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Author Topic:   Marine dealerships that will survive

frontier posted 07-24-2008 07:42 PM ET (US)
Looks to me like the surviving marine dealerships will be the small business owners who actually know the mechanical end of things.
The marine dealership owners I know are mechanics 1st, and sales people second.
When times get tough they pull wrenches in the shop.
If sales are slow, they make it up by producing a good product in the shop. Boats and motors will always need fixing.
I'll betcha Boston Whaler wishes they had some of those good ole' independent business owners back as dealers now.
Whalerdog posted 07-24-2008 08:16 PM ET (US)
Low overhead is the key. Financing boats & motors you can't sell will eat a business alive. I know one local marina who finances nothing as their father brought them up. When a boat or motor arrives it is paid for. Many will perish soon. The ones with good service hopefully can survive.
contender posted 07-24-2008 08:37 PM ET (US)
I agree with both of you, one more important issue friendly service and shops that will work with you...good luck
Wasatch Whaler posted 07-24-2008 09:39 PM ET (US)
Customer Service is what builds loyalty.
It's often the smaller shops that understand and practice that.
It's why I buy my Whaler parts from Sue Lodell at Twin Cities Marine, and why I buy my OMC parts from Lockeman's in Detroit. Neither are within 1,000 miles of me, but their outstanding customer service keeps me coming back.
When I lived in Georgia there was a great saying: "Sir, I'd like the opportunity to earn your business."
Too many companies treat customers as a resource to be exploited as opposed to a loyal customer.
shipskip posted 07-25-2008 01:46 AM ET (US)
Back in the day (as they say) there was no inventory flooring/financing for most boat dealers. At least not for our Lake Union business in Seattle. We paid cash upon picking up the boat from the factory. Back in the 1960's I delivered Fairliners from Western Boat in Tacoma and Uniflites from Bellingham, both by water, for my Dad's business. Handed over the check and left the dock for a (mostly) uneventful trip by water back to Seattle through the locks to Lake Union. What a great 'shakedown' cruise opportunity. We fixed stuff in Seattle, billed warranty to the factory(s) and the customer received a well-tested vessel. They appreciated that fact, and sometimes even accompanied me on the trip. We had very few problems after customer delivery.
Even our Whalers, Matthews' and Vikings from back east were paid for when they left the factory on a trailer. All of which is to say that a boat dealer back then had to be well capitalized. Substantial owner equity. Inventory not leveraged to the 'n'th degree. Sure, financing was available for real estate and building construction/ remodels. And to further make the point, when you took a trade-in, you ended up owning that boat free and clear. Sometimes it required 2, maybe 3, sales to come clean on the original new boat sale. You paid salesmen commissions along the way too, but only on the net deal so if it wasn't the final clear cash deal, the salesman had something 'invested' until the original and subsequent transaction(s) finally cashed out. That last point might still be true today, even in the car business, but I'm not sure.
Kingsteven18 posted 07-25-2008 07:11 AM ET (US)
ShipSkip, Interesting: I lived and worked back East. Our Uniflites came by trailer and our Vikings came by water.
home Aside posted 07-25-2008 08:05 AM ET (US)
Wasatch,
I agree, I make a lot of purchases from Sue at Twin cities.
I've been doing business with Lockeman's since 1992. While Preparing for our trip to the North Channel (I leave today) I decided to put 2 new batteries in the Revenge as well as switch out the old battery cables between the batteries & the switch. While I don't currently own an Evinrude or Johnson, and it was about a 50 Mile round trip to drive down there, I called Dave at Lockeman's, the next day I drove down & gave the business to Lockeman's. I could have gone elswhere much closer to home.
As you said, Service to the customer is King, and I've always been more than satisfied at Lockeman's. While I think it'll be a couple more years before I have to repower, I really can't wait to buy an E-tec from Lockeman's and have the peace of mind that will come knowing I can count on their service record.
Pat
Tohsgib posted 07-25-2008 10:22 AM ET (US)
Hance & Smythe in Manahawkin, NJ has been a small 3 man Whaler dealer since 1960. If they go bust...we are REALLY in a depression.

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Author	Topic: Marine dealerships that will survive
frontier	posted 07-24-2008 07:42 PM ET (US) Looks to me like the surviving marine dealerships will be the small business owners who actually know the mechanical end of things. The marine dealership owners I know are mechanics 1st, and sales people second. When times get tough they pull wrenches in the shop. If sales are slow, they make it up by producing a good product in the shop. Boats and motors will always need fixing. I'll betcha Boston Whaler wishes they had some of those good ole' independent business owners back as dealers now.
Whalerdog	posted 07-24-2008 08:16 PM ET (US) Low overhead is the key. Financing boats & motors you can't sell will eat a business alive. I know one local marina who finances nothing as their father brought them up. When a boat or motor arrives it is paid for. Many will perish soon. The ones with good service hopefully can survive.
contender	posted 07-24-2008 08:37 PM ET (US) I agree with both of you, one more important issue friendly service and shops that will work with you...good luck
Wasatch Whaler	posted 07-24-2008 09:39 PM ET (US) Customer Service is what builds loyalty. It's often the smaller shops that understand and practice that. It's why I buy my Whaler parts from Sue Lodell at Twin Cities Marine, and why I buy my OMC parts from Lockeman's in Detroit. Neither are within 1,000 miles of me, but their outstanding customer service keeps me coming back. When I lived in Georgia there was a great saying: "Sir, I'd like the opportunity to earn your business." Too many companies treat customers as a resource to be exploited as opposed to a loyal customer.
shipskip	posted 07-25-2008 01:46 AM ET (US) Back in the day (as they say) there was no inventory flooring/financing for most boat dealers. At least not for our Lake Union business in Seattle. We paid cash upon picking up the boat from the factory. Back in the 1960's I delivered Fairliners from Western Boat in Tacoma and Uniflites from Bellingham, both by water, for my Dad's business. Handed over the check and left the dock for a (mostly) uneventful trip by water back to Seattle through the locks to Lake Union. What a great 'shakedown' cruise opportunity. We fixed stuff in Seattle, billed warranty to the factory(s) and the customer received a well-tested vessel. They appreciated that fact, and sometimes even accompanied me on the trip. We had very few problems after customer delivery. Even our Whalers, Matthews' and Vikings from back east were paid for when they left the factory on a trailer. All of which is to say that a boat dealer back then had to be well capitalized. Substantial owner equity. Inventory not leveraged to the 'n'th degree. Sure, financing was available for real estate and building construction/ remodels. And to further make the point, when you took a trade-in, you ended up owning that boat free and clear. Sometimes it required 2, maybe 3, sales to come clean on the original new boat sale. You paid salesmen commissions along the way too, but only on the net deal so if it wasn't the final clear cash deal, the salesman had something 'invested' until the original and subsequent transaction(s) finally cashed out. That last point might still be true today, even in the car business, but I'm not sure.
Kingsteven18	posted 07-25-2008 07:11 AM ET (US) ShipSkip, Interesting: I lived and worked back East. Our Uniflites came by trailer and our Vikings came by water.
home Aside	posted 07-25-2008 08:05 AM ET (US) Wasatch, I agree, I make a lot of purchases from Sue at Twin cities. I've been doing business with Lockeman's since 1992. While Preparing for our trip to the North Channel (I leave today) I decided to put 2 new batteries in the Revenge as well as switch out the old battery cables between the batteries & the switch. While I don't currently own an Evinrude or Johnson, and it was about a 50 Mile round trip to drive down there, I called Dave at Lockeman's, the next day I drove down & gave the business to Lockeman's. I could have gone elswhere much closer to home. As you said, Service to the customer is King, and I've always been more than satisfied at Lockeman's. While I think it'll be a couple more years before I have to repower, I really can't wait to buy an E-tec from Lockeman's and have the peace of mind that will come knowing I can count on their service record. Pat
Tohsgib	posted 07-25-2008 10:22 AM ET (US) Hance & Smythe in Manahawkin, NJ has been a small 3 man Whaler dealer since 1960. If they go bust...we are REALLY in a depression.