Comments on: Let’s make it a two-way street on 2010 boat orders http://bensherwood.net/index.php/a-two-way-street/ Thoughtful commentary on issues facing the marine industry Sun, 27 Nov 2011 17:35:10 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Ben H. Sherwood http://bensherwood.net/index.php/a-two-way-street/comment-page-1/#comment-80 Ben H. Sherwood Sat, 19 Sep 2009 14:52:45 +0000 http://bensherwood.net/blog/?p=145#comment-80 Tony: Thanks for your comments. I like your ideas and hope the industry adopts them. But I guess we shouldn't hold our breath until it happens. Ben Tony:
Thanks for your comments. I like your ideas and hope the industry adopts them. But I guess we shouldn’t hold our breath until it happens.

Ben

]]> By: Tony Lumpkin http://bensherwood.net/index.php/a-two-way-street/comment-page-1/#comment-77 Tony Lumpkin Fri, 18 Sep 2009 01:01:15 +0000 http://bensherwood.net/blog/?p=145#comment-77 WOW, what a great find...I just tuned in today (Thanks Ben). You all, in different ways are saying exactly what I have been thinking. How about this? We all try to spec out the business model that has the best chance to work after the forest fire goes out and the black mess is cleaned up....whatdayathink? Let's start with this: "Why do we need Floor Plan anyway?" The floor plan concept was invented not because dealers needed it...because manufacturers must "level" the production in the plant (when it is cold) and (US) buyers dont buy until it's warm. If the manufacturer made product available WHEN a dealer needed it, he could write a check for it, right? SOOO why doesn't manufacturer make it available WHEN a dealer needs it? Several years ago our industry leaders (Yes, your companies, Dusty and Irwin) fell asleep and allowed other outside companies with ther own operations, (and therefore their own capital needs) become the only sources we had to make our system work. Now we sit powerless while consumers want to touch and to buy boats that dealers cannot stock, and factories are forced to close. How bout this? Manufacturer makes good boats, picks good dealers, puts them on his floor and when the dealer sells it..he pays for it!...? Let's call this manufacturer "NBC"..New Boat Company. New business model! When we were kids we could pretend...and it was fun...let's pretend. Who knows? An angel may be watching! WOW, what a great find…I just tuned in today (Thanks Ben). You all, in different ways are saying exactly what I have been thinking.

How about this? We all try to spec out the business model that has the best chance to work after the forest fire goes out and the black mess is cleaned up….whatdayathink?

Let’s start with this:
“Why do we need Floor Plan anyway?”
The floor plan concept was invented not because dealers needed it…because manufacturers must “level” the production in the plant (when it is cold) and (US) buyers dont buy until it’s warm.
If the manufacturer made product available WHEN a dealer needed it, he could write a check for it, right? SOOO why doesn’t manufacturer make it available WHEN a dealer needs it?

Several years ago our industry leaders (Yes, your companies, Dusty and Irwin) fell asleep and allowed other outside companies with ther own operations, (and therefore their own capital needs) become the only sources we had to make our system work. Now we sit powerless while consumers want to touch and to buy boats that dealers cannot stock, and factories are forced to close.

How bout this? Manufacturer makes good boats, picks good dealers, puts them on his floor and when the dealer sells it..he pays for it!…?

Let’s call this manufacturer “NBC”..New Boat Company. New business model!

When we were kids we could pretend…and it was fun…let’s pretend.

Who knows? An angel may be watching!

]]> By: John Underwood http://bensherwood.net/index.php/a-two-way-street/comment-page-1/#comment-74 John Underwood Thu, 10 Sep 2009 16:00:10 +0000 http://bensherwood.net/blog/?p=145#comment-74 I have listened to numerous dealer friends talk about current dealer inventory financing from the “shallow pocket” viewpoint where most operate. While it makes sense in the long run for the dealer to have a deposit in the inventory (as well as the manufacturer, I think), most dealers can’t make the change in the current financial climate. They might be more able to in good times. GE, and, I suspect, other floorplaners, want more "skin in the game up front. If builders were to cover the up-front floor plan costs as a loan or partial consignment to dealers for now, they would only be committing part of profits. They would get their cost of goods and some profit back right away -- increased sales and production volume, too. I think most builders will tell you that one of the biggest industry problems is that most dealers can’t order boats under the present financial conditions and lender regulations. It seems reasonable for builders to take dealer orders with part of the profit coming after retail sale, just to get things rolling again. The first manufacturer that comes to his dealers with a scheme that works with the banks will be the first back up on the horse and riding. I've seen one manufacturer's dealer buying offer that is close. Hopefully others will follow. As a by product of the current unpleasantness, I hope dealers and manufactures both will commit to reduced inventories with better turnover (at least 3+ times a year). Higher mobility of product between dealers and even small manufacturer inventories would be a big help. It would be great to see really sane balance sheets in our industry compared to others. John Underwood I have listened to numerous dealer friends talk about current dealer inventory financing from the “shallow pocket” viewpoint where most operate. While it makes sense in the long run for the dealer to have a deposit in the inventory (as well as the manufacturer, I think), most dealers can’t make the change in the current financial climate. They might be more able to in good times.

GE, and, I suspect, other floorplaners, want more “skin in the game up front. If builders were to cover the up-front floor plan costs as a loan or partial consignment to dealers for now, they would only be committing part of profits. They would get their cost of goods and some profit back right away — increased sales and production volume, too.

I think most builders will tell you that one of the biggest industry problems is that most dealers can’t order boats under the present financial conditions and lender regulations. It seems reasonable for builders to take dealer orders with part of the profit coming after retail sale, just to get things rolling again. The first manufacturer that comes to his dealers with a scheme that works with the banks will be the first back up on the horse and riding.

I’ve seen one manufacturer’s dealer buying offer that is close. Hopefully others will follow.

As a by product of the current unpleasantness, I hope dealers and manufactures both will commit to reduced inventories with better turnover (at least 3+ times a year). Higher mobility of product between dealers and even small manufacturer inventories would be a big help.

It would be great to see really sane balance sheets in our industry compared to others.

John Underwood

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