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In these uncertain times,it's more difficultHARM 11 e ing pretty nice for you," Church says.
<br /> than ever for boat dealers to coax potential "[he club] is a nice fit for us because it
<br /> customers onto the water.For many would- " � enables people who want to try boating,
<br /> be boaters, it has always been a pretty big but don't want to get into it too deep until
<br /> leap from interested spectator to owner.But . they see if it works out for them.And after
<br /> what if there was a middle ground that could someone has been with us for a year,they
<br /> help span the gap?An increasing number of Nekmne to Bartlett take Marina! . Lf i4 become a much more sophisticated
<br /> companies are betting that boat clubs will be - boater.They now know what kind of boat
<br /> that bridge. they want to buy,and then they go to the
<br /> Far from hurting boat sales,as some deal- .._ Sea Ray dealership"
<br /> erships fear, advocates contend that clubs While not a dealer himself, Church
<br /> Arizona's Bartlett Lake Marina began its boat
<br /> deepen the ownership pool and not only club in 2002 and now sells management soft- believes boat clubs are not only a profit
<br /> spur sales, but allow those buyers to make ware to others looking to do the same, center dealerships can take advantage of,
<br /> more informed decisions,leading to a better but are also an important tool they—and
<br /> boating experience and additional salesthe industry as a whole—should be using
<br /> down the line. They also stress the added •M T h a t s S 5 0 to increase boating participation and
<br /> revenue boat dubs can offer the dealerships7 boost sales.
<br /> and marinas that embrace them. we wouldn't "I'm afraid we're going to lose our
<br /> The dub concept is not new and is cer- entry-level people over the next couple of
<br /> tainly not for everybody, but if you own a get a penny of years,"he says. "The financing's not there
<br /> dealership or a marina and have dismissedand people have reset their thinking about
<br /> boat clubs in the past,it may be time to take if it wasn't t o r taking on debt. So I see boat dubs as
<br /> another look becoming a vital asset for our industry. I
<br /> the boat club.'r just don't see how the old formula is going
<br /> Money to be made to work anymore,where you just wait for
<br /> The 90-member boat club at Arizona's Bryan Church, co-owner, people to come into the showroom and
<br /> Bartlett Lake Marina generates $300,000 a Bartlett Lake Marina and give them 90 percent financing on a boat
<br /> year in gross income,and the company esti- Bartlett Lake Boat Club for 15 years.Those days are over."
<br /> mates each person who comes along for a
<br /> day-use trip will spend $50 per outing on The dealer's perspective
<br /> refreshments,fuel,etc.,on top of that. Port Harbor Marine,a two-location Maine
<br /> "That's$50 we wouldn't get a penny of if dealership, started its boat club last year
<br /> it wasn't for the boat club," says Bryan 'e"' 4 with a $4,000 investment in a software
<br /> Church, co-owner of Bartlett Lake Marina -.gabRalt management system, a few forms and
<br /> and Bartlett Lake Boat Club,"because most some marketing dollars.After that,accord-
<br /> of these people who are members of the boating to president Rob Soucy, "It was all
<br /> dub would not be boating otherwise:' �'�m found money:'
<br /> The dub gears its marketing toward spe- The relatively inexpensive start-up cost
<br /> cific demographics such as entry-level fami- -... was possible because Port Harbor already
<br /> lies or former owners who have left boating had much of the necessary infrastructure in
<br /> in the previous 12 months,and Church says = place thanks to the boat rental program the
<br /> mothers are also one of the company's core _ dealership began a few years ago after
<br /> groups, with several that are completely ® Genmar's attempt at a rental program with
<br /> comfortable bringing a carload of kids to the w _ its Triumph brand came to an end. Port
<br /> lake for a day. The boat club at Port Harbor Marine grew out Harbor,a Triumph dealer,was fully behind
<br /> Members pay $265 per month, year of the dealership's successful,and lucrative, Genmar's concept at the time and contin-
<br /> round,and the dub keeps a ratio of about 10 rental business. ues to do well with its own rental opera-
<br /> members to a boat.Church says that even if tion,which Soucy says creates a good deal
<br /> it takes half of those members'dues to cover of cash flow for the company.
<br /> expenses (boat payment, maintenance, Because Maine is a tourist destination in
<br /> insurance, etc.) the club is still earning the summertime,customers come and rent
<br /> $1,325 per month on each of its boats. (For a house for a month,then rent a boat to go
<br /> a more detailed explanation of boat club along with it. It's not uncommon for Port
<br /> operations, please see "How a Boat Club Harbor to make six or seven thousand dol-
<br /> Works"on p.32.) lars off of those rentals. However, long-
<br /> "So
<br /> ong"So this is where the numbers start work- term rentals like that are fairly rare, espe-
<br /> www.boating-industry.com MARCH 2010-Boating Industry 31
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