Midwest repo center expands in Ohio

Posted on 19 August 2009
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After liquidating boats from 23 dealerships since the businesses' inception in April, Wisconsin-based Midwest Marine Repo Center added a new location in Ohio dedicated solely to repossessed boats.

Skipper Bud's, one of the largest Midwestern boat dealers with 20 locations in the Great Lakes region, Mississippi and Florida, doubled sales at its Oshkosh, Wis., store when it branched into the boat repossession business, general manager Todd Riepe told Soundings Trade Only.

"That's when this part of the business took on a life of its own," Riepe said. "It was just a traditional dealership, and one of our retail stores saw the signage change, and then the inventory changed. That location has doubled what it did a year prior."

Since January, the Oshkosh branch of the dealership chain has sold 250 boats and had 114 in stock earlier this week. The repo center is working with GE, the only major national marine floorplan lender still offering loans, and Textron, which has pulled out of wholesale marine lending, but is still carrying several accounts, Riepe said.

Riepe hopes the new location in Marblehead, Ohio, will help accommodate the liquidated boats, while cutting down on transporting costs for the large number of vessels coming from the East Coast.

Not all of the 23 dealerships that have seen liquidated boats end up at the rep center have gone out of business, Riepe said. But this week, Riepe got an order for 14 more boats, and the company recently received $10 million worth of Carvers and Cruisers from an Ohio dealership facing liquidation.

The inventory ranges from small aluminum utility boats to ski boats and deckboats, to large cruising yachts. The Midwest Marine Repo Center's Web site boasts it specializes in vessels from 17 to 100 feet.

The business is selling to dealers as well as directly to consumers, and Riepe says some dealers are taking advantage of the low prices on boats that are desirable in their areas. Some dealers work a co-brokerage deal to move inventory that's been sitting in their showrooms, Riepe said.

Riepe sees unsold repossessions from as far back as model year 2006, though most are 2008 models, he said.

There is hope for the industry on the horizon, according to Riepe.

"There is so much negativity around this, but one thing that is promising is that over 50 percent of repos that we have sold have been sold to people who didn't own boats," Riepe said. "Either they got out of boating and are getting back in or they're new to boating. That's sort of backwards from the norm."

Dealers interested in submitting a cash offer on boats can contact Riepe at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Click here for the full release.

— Reagan Haynes

Comments Comments are closed
8 Tuesday, 25 August 2009 15:12

By moving these distressed units through the dealer network at the same big discount the remaining deales can profit average move there existing inventory at a lower price. Ge Capital and Textron are still holding the note either way. Getting the dealer inventory moving is what makes the factory go round. Moving inventory that competes with the dealer does not make the dealer profitable. I know, I know, just move the inventory to the public any way you can. The dealer can sell their inventory tomarrow or the next week. After all the dealer has the money to keep paying the interest charges wether or not the sell inventory today. If the manufactures were really interested in moving inventory they would control their own retail financing just like every car company in the US market does. Just gotta love this business


 


Doug Reimel

7 Friday, 21 August 2009 18:40

Another view might be that if it weren't for leaders like Skipper Bud's who have the means and capabilities to help quickly liquidate all the stale inventories that are sitting on showroom floors across the nation, those very same dealers wouldn't be able to borrow new money or buy new inventory that will make more competitve in the marketplace.  Instead they continue to complain about how tough times are rather than take advantage of this great opportunity to be rid of old product.  Maybe the concession of liquidating old for no profit is better than liquidating your life time accomplishments for a total loss in backruptcy??


 

6 Thursday, 20 August 2009 14:50

I have to appologize to my fellow boat dealers that I offended with my statements yesterday.  I'm sorry I sounded selfish and sour while making my point.  I let my frustrations get in the way of reality for a moment and I know we are all feeling the same.


The truth is, my service department has never turned anyone away and, for the past 15 years, we have been doing warranty work as expeditiously as possible to get the boaters back on the water and I worry about getting paid later.  Unfortunately, this hurt the efficiency of the service department because we don't always get paid for what the customer perceives to be warranty.  So I end up eating the costs.  And it is in the 10s of thousands each year....


Now, factor the warranty losses in with the 2 to 3% margins that I've been struggling with and I can easily justify my frustrations.  Doug knows exactly what I'm talking about.  I sold a little over $400,000 last month and my gross profit was right around $10,000.  Can anyone tell me why???..... besides the fact that I'm competing with the repos.  GE wants to know why my margins are so low and why I can't make curtailments......


As far as me being NEXT.....  Well, you might be right.    I truly wouldn't wish that on anyone because I'm not cruel or selfish.  The liquidators are waiting around the corner. They are coming for me.  My inventory is clean, new and fresh.  I have almost $1.4M left in boats that range from $45,000 to $480,000 and my floorplan interest (now doubled in rate) is far beyond what my ship's store can ever turn in water toys and fishing gear.  Koolaid anyone?


I can't explain why my manufacturer hasn't dropped me yet.  My orders are down to about 30% of the previous years and my inventory is way down.  I stopped taking a paycheck last July and I'm doing everything I can to skim along and keep the bills paid.


I guess its my 100% CSI and the fact that I'm still coming to work 7 days a week that helps them with their decision to keep me around. 


Things will turn around soon..............      

5 Wednesday, 19 August 2009 20:02
Talk about a perfect storm.Economy goes bad,banks dry up, and ge raises everyones rates on floor plan.Now we will deal with repo boats being dumped.I have told customers when you buy your boats out of state be sure to take them back there for warranty and service.
4 Wednesday, 19 August 2009 19:37

Wow, are your feet purple from stomping on all those sour grapes?  I give Skipper Bud's an A+ for being creative.  If you're in the same geographical area, why not look forward to selling these new boat owners supplies, accessories, water toys, etc?  Do something positive to try and make your own good luck instead of whining.  We've all got to do whatever we can to get through this economy.  Dragging the Joneses down to your level may be easier and it may make you feel better, but it won't help your business.  Did you read the part about the co-brokerage deals?


We run our business based on common-sense decisions, and our gross and net figures are up by double-digit percentage points this season.  You can't blame the economy for everything, especially your poor attitude.

3 Wednesday, 19 August 2009 18:03

This is typical of the boating business model. Sell as much as you can. Sell as much as you can and over charge for that product. Then bring in a factory authorized volume driven retail outlet to drive down margins for your dealer network that you want to service the customer for the volume retail outlet that pays 25 to 50% less for the product and does not service the unit. No warranty work or proper set up. Send the unit to the dealer network to repair while the factory will not justly compensate for expenses. Then squeeze the dealer network for additional capital, fees, surcharges, and expenses that the authorized volume driven retail outlet the factory partner does not pay. This is a self defeating business model that is not in the best interest of the industry. Then again when the manufacturer goes bankrupt to avoid their obligations leaving everyone holding the note. Strangly enough this smells like Genmar and the Genmar school of business. Wait! okay I just received my daily cup of KOOLAID. I am better now!


 


Have a great day!


Doug Reimel

2 Wednesday, 19 August 2009 17:50

I'm not touching any repo boats if they come in for warranty service........... 


Well that should make you NEXT to be liquidated as I can't imagine why a manufacturer would keep a dealer who won't service boats other than what they sold.  It's exactly that attitude which killed off so many new boat dealerships.   How would you like it if your car dealer wouldn't service your car because you didn't buy it from them?  


This myoptic and selfish attitude is exactly what's wrong wtth this country. Only "me and mine and the hell with everybody else?"

1 Wednesday, 19 August 2009 16:44

What a great business opportunity and what a great business to write a cheerful article about.......  (sarcasm)


I'm pleased to hear that someone is making money and things are going well for someone in this up-side-down industry.   However, I don't think I would be too proud of the long term damages that this business is going to do to the overall industry.  We just keep going backwards just like some of the policies of our questionable administration in Washington, DC.


How can you call this a business that has taken on a life of it's own?  You are killing the rest of the industry by dumping everyone's inventory.  I can't compete against you with my fresh new inventory....


 Sure, you make your 10% then Textron and GE will go after those poor unfortunately dealerships that are way up-side-down.  You made your quick buck at the expense of many others.  Good job TEXTRON!!!  You started it!!!!  I Hope GE doesn't follow your lead...............


I hope SkipperBud can service all of those happy customers who just got  the deal of the century.  I'm not touching any repo boats if they come in for warranty service........... 


Let's hold our prices and shoot for the margins so we can keep our doors open.

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