Dealer net profits cut in half
SIOUX FALLS, S.D. – The average dealer tracked by Spader Business Management reported a net profit of 2.4 percent of sales for the first eight months of the year, compared to a net profit of 4.7 percent of sales for the same period of 2007.
“The average marine dealers reduced their dollars spent by nearly 9 percent in 2008,” explained Spader in a recent statement. “However, this reduction was less than the reduced gross margin dollars earned. As a result, net profit dollars were down by over 50 percent.”
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 for the first eight months of the year dropped 25.5 percent below the same period of 2007 to $4,077,724, while used boat sales were down 18.9 percent to $806,448.
New boat inventories in 2008 were down by 1.1 percent to $3,594,747, compared to 2007, while used boat inventories were up 4.4 percent to $405,114.
However, total dealership sales at the average dealership were down only 19.1 percent to $6,815,662 for the eight months ending Aug. 31, compared to the same period of last year.
The average dealer reported a net profit of $165,440, compared to $398,381 during the same period of last year. That’s a decline of 58.5 percent.
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