End of the Showroom as we know it

[Lazy Daze]

At least buying (special ordering) from a boat show is still actually touching and feeling the model you want. Besides, those boats at the show are stock boats for the dealer.

Buying from a show only constitutes a certain percentage of sales, though. What about the rest of the year? If a dealer wants to be - and stay - successful, inventory is a must. Maybe a dealer can get by with a little less inventory than normal, but then overall sales are slower, too.

In the end, it all comes down to personal preference. I do have some customers that will buy off the brochure. But, they are, by far, in the minority. But, there's nothing wrong with that - it works for them. :smt001

 

[sbw1]

Some high end dealers hook you up with the factory. Hinkley's show room in Harbor Springs is an office that looks like some sort of waiting room for a lawyer or other professional except for its boat models and brochures. They have a receptionist who makes appointments to see a sales person. I believe they charge you something like $25 for the brochure. Tiara keeps a line of new models at their factory at a basin the company owns. They have a bed and breakfast for dealers and prospects next to the docks. You can try out any boat you want. Dealers also carry a limited enventory of popular models but most of them are working their way out of floor planned boats. If you know what you want brand wise, it's not a bad way to go.

 

[Tonka Boater]

What will happen over the next 3 to 4 years is dealers that require a floor plan in order to stock inventory will be supplanted by dealers who have the capital to floor plan that inventory themselves. Being in the auto/banking business I have already seen a few dealers that are being put out of business because they cannot secure anything better than a 50% floor plan on their inventory. And these guys need 100%.

Bluebelly hit the nail on the head. The whole issue is with the lack of floor plan financing. Most dealers are not downsizing because really want to -- they can't get favorable terms on financing. You will see the biggies like Marine Max continue to have floor plans but the smaller ones will suffer. Even at that, the Marine Max's will likely stock much less than in the past.

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[keokie]

The comments in this thread indicate the problem. This tactic will eliminate some otherwise viable customers. That is not a positive move for the industry. It will have negative impact on sales.

Ultimately, it is a cost cutting move that is instituted at the expense and inconvenience of the customer. In the vast majority of circumstances, that is not a wise longterm marketing decision.

 

[sbw1]

Sometimes you do things you don't want to do. The brands need a distribution and service network. With current conditions, those folks are in survival mode. Having said that, Hinkley is still selling lots of boats in Harbor Springs. We counted 15 in one marina and there were others sitting at private docks and in nearby towns.

 

[Newbie]

I guess I'm the only one who sees this as a positive. The dealer who no longer inventories essentially becomes a service center only as I don't see many people buying by ordering. Therefore, without sales, hopefully their service will gain attention to details and more competitive pricing to keep them recognized and alive.
My MM dealer has always been great to work with but the last time I had them do a few things, my boat was left an absolute mess. Better service is something I look forward to in the future, but there's not enough competition in the service market now for them to care. If you want your boat fixed around here, your choices are very limited.

 

[sbw1]

Yes. It's not all bad. Our dealers have had a tradition of strong service. It's hard not to make money in the business in West Michgan. You pay to store; you pay to slip and many pay for service. Boat and fuel sales are down, but for an established marina with little debt (we have many here), service and storage generates a lot of cash flow. And, they are still selling boats.....just not as many.

 

[Tonka Boater]

This tactic will eliminate some otherwise viable customers. That is not a positive move for the industry. It will have negative impact on sales.

Ultimately, it is a cost cutting move that is instituted at the expense and inconvenience of the customer. In the vast majority of circumstances, that is not a wise longterm marketing decision.

This really isn't a tactic or a cost cutting move -- it's a necessity. These guys can't afford to put the boats on the show floor. Companies such as Genmar are working to reform the floor plan financing rules but this will be the sign of the times until it happens.

It's hard enough for a consumer to get a loan...how do you think a dealer will get 100% financing for 20 new boats?

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[bluebelly]

One aspect of keeping inventory on hand is that it creates an emotional connection that cannot happen through a brochure. Back in 1988 I went with a friend to the local Sea Ray dealer, he needed a new fuel tank for his old mercury outboad. While there I walked on a boat that had to be about a 27 foot sundancer and I said to myself "one day this will be me". That led to multiple Sea Ray purchases over the years. I bet if that dealer only had brochures to show I would have never got the "boating bug". If the industry did go to a brochure only type showroom I think the industry will shrink by about a third compared to what we are used to. All of us on this forum already are sold on the boating lifestyle but how many future buyers would never get introduced?

 

[keokie]

Tonka,

It may very well be a necessity at present. But it will almost certainly reduce the number of boats sold.

I do not pretend to have the answer. If a manufacturer and/or dealer figures out a finacially sound way to have product on hand. they will have an advantage over those that don't. If that tactic becomes standard operating procedure in the industry, more boats will be sold.

 

[Hampton]

I bought my first Sea Ray via the phone from Japan for pickup in PCB, Fl. I used brochures. I tried to get a quick glimpse of a 270 in Sydney, but the driver got lost (fellow sq mate) because he didn't follow my directions, then blaimed me for us not making it back to Newcastle on time - I paid huge fines in alcohol. That guy is a F'n idiot. He washed out of requal in the F-15. Imagine that.

I bought my boat by brochure, and took delivery on our first day back in the states.