Sales through Innovation & Savvy Marketing

by Jeni Bone on 24 Jul 2008 The clouds are parting, sales are trickling in and better, bouyant days are on the horizon, according to Sydney Harbour's largest dealer of used boats, Sydney Boat Sales.

It’s not time to crack open the champagne, but by all means, pull the beer from the fridge! According to Desmond Last from Sydney Boat Sales, sales are steady and with effective marketing in place, dealers can capitalize on consumer interest.

'People are ringing up and making enquiries about buying boats,' he says. 'It’s been good, we’re selling boats.

'People hold off and hold off and then they decide not to cheat themselves out of a boat anymore, despite rising fuel prices and interest rates and all the other economic factors. We’ve only been getting buyers in, no tyre kickers – they’re too scared to look these days.'

So it’s not the end of the world. But it does take some strategy, heavy investment in marketing and a readiness to crack a deal, according to Last.

'The buyers who have been to our brokerage are informed and unemotional,' he says, adding that consumers know that prices have dropped by up to 15% and they are looking for the best buy.

'They want to see good clean boats, with documented service history and they do not want to be bothered with endless rounds of negotiations. So don't get hung up on an ego-damaging $1000, let it go.'

In recent months, Des reports, sport cruiser sales have suffered the most, but not just because of the economic climate.

'As more of them come onto the used boat market, the pool of available buyers is getting smaller. The dollar value has reduced the price of new boats and the colder winter this year has reduced demand even further.

'Some of the older yachts are now starting to drop in value as buyers migrate to new yachts and late-model used yachts. Some of the old favourites are falling out of fashion, impacting on the price for the older flybridge boats.

'The older boats with the carburetor engines with twin 'feed me petrol now' chokes are getting harder to sell, so we have come to expect a real price drop there.'

His advice to other dealers, particularly those in the used boat market, is 'to be realistic or else she ain’t going anywhere'.

Marketing too, including the online space, needs to keep up with the times and the sophistication of the consumer, used to e-baying and devouring all kinds of media online.

'It is no longer the case of just posting a photo of a boat on the Internet because there are an awful lot of photos out there,' explains Des.

'We have invested in around $10,000 worth of camera and high-tech editing equipment to bring potential buyers right on to the boats. We had one buyer recently of a 70’ Bertram who said he wouldn’t have come all the way from Melbourne if he couldn’t have a ‘virtual inspection’ first. It does make a difference.'

Sydney Boat Sales has an assortment of late-model boats and 'very motivated owners'. There’s even the 70’ Olympic Spirit Catamaran for sale for buyers considering entering the charter industry.

Along with ramping up the virtual tours of boats on its books, Des says his dealership has become 'a marketing and advertising agency'.

'Customers are very clever these days. They want to know everything, every detail. Our sales people have to be clued up and we have really increased the service side of our business.'

While Sydney Boat Sales does not exhibit at SIBS, it’s ideally positioned to take advantage of the concentrated boating fervour, just west of the city at Gladesville Bridge Marina, Drummoyne.

The company also relies on its regular e-newsletter which goes out to 4,500 people and which Des reports has resulted in listings and sales.

'On our website we also have a subscription option which means people can sign up and automatically recieve newsletters and alerts.'

'You can’t be passive, waiting for people to come. You have to meet them where they are and once you’ve got their interest, skillfully sell them what they’re after.'

Maintaining professional standards and emphasizing the service aspect of the industry should be a dealer’s focus, according to Des, who was the first to undergo the Marine Brokers accreditation course in 2004.

The second series of accreditions was completed two weeks ago with around 14 people taking part.

'The main aim is to improve quality of brokers. It’s a good initiative and covers establishing trust accounts, ethical business practices, being licensed, which is essential for consumers.'

As far as other industry initiatives, Des is vocal on the need for the national BIAs to 'get together, speak to each other, amalgamate', and urges Grow Boating to make its presence felt in the industry and in the public realm.

'We need the support now more than ever. Grow Boating needs to get up and work for the industry,' he says, suggesting a kind of 'floating caravan' that could take in marinas around the country, introducing the public to the joys and benefits of boating.

'Grow Boating needs to work with the Marina Association to show people boats, the facilities, how boating has changed, open up the place, like a traveling road show. They’ve been around for long enough now. I was a BIA Director when the initiative was first raised two years ago.

'But where is it? It seems like Grow Boating is still underground. There needs to be a national plan, we need to get people in to boats and a Boat Show isn’t necessarily the way to do it. We need real initiatives like open days marinas, flybridge days, boat tests, an ongoing push to get back into boats.

'They need to get off their collective arse and get things moving. By now it should be up and running!'

More at www.sydneyboats.com.au