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Multi-Purpose Boating, Family Fun and Down Payment Help

Posted by Brandon Weaver | Tue, Dec 23, 2014 @ 07:00 AM

family boatingUnless your clientele includes George Clooney or Jay Z, boating is not for sipping champagne amongst the rich and famous. Even if boats and watercraft are largely viewed as luxury items and the boating industry is recreational in nature, engine manufacturer Mercury Marine’s president Kevin Grodzki told Forbes that “people are now buying boats that can perform a multiple of purposes” – largely because a majority of boat owners “have a household income less than $100,000.”

In fact, the American middle class dominates the boating industry and an enormous 36.6% of the United States population participated in recreational boating in 2013 – contributing to the industry’s record-breaking $37 billion worth of activity. This is the highest on record, according to the National Marine Manufacturers Association.

Clearly, boating is making a comeback.

Of course, the recession hit manufacturers hard with some workforces cut drastically and others closing their doors altogether. Nowadays, though, the recession is looked at as a minor setback for major comebacks. With Florida boasting approximately 28 percent of pleasure boat construction jobs in the United States, it’s worth noting that Hunter Marlow estimates a 50 percent revenue increase, Jupiter 30 percent and Chris Craft predicts 20 percent. With revenue and demand increasing, it probably comes as no surprise that today boat manufacturers are looking for bigger facilities.

Total Cost and Total Fun

Consumer demand has continued to increase since the recession, but buyers still factor in the total cost of boat ownership to justify their purchase – even if they are purchasing boats for more than one reason. Buyers must factor in the ancillary expenses to owning watercraft such as docking, gas, maintenance, and registration fees. All are necessary and can raise the total cost of ownership considerably. And since fishing (70 percent), tubing, and water skiing are the top three boating activities, consumers are likely to use boats for more than one purpose.

Which may be why used boats are in higher demand than new ones – value can be the most important factor in purchasing. Before the recession used boats outsold new ones by a factor of 3 to 1. After the recession, that ratio increased 5 to 1.

To maintain market share, Brunswick CEO Dusty McCoy told the Star Tribune that he requires “every new model made should cost the same or less than the model it replaces.” He’s appealing to the many dealers looking to sell more boats while holding prices constant:

Boat Sales

 Likewise, Dan’s Southside Marine makes it easier for customers to understand the affordability of buying a boat. They created an affordability page where consumers can calculate the average monthly payment required for a particular boat. From fishing boats to speed boats it’s all about showing value and low monthly payments – not the lofty price tags.

For dealers, reaching other demographics is especially crucial as Baby Boomers and Generation X buyers transition out of the target age range. Fortunately, both segments are prime candidates to have families of their own to share a boating experience and use boats as a multi-purpose tool for entertainment.

The family aspect has always been one of the boating industry’s big sales so by bridging the gap between kids, teens and adults, smaller watercraft can be particularly appealing for manufacturers to produce. And it’s not just about the lower price levels, but to begin growing their customer base. For example, St. Boni Motor Sports showcased the Sea-Doo spark at the Minneapolis boat show in January – and they sold all 60 during the show.

2015 is just a week away. With 2014 sales surging to eclipse the $37 billion sold in 2013, how do you prepare to get your share in 2015?

How many of your customers pay cash or credit for such big, recreational purchases – no matter how great the value? Few can, and in fact many boat dealers may be leaving money on the table when it comes to helping customers take advantage of the value they create in both new and used boat sales.

Offering a “hold check” service (aka Multiple Check) can keep customers in your F&I department instead of walking out your door. With it, you can allow a customer to spread a large down payment out over a couple of paychecks, helping them get the boat they want and helping you close a sale. Learn more here.

 

hold check, payment flexibility, increase sales

Written by Brandon Weaver