• Why Structured Product Programs Are Essential for Modern Marine Dealerships
By JD Baker, Vice President of Specialty Sales, Protective Asset Protection, an MRAA Platinum Partner
For marine dealers navigating today’s shifting market, the pursuit of healthy, sustainable growth is more challenging than ever. While the excitement of new boat sales still drives much of the business, the real opportunity for long-term profitability and customer loyalty lies beyond the showroom floor. Customer acquisition costs are rising and consumer expectations are higher than ever, which means that the most forward-thinking marine dealers are now turning their attention to product programs to understand the untapped potential of F&I (finance and insurance).
A Unique Challenge: F&I in the Marine Industry
Unlike their automotive or even RV counterparts, some dealerships have not traditionally prioritized F&I as a core part of their business model. Many are smaller operations, where salespeople juggle multiple roles selling boats, accessories and sometimes even handling basic F&I offerings. This “do it all” approach, while understandable given staffing realities, often leaves significant revenue on the table and, more importantly, can lead to missed opportunities in customer care and retention.
The marine industry’s F&I landscape is still in its early stages of maturity. According to industry experts and recent dealer feedback, many dealerships rely heavily on front-end sales margins, with little emphasis on the structured sale of protection products, extended service contracts or insurance solutions. Yet, as the market shifts and new boat owners enter the fold, especially following the COVID-19-driven spike in recreational boating, dealers are finding that a structured F&I program is a “must have” for business growth.
Driving Revenue Growth: The Business Case for F&I
The financial upside of a solid F&I program is clear. Recent data from the National Marine Manufacturers Association (NMMA) and industry analysts indicates that dealerships with structured F&I processes consistently report higher per-unit profitability. According to the 2024 Boating Industry Dealer Benchmarking Report, marine dealers who actively sell F&I products see, on average, a 15-20% increase in gross profit per unit compared to those who do not. In some cases, F&I income can represent up to 30% of total dealership profits — a figure that rivals or exceeds those seen in the automotive sector.
But the revenue opportunity goes beyond just the initial sale. F&I products-such as extended service contracts, GAP coverage and ancillary protection plans-create ongoing touchpoints with customers, driving repeat business and referrals. When a customer has a positive experience with a claims process or receives value from a protection product, they are far more likely to return for service, upgrades or their next vessel purchase.
Elevating Customer Service: Protecting the Boating Lifestyle
While the financial benefits are substantial, the most compelling reason to invest in a structured F&I program is the impact on customer satisfaction and retention. Boating is not just a transaction, it’s a lifestyle investment. For many customers, their boat is one of their most significant discretionary purchases and the experience they have with ownership will determine whether they remain engaged with the boating lifestyle for years to come.
Unexpected repair bills or uncovered losses can quickly sour that experience. A single major engine or hull repair can cost thousands of dollars, leading some owners to question whether boating is worth the hassle. By proactively offering protection products and explaining their value, dealers can help customers safeguard their investment and enjoy true peace of mind on the water.
This isn’t just theoretical. Dealerships that emphasize F&I education and product offerings report higher customer satisfaction scores and increased repeat business. Customers who purchase protection plans are more likely to stay engaged with their dealer for routine maintenance, upgrades and future purchases, creating a virtuous cycle of loyalty and advocacy.
Bridging the Gap: Overcoming Barriers to F&I Adoption
Despite these clear benefits, many marine dealers remain hesitant to fully embrace F&I — to discover the untapped potential. Common objections include perceived complexity, lack of dedicated staff and uncertainty about customer receptivity. However, these barriers are increasingly surmountable with the right approach and partnership.
First, today’s leading F&I providers offer comprehensive training and support tailored specifically for marine dealerships, even those without a dedicated F&I department. Sales teams can be equipped with the tools and knowledge to present protection products confidently and transparently, making F&I a natural extension of the sales process rather than an afterthought.
Second, customer attitudes are evolving. As consumers become more accustomed to protection products in other industries-such as automotive, electronics and even travel-they are increasingly receptive to similar offerings in marine. The key is education: helping customers understand not just what the products are, but how they directly enhance their ownership experience.
The Full Potential — Customer-Centric F&I
By helping customers protect their investment, dealers are investing in their own future-creating satisfied boaters who return year after year, recommend the dealership to friends and family and contribute to a vibrant, growing boating community.
About The Author
JD Baker has spent more than 12 years with Protective Asset Protection, moving from a regional manager to the company’s Vice President of Specialty Sales. JD has over 25 years of experience in finance and sales with an emphasis in retail. He currently leads sales and client relations activity for Protective’s RV, Powersports and Marine customers and the agents that serve them.
Connect with him here: JD.Baker@protective.com; 844.735.5433, Option 2.
