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BOATING AND THE ECONOMY, DIAL-A-DEAL:

Boat sellers are pulling out all stops to stay a float. The boating industry is coping with gas prices and lowest sales, but that means deals for the consumer

BY BRADLEY SCHWEIT / WON STAFF WRITERPublished: Aug 27, 2008




Believe it or not, there is a silver lining to the current state of affairs in boating. Gas prices are coming down, and because dealers are seeing slow sales and have seen repossessions for those who are felling the crunch, serious deals can be made for both new and barely used fishing boats.  

 Without question, everyone is feeling the pinch of higher fuel bills and a sluggish economy. Fewer trips, and shorter trips. For those still bent on getting bent in the tuna grounds or chasing marlin, there is a price to be paid.

 Not three weeks ago did my roommate rack up a $600 gas bill on his 25 footer while running around offshore for tuna. Of course, not every trip racks up that fuel burden, Local kelp beds, bay trips and local yellowtail and even short trips for padding hopping this season have kept the fuel bills down, and there is always the option of adding one or two more people to the crew to share the costs – and the cleaning at the end of the day.

 While we’ve been busy struggling to make ends meet to continue to pursue the sport we love, few of us have considered the burden incurred by those who depend upon this industry for their very livelihoods — most notably, the dealers and shops who keep us afloat.

Ironically enough, now may be a better time than ever to buy a boat, as dealers are essentially pulling out all the stops to move their inventory. Some are being downright creative.

“I offered to pay for one couple’s gardener for a year,” exclaimed Ron Hendrickson of Johnson Marine. He was dead serious. “I said I’d give them $100 a month for gardening so they could have more time to enjoy the boat. It’s definitely dial-a-deal.”

Dealers have been offering a number of incentives to not only bring buyers into their showrooms, but also send them home with a new rig.

“I’ve done all kinds of things,” Hendrickson continued. “I’m keeping things right at cost. I’ve got lower prices on outboards. Depending upon the boat model, I’ve also been making the first loan payment for the customers. It’s called creative financing. It’s dial-a-deal this year.

“We’ve also thrown in services. We’ve included the first service for free.”
Tim Jones of the Boat House in Anaheim concurs with Hendrickson’s dial-a-deal assessment.

“Now’s the time to take advantage of the vulnerability of the dealers. We’re selling below dealer cost… doing whatever we can do. There’s some great deals happening here… No special incentives; just good deals.”

And given the current push for fuel efficiency, now, more than ever, dealers are acting as staunch advocates for their service departments... and rightfully so. A well-maintained boat is a more efficient machine. Just ask Rob Clarke of Quality Performance Marine.
“As far as the economy, we’re just trying to watch our expenses and just be as efficient as possible,” Clarke said. “We’re doing what we need to do to make our boats more efficient. And then, the preventative maintenance stuff… That’s gonna help. Fresh oils, good tune… The big thing is just to make sure your boat’s in good tune and you’ve been doing the preventative maintenance. That’s a big thing with outboards. Most people with outboards ignore their preventative maintenance.”

And in the vein of outboards, never has the popularity of the four-stroke been so widespread, and for good reason. The powerhouses get significantly better gas mileage than their two-stroke predecessors, and generally perform better under all conditions.
Eric Peterson of Specialty Marine has been “selling a lot of four-strokes,” as of late. “They essentially cut fuel usage in half,” Peterson noted. He should know… He’s been going that extra mile for his four-stroke clientele and seeking out and obtaining factory-blemished engines and non-current model years to provide even bigger savings. “It really keeps the price down so they [the customers] can get into these engines.”

Over at Allison Marine, Bob Allison has been busy selling one particular brand over all others — the Seaswirl Striper.

“The tremendous value of the Seaswirl Striper is attributed to two separate platforms. The first value-oriented platform centers around the strong resale value of the Striper boat line. In this difficult economy, it is absolutely critical for the American consumer to put resale value at the top of the list. Failing to do so can turn a wonderful life investment into a negative financial investment very quickly.
 
“The second value-oriented platform centers around the Seaswirl Striper’s own fuel economy. All Striper boats are utilizing modern hull designs coupled with fuel-saving power plants. Contrary to popular beliefs, the sterndrive with the Duo-prop technology is significantly more economical than any current outboard technology. Greater displacement and greater traction and thrust are pretty hard to beat. Through better resale value and better fuel economy, the Seaswirl Striper has positioned itself well in this difficult marketplace.”

But it doesn’t have to be difficult for long, and as history has shown, economic downturns invariably reverse at some juncture. How long our current economic situation will persist is purely speculative. However, one thing’s for certain: A dealer’s doldrums are a buyer’s benefit.











Quality Performance Marine