Southwest Flordida Marine Industries Association since 1973

In attendance, Dave Hirshberg, Galati Yacht - Denny Pellicci, Salty Sams – Jerry Lofberg – Tom Hansen, The Boat House of Cape Coral – Chris Forman, TV6 – Tom Fischer, TF Marine – Tom Nichols, Bonita Boat Center – Chris Coghlin, Allied Marine – Dave Douglas, Bulldog Boatwerks – George Winn, Boater’s Landing – Barry Marshall, Marine Max – Bob Schmid, Marker 5 – Pat Roush, Paradigm Yacht Sales – Nick Lebid, Seahorse Yacht Sales - Laura Good, John Good

John Good opened the roundtable and welcomed everyone. Self introductions were made and Tom Hansen gave a brief overview of the progress the association has made in the past year. He explained that through reorganizing and restructuring operations, SWFMIA was on solid financial footing and was more active in providing services to members than it has been in a long time.

John opened discussion with a review of the upcoming November Boat Show. He explained that SWFMIA had done everything possible over the last 18 months to reduce show expenses without compromising the quality of the show. Advertising has been brought in-house, allowing for almost 100% of the budget to be used for direct media buys. While the overall advertising expense has been reduced the actual media buy has been increased.

John expressed concern about the reduction of boats on display. Between fewer dealers and smaller inventories, it is a reflection of the marketplace. On the other hand, he does not expect to see much change in accessory (booth) sales. He also does not expect to see a drop in attendance.

John asked if anyone had suggestions or had seen things at other shows that worked.

Create more attractions like electronics seminars and fishing seminars to keep people at show longer. John commented that the show had been promoting a “Boating Lifestyle” section for several years which includes fishing and diving seminars, Coast Guard Simulator, and other special displays.

Can we improve food service? Pinchers was at the Naples Show and did a great job. John explained that we are limited due to our contract with the City. They control the concessions making it difficult to bring in an outside vendor. He will pursue.

Is there any sense in bringing in a car dealer? John said they did have Toyota in the show last year. If the motivation is to increase show revenues, it is really not a big money maker for us.

Can we consider selling blocks of tickets to groups at a reduced rate (churches, service clubs, etc.).

There was a discussion about the negativity of the media as it relates to the economy and now the oil spill issue. The media always paints a much bleaker picture than reality. Unfortunately that is the way the media works. Bad news is always going to get more coverage than good. Chris Forman did point out that there were some positive signs in the market. Auto sales have been picking up significantly. He also suggested that if anyone had any positive stories or PSA’s about boating to get them to him and he would pitch them to his stations.

Jerry Lofberg recently attended a presentation by Tom Dammrich, NMMA President, in Orlando. He said that Tom had a very upbeat message. It is felt that most dealers and manufacturers who have survived to this point have weathered the worst of the economic downturn and could expect to see a slow improvement in business in the coming months.

John asked for comments from everyone on how their individual businesses were doing and what projections were.

Bob Schmid of Marker 5 Financial said that he has seen some loosening of financing. There are more lenders in the marketplace and there is a definite increase in the percentage of boat sales being financed. Buyers still need good credit scores, but there appears to be some loosening here as well.

Without going into individual comments, there seemed to be a pretty broad consensus of the state of boat sales.

New boat sales are still sluggish but improving.
Quality used boats are in big demand and hard to find. They sell quickly if priced right.
Brokerage Business has picked up.
New sales tax law is a big plus for large boat sales. Several dealers are already seeing increased activity because of this.
Repo and distressed inventory is finally starting to clear out of the market. This will definitely have a positive affect on sales.
Service business has picked up and is a big plus in paying the bills.
Providing quality service is extremely important.
While margins are not back where they need to be, there are signs that dealers are beginning to see margins increasing.
Improved Customer service is critical as boaters return to the market.
With the significant reduction in new boats being built right now, the late model used boat market is going to be very tight in the next few years which may help new boat sales as the economy improves.
Many have learned a lesson to figure out what they do best and stick with it. Don’t try to service or sell product that is not in your comfort zone.

In general, the dealers have a more positive attitude than they have had in the last couple of years. The industry will never be what it was but for those who have survived there will be opportunity for profit.

There was discussion about the oil spill. Galati has seen a definite impact in their Destin and Orange Beach locations. Most dealers in SW Florida have not seen any real direct impact. Projections do not call for the oil to reach SW Florida waters but that could change and it needs to be closely monitored. If dealers do begin to see an impact, we should reconvene this group and discuss what we can do.