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It’s no secret that Shogren Performance Marine is actively looking to buy used boats, bank boats and help those wanting to sell sooner than later. On the contrary, it’s something we want everyone to know. But the question I keep getting is: Why?
Despite the recession—or as I refer to it, the “New Economy”—there is still a lot of money in this country today. To put things in perspective, we financed 40 percent fewer boats in 2010 than previous years while still doing the same volume of sales we did three years prior. Most transactions today are cash. The old saying, “Cash is King” has never, at least in my marine lifetime, been more true.
People who have good stable jobs and good incomes understand value. Today, our business is all about providing value to our customers—and that comes in many forms. We used to sell more “boats” than “deals!” Now we sell more “deals” than “boats.” It’s all about the deal today, and that’s why used boats are selling at a record pace for our company. For this reason, we’re continually looking for used boats to buy, spruce up and sell, all while providing value and customer service.
What can the seller of a used boat expect? First, he needs to understand the true value of his boat. To that end, wholesale is the new retail. What I mean by that is the majority of new boats being sold to consumers today are being sold at what used to be wholesale prices to dealers. The only boat that seems to be different is the price-point, smaller, single-engine boats that sometimes sell over NADA (National Automobile Dealers Association).
In most cases though, regardless of what the NADA listings tell you your used boat should be worth, you have to be prepared for reality when it comes to your boat’s true value and what it can actually sell for, and that includes a profit for the dealer. We buy from consumers, banks and even other dealers. We love consignments and handle consignments differently than most—we will actually take a trade against a consignment boat and cash the seller out, which our customers love.
We will also come to your location, pick your boat up and not charge you the freight until your boat sells or six months, whichever comes first. Let’s note, if priced where the market is, we are turning our inventory every 34 days. As most boats we sell are art per se, not junk, we offer a climate-controlled, 50,000-square-foot showroom that a consumer can come inside and see a clean, dry, un-oxidized boat. We are also within one hour of three major airports so it is easy for a consumer to get to us affordably. Where else can a consumer get these services today?
Why not just sell your boat yourself? Time, mainly. Selling boats takes time, and that’s where a good dealer can help you and provide value. Chances are you don’t have to arrange financing, much less the ability to take trade-ins. And there are little things you probably don’t even think about, like the guy who just wants to look at your boat but really isn’t serious about buying, or the guy who says he’s going to meet you at your storage shed at 5 p.m. and never shows. We take all those “pleasures” out of it for you and provide a great selling experience.
The first thing we do when a seller approaches us with a used boat is ask him for a number. (No surprise, “As much as I can get,” is usually the first answer.) When we get to numbers, if we’re close I say let’s talk further. If not, we agree to go our separate ways. I am fine with that. We can also consign if they don’t want to sell outright so there are some options.
As a seller, you need to understand the market. None of us are immune to this “New Economy.” Still, as I said earlier, there are guys who read the guides and still think their boat is worth the retail price. But if you can buy a brand-new as a repo boat for 50 to 60 cents on the dollar, which you can, what does that tell you about the value of your used boat?
You have two types of owners out there. You have the owner who understands that the value of their boat ebbs and flows with the rest of the economy. And then you have sellers, typically those still carrying big loans, who think they’re immune. I can understand not wanting to take a loss, but more than once I’ve found myself saying, “Sometimes in life, your first loss is your best loss.” |
Scott Shogren is owner of Shogren Performance Marine in Illinois. As one of the top performance-boat dealers in the world, Shogren aligned with Fountain Powerboats in 2003 and became the company's No. 1 dealer for seven years until parting ways with Fountain in 2011. He currently sells Nor-Tech and Sunsation models as well as pre-owned boats under Shogren Certified Sales.
