Chad@mraa.com; 978-569-5127.
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.
MINNEAPOLIS, MN — The Marine Retailers Association of the Americas announced today that Pineapple Payments has pledged significant support to MRAA members, through both a membership and a new operational benefit for MRAA members.
Pineapple Payments, a payments technology company now part of Fiserv, is the newest addition to the line-up of MRAA Benefit Providers. Exclusively offered to MRAA dealer members, Pineapple’s benefit will provide MRAA members the opportunity to use its payment processing integrations in their businesses. The MRAA carefully selects organizations to partner with in becoming benefit providers and only chooses organizations that will positively impact its dealer members.
“Adding an MRAA Benefit Provider that is dedicated to payment processing is a huge win for our benefits program,” says Jason Walz, MRAA Director of Programs. “We work hard to give exclusive opportunities to our dealer members, and this program not only better supports our growing list of current members but is also another reason for more dealers to join the MRAA and take advantage of these benefits.”
Pineapple Payments aims to give MRAA members verified savings and solutions to overcome costly processing fees and antiquated payments technology. The company’s mission is to create more efficiencies within the boating industry. As one of the MRAA’s newest Platinum Partner Members, Pineapple Payments provides financial support to align itself with MRAA’s mission to help dealers run stronger businesses and create a better environment for marine dealers to thrive.
“We have solutions that cover all payment needs and connect seamlessly with dealer management systems already used by marine retailers,” said Brett Fisher, Business Development Leader at Pineapple Payments. “We have always had these solutions, but we had been rowing in a boat alone. To have this partnership and trust with the MRAA now, that is how we cast a wider net and make a real impact.”
Pineapple Payments joins a growing list of Platinum Partner Members and MRAA Benefit Providers. Learn more about MRAA’s other benefit providers and take advantage of being a member of the MRAA.
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.
About Pineapple Payments
Pineapple Payments is a Pittsburgh, Pennsylvania-based payments technology company that provides payment processing, proprietary technology, and omni-channel payment acceptance solutions for merchants of all shapes and sizes. Its core payment platform, Transax, and suite of value-added payments tools are distributed by resellers nationwide, including some of the largest payment processing companies and Independent Sales Organizations. Pineapple Payments offers both API based and out-of-the-box solutions. For more information, visit pineapplepayments.com.
MINNEAPOLIS — The Marine Retailers Association of the Americas announced that Tigé Boats, Inc. has recommitted to MRAA membership as a Platinum Partner.
Through Platinum Partner Membership, Tigé Boats aligns its brands with the programs and opportunities that MRAA works to provide the dealer body in an effort to fuel the success of the industry. The support the MRAA receives from Platinum Partners like Tigé Boats allows for the expansion of MRAA’s offerings and creates a positive, long-term impact for its members.
Tigé Boats
Tigé Boats, founded by Charlie Pigeon 31 years ago, has continued to innovate and refine the art and craft of boat building. Headquartered in Abilene, Texas, Tigé Boats aims to provide recreational boaters with a more unique experience on the water, and has introduced award-winning boats and transformative wake-shaping technology. Tige Boats large array of product innovations includes the patented Convex V Hull, TAPS3T, Alpha E3+ Tower with SolidShade, and the GO System. In 2019, Tige also introduced a sister brand, ATX Surf Boats, that has quickly made impact to the industry through its product positioning and inviting culture.
“We’re grateful that Tigé Boats continues to support our efforts to raise the bar for industry dealers, by maintaining its membership as a Platinum Partner with the MRAA, as well as their additional support in playing a key role as an exhibitor at Dealer Week 2022 this December, in Austin, Texas,” said Allison Gruhn, Director of Business Development. “Our Platinum Partner Members help us continue our pledge to support the marine industry and dealers in their pursuit of success by supplying beneficial resources and educational tools.”
About Tigé Boats, Inc.
Tigé Boats, Inc. is a world-renowned innovator, designer and manufacturer of high-performance inboard boats. Celebrating their 30th anniversary, Tigé has cultivated its iconic brand image through their industry-leading innovation, luxurious diamond-stitched interiors, and multisport versatility. From their world-class manufacturing facility and across the 2022 product line, Tigé’s consistent design-driven mentality has refined the marketplace while forever intensifying the love for wakesurfing, wakeboarding and waterskiing. Experience the 2022 Tigé and ATX lineups now at TIGE.COM / ATXBOATS.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.
MINNEAPOLIS, August 19 — As boat dealers continue to adjust to the post-pandemic marketplace and create their plans for the year ahead, the Marine Retailers Association of the Americas has introduced a powerful Dealer Week educational lineup that aims to help them accomplish that very task.
Bolstered by more than 20 training and educational sessions, Dealer Week, the MRAA’s annual conference and expo, is the marine industry’s only event focused on aiding dealer success. The courses and educational deliveries are the cornerstone of Dealer Week, and the entire event is constructed around the delivery of ideas, insights, strategies and best practices to help dealers strengthen their business.
The Dealer Week educational lineup helps dealers concentrate on the topics that matter most to them. It also helps them prioritize which staff members should consume which content.
“Our goal with Dealer Week’s courses is not to just use talking heads to deliver a message,” explains Liz Walz, MRAA’s Vice President of Education. “Our goal is to give dealers a direct path to implementing the ideas, insights and inspiration they collect at the event when they return to their dealerships. Without that implementation, we don’t fulfill our mission.”
The Dealer Week Sales and Marketing Pathway will be led by Marcus Sheridan, a highly sought-after international keynote speaker, known for his unique ability to excite, engage and motivate a live audience with his simple-yet-powerful transformational business approach. Dubbed as one of Forbes’ magazines 20 “Speakers You Don’t Want to Miss,” Sheridan will kick off the pathway with a session titled, “7 Selling Strategies Your Dealership Will Need in 2023.”
The Dealer Week educational sessions within each Pathway run concurrently, and each pathway will add another session — a Panel Discussion with industry dealers will be held from 11:30 a.m. to 12:15 p.m. Wednesday, Dec. 7 — to the lists of courses found here. Event attendees can select specific sessions they want to attend, sticking within one pathway or bouncing between pathways in order to enjoy the session and topics they determine will have the biggest impact for their business.
Sam Dantzler will host the Leadership Pathway at MRAA’s Dealer Week 2022 Conference & Expo December 5-8, in Austin, Texas.
Dealer Week favorite Sam Dantzler, a speaker driven by adventure, immersive interactions and continuing education, will host the Leadership Pathway, helping to initiate conversations and connect the sessions to one another for a deeper learning experience. Dantzler, the Owner of Wheelhouse College and President of Garage Composites, is known for his “seize the day” personality, winner’s mentality and devotion to dealerships of all sizes. In Texas, he will help anchor the Pathway with his session titled “Prepare Your Dealership for the Disruption Ahead.”
Jim Million, aka the facilitator’s facilitator and trainer extraordinaire, will host the Service & Parts Pathway helping dealers understand how they install and implement key processes within their service and parts departments to improve operations and achieve their goals. Owner of Million Learning, Jim has been involved within the automotive industry in multiple roles, from salesperson to developer to speaker. His diverse background and familiarity with dealership procedures makes him an invaluable professor of sorts within the marine industry. Millions will conclude this pathway with his session titled, “Reduce Service Dept. Pain with These Workforce Tools & Strategies.”
Dealer Week 2022 is held Dec. 5-8, at the Austin Convention Center in Austin, Texas. Registration is open, so marine dealers have three convenient ways to join their peers at Dealer Week to learn, implement and grow their business.
To fully immerse yourself and your non-attending teammates in the full experience of Dealer Week, consider attending the event in person and the online event that follows. With the steeply discounted combo package, you can gain great value from learning in-person and revisiting the content anytime you’d like for up to three months after the live event.
The OPTIMAL CHOICE is to join the MRAA in Austin, the live music capital of the world, where you gain direct access to speakers, exhibitors and other dealers to maximize your learning and experience an array of additional events, including MRAA’s 50th anniversary celebration.
MRAA will also hold Dealer Week Online, allowing you to watch 15 expert-led courses at home or in your dealership starting in December, for those who cannot attend the Texas conference.
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.
About Dealer Week
For 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.
Halftime Review of 2022; Dealers’ Second-Half Outlook
It’s easy to feel beat up and exhausted, especially when faced with long, hot summer work days with uncontrollable influences putting chinks in your amor! Throw in the inescapable change that keeps peeping around the corner, and it’s no wonder operating a dealership can be as challenging as it is rewarding.
Here’s an example: “It seems negative consumer reaction to the tremendous increase in boat prices is starting to have an effect. Our customers are in total shock about new boat prices. The manufactures we represent have raised prices over 35 percent in three years! We are heading to major recession I am afraid.” — Anonymous marine dealer response.
While some may describe this quote as a “The sky is falling” outlook and mindset, one has to listen earnestly to understand not all dealers are experiencing the exact same things, nor are they set up to harvest the same level of success or take the same approach to managing these challenges and their customers’ demands.
That’s why in the July Pulse Report — a monthly look into the health of the marine retail and industry trends with Baird Research & “Trade Only” — the goal was to call a timeout to gain some perspective from you! After all, July is month seven in the 12-month calendar, so it made sense to do a halftime review, find out what’s working, or not working. Here’s a highlight of some responses on each.
Working: • “Manufacturers who are able to deliver what they say when they say are winning.” • “Web based marketing continues to provide solid leads for follow up. Web page generating solid leads.” • “Service is performing at an all-time high and we are still four weeks out.” • “Pontoons.” • “Taking time with the customer. Getting back to a slower, personalized, relationship-based sales approach.” • “We strive for high CSI and customer service above what customers expect. That is paying off on us and we are doing very well.”
Not Working: • “Unrealistic pricing.” • “Supply.” • “Lack of qualified and willing applicants makes it impossible to fill open positions.” • “If staffing issues can be resolved, we could increase revenue over last year. If staffing stays the same, we will continue to have more demand than we can satisfy.” • “Aluminum fishing, fish-n-ski, used aluminum fish.” • “Gas prices aren’t working, interest rates aren’t working, inflation isn’t working, this administration isn’t working. The legislative branch, both sides, isn’t working. That should about sum it all up.”
Dealers also contributed their in-the-trenches feedback to the question: “How did the first half of 2022 compare to your budget and expectations?” Nearly two thirds of responding dealers reported that the first half met their expectations or exceeded them. However, 36 percent indicated the first six months of 2022 were below expectations. (See chart)
“We still have significant backlog from pre-sold units that will deliver in the second half that will impact our budget, but the new activity will be more challenging moving forward.”
Some dealers also shared openly about their wins, struggles and concerns moving forward through ’22 and into 2023, when responding to our request for their outlook for the second half of the year. The marine retailer sentiment index actually saw a slight uptick in June, but didn’t raise above the 50 percent neutral line, hinting that opinions and view for the near future and 3-to-5-year outlook remain negative. Retail demand factors (weather, access to credit, OEM promotions, government action/inaction, et al.) all continued their negative trend as well.
Dealers responses also showcased an ongoing concern moving forward, with inflation taking hold and the disposable income diminishing. “The glory days of COVID and unrelenting demand are now over. We started noticing demand dropping about 120 days ago and, sure enough, we are back to normal business.”
One dealer painted a clearer picture that this is simply the cycle of the boat business. They predict the market will have less buyers and therefore less demand as supply rebounds and grows. This, they add, will impact pricing and margins and rather naturally “weed out” dealers unprepared for a slowdown. To learn more about the changes in the boating customer, be sure to read the Kevin William’s (NMMA) guest blog here.
Despite the somewhat negative or authentic viewpoints from some dealers who point to continued marketplace uncertainty, some of them remain optimistic and carry a positive mindset in the latter portion of the year.
“Expect continued demand for new and used boats, but perhaps not at the rate we’ve seen over the past two years. We will remain busy delivering boats that are retail sold but not to the dealership yet. Continued parts shortages and lack of engine availability are keeping the pace from going any faster than it currently is. Overall, business levels may not be as strong as last year but still very respectable all things considered.”
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