Dealer Pay Commits to Platinum Partner Membership, Dealer Week Educational Session Sponsorship

MINNEAPOLIS, Dec. 2 – The Marine Retailers Association of the Americas announces Dealer Pay has committed to the association as a Platinum Partner Member, and will sponsor a special Dealer Week 2024 educational session next week.

Through Platinum Partner Membership, Dealer Pay provides significant support for the association while receiving increased marketing exposure, Dealer Week benefits and the opportunity to contribute educational content. Commitments from Platinum Partners like Dealer Pay allow the MRAA to create world-class education and programs for the marine dealer body.

“I have never been more excited about how far Dealer Pay has come and where we are heading,” said Julie Douglas, President/CEO, Dealer Pay. “We are growing and expanding our offerings in all dealerships, by creating workarounds, solving problems and introducing new technologies to help dealerships be most successful. Growing into marine has proven that we have done the hard work and are ready to lead the charge, one boat dealer at a time!”

Dealer Week 2024

Dealer Pay, headquartered in St. Louis, Missouri, offers seamless, integrated payment processing and advanced software solutions for retailers within the automotive, powersports and marine industries. Started in 2013, Dealer Pay provides its clients with innovative payment solutions, with a focus on advanced technology and security, mobile and virtual payments, customer loyalty, real-time reporting, improved service and support and more. Dealer Pay will host a sponsored educational session “Relieve Point-of-Sale Pain and Gain Customer Loyalty” in the Service & Parts Pathway on Tuesday, Dec. 10 at Dealer Week 2024 in Orlando, Fla.

“Dealer Pay understand the importance of technologies and world-class education and how they can be used to effectively improve dealerships, enrich customer experience and advance the marine industry as a whole,” says Allison Gruhn, MRAA Vice President of Business Development. “Through its support as a Platinum Partner Member and a Dealer Week educational session host, Dealer Pay has displayed an extreme commitment to enhance the MRAA’s mission to advance boating.”

About Dealer Pay, LLC
Dealer Pay provides modern and “dealer-specific” payment acceptance and point-of-sale technology, serving both franchise and independent dealers nationwide. Dealer Pay has over 24 years’ experience in the space and is expanding with strategic development and integrations.  Call 800.226.1007 or visit https://www.dealer-pay.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.

MRAA Adds 4 New Employees to Amplify Marketing, Membership and Operations

MINNEAPOLIS, November 27 – The Marine Retailers Association of the Americas announced today the addition of four new employees: Membership Engagement Coordinator Kaelyn Olson, Senior Accountant Josh Nelson, Senior Director of Marketing Bob Stanke and Senior Marketing Specialist Gunnar Davies.

“Bringing Kaelyn, Josh, Bob and Gunnar to the MRAA team has strengthened our team in so many different ways and in all functions of our business, from member engagement to business development to financial management,” says Matt Gruhn, MRAA President. “Adding four new employees will also make us more effective in delivering on our important mission of helping our members grow and prosper.”

All four team members will be in attendance at MRAA’s Dealer Week Conference & Expo in Orlando, Dec. 8-11, where they will have the opportunity to engage with members and participate in bringing the MRAA mission to life.

MRAA Adds 4 New Employees to Amplify Marketing, Membership and Operations
Kaelyn Olson

Kaelyn Olson — Membership Engagement Coordinator
Olson will lead the management and execution of deliverables for MRAA’s Partner Memberships and Dealer Week exhibitors while collaborating with the sales and marketing teams to ensure quality customer service. She has a bachelor’s degree in Allied Health and professional experience in customer service, management and sales. In her free time, she loves spending time with family, cooking and going out on the town with friends.

“I am thrilled to be working with such a devoted and enthusiastic group of people,” says Olson. “I am confident that my unique background will bring a fresh perspective, enabling me to contribute to the team’s mission and help elevate the experiences and outcomes for our partners.”

MRAA Adds 4 New Employees
Josh Nelson

Josh Nelson — Senior Accountant
Nelson will record daily transactions, prepare financial statements and help all MRAA business units best manage their financial reports to achieve their goals. He has a Bachelor’s of Accountancy and over 10 years of experience in the public and private accounting sectors. Nelson enjoys running, traveling and spending time with friends.

“When I came in for my interview at MRAA, I noticed all the books, some I had read and many others recommended by podcasts I listen to … this is when I knew I would fit in,” says Nelson. “This is a fun group that is also very passionate about our work. I am happy to have the opportunity to help with that.”

MRAA Adds 4 New Employees to Amplify Marketing, Membership and Operations
Bob Stanke

Bob Stanke — Senior Director of Marketing
Stanke will lead the MRAA’s marketing department, providing strategic direction and management of the Association’s brand messaging, processes and marketing of products, services and educational programs. He holds a bachelor’s degree in Business Administration and Information Systems. He has over 25 years of experience in marketing and marketing technology, with proficiency in consumer goods, health and fitness, sports and entertainment and financial services. Outside of work, Stanke enjoys hanging out with his wife and four kids and can be found on golf courses in Minnesota or western Wisconsin.

“I am thrilled to be joining the team at the MRAA,” says Stanke. “I look forward to contributing my skills and collaborating with the exceptional professionals at the MRAA to advance our mission of fueling dealer success in the marine industry.”

MRAA Adds 4 New Employees to Amplify Marketing, Membership and Operations
Gunnar Davies

Gunnar Davies — Senior Marketing Specialist
Davies will monitor and analyze leads across all marketing channels, ensuring alignment of marketing content strategies and managing social media platforms to drive engagement and results. He has a bachelor’s degree in Business Marketing and several years of experience in the boat manufacturing industry. Outside the office, Davies, a self-described podcast fanatic, is a four-season outdoorsman who enjoys working out, reading and playing and coaching hockey. 

“I am thrilled to join such a talented and dedicated team at MRAA, where there is significant growth and opportunity to drive marine dealership success,” says Davies. “I am eager to contribute to MRAA’s mission of supporting a thriving boating industry for marine retailers.”

Meet the entire MRAA staff.

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.

Powered by Boating and Fishing, Data Shows Outdoor Recreation is a $1.2 Trillion Economic Engine

WASHINGTON, D.C, November 27, 2024 – The Marine Retailers Association of the Americas is excited to share new economic data released by the U.S. Department of Commerce’s Bureau of Economy Analysis (BEA) highlighting that outdoor recreation, and in particular boating and fishing, continue to be a major driver of the U.S. economy, jobs and local communities. According to the latest data from the BEA Outdoor Recreation Satellite Account, outdoor recreation generated $1.2 trillion in economic output (2.3% GDP), comprised 3.1% of U.S. employees and accounted for 5 million jobs in 2023.

Recreational boating and fishing continues to be a major driver of the outdoor recreation economy and this year was the largest recreational activity for the nation, coming in at $36.8 billion in current-dollar value added and was the largest recreational activity in 34 states and the District of Columbia. The states with the largest contributions were Florida ($4.2 billion), California ($3.1 billion) and Texas (2.8 billion).

“Recreational boating continues to be a key part of America’s Outdoor Recreation Economy, and the new 2023 BEA data highlights Americans’ desire to be outside, get on the water and enjoy their favorite pastimes,” said Matt Gruhn, President of the Marine Retailers Association of the Americas. “The success of the recreational boating industry is ultimately fueled by marine retailers who keep boaters on the water and are key for ensuring that we continue to grow participation in America’s Outdoor Recreation Economy. This economic impact underscores the importance of prioritizing policies that support marine retailers, fuel continued investments in conservation and ensure domestic marine manufacturers can remain strong to ensure the recreational boating industry stays a uniquely American sector.”

Powered by Boating and Fishing, Data Shows Outdoor Recreation is a $1.2 Trillion Economic Engine
U.S. Bureau of Economic Analysis

This is the largest recorded measure since the BEA started calculating the size of the outdoor recreation economy in 2012. According to newly revised data in this year’s release from the BEA, the outdoor recreation economy has grown 36% in real terms since 2012. These new figures reveal that the outdoor recreation economy contributes more to the U.S. economy than farming, mining and utilities.   This is the seventh consecutive year that the BEA has released government data on this critical industry sector. Today’s release confirms the role of outdoor recreation as a central contributor to thriving economies, healthy people and connected communities. 

Jessica Turner, President of the Outdoor Recreation Roundtable (ORR), elevated the new data as a testament to the strength and importance of the outdoor recreation economy: “With over $1.2 trillion in economic output and generating 5 million jobs, this marks another year of growth for the outdoor recreation economy, underscoring its resilience and importance across the nation. The new BEA data highlights outdoor recreation as a cornerstone of our economy, generating jobs, supporting small businesses and providing essential opportunities for Americans to engage with the outdoors for health, connection and quality of life. This new data should signal to policymakers and leaders across the country that investing in outdoor infrastructure and access must remain a national, bipartisan priority. We urge this Congress to take swift action to pass the EXPLORE Act, a widely supported package of bills that will help to ensure that all Americans have access to the outdoors and support the communities and businesses that rely on recreation economies.”

Key Highlights: 

  • Nominal Gross Output: $1.2 trillion, up 5% from 2022 
  • 36% growth in Real Gross Output since 2012 
  • 5 million jobs, 3.1% of Employment 

Diverse Sector Growth (Real Terms):  

  • Bicycling up 11%  
  • Climbing/hiking/tent camping up 6% 
  • Hunting/shooting/trapping up 12% 
  • Snow Activities up 23% 
  • Trips and Travel up 7% 
  • Lodging up 9% 
  • The outdoor recreation economy exceeded growth of the U.S. economy from 2022 to 2023 with outdoor recreation real GDP growing 3.6% compared to 2.9% for the U.S. economy and jobs growing 3.3% compared to 1.8%. 

Retail Remains Strong
Furthermore, retail trade remains as a backbone of the outdoor recreation economy and was the second largest industry group for the nation, generating $156.3 billion or 24% of value added, and was the largest industry group in 26states. The states with the largest contributions were California ($17.6 billion), Texas ($13.9 billion) and Florida ($12.2 million). It is crucial to note the importance of a strong retail sector in the outdoor recreation economy, as this is made possible by MRAA members and others who bridge the gap between manufacturers and consumers, getting folks out on the water or on the trail and making outdoor recreation possible for the masses.

Continued Growth Despite Challenges: Despite economic fluctuations and market adjustments following the pandemic, the outdoor recreation economy continues to outpace the broader U.S. economy in several metrics. The data reflects increased participation across a variety of outdoor activities and a surge in related industries such as arts, entertainment, recreation, accommodation and food services (up 6% in real terms). 

Federal Support Remains Critical: The EXPLORE Act, already passed by the U.S. House of Representatives in April 2024, would help ensure that public lands and recreational spaces remain accessible and well-maintained, with updates in antiquated management policies, boosting the outdoor economy without new costs to taxpayers. As the outdoor recreation economy grows, so does the need for continued investment in public lands and infrastructure. Without updates and improvements, many recreation areas risk falling behind demand. Additionally, retroactively extending the Generalized System of Preferences (GSP) by the end of the year would bring back certainty to the businesses trying to move supply chains out of China and keep their products affordable for consumers. 

If you are interested in learning more or checking out the full release of the data, click here. If you have any further questions about the data or would like to discuss the implications, please feel free to reach out to MRAA Government Relations Staffers Chad Tokowicz, Government Relations Manager at Chad@mraa.com, or MRAA Director of Government Relations, Mike Sayre at Sayre@mraa.com.

About the Outdoor Recreation Roundtable
The Outdoor Recreation Roundtable promotes the growth of the outdoor recreation economy and outdoor recreation activities. We educate decision makers and the public on balanced policies that conserve public lands and waterways and enhance infrastructure to improve the experience and quality of life of outdoor enthusiasts everywhere.

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.

Identifying Opportunities in the Dealer-Manufacturer Relationship

Collaborative effort between the MRAA board and leading manufacturers and suppliers focuses on driving improvements in the customer experience.

By Matt Gruhn, MRAA President

In the world of major unit retail, stark differences exist between the auto and marine industries. Major unit sales volume, alone, drives the bulk of the disparities between how each industry operates and derives its profits. It also commands different approaches to the critical dealer-manufacturer relationship that impacts so much of the customer experience.

In the automobile industry, franchise agreements govern the manufacturer and dealer relationship. The dealer purchases a brand’s franchise, which comes with a set of clear expectations for how the dealership will deliver for the brand. In return, the manufacturer grants the dealer the right to sell and service its vehicles in a specific market area. Such a franchise gives the dealership an ongoing right to use the manufacturer’s trademarks and operating system, defines the dealer’s obligations and typically provides incentives for the dealer to act in the customer’s best interest because they are paid by the factory to perform warranty and recall work.

In the boating industry, dealers and manufacturers do not use franchise agreements, and there are various views on the pros and cons to this approach.

Manufacturers build a brand and set goals for their business. Dealers build a brand in their local marketplace and set their own goals. The goals generally align — sell lots of boats, take great care of customers – but they don’t always fall into perfect alignment.

For example, boat dealerships commonly carry multiple boat lines — some of which may even compete with one another — and must find a balance between the needs of each brand and the goals of their own business. Manufacturers naturally desire to be priority No. 1 in each dealership that carries their brand, and they often find it challenging that they can’t leverage dealers to abide by specific operating systems, strategic initiatives, customer satisfaction requirements or other specific criteria.

Further complicating the issue is the fact that the use of written dealer-manufacturer agreements, which would document agreed-upon expectations, is inconsistent across the marine industry. Thus, the entire system allows for gaps between the partners’ expectations for one another and the real-world performance they deliver.

All of this leaves our industry with a real need for dealers and manufacturers to engage in intentional, collaborative conversations around expectations and performance — conversations that would ultimately lead to both parties delivering a better end-user experience and higher levels of customer loyalty among today’s boat buyers.

Three years ago, MRAA’s Board of Directors (all dealers) and Strategic Partners (all manufacturers and suppliers) collaborated to add to MRAA’s strategic plan the directive for MRAA to serve as an advocate between dealers and manufacturers and, specifically, to formalize conversations between the two parties. Admittedly, as MRAA is largely a dealer-focused organization, it takes a delicate balance and a focus on not succumbing to bias in such an endeavor, and I’m proud to tell you that through the guidance of both dealers and manufacturers, MRAA is rolling out a comprehensive performance review program to support industry collaboration and growth.

Identifying opportunities in the dealer-manufacturer relationship

MRAA has worked closely with two multi-brand manufacturers to roll out a pilot program featuring a scorecard that will encourage dealers to score and provide feedback to their respective manufacturers and a scorecard that will encourage manufacturers to score and provide feedback to each dealer in their network. The scorecards were built using direction from an MRAA strategy meeting, where both dealers and manufacturers charged MRAA to create a common platform that could be used to facilitate conversations between the two parties. After more than a year of effort put to this, including dozens of conversations with industry stakeholders, the draft scorecards were fine-tuned by the MRAA Board of Directors and then further refined through one-on-one conversations with several boat manufacturers.

The feedback was compiled, a total of eight, ever-improving scorecard drafts were created and critiqued, and near-final versions were presented for feedback to the MRAA Board and Strategic Partners at an in-person meeting on Sept. 30. The final versions are now in play with multiple boat brands as a pilot program that MRAA intends to fully rollout in 2025. We’ll learn from the first set of brands and their dealers and will refine our process and our scorecards and come back with a meaningful scorecard program intended to strengthen the collaboration between dealers and manufacturers in order to take better care of today’s boat buyers and grow our industry.

So, you might be wondering: What topics will the scorecards address? The dealer scorecard will ask manufacturers to rate their dealers and provide feedback on customer satisfaction, professional appearance, inventory management, sales, service and parts effectiveness, and operational excellence, while the manufacturer scorecard will ask dealers to rate their manufacturers on their market territory, product quality, parts delivery, satisfaction with the manufacturer’s rep, satisfaction with the overall relationship and the dealer agreement. Both the dealer and the manufacturer scorecards will also allow the parties to address education and training, marketing and promotions, warranty programs and processes, and market share.

MRAA’s discussions around this have garnered many questions, all of which we are happy to listen to and talk through. The impetus behind these efforts is that if we, as an industry, want more boat buyers and more repeat boat buyers, we must deliver a better customer experience – one that warrants today’s busy consumers investing their hard-earned money and their precious time into our products and services and into our livelihoods. We believe that in creating meaningful conversations around the dealer-manufacturer relationship and working together toward the goal of growing boating, we can create a better future for decades to come.

Samples of the Dealer and Manufacturer Scorecards will be unveiled at Dealer Week in Orlando (Dec. 8-11), and the program will be fully rolled out by MRAA and a third party — Customer Service Intelligence, Inc., who boasts a rich history in capturing voice of the customer information and data — via an email and phone call survey campaign. MRAA will then share reports with manufacturers who enroll and participate in the program. Manufacturers will receive a comprehensive report of feedback from their dealer networks — along with an (anonymous) aggregate comparison to industry and segment averages — and those manufacturers will be expected to share their dealer scores and feedback with each individual dealer.

While many tools and resources and how-to’s for using the scorecards are forthcoming as part of the launch, MRAA is confident this new program will drive performance improvements on both ends of the supply chain by helping to establish and enhance more productive dialogue between manufacturers and their dealers. The scorecards will elevate conversations around expectations for each party, and the feedback regarding performance will provide both parties a pathway to continued improvement, growth and customer loyalty.

Please stop by the Dealer Week booths for either MRAA or Customer Service Intelligence, Inc. to learn more about this or contact me directly after Dealer Week is over: matt@mraa.com.



A version of this article originally appeared in the December issue of Soundings Trade Only.

The Nexus of Success

The relationship among dealers, manufacturers and customers is more critical than ever.

By Matt Gruhn, MRAA President

In 2018, an eye-opening report surfaced about the health of the marine industry. It revealed the attrition rates of first-time boat buyers. Close to 40% were selling their boats and leaving boating within the first five years of ownership.

The attention placed on boater retention — as opposed to a sole focus on recruiting future boaters — became a key industry initiative. While an emphasis on the overall customer experience has always existed, the attrition rates provided a rallying cry for greater focus.

More research and data underscored the importance of that experience to the overall health of boating in 2021. Left Brain Marketing, at the request of the Recreational Boating and Fishing Foundation, Discover Boating and the Marine Retailers Association of the Americas, led a research project that sought to understand challenges and opportunities to enhance boat ownership. The study found that nearly 90% of boat buyers, shortly after the point of purchase, said they would “definitely” or “probably” remain a boat owner for at least the next five years.

In other words, first-time boat buyers intend to remain in boating for the long term, but there is a significant gap between their intention and reality. What happens between the purchase and year five that causes boat owners to flee?

Defining the Ownership Experience
By the end of 2019, the 40% attrition figure had been discussed widely across the industry. Then, the pandemic hit in early 2020, creating a marketplace that led to record numbers of first-time boat buyers.

In the ensuing years, the frenzied environment created customer-experience problems. Suppliers were frustrated by overseas restrictions that shut down their ability to deliver parts to U.S.-based boatbuilders. Manufacturers were frustrated by suppliers that couldn’t deliver parts, components, resins and materials necessary to build boats. Dealers were frustrated because they could sell every boat they could get their hands on, but they couldn’t get enough boats to satisfy all of their potential customers.

Boats that dealers did receive often were missing key components, as manufacturers were forced to short-ship boats with missing parts just to get product into dealer showrooms and on the water. With consumer demand at an all-time high, boats deemed operational — those missing latches, as opposed to engines, for example — were delivered to customers with the promise of installation at a later date.

Given those challenges, many industry experts fear that the five-year attrition rate is at risk of worsening. It’s easy to understand why. Pandemic-era buyers experienced lower product quality. The price of boats increased significantly, so the cost of ownership started off on the wrong foot. Maintenance requirements increased as quality issues arose. Boater training suffered as dealerships hurried the delivery process. The only thing that seemed to work in the marine industry’s favor was the frequency of boat usage — in a socially distanced world, boating was among the most popular pursuits. Unfortunately, frequent usage led to a greater demand for repairs and maintenance, when dealership service departments were already maxed out.

All of which brings us back to the risk of greater at­trition as we face the reality that the world has returned to restaurants, travel, concerts, youth athletics and more — all competitors to the free time consumers had allocated toward boating during the past four years.

Complexity in Customer Experience
Across the marine industry, companies measure the customer experience through the eyes of Customer Satisfaction Index and Net Promoter scores. Manufacturers that attain the highest scores are recognized at industry events. Dealerships that excel are acknowledged at dealer meetings.

To emphasize the importance of these scores, manufacturers provide dealers with consequential financial incentives, such as higher warranty reimbursement rates. The dealers’ higher scores lead to manufacturers’ higher scores, which ultimately translate into a great marketing story that may encourage consumers to buy one brand’s product instead of another.

The drive to attain these higher scores, though, threatens to mask the need for real deliverables when it comes to the customer experience. To begin with, we must understand that customer service is transactional in nature. A customer comes into the dealership with a need, and the dealership fulfills that need. That’s customer service. Customer satisfaction, then, is a measurement of the level of satisfaction with that interaction, with the transaction.

Customer experience, on the other hand, as defined by Theresa Syer of Syer Hospitality Group, a frequent trainer in dealer education programs offered by the MRAA, is the sum total of all interactions with a business. It includes experiences consumers have with a website, phone interactions, the greeting at the store, the engagement with a salesperson, the brief but telling interaction with the lot attendant, the product quality, moments of customer service, and all other interactions with the business. The quality of the overall experience, as reinforced by the Left Brain study, includes inputs from people and products alike — from the manufacturer and the dealership — as well as several factors intertwining the people and products, such as financial considerations.

To underscore the dealers’ and manufacturers’ shared accountability to the customer experience, consider insights from a pre-pandemic data point offered by way of a study by Avala Marketing Group, now known as Rollick. As the administrators of the National Marine Manufacturers Association’s customer satisfaction program, they looked deeper at the results and identified that some of the highest correlated inputs to overall boat satisfaction — that is, satisfaction with the product itself — include the “overall purchase experience” (at the dealership) and the question, “Would you recommend this dealer?”

In fact, of all of the questions related to the overall satisfaction with the boat, “Would you recommend this dealer?” was more highly correlated to overall boat satisfaction than some of the questions specifically related to the product itself.

“What this tells us,” they noted at the time, “is that a customer’s happiness with the dealer experience can override dissatisfaction with the product. But conversely, a poor dealer experience can cause the customer to abandon that brand forever.”

So in the pursuit of providing a world-class customer experience for today’s boat owners, it becomes clearer that the path to doing so requires a strong, collaborative effort by the dealer and the manufacturer. This reality justifies the need to measure and have deeper discussions surrounding this critical dealer-manufacturer relationship and its significance in delivering on the promise of the boating lifestyle. 


This article was originally published in the September 2024 issue of Trade Only Magazine.

Don’t Split Up the Team

How the strength of the dealer-manufacturer relationship drives customer loyalty.

By Matt Gruhn, MRAA President

“Don’t split up the team,” Christina Fliakos said.

Nearly 50 dealers and manufacturers paused their conversations and turned to Fliakos, who is Senior Manager of Parts and Service Processes at Brunswick Corp.’s Service Center of Excellence.

They had been buzzing about repair event cycle times and the need to collaborate to get customers’ boats back on the water faster. Too often, poor communication between dealers and manufacturers slows down warranty repairs. Dealers contact the manufacturer, whose warranty either allows for the repairs or not. Customers faced with out-of-pocket costs become frustrated with the dealer. Sometimes, they call the manufacturer directly. If the manufacturer then approves the warranty work, it undermines the dealer’s relationship with the customer.

“Don’t split up the team” was Fliakos’ way of saying that dealers and manufacturers need to be on the same side.

The dealer-manufacturer relationship is often overlooked as a bedrock element in the boater’s buying and ownership experience. In fact, warranty-related processes and policies represent just one of six key areas where the quality of the dealer-manufacturer relationship either drives or deteriorates customer loyalty with boating.

In preparing for the meeting where Fliakos brought this reality squarely into focus, I spent a significant amount of time exploring where, exactly, the dealer-manufacturer relationship affects the customer experience and customer loyalty. I talked with more than three dozen manufacturers and dealers. We discussed the desires and expectations that manufacturers held for dealers, and vice versa. Then, we dove deeper into which of those desires and expectations actually affect the customer experience, and how.

I also reviewed articles from outside our industry on dealer-manufacturer relations, including performance-oriented scorecards and state-level warranty laws. I examined nearly two dozen marine manufacturer-dealer agreements, including a model agreement created by the Marine Retailers Association of the Americas and the National Marine Manufacturers Association. When I was done with that, I reviewed sales and service contracts, eligibility policies, operating standards, evaluation forms and termination notices.

That’s how these six key areas of the dealer-manufacturer relationship were identified, specifically as areas that directly affect the boat-buying and ownership experience:

Supply chain management that ensures quality boats reach the customer. This includes inventory management. Steady orders let manufacturers level-load their production lines, and managing inventory costs is a priority for dealership health. Dealers and manufacturers must act appropriately in response to market dynamics. Both should make ongoing investments in workforce development to support producing, selling, and servicing boats and engines.

Quicker service turnaround times for the consumer. This applies to new-delivery and service-repaired boats alike. It begins with quality assurance efforts — including the quality of products from third-party suppliers — at the manufacturer level. There’s a need for quicker problem-solving, along with effective methods for involving manufacturers when interfacing with customers. There are opportunities to share boat schematics, build sheets and other documentation to enable more accurate parts procurement. There’s also a need for dealers to respond faster, with better-quality information. Improved two-way communication presents a united front to the consumer.

Warranty policies that take care of the issues and the customer. Several opportunities in this area should be explored, including reimbursement policies based on performance with incentives at or above the dealer’s retail rate; preapprovals that speed up the time to get boaters back on the water; policies that speak to dealers’ travel and haul-out costs; and post-dealer termination policies focused on taking care of the customer, including parts access, reimbursements and allowing the selling dealer to provide service for the life of the warranty.

Annual performance reviews that ensure manufacturers and dealers are providing a high-quality boating experience for customers. This opportunity begins with stating clear expectations for the dealer and manufacturer. Identify and document what an actual review process should look like. Use “cure periods” to fix underperformance by dealers or manufacturers.

Manufacturer-sponsored development programs that ensure dealership teams and customers are educated on the product. Such an approach would ask manufacturers to require product sales training, require technician training and require competency training for dealership teams. The approach could also involve the use of certifications or credentialing to ensure that dealership team members are retaining knowledge and skills.

Improved dealer-manufacturer agreements that support partnership, sound business practices and customer loyalty. This catchall interconnects all of the above touchpoints into a written document. It also includes addressing such key elements as an initial contract with proper length and terms; the mutual pursuit of agreed-upon expectations; and the renewal of the contract with considerations around length of the term and conditions for continued improvement.

In the boater’s buying and ownership experience, where every touchpoint with our industry can be consequential, the burden of accountability falls upon the dealer and manufacturer. While many other players — suppliers, distributors, lenders, technology providers and more — play a significant role, the dealer and manufacturer serve as the face of the marine industry to the consumer.

It’s our goal at the MRAA to focus on much more than keeping this team intact. It’s our priority and part of our strategic plan to help strengthen and enhance what this critical team brings to the table. The effort needs to begin with establishing clear expectations, maintaining collaborative communications, and improving on what we learn along the way.

Stay tuned to learn where our efforts are leading us. And please reach out if you think we’ve missed anything: matt@mraa.com.


This article was originally published in the October 2024 issue of Soundings Trade Only.

Beer vs. Boats

In the game of trying to stabilize inventory, there really is no difference.

By Matt Gruhn, MRAA President

Have you ever played The Beer Game? No, I’m not talking about a frat-house game. I’m talking about The Beer Game as chronicled in the book The Fifth Discipline. The book shares the story of three businesses — a beer retailer, a beer distributor and a brewer — seeking to serve their customers well, to keep their product moving and to avoid the risks inherent in supply-and-demand environments.

Author Peter M. Senge has seen the same outcome during the thousands of times his collegiate and management-level students have played The Beer Game. Each participant makes well-motivated, clearly defensible judgments, based on reasonable expectations of what might happen in managing their business. After that, everything goes sideways.

“First, there is growing demand that can’t be met,” Senge writes. “Orders build throughout the system. Inventories are depleted. Backlogs grow. Then, the beer arrives en masse while incoming orders suddenly decline. By the end of the experiment, almost all players are sitting with large inventories they cannot unload.”

The point of the game is to prepare students for similar crises that surface in real production-distribution systems. Take the recreational marine industry. Today, in our factories and our dealerships, the scenario is threatening to play out in real time, despite the fact that we’ve already played this game.

Remember when the Great Recession turned growing sales trends into a precipitous rise in inventory levels that put 35% of our dealerships out of business, seemingly overnight?

More recently, in our real-life version of The Boat Game, demand skyrocketed and dealer inventories quickly depleted during the early stages of the pandemic. Boats were then purchased on pre-order, before they even hit the production line. The pressure on dealers and manufacturers mounted to the point of overwhelm, largely due to the fact that insane demand coupled with worldwide supply chain issues meant they simply couldn’t keep up. Dealers just kept ordering because they knew they could sell everything they could get their hands on.

Then, about a year and a half ago, demand began to subside, those back orders were still being built, and normalization of inventory levels came way faster than anyone expected.

So now we’re on the back end of this round of The Boat Game, trying to adjust our businesses and our inventory levels to the market’s latest realities. The numbers are stark: According to key industry partners, inventory levels at dealerships across the United States on Dec. 31, 2022, compared with Dec. 31, 2021, had effectively doubled. And that trend has continued into the prime selling season of 2023.

Some dealers have noted that they have canceled orders, aren’t taking new orders, and they’re concerned over how to order for the 2024 model year.

“We are receiving 2023 models in May and June,” one dealer told us in MRAA’s May 2023 Pulse Report, “and at the same time being asked for 2024 models to ship in July and August.” This is the point in the game where supply is arriving en masse, while demand has sharply decreased.

Another dealer wrote: “Boat companies are asking for our 2024 orders already. Seems like every year they want [orders] earlier and earlier, knowing that if we order now, the boats will be here in July, and we’ll still have half our 2023 inventory on the lot.”

In response, manufacturers have begun to slow production, perhaps a little too late, as they simultaneously seek to fill the white space in their networks — the market areas where they have no, low or poor dealer representation. Manufacturer promotions have also been on the rise, as dealers cut their margins and fight harder to turn shoppers into buyers.

This isn’t the new normal. It’s the old normal, coming back to life.

We’ve endured periods of rapid inventory growth before. The question is: Do we remember the lessons we learned?

As dealers, it does us no good to complain about manufacturers wanting us to buy more product. A little more than a year ago, dealers were begging for more shipments. Today, perhaps, inventory levels are high enough. But did the manufacturers know that before the request for more orders came in?

As manufacturers, it does us no good to pressure dealers to take more inventory than they are comfortable with, or to introduce more product into the market by finding another dealer. Both paths compromise the health of our industry and our critical distribution network.

What’s needed here is a better understanding of and responsiveness to the cyclical nature of our industry. Dealers must balance the right product offerings and the right amount of product with the demands of the marketplace, while manufacturers seek efficient, consistent production output. Achieving this balance is always a challenge, but it’s something that can be better managed.

The point is: The pressure dealers and manufacturers are feeling could be significantly reduced if we could improve the systemic issues that cause these recurring challenges.

Senge outlines several lessons we can take from The Beer Game. First: More often than we realize, it is the system that causes the crisis, not external forces or individuals’ mistakes. Second: System structure includes how people make decisions (the operating policies whereby we translate perception of demand), goals (established months or years prior to today’s reality), rules (often written by someone else) and norms (such as habits, good or bad). Third: Players of the game have it in their power to eliminate the extreme instabilities that invariably occur, but they fail to do so because they do not understand how they are creating the instability in the first place.

Echoing Senge, I suggest that, if thousands of boat dealers and their respective manufacturers — representing different demographics, customer types and market areas — all generate the same patterns of behavior, then the causes of the behavior must lie beyond the individual dealer or boat brand. The causes of the behavior must lie in the structure of the game itself.

What must the marine industry do to change the structure of our game? Perhaps a good place to start the discussion is the MRAA July 2023 Spotlight topic: inventory management. Find resources to help at mraa.com/spotlight


This article was originally published in the July 2023 issue of Soundings Trade Only.

Dealer Week Comfort Spot Returns: Priority One Relaxation Station

MINNEAPOLIS, Nov. 21 – The Marine Retailers Association of the Americas announces the return of the popular Relaxation Station, presented by Priority One Financial Services, to the Dealer Week Conference & Expo, Dec. 8-11, in Orlando, Florida.

Dealer Week Comfort Spot Returns: Priority One Relaxation Station

After last year’s sell-out experience at boating’s only event focused on dealer growth, MRAA Partner Member and Dealer Week Exhibitor Priority One Financial Services will again sponsor a Relaxation Station for three days, Dec. 9-11. Guests can visit the complimentary Priority One Relaxation Station to unwind in a tropical oasis for 15 minutes. They can schedule a massage with a trained massage therapist or stop by for a first-come-first serve massage in a zero-gravity therapeutic massage chair. Additional guest amenities will include fresh snacks, spa water and phone charging stations.

“It’s important to help dealers celebrate all the hard work they do on a daily basis, so the return of the Priority One Relaxation Station allows them a short escape from business and a chance to kick their feet up,” said Allison Gruhn, Vice President of Business Planning. “Dealer Week education helps dealers focus on the year ahead, providing them with clear takeaways and implementable solutions they can take back to their businesses. This complementary chance to relax helps them recharge their mindset, too, as they ready themselves for 2025!”

Find the Relaxation Station inside the Dealer Week Expo Hall entrance, directly to the left, located between Smoker Craft (Booth 124) and Barletta Pontoon Boats (Booth 137).

To experience where rest and relaxation meet recreation in Orlando, reserve your spot today.

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

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

For more, visit p1fs.com

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.

7 Tips for Driving Up Dealership Profitability

There’s not much that grabs attention like a promise of a 23% increase in profits.

That’s why I bet Gallup got a lot of clicks on the report it released this fall, suggesting that teams with the highest levels of employee engagement had 23% higher profits than those with the lowest levels of employee engagement.

Employee engagement is a topic that everyone can agree seems really important. However, as managers, it’s not always clear how to move the needle and where it should fit on the priority list. That’s particularly true in a challenging market in which keeping cash flowing, making payroll and ensuring the lights stay on are real concerns for some dealerships.

So, what are some concrete actions you can take to move the employee engagement (and profit) needle now?

• Tip 1: Start measuring employee engagement and satisfaction, if you’re not already. More than 300 marine dealership locations across the U.S. and Canada are already doing this each year through the Marine Industry Certified Dealership program, and we often hear that it’s one of the most impactful elements of getting and staying certified.

Tip 2: Ask your employee about their training needs. At least five of the 12 employee needs Gallup has identified managers can meet to improve employees’ productivity can be tied to training and education. When you spend time or money to help a team member develop professionally, you demonstrate that:

  • You care about them.
  • You encourage their development.
  • You believe their job is important.
  • You are paying attention to their progress, and it is worth focusing on for you and them.
  • You are committed to giving them opportunities to learn and grow.

Training and education is most effective when it is focused on an area where the employee recognizes a need to improve and grow and is motivated to do so. You will find out what these areas are by asking.

Also, consider the goals your dealership has for the team member. To do so, you might evaluate your employee’s performance in the key result areas of their position. Are they carrying out the responsibilities they were hired to do? How well are they performing in those areas?

Tip 3: Create a development plan. Use this insight into the employee’s goals and your dealership’s goals to create a professional development plan together for the year ahead. What three or four main objectives do you strive to accomplish and how and when will you accomplish them? If you need a simple training template to create your plan, you’re welcome to download a sample one from the Workforce area of the MRAA Resource Center. You can also find tips for performance reviews on this page.

7 Tips for Driving Up Dealership Profitability

Tip 4: Assess what training is available. To answer those questions and complete this plan, you’ll need to assess what training is available and choose education and training opportunities for your employee to participate in. Don’t let a lack of funds stop your forward momentum. These opportunities can come in a variety of forms for a variety of budgets, from books to conferences, podcasts and webinars to e-learning courses. If you need help determining the right option for you and your team member, reach out to the MRAA Education Team for guidance. It would be our pleasure to help.

Tip 5: Prepare beforehand and follow-up afterward. Perhaps even more important than what kind of training you offer your employee is how you, their manager, help them prepare for success beforehand and follow-up afterward.

Authors and training gurus Mary L. Broad and John W. Newstrom researched whose effort is involved in the positive impact of training. They found that supervisors, not trainers or the person actually attending and learning from an education event, had the greatest impact on whether it had a positive effect at work, mostly in the form of that supervisor’s effort before and after the training.

Tip 6: Create coaching and mentorship opportunities. Remember that managing change isn’t easy for an individual or for a team, even when everyone is on board with that change. New behaviors often take months to become habits, and unforeseen obstacles to change often get in the way. This is where you can assist, coach, mentor and support your employee or your team through the process to positive results.

Even once it appears that a new strategy, process or tactic is in place, regular check-ins are a good idea. The stress of events like new hires, surges in business or other common obstacles can cause a setback in which team members revert to old, comfortable behaviors. Even without stumbling blocks like those, the regular check-in keeps the process moving forward and allows for necessary adjustments to take place.

Tip 7: Develop a career pathway. When you create a development plan with an employee, the goal is to help them, you and the dealership meet its goals for growth. But where is that growth leading? The ultimate demonstration of your commitment to your employee and their development is to build a path (or paths) together where that growth could take their career. Even an informal conversation about options for the future can go a long way in building employee engagement and loyalty.

Strategies and tactics like these boost employee engagement and retention, while inspiring your team to perform at their best. It’s no wonder, then, that there is such a strong correlation between employee engagement and profitability.

6 New Partner Members Join the MRAA

MINNEAPOLIS, November 19, 2024 — The Marine Retailers Association of the Americas announces the addition of 1st Mate Logistics, Amplified People Solutions, Bonsai Media Group, Canopy Financial, Granfort USA Marine Distribution and My Financing USA as its newest Partner Members.  

6 New Partner Members Join the MRAA

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 Partner Members allows the association to expand its offerings and create a positive, long-term impact on MRAA members’ business.  

  • 1st Mate Logistics (Hixson, Tennessee.) provides a range of transportation options, including 53-foot marine haulers, flatbeds, bumper pulls, ocean freight and enclosed trailers for parts. It’s a go-to choice for boat builders and suppliers. 
  • Amplified People Solutions (Las Vegas, Nevada) specializes in tailored HR, project consulting, training and strategic planning for the marine industry. They support marine businesses that need expert HR guidance without a full-time department, no matter the size of the team. 
  • Bonsai Media Group (Seattle, Washington) helps original equipment manufacturers generate leads and boost engagement with targeted social ads and enhanced search rankings. They create fast, award-winning websites and immersive 3D/2D product configurators for detailed customer interaction. 
  • Canopy Financial (Loveland, Ohio) is dedicated to empowering businesses with personalized, transparent lending solutions. Their customer service division simplifies financial experiences with tailored loan options and innovative digital tools, making it smarter and more accessible. 
  • Granfort USA Marine Distribution (Melbourne, Florida) offers premium boats from 21 to 42 feet, blending style, performance and reliability for unforgettable experiences. They provide exceptional craftsmanship, seamless support and transparent pricing for effortless boat ownership. 
  • My Financing USA (Louisville, Kentucky) offers RV, boat and motorhome financing across the U.S. with a quick, secure application process and flexible options for all credit scores, finding the best loan programs tailored to customer needs.

“Partnering with these six exceptional companies strengthens our dedication to delivering innovative, front-line solutions and unmatched support to the marine industry,” says Allison Gruhn, MRAA Vice President of Business Development. “These collaborations not only enhance our ability to meet the evolving needs of the industry, but also reflect our ongoing commitment to driving growth, fostering innovation and creating lasting value for our partners and customers alike.” 

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

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