Boat Dealerships: Understanding Their Function And Business Model

Boat dealerships are a great way to buy and sell boats, but they can be expensive to start up. It can cost over a million dollars to get a boat line, and you'll also need a showroom, a place to launch demos, a marina, and a place to work on the vessels. Dealerships will often inflate the value of your boat to make you feel better about the trade, and you're unlikely to get 25% off MSRP with a trade.

Boat trade-ins

Boat dealerships can be expensive to start up, with over a million dollars needed to get a boat line, as well as a showroom, marina, and place to work on the vessels. Dealerships will make a profit on both ends of the sale, otherwise, they won't be in business for very long.

Some dealerships may not want to take a trade-in, as they don't want to sit on the boat until it sells. In this case, the customer may be better off selling the boat privately.

Making a profit

Boat dealerships can be a profitable business, but they require a lot of money to start up. It can cost over a million to get a boat line, and then you need a showroom, a place to launch demos, a marina, and a place to work on the vessels.

To make a profit, boat dealerships need to make money on both ends of the sale. They will often inflate the value of a boat that a customer wants to trade in and add it to the selling price of a new boat. This makes the customer feel better about the trade. Without a trade, 25% off MSRP is about average. Dealerships will also need to be able to repair boats, which requires special tools and trained technicians.

Boat brands will be keen to sell their boats through dealerships, so getting them on board shouldn't be too difficult. However, to survive, dealerships will need to offer more than just sales. They will need to provide a service centre, which requires even more investment in tools, technicians, and training.

Boat dealerships can also make money by selling boat accessories and offering tow services.

Selling a brand of boat that is not yet sold in your region

To sell a brand of boat that is not yet sold in your region, you will need to invest a lot of money. You will need to buy the boat line, which can cost over a million dollars, and then you will need a showroom, a place to launch demos, a marina, a place to work on the vessels, techs, tools, yard trailers, and trucks to launch the boats.

You will also need to market your boat brand to attract customers. You can do this by listing your boats on online boating marketplaces such as Boat Trader and boats.com, which will help you reach local buyers quickly. You can also try listing your boats on sites like Craigslist, Facebook Marketplace, and OfferUp. Additionally, you can try placing a 'for sale' sign on your boat in your driveway or in a public location, or posting fliers on cork boards at marinas.

Launching demos

Demo boats are also used for filming and promotional purposes and have never left the care of the dealership. They are usually only driven by trained professionals, so any kinks will already be worked out. This means that when you buy a demo boat, you can be confident that it is in good condition and ready to hit the water.

Boat dealerships often offer test drives of their demo boats, so potential buyers can get a feel for the boat before purchasing. This is a great opportunity to discuss pricing and any additional services you may require, such as having the dealer pull, store, and launch the boat for you.

When purchasing a demo boat, it's important to keep in mind that these boats have been used for demonstration purposes and may have some wear and tear. However, they typically come with a full warranty starting at the date of sale, so you can be assured that any issues will be covered.

Overall, launching demos is a crucial aspect of the boat dealership experience, as it allows potential buyers to see the boat in action and experience all its features firsthand. By offering test drives and showcasing the best perks of the boat, dealerships can form lifelong partnerships with their customers and ensure that their boating needs are always met.

Training

In addition to sales and management training, you may also need to provide technical training for your staff. This could include training on special tools and equipment needed to service and repair boats.

It is also important to consider the training and expertise of your customers. Some boat dealerships offer training programs for new boat owners, such as the SaferBoater Dealer Partnership, which provides free training, life jackets, and other benefits to customers who purchase a boat from a partnered dealer.

By investing in training for both your staff and customers, you can ensure that your boat dealership provides knowledgeable and expert service, which can help to build trust and confidence in your brand.

Frequently asked questions