John Kerr
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How Do You Know How
Much You Know?
CIRCULATION MANAGER
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You could be far more knowledgeable than you think. If you are doing well, you almost
certainly know enough to be doing well. After all, you have proof. It’s in the till.
That success is hard to argue with but, what if things got pretty tough? Does that mean
you don’t know enough or, are you just up against a lot of equally smart competition?
In the last few weeks, my feelings that Canada’s record-breaking hot economy was
still in high gear, have been undermined by reports from the US that retail sales in new
boats have slowed.
Brunswick shares are down and with them, other major publicly traded marine
businesses have also seen share prices decline. So, do we know that consumer demand
is slowing…or have a few companies just been overly optimistic? It looks like 2005
may have been a peak in the US boat market. Maybe things really are slowing.
What do you know about business cycles? Old-timers have seen regular ups and
downs in the boat business, many times. It feels like we have a few great years (but we
usually only recognize them in retrospect) and then the business tanks for a year or two.
We feel those right away!
Do you know how to ride out a down-turn?
Is your inventory well managed and are you able to respond quickly if current market conditions change? For that matter, are your supplier partnerships strong and able
to withstand the gale?
Having a great relationship with your finance partner can mean the difference
between sleeping well in a down-turn and waking up in a cold sweat over too much
aged inventory. Well, what goes up, comes down. And, the market has been great for
several years so don’t be surprised if we hit a down-draft this year or next. It’s probably
just a cyclical adjustment (if it even happens).
At some point, demand for new boats and other products will be satisfied. It doesn’t go on forever at a fever pitch. But, plus or minus some ups and downs, it will go on
for years to come. The wealthy, soon-to-retire baby boom generation will keep on buying and using boats to enjoy cottage country, fishing and cruising.
Those people demand great service, top quality and excellent selection. That is why
in our industry, it will be a challenge to keep that business. The best brands tend to go
to the biggest volume retailers. The big guys can carry the best selection and in future,
we may see a migration of buyers away from the smaller, on-the-water, family-owned
marinas that still make up a big part of the marine industry in Canada.
All this is why Boating Industry Canada has brought you this issue. We have focused
on the fall distributor shows and we have some great advice for learning more, some
solid advertising and marketing ideas and an example of a marine chandlery that has
taken on the big guys and won. Lori Mason and The Store in Mississauga almost certainly has more stock and more SKU’s on hand than most big box outlets. She is doing
well. She always has. A single store can compete and win.
The Store is not the only example. There are many examples across Canada. We
learned of one well-run chandlery that held a sale and did $180,000 at the till in one
day. That is a very impressive number. Now we hear that one big box marine outlet in
the US is not doing as well they had been and they are closing some stores. Maybe they
are hitting some very smart competitors!
No matter how much you know, the distributors can add to your knowledge. They
can connect you directly to manufacturer’s reps who can add even more. With the right
knowledge, your business can compete effectively and succeed. There’s lots of business
out there.
