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Everglades giving dealers time to reduce inventory - Trade Only Today

Everglades giving dealers time to reduce inventory

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Everglades is delaying the introduction of some model-year 2010 boats until September to give dealers more time to clear existing inventory.

The dealer reaction so far has “been all very positive,” David Glenn, Everglades marketing director, told Soundings Trade Only.

He said the delayed introductions will allow dealers to continue selling 2009 product during the summer months without the burden of new models flooding the market and devaluing the older products.

“We’re just giving them a chance to make a reasonable margin on existing product before we give them additional product,” said Glenn. “We just want to do what we can for our dealers by not putting additional product on the market.”

“We’re all battling to meet the current retail demand,” he added.

In addition to reducing field inventory, the delay also should help with the challenges dealers face in regard to floorplan financing, according to Greg Allen, Everglades vice president of sales.

“This helps the finance companies do the right thing,” he told Soundings Trade Only.

He said finance companies have been pressuring dealers to sell inventory as quickly as possible, and penalizing some with curtailments if product doesn’t sell fast enough.

“They’ve got to let dealers go through the season and sell their inventory,” said Allen.

While Everglades has adjusted its production downward to match current demand, he emphasized that the company is building boats. In fact, Everglades still plans to introduce the 2010 350 Express and 320 Express in June, since field inventory of those boats is low.

Also, company officials said they are encouraged by a recent increase in retail activity in the Gulf states and Mid-Atlantic region.

Click here for the full release on the announcement.

— Melanie Winters
m.winters@tradeonlytoday.com

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