Boating Industry Intelligence You Can Profit From
SIOUX FALLS, S.D. – New boat and total dealership sales remained nearly level compared to last year for small dealers but slipped slightly for large dealers during the seven-month period ending July 31, Spader Cos. reported this morning.
The training and consulting company 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.
New boat sales for small dealers fell 0.7 percent from the same period in 2003 – from $1,712,024 to $1,700,080 – and dropped from $5,575,432 to $5,237,991 for large dealers, a 6.1-percent decline.
Total dealership sales for large dealers were down 4.3 percent, from $8,378,600 in 2003 to $8,018,019 this year, but nudged up 0.3 percent – from $2,692,423 in 2003 to $2,701,327 this year – for small dealers.
Small dealers
Profits for small dealers were up from 2003, as they reported a net profit of 6.3 percent of sales, or $170,888, compared to 5.8 percent, or $155,232, in 2003.
But small dealers reported a significant drop in used boat sales, which fell 19.6 percent, from $272,247 in 2003 to $218,972 during the same seven-month span in 2004.
New boat inventories were 8.9-percent below inventory levels during the same span in 2003, from $1,173,851 to $1,069,048, and used boat inventories dropped 27.4 percent, from $108,285 in 2003 to $78,575 this year.
Total gross margin percent was down 0.5 points to 27.6 percent, while total unit margin percent was up 1.0 point to 19.1 percent.
Spending in terms of dollars was down and as a percentage of gross margin was 2.5 points less than the same period of 2003.
Large dealers
Large dealers reported a net profit of 5.7 percent of sales, or $458,374, compared to 5.9 percent, or $496,208, in 2003.
Used boat sales for large dealers rose 14.7 percent in 2004, when compared to the same span in 2003, from $892,359 to $1,023,156.
New boat inventories were down 9.9 percent, from $3,435,372 to $3,096,073, but used boat inventories rose 11.6 percent to $446,526 from $399,980.
Spader reported that total gross margins were up slightly (0.3 points) from 2003, to 26.0 percent, while total unit margins were down 0.3 points to 17.2 percent. Spending was down in terms of dollars, but up slightly as a percentage of gross margin.
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