Dealers report higher profits

SIOUX FALLS, S.D. – Both small and large dealers saw profits increase during the four-month period ended April 30, compared to the same period of 2003, Spader Cos. reported in a statement today.

Small dealers reported, on average, a net profit of about $99 for the first four months of the year compared to a net loss of $7,137 during the same period of 2003. Large dealers’ average net profit increased 5.1 percent this year, compared to last year, from $132,438 to $139,141, according to Spader.

The market research firm tracks approximately 60 dealers in North America, dividing them into two categories: those doing under $5 million in business at retail and those doing over $5 million.

Total dealership sales for those under $5 million were down 1 percent from last year to $1,042,649, while total sales for dealers over $5 million were down 1.5 percent from last year to $3,524,999.

Small dealers

New boat sales for the average small dealer this year were down 0.7 percent to $689,359 through the end of April compared to the same period of 2003, while used boat sales were reported to be $74,699, down 29.1 percent, according to Spader.

New boat inventories for the smaller dealers were up 1.9 percent to $1,176,094 this year compared to the same four months last year, while used boat inventories were down 6.8 percent to $99,247.

Spader reported that the total gross margin percent for smaller dealers was up 0.9 percentage points from a year ago to 29.4 percent, while total unit margin percent was up 1.4 percentage points to 19.7 percent compared to 2003.

Spending was down slightly in terms of dollars and as a percentage of gross margin.

Large dealers

New boat sales for the average large dealer were $2,443,494 through April, up 0.6 percent, while used boat sales were reported at $393,803, up 9.8 percent from the same four months of 2003, said Spader.

The large dealers' new boat inventories were down 14.1 percent on average to $3,199,450. Used boat inventories were up 11 percent to $460,367.

The market research firm reported that large dealers’ average net profit was 3.9 percent of sales, compared to 3.7 percent in 2003.

Total gross margin was $954,169 or 27 percent, down 0.6 percentage points from last year. Total unit margin for the large dealers was $524,089 or 17.9 percent, the same percent as last year at this time.

Spending in terms of dollars was down during the first four months of the year, compared to last year. Spending was also down as a percent of gross margin, Spader reported.

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