Posted by Trader Online on August 14, 2009 under Boat Business | 
Industry leaders are hopeful the Small Business Administration’s dealer floorplan program can help resolve one of the biggest problems facing marine businesses, but they acknowledge the program has kinks that need to be worked out.
“We’re finding a real reluctance on the part of bankers to do this,” says Phil Keeter, president of the Marine Retailers Association of America.
Keeter and others point to two major factors behind the reluctance: complex guidelines set up by the SBA that don’t match the way the marine industry does business, and a lack of understanding on the part of lenders about the industry.
“SBA loans are typically term loans, such as buildings and permanent levels of working capital. Very rarely are they used for transactional lending,” says Tony Wilkinson, president of the National Association of Guaranteed Government Lenders.
Floorplans are transactional because they involve constant cash advances to finance inventory, then payback as it’s sold, then another advance to buy more inventory. This requires lenders to constantly monitor inventory levels.
The SBA program allows dealers to apply for SBA-guaranteed floorplan financing so they can borrow against inventory and increase cash flow. Loans range from $500,000 to $2 million under the SBA 7 (a) loan program. With a maximum repayment term of five years, the loans will come with a 60 to 75 percent government guarantee. The program runs through Sept. 30, 2010.
The MRAA has sent a letter to the SBA asking it to make the following changes:
• allow for application of the program in non-title and title states
• eliminate the $500,000 minimum loan amount
• increase the maximum loan amount to $4 million
• allow SBA loan proceeds to refinance existing or new inventory at the existing lender or for the acquisition or refinancing of inventory at a new lender
• expand the definition of franchise-only dealers, since that business model does not apply to recreational boating
• allow banks to be considered experienced on a case-by-case basis
• be less restrictive on the requirement that dealers provide monthly financial statements
“We’re still plugging away at it,” says Keeter, “and we still have high hopes for it.”
So does the National Marine Manufacturers Association, which worked closely with the retailers and marine bankers to convince the SBA to set up the program
“We really do feel the SBA program is a first step in improving access to credit for dealers,” says Cindy Squires, legislative counsel for the NMMA.
However, she says, dealers have to do their part to find lenders and educate them about the marine industry. “It is going to be a process of educating a lot of regional banks. It’s not going to be a matter of just flipping a switch,” she says.
That’s going to involve relationship-building on the part of dealers — something they haven’t had to do in a number of years, according to Bill Thompson, a former sales manager with KeyBank who earlier this year founded Cleveland-based Cardinal Points Network. The firm helps the marine and RV industries attract and manage commercial floorplan lenders. He’s trying to improve access to financing by building relationships among dealers, manufacturers and lenders.
“Over the last 15 years the industry became very comfortable,” Thompson says.
Wholesale lenders like KeyBank, Textron and GE knew the industry so well they were able to streamline the application process for dealers. The problem now, he says, is that dealers don’t know how to communicate with banks.
“You have to relearn the art of having a relationship with a bank and see on their terms what it takes to secure financing,” says Thompson.
For more on this issue, see the September issue of Soundings Trade Only
Posted by Trader Online on August 10, 2009 under Boat Business |
Bayliner Boats has announced that for the second year in a row,
Bayliner will receive three prestigious Customer Satisfaction Index (CSI) Awards from the National Marine Manufacturers Association (NMMA), the leading association of the recreational boating industry.
Photo Credit: BaylinerThe NMMA’s Marine Industry CSI program recognizes marine manufacturers whose pursuit of excellence and continuous improvement earns them overwhelming customer support. Matching its performance in 2008, Bayliner received 2009 awards in the following categories: deckboats, sterndrive bowrider boats, and sterndrive cuddy and express boats.
Photo Credit: BaylinerCompanies must actively measure customer satisfaction for award consideration by the NMMA. Upwards of 60,000 consumers participated in the industry-wide 2009 CSI Awards surveys. To receive its three awards, Bayliner achieved customer satisfaction ratings of 90 percent or higher over the past year. Customer satisfaction is measured independently, and based on information provided by all consumers who bought a new Bayliner between April 1, 2008, and March 31, 2009.
Photo Credit: Bayliner“This year’s Marine Industry CSI Award recipients are at the forefront of our industry’s growth potential and are helping ensure the experience of purchasing and owning a boat add value to the overall enjoyment of the boating lifestyle,” said NMMA president Thom Dammrich.
Photo Credit: BaylinerBayliner’s impressive repeat performance is the latest in its long history of winning over customers. The company has received several CSI awards in recent years, including sterndrive bowrider and deckboat awards as well as an award in the fiberglass outboard category.
“These awards are not just a reflection on the quality of our products,” said Jeff Behan, president of Bayliner. “They also validate the fine work and exemplary customer service of our dealers. We couldn’t be happier with their effort to promote and support the Bayliner brand.”
The NMMA will acknowledge Bayliner and the other CSI Award recipients during the 2009 International BoatBuilders’ Exhibition and Conference (IBEX), Oct. 12 - 14 at the Miami Beach Convention Center.
Source:
Brunswick
Posted by Trader Online on July 21, 2009 under Boat Business |
The
Marine Retailers Association of America reports it is working to put together a committee of Genmar dealers interested in being represented as a whole while the boat maker goes through the bankruptcy reorganization process.
New York-based lawyers Leonard Bellavia, from Bellavia Gentile & Associates, and Eric Snyder, from Siller Wilk, along with the Marine Retailers Association of America, recently held a webinar to discuss forming a dealer's committee to represent dealer interests in the bankruptcy.
Bellavia and Snyder, who were involved in representing auto dealers in the Chrysler and GM bankruptcies, said dealers deserve a “seat at the table” during the Chapter 11 reorganization.
"What you don't want to do is wait until something happens and then try and get legal representation," Bellavia said. "We're on call to examine the court docket on an hourly basis to see what's happening, whether any activity is taking place that potentially impacts the dealers and respond quickly."
Unlike other types of litigation, they said, bankruptcy cases can move swiftly through the courts, often giving interested parties only days to respond to motions filed on behalf of the debtor.
To form a committee, Bellavia said they need 150 to 200 dealers to participate, with each paying $1,000 for involvement. The money would be refunded if not enough dealers join and the committee cannot move forward.
One of the main concerns of dealers was the desire to remain anonymous and not have their names, or the names of their dealerships, publicly known for fear of retribution.
Snyder said he would request anonymity of committee members, and while there are "no slam dunks" in legal proceedings, it helps to be able to show a judge evidence of coercion
"We have some information showing coercion by Genmar," Snyder said, noting coercion can range from a Genmar executive asking a dealer if he planned to join the committee to an out-and-out threat against any dealer who joins the group.
Genmar Holdings chairman Irwin Jacobs called these claims "absolutely ridiculous."
"I have no intention of reprimanding or causing any dealers any hardship," he said. "I know nothing about [coercion] whatsoever, and if I find out anybody in our company has done anything to any dealers, I will personally fire them."
MRAA president Phil Keeter said the association was taking this unprecedented step at the request of the membership and urged those interested to contact him and get their money in now.
Genmar filed for Chapter 11 bankruptcy protection on June 1. The company says it has about 1,100 dealers worldwide for its 15 boat brands.
For more information, contact the MRAA at: (708) 763-9210 or on the Web at
www.mraa.com.
Posted by Trader Online on July 10, 2009 under Boat Business |
Photo Credit: Scout BoatsScout Boats, Inc. has not only unveiled an all-new 15’ Series,
but its also announced special package pricing (boat, engine and trailer) to introduce the models to the dealers and customers.
Photo Credit: Scout BoatsThe 151 Series consists of four all-new models (Standard, Sport, Sportfish & Dorado) that are available with engine packages from Yamaha and a trailer for one all-inclusive, incredibly affordable price structure.
Photo Credit: Scout BoatsCustomers can also purchase any of the four models with a Sportsman’s Package upgrade, which includes Scout’s Heritage Green hull color, Sportsman’s Green deck and camouflage cushions for only $1,000 more.
Photo Credit: Scout Boats“With the current state of the industry, and with the credit/financing issues plaguing the dealer level, we wanted to create an “impulse buy” for the boating consumer,” said Scout CEO & President Steve Potts. “Our dealers will be able to choose one of these models to carry on their floor – which will not take up much floor plan space.
Source:
Scout Boats
Posted by Trader Online on July 7, 2009 under Boat Business |
Sea Tow Services reports that the number of Fourth of July weekend
marine assistance calls increased by 25 percent over 2008 as more boaters celebrated on the water.
The increase follows two consecutive years in which Fourth of July-related assistance calls to Sea Tow’s nearly 100 U.S. franchise locations remained flat, suggesting that despite the economic recession, boaters spent more time on the water this Fourth of July weekend enjoying the many lifestyle benefits of boating.
“With fuel prices at the dock down by more than 30 percent in some locations this summer versus last, it’s clear that many boaters decided to celebrate the nation’s 233rd birthday doing what they most enjoy – recreating on the water,” said Capt. Joseph Frohnhoefer III, Sea Tow’s Chief Operations Officer. “This naturally led to an increase in boating assistance calls to Sea Tow operators around the U.S.”
Photo Credit: Sea TowCalls to Sea Tow’s 24-hour National Dispatch Center increased by 37 percent over the 2008 Fourth of July holiday, while requests for vessel assistance from Sea Tow were up by 25 percent overall.
Overnight calls for the July 4-5 period, when boaters typically head out to enjoy fireworks displays from the water, increased by 34 percent.
Source:
Sea-Tow
Posted by Trader Online on June 22, 2009 under Boat Business |
By Beth Rosenberg
The National Marine Manufacturers Association’s board of directors voted unanimously at its May meeting to continue the redirection of Grow Boating funds until June 30, 2010.
Last year, it was agreed the industry would be better served by redirecting 85 percent of assessments toward a combination of efforts designed to increase dealer sales, while maintaining some momentum of the Discover Boating campaign. The remaining 15 percent would support public relations, DiscoverBoating.com, Marine Industry Dealership Certification and a few additional core programs.
“The state of the market is such that with wholesale shipments … down 70 percent there just isn’t enough funds to create a critical mass for a national advertising campaign, and so it was felt that the manufacturers could use that money more effectively to help their dealers with sales today rather than promoting the lifestyle for future sales,” Thom Dammrich, president of NMMA and Grow Boating Inc., told Soundings Trade only this morning.
“All the other aspects of the program are intact and running at full speed,” he added.
Marketing efforts include a Discover Boating Facebook page with more than 6,000 “fans,” using Twitter to interact with consumers, adding a “social” room with a blog to DiscoverBoating.com and the “I Discovered Boating” ad contest, which has received 150 entries, Dammrich said.
In addition, public relations efforts are continuing, as the NMMA works to get the word out about the boating lifestyle to producers and editors in hopes they will run stories on boating.
Dammrich said the board is hoping to resume a national ad campaign next year.
“I hope that the market has recovered sufficiently by then that it will make sense to do that,” he said.
Posted by Trader Online on June 11, 2009 under Boat Business |
Mercury Marine reports that Brunswick Corporation Chairman and CEO
Dusty McCoy is now on Twitter, keeping his followers updated on the revolutionary
Axius and
Zeus propulsion systems and other topics.
Also, Dusty will post periodic blogs on
JoystickBoatControl.com.
To follow Dusty, go to
JoystickBoatControl.com or to
Twitter.com/dustymccoy.
You can also follow Boat Trader on Twitter at
Twitter.com/BoatTrader.
Source:
Mercury Marine
