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Random Quote: It's only a short run from here....what could happen?
Is it true, I've heard the rumors that both Grady and Parker will eliminate the dealer networks and sell directly to the consumer . Just like Dusky has done for years.....Could be interesting if you are a dealer
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Is it true, I've heard the rumors that both Grady and Parker will eliminate the dealer networks and sell directly to the consumer . Just like Dusky has done for years.....Could be interesting if you are a dealer
Is it true that you heard the rumor - or is it true they are selling direct?
Dealers are not even remotely able to buy and stock inventory boats. Even if they have the money, why would they? Boat builders are going to build a line of boats keep the factory churning and then if a customer calls the factory to see if they have a 25 ft so and so with a one of those hanging on the back. The customer says I have cash put it on a trailer. Oh we cant? We have to let our old non stocking dealer do the paperwork and ad his 15 to 25%? then you can have the boat? Its a differnt game now! All rules are changing every day!
I know venture has started doing something similar. You can buy direct or if you have a local dealer that you use they can get the boat from them. Obviously the pricing is going to be consistent across the boardsince the warranty work would have to go back to the factory since you didnt buy from the dealer or if you do bring it to a dealer parker will have to pay still.
Shag i didn't see the bottom on your post where you typed 1980. the reason i was asking is i just called parker about making a repair to my floor and was told they do not make repairs. it would seem to me that if they are going to sell direct they need to start making repairs themselves!
Things have certainly changed, the local Parker dealer has not sold anything this year. Same boats sitting on the lot that were there back in April, new and used. Time for the builders to rethink their marketing, and distribution. If they were to cut out the 25% dealer mark up and the $3000 freight and prep BS, maybe they'd sell a few more boats. I had to pull teeth to get a price list from Grady and Parker, they don't want the info out there. They want the dealer to handle pricing with the customer. The local Boston Whaler dealer just had a bank forced auction on all of their inventory, must be tough to sell a 23' Whaler when its listed for $95K !!, they have been gouging customers for years and now they are getting bit in the ass by it.
Not that i want to get into business expense but dealers typically have huge lots with many boats and a service bay that they have to have in order to show you the customer what you will get for the money you are about to spend. I know there are some builders that we all feel mark up the product too much but they are the ones with the better service and product quality. Most boat dealers I see are near water down here or on main streets with huge frontage neither of those are cheap.
I understand the dealer has a huge overhead, also safe to say that if that same dealer can't survive on service and small item sales these days he is out of business anyway. He certainly isn't making any new sales now is he? Time to refocus the business to survive on service and bringing in repeat customers to buy whatever they can sell, life jackets, flares, whatever. I can't imagine a dealer ordering 12-18 Grady's to sit on the lot for the next three years before selling them.
That is interesting for grady. Seems to me one of the big selling points of that boat make (not the only one) is the dealer hand holding of new owners and follow up service that their dealers provide, fixing anything and everything after the sale that might be of concern to owners. Quite a bit different from the buyer going to a factory who is only concerned about follow up service when there is a major problem like a hull failure, T-Top ripping off of floor and things like that. I wish them all luck, it is difficult in the retail business these days.
if I had to guess i would think that you will see dealerships cut to 1/2 to 1/3 of current numbers with the remaining dealerships being a "super regional" location for builder's like Grady. For instance maybe one location for the Carolinas and perhaps 2 for Florida. Customers are becoming use to gathering information on the internet and then traveling if they have to to see a boat. Look at used boat sales. Almost everyone has at minimum a regional search for the boat they want. Market boundries have kind of disappeared.
Shag i didn't see the bottom on your post where you typed 1980. the reason i was asking is i just called parker about making a repair to my floor and was told they do not make repairs. it would seem to me that if they are going to sell direct they need to start making repairs themselves!
Actually ours is a Sou'Wester but Linwood made it in the metal shed behind his house. We effed up and let moisture build up in the bildge and had to re-do our deck a few years ago. We didn't even check with Parker though. Not sure where you are but I know a good glass man just down the road from Parker. He actually used to work for them.
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The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.
There are times in society that are turning points and like 1929, WWII, the birth control pill in 1956, and so on, we are turning a corner right now... The old ways of doing business are being swept away... Large dealer markups are going away (along with lavish dealer service)... The internet makes it impossible to keep the customer in the dark and have a factory / distributor / wholesaler / retailer / credit / network (with markups at every step) when the customer can email the factory and say , "I have cash... Deal with me or I'm going to order from Asia"
How the boat business will shake out, no one can predict with certainty... I can say in the short term, the days of dealer lots filled with boats are gone... On anything above $3K (just to pick a number) the factory will build only on order - whether that is a dealer order or a customer order...
Dealers to survive will become service centers.. On high price boats I can see factory service trucks from regional distribution centers that will roar up to the marina and service the boat that was sold direct to customer...
The dealers that have gone belly up have left trained mechanics in the lurch... Some of those guys need to band together and fill a panel truck with tools and offer their services to boat owners and marinas in their area... If I were younger I would form a company, get some some mechanics to buy in, some trucks, and be busy creating a brand and a name and starting a national franchise... I offer the idea for free to you young uns..
if I had to guess i would think that you will see dealerships cut to 1/2 to 1/3 of current numbers with the remaining dealerships being a "super regional" location for builder's like Grady. For instance maybe one location for the Carolinas and perhaps 2 for Florida. Customers are becoming use to gathering information on the internet and then traveling if they have to to see a boat. Look at used boat sales. Almost everyone has at minimum a regional search for the boat they want. Market boundries have kind of disappeared.
Market boundaries have disappeared but the boating itself is usually confined to a local area. Service will be the key, reasonably priced, reliable, convenient service that does the job properly. I believe that the smaller local boat yards can survive on service alone if they perform quality work, Selling and installing electronics and engines, rigging at reasonable prices etc. As anyone that has ever owned a boat knows, getting the boat is the start of an endless cycle of maintenance and use, both of which mean you are spending cash on your boat. The well run shops will tap into that never ending cycle by selling to and servicing you, their "long term" customer by providing "good service".
It sounds like it is time for dealers to re-think their business and manufacturers to support them. Perhaps the money is not in the selling of the boats, but in the servicing of the boats. Dealers should recognize they sell boats not to make a huge profit, but to create a solid base to have steady service work. Manufacturers need to support the dealers service department, perhaps more heavily than the sales end. I am not in the biz, so I don't know exactly what that would look like- but maybe free regional training for service guys, certification, free specialized tools, etc.
The days of 20% profits on 6 figure boats are probably gone forever. They should be aiming to make much less of a margin, but building a customer for life. This does not seem to be the goal for dealers in my area- they smile when you buy the boat, but flat out could care less about providing any service after the sale. They'll do it, but half ass it and then make you feel like an idiot for complaining.
I buy all my cars from the same dealership, which happens to be Honda. The reality is I really am sick of their cars. But I go in talk to the same sales guy I have bought 5 cars from, find the car I want, he pulls their invoice, I pay it and have all my service work done there. I am not a dope, I know they are still making money on back end spiffs, holdback etc. That is ok, they need to eat too.
Actually, I find this amazing because Parker in the past have been very stringent about protecting the dealer network. In 2005 I tried to purchase a Parker 23 SE from a well regarded S. Jersey dealer that was the “specified” dealer based on my home address. We agreed on a B/M/T price and I had asked about a price to bottom paint the boat. The discussion moved to where I planned on mooring the boat. When the dealer found out that I was mooring the boat closer to another dealer he REFUSED to sell me the boat. By that time, I had already investing a considerable amount of time with this dealer and frankly was turned off by Parker dictating where I could purchase a boat. The excuse I got was one of service location. Needless to say I bought a different manufacturer’s boat and would never consider a new Parker so long as the remaining policies are in effect. The internet is full of these Parker dealer stories. Hey Parker... bet you wish you had my and all the other folks money you turned away now!!!
Things have certainly changed, the local Parker dealer has not sold anything this year. Same boats sitting on the lot that were there back in April, new and used. Time for the builders to rethink their marketing, and distribution. If they were to cut out the 25% dealer mark up and the $3000 freight and prep BS, maybe they'd sell a few more boats. I had to pull teeth to get a price list from Grady and Parker, they don't want the info out there. They want the dealer to handle pricing with the customer. The local Boston Whaler dealer just had a bank forced auction on all of their inventory, must be tough to sell a 23' Whaler when its listed for $95K !!, they have been gouging customers for years and now they are getting bit in the ass by it.
I know I am going to regret responding to this thread, but I am pissed!!!! I am/ was…. A new boat dealer, and have been in my own business for 16/17 years, and was a mechanic before that. I started in a 2000 sq foot shop, by myself, and grew it to a three location dealership in two states employing up to twenty one full and part time employees. My dealership was the forty second in the nation to be NMMA certified… witch I found means NOTHING to most of you… and we held an average of 97.5% CSI rating with our customer feedback, according to Monterey, and higher with Everglades’s owners. So, I feel that I can talk with some type of expertise in this field. This kind of naïve and hostile attitude towards dealers is unbelievable. What side of the argument are you on nausetlight? “If they were to cut out the 25% dealer mark up and the $3000 freight and prep BS, maybe they'd sell a few more boats.” Then you say: ““I understand the dealer has a huge overhead, also safe to say that if that same dealer can't survive on service and small item sales” Then you say IN THE SAME PARAGRAPH: “Time to refocus the business to survive on service and bringing in repeat customers to buy whatever they can sell, life jackets, flares, whatever”
You obviously have NO IDEA what it takes to stock, maintain boats for sale, organize boat shows, move product, pay health benefits, keep mechanics certifications current, …. I am going to stop now because I feel my anger getting the best of me. I would ask everyone before they post opinions about something they have no idea about to look in the mirror. Ask yourself what it takes to run your place of work? For anyone who owns their own business they will know what I am talking about. For the rest of you think about it. Right now some of you are in your cubical reading The Hull Truth. Someone is paying you to read about your hobby right now. Look at your coworkers and imaging paying for them? Imagine paying for the lights, the coffee, the pens, paper you use. Now imagine someone who has no idea what the hidden cost are, telling you that you need to work for less. Hey Nausetlight, I think if you were to work for free your boss would sell more products also. After all, your expenses are all just “prep BS”… right?
Parker & Grady selling direct????
