Cautious Optimism in April

Despite being frustrated by inventory levels, boat prices and high interest rates, dealers seemed to be looking at the proverbial glass being half full heading into the summer boating season.

“Change of weather in the Northeast is bringing prospective buyers to the table for inboard boats,” one dealer said in response to this month’s Pulse Report survey. A handful of retailers said they were having success moving preowned boats by marketing them aggressively and reducing prices. “Manufacturer promotions are helping to get some of the deals over the finish line,” another dealer stated.

For this month’s Pulse Report, Soundings Trade Only, Baird Research and the Marine Retailers Association of the Americas surveyed 85 dealers about managing inventory, finding help and dealer-hosted customer events.

In April, marine retailer sentiment on current conditions decreased to 33 from 36 in March. The number for the three- to five-year outlook rose from 32 to 35. A rating of 50 is considered neutral.

Dealers were asked what type of customer events have been working, and how many they hold each year. The majority (57%) said they hold five or fewer, while 37% said they host six to 12. Another 5% said they have 13 to 24 events, and 1% hold 25 or more. Sales events such as demo days produce the most positive impact, followed by custom boat shows, customer appreciation days, boater education and community connection-based gatherings.

“We are working on doing more events this summer, as we have not done a great job of this since Covid,” one dealer responded. “Get customers in the door and on the water to build our brand.”

Another retailer added: “We did an in-house event in April, and it worked very well.”

In April, 44% of dealers reported declines in new-boat sales, and 35% reported growth. Some 29% said used-boat sales grew, though 42% said they were down. April typically represents about 13% of annual retail sales, so getting some early-spring warm weather can help ignite a sales spark.

New-boat inventory remained higher than dealers would have liked, with 81% reporting that they had too many boats on-site. Only 6% said they would like to have more new boats. For used-boat inventory, 27% of respondents said they didn’t have enough boats, and 42% of dealers said they had too many.

Service and repowers were bright spots in April, with one retailer saying, “Repower promotions from Honda and Yamaha are having a positive impact on getting customers through the door and committing to repowering their older boats. We are seeing these numbers starting to rebound to their previous normal figures, but still not with the new, lower-income, middle-class buyers.”

Another dealer commented: “Canvas shop is busy and so is service.”

Summarizing the effort that is now required to get a deal across the finish line, one dealer said: “Aggressive marketing, investing in our systems and processes, coaching of the sales staff. Back to the basics.” 

This article was originally published in the June 2024 issue.