Dealers’ new boat sales nearly flat

SIOUX FALLS, S.D. – Total dealership sales for the average dealer tracked by Spader Cos. during the 9-month period ended Sept. 30 were up 2.2 percent, compared to the same time last year, the company reported in a recent statement.

That’s primarily due to a 13.2-percent increase in used boat sales, according to Spader.

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 0.3 percent, compared to the same period of 2006, having decreased to $6,143,550. Used boat sales had increased to $1,071,087.

Total dealership sales had jumped to $9,511,583 for the average dealer during the first 9 months of the year, reported Spader.

New boat inventories, which were up in 2006, have also increased in 2007. For the 9-month period ended Sept. 30, they were up 3.8 percent to $3,527,155, compared to the same period of the previous year, as were the average dealer’s used boat inventories, which have jumped 5.9 percent to $379,974.

Spending was up both in terms of dollars and as a percentage of gross margin, having increased by 1.1 percentage points to 82.7 percent. All expenses all were up, according to Spader, with the exception of advertising.

The unit gross margin percentage was down 0.4 points to 17.9 percent, while total company gross margin percentage was up 0.1 points to 27.3 percent.

Net profits were down 3.8 percent during the 9-month period ended Sept. 30, compared to the same period of 2006.

The average dealer earned a net profit of 4.7 percent of sales or $448,720, compared to a net profit of 5 percent of sales or $466,627 during the same period of 2006.

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