Dealers report profits take hard hit

SIOUX FALLS, S.D. – Net profits were down by 22.8 percent for the average dealer tracked by Spader Cos. during the five months ended May 31, compared to the same period of 2005, the company reported in a recent statement.

As of the end of May, the average dealer earned a net profit of 4.2 percent of sales or $178,853, compared to 5.4 percent of sales or $231,558 in 2005.

The training and consulting firm tracks North American boat dealers, both large and small, to compile an average profile, then compares year-over-year trends in a number of different categories.

New boat sales were down only 0.8 percent, having dropped from $2,930,324 to $2,905,456 while used boat sales were down 13.7 percent to $386,308.

Total dealership sales were down 1.0 percent to $4,257,121 for the average dealer during the five months ended May 31 compared to the same period of 2005, reported Spader.

While new boat inventories were up 15.4 percent to $3,567,706, compared to the previous year, the average dealer’s used boat inventories were up 7.6 percent to $367,769.

The unit gross margin percentage was down 0.2 points to 18.2 percent so far this year, while total company gross margin percentage was up 0.9 points to 27.7 percent.

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

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