Dealers’ bottom line down 20 percent

SIOUX FALLS, S.D. – Net profits were down almost 20 percent for the average dealer tracked by Spader Cos. during the eight months ended August 31, compared to the same period of 2005, the company reported in a recent statement.

As of the end of August, the average dealer earned a net profit of 5.2 percent of sales or $393,316, compared to 6.5 percent of sales or $489,794 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 up 0.9 percent, having increased to $5,091,687 while used boat sales were down 6.5 percent to $766,285.

Total dealership sales were up 0.8 percent to $7,630,807 for the average dealer during the eight months ended August 31 compared to the same period of 2005, reported Spader.

New boat inventories were also up, having increased 16.5 percent to $3,230,222, compared to the previous year, as were the average dealer’s used boat inventories, which jumped 14.9 percent to $347,504.

The unit gross margin percentage was down 0.5 points to 18.3 percent so far this year, while total company gross margin percentage was up 0.2 points to 27.2 percent.

Spending was up in terms of dollars, and as a percentage of gross margins, it grew by more than 5 points.

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