Sales surge for Spader dealers

SIOUX FALLS, S.D. – New boat and total dealership sales were up significantly for both large and small dealers during the 11 months ended Nov. 30, compared to the same 11 months in 2003, Spader Cos. reported yesterday.

The training and consulting company tracks about 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.

Smaller dealers realized the biggest sales gains, with total dealership sales up more than 15 percent from last year, from $3,342,707 to $3,866,088. New boat sales were also up nearly 15 percent for smaller dealers, climbing from $2,146,699 to $2,465,660.

Total dealership sales rose 8.5 percent for larger dealers, from $10,612,264 to $11,515,282, and new boat sales were up 12.2 percent over the same span in 2003, from $6,547,259 to $7,342,972.

Small dealers

Dealers doing under $5 million in business at retail also reported an increase in profits for the 11 months ended Nov. 30, as compared to the same period in 2003. At the end of November these dealers reported a net profit of 5.6 percent of sales, or $215,836, compared to 4.8 percent of sales for 2003, or $161,640.

Used boat sales were up 7.4 percent, from $292,152 to $313,644.

New boat inventories rose 16 percent, from $957,992 to $1,111,2128, but used boat inventories posted a much smaller increase, up 0.8 percent, from $77,993 to $78,579.

The total gross margin percent was nearly level with the same period in 2003, down 0.1 points to 29.5 percent, and total unit margin also fell 0.1 points, to 19.7 percent.

Spending in terms of dollars was up, but as a percentage of gross margin, was down almost 3 points

Large dealers

Large dealers reported a net profit of 5.1 percent of sales, or $588,845, down from $610,132, or 5.7 percent of sales in 2003.

Used boat sales were up 10.5 percent to $1,432,524 from $1,296,887 in 2003, and used boat inventories were up 1.8 percent from $433,506 to $441,524. New boat inventories rose 13.0 percent from $2,954,337 to $3,339,547.

Spader reported that the total gross margin percent was down 0.7 points from 2003 to 27.4 percent, while total unit margin percent was down 0.1 points to 17.8 percent.

Spending was up in terms of dollars and also up by nearly 2 points as a percentage of gross margin.

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