Used boat sales continue to drive growth

SIOUX FALLS, S.D. – Total dealership sales for the average dealer tracked by Spader Cos. during the 10-month period ended Oct. 31 were up 3.5 percent, compared to the same time last year, the company reported in a recent statement.

That’s largely due to a 14.2-percent increase in pre-owned boat sales, according to Spader. New boat sales were up only slightly.

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 0.6 percent, compared to the same period of 2006, having increased to $6,867,640. Pre-owned boat sales had increased to $1,265,061.

Total dealership sales had jumped to $10,810,531 for the average dealer during the first 10 months of the year, reported Spader.

New boat inventories, which were up in 2006, have also increased in 2007. But for the 10-month period ended Oct. 31, they were up only 1.7 percent to $3,743,647, compared to the same period of the previous year, as were the average dealer’s pre-owned boat inventories, which have jumped 5 percent to $405,763.

Spending was up both in terms of dollars and as a percentage of gross margin, having increased by 1.6 percentage points to 84.6 percent. In terms of percentage of gross margin, personnel expense and advertising expense have remained steady, according to Spader.

The unit gross margin percentage was down 0.4 points to 17.7 percent, while total company gross margin percentage was up 0.1 points to 27.6 percent.

Net profits were down 5.5 percent during the 10-month period ended Oct. 31, compared to the same period of 2006.

The average dealer earned a net profit of 4.3 percent of sales or $460,563, compared to a net profit of 4.7 percent of sales or $487,256 during the same period of 2006.

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