Tough spring for dealers
SIOUX FALLS, S.D. – Net profits were down 20.7 percent and total unit sales were down by 3 percent for the average dealer tracked by Spader Cos. during the four months ended April 30, 2006, compared to the same period of 2005, the company reported in a recent statement.
The training and consulting firm, which tracks North American boat dealers to compile an average profile, reported that net profits had dropped from $97,650 last year to $77,413 in 2006. Still, the net profit amounted to 9.2 percent versus an 11.9 percent profit last year.
Total dealership sales for the period had dropped by $46,500, or 1.6 percent when compared to last year. New boat sales dropped only .5 percent, to $2,034,022, but used boat sales and other unit sales reported declines of 12.8 and 13.7 percent, respectively. Unit gross margins climbed by .3 percentage points, however.
Inventory levels climbed for the period, jumping 15.4 percent to $3,609,838 for new boats and 4.2 percent to $358,318 for used boats.
Average expenses were up nearly $30,000 for the period, led by a $20,000 increase in personnel expenses.
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