Dealers’ new boat inventories up

SIOUX FALLS, S.D. – For the nine-month period ended September 30, Spader Cos. said that out of the approximately 60 dealers it tracks, the majority reported that their new boat inventories were up, compared to the same time period of 2002.

The Spader report divides North American dealers into two categories: those doing under US$5 million in business at retail and those doing over US$5 million.

New boat inventories for the smaller dealers were up 19 percent over last year to $1,050,150 while the larger dealers’ inventories were up more than 4 percent to $2,754,078. Used boat inventories were also reported to be up for both small and large dealers.

Total average dealership sales for the smaller dealers were $3,450,180 this year through the end of September, up 23.6 percent over the previous year, while larger dealerships' total average sales were reported to be $9,135,203, up 0.6 percent from the same period of 2002, according to Spader.

Small dealers

New boat sales for the average small dealer rang up $2,162,137 in the first nine months of 2003, up 25.8 percent from 2002, while used boat sales were reported to be $385,178, up 42.2 percent, said Spader.

The market research firm also stated that net profit was $182,126, which is up 22.3 percent from last year, but as a percentage of sales is 5.3 percent, which is equal to a year ago.

Spader reported that the total gross margin percent for smaller dealers was down 1.6 percentage points from a year ago to 27.5 percent, while unit gross margin percent is slightly less than last year.

Spending is up in terms of dollars, but as a percentage of gross margin, it is slightly less than last year, according to Spader.

Large dealers

Average new boat sales for large dealers were down 0.7 percent to $5,746,415 during the first nine months of the year from the same period last year, while used boat sales were reported at $1.058,709 for the period, up 9.5 percent from the same period of 2002, said Spader.

The market research firm reported that net profit was up 45.8 percent to $607,058 or 6.6 percent of sales through the first nine months of the year.

Total gross margin was 27.9 percent, up 1.9 percentage points from last year, and while spending in terms of dollars was the same as last year, as a percent of gross margin, it is over 6 points below last year, the report said.

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