Sales up but net profits slip for Spader dealers

SIOUX FALLS, S.D. – Net profits were down 8 percent for the average dealer tracked by Spader Cos. during the 10 months ending Oct. 31, compared to the same period of 2005, the company reported in a recent statement.

As of the end of October, the average dealer earned a net profit of 5.1 percent of sales, or $461,369, compared to 5.8 percent of sales, or $503,315, 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 1.6 percent, having increased to $5,974,514 while used boat sales were up 3.1 percent to $926,906.

Total dealership sales were up 4.2 percent, to $9,064,865, for the average dealer during the 10 months ended Oct. 31, compared to the same period of 2005.

New boat inventories were also up, having increased 15.9 percent to $3,309,151, compared to the previous year, as were the average dealer’s used boat inventories, which jumped 14.5 percent to $344,033.

The unit gross margin percentage was down 0.6 points to 18.2 percent so far this year, while total company gross margin percentage was up 0.6 points to 28.1 percent.

Spending was up in all areas in terms of dollars spent and also up nearly three percentage points as a percent of gross margin.

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