I recently came across this article by our friends at the Marine Retailers Association of the Americas (MRAA) and it really resonated with me. The article, “The Cost of Not Listening,” highlights a critical challenge for boat dealers today: how to manage inventory effectively and avoid the pressures of overstocking.
The MRAA emphasizes the vital importance of open communication between dealers and manufacturers. Matt Gruhn notes that dealers who worked closely with manufacturers to align their inventory with real market demand are in a strong position. Meanwhile, those who were pressured to take on more inventory are now struggling, often forced into aggressive discounting that erodes margins for everyone in the market. This isn’t just about sales; it’s an “existential threat” that can lead to shrinking margins, loss of confidence, and a reactive business approach.
Here’s a link to their full article: LINK
So, how can we help? We understand that some inventory is mandatory to be able to be called a “boat dealer.” After all, customers want to see and touch the products. But what is the necessary inventory to maintain a balanced business in this challenging times? And what are your options to showcase more boats without a huge upfront investment?
Here are some strategies to consider:
- Rethink the Showroom: Instead of a physical showroom packed with boats, consider creating a more dynamic, digital-first experience. You can use 3D Boats Boat Viewer to efficiently do this effortlessly. Our service allows you to display a wider range of models without the physical space constraints or the financial burden of carrying every boat in stock.
- Partner with Other Dealers: In some cases, dealers in non-competing areas can form partnerships to share inventory. This allows you to offer a broader selection to your customers without having to purchase and store every model yourself.
- Leverage Technology: Technology can be your best friend. Use a robust inventory management system to track what you have, what’s selling, and what customers are asking for. This data can help you make smarter purchasing decisions and have better conversations with your manufacturer.
- Focus on the “Experience”: The article reminds us that dealers are on the front lines and have real-time market insights. Use this to your advantage. Focus on providing an exceptional customer experience, from initial research to post-sale support. This builds trust and loyalty, which can be more valuable than a sprawling lot of unsold boats.
The MRAA has even created a tool to help with this, the Dealer-Manufacturer Scorecard Program. This platform is designed to facilitate productive conversations and foster a shared understanding of the market between dealers and manufacturers.
Ultimately, the goal is to shift from a “pile ’em high and sell ’em cheap” mentality to a strategic, data-driven approach. By listening to your customers and your market, and having open conversations with your partners, you can maintain a healthy inventory, protect your margins, and secure a stronger future for your dealership.