Regifting

By Peter Granata, president, Granata Design — December 17 is National Regifting Day. For those of you not familiar with the practice of regifting it is described as the act of taking a gift that has been received and giving it to somebody else, sometimes in the guise of a new gift.

To paraphrase Jeff Foxworthy, If this sounds like something that you might have on your floor plan, you might be a boat dealer.

Finance companies have been “regifting” inventory from dealers that have fallen on hard times, thereby virtually drying up much of the production of brand new boats from manufacturers.

Now comes the ripple effect. At some point the current inventory in dealer’s yards will give way to this year’s “new” product directly from the boat manufacturer. Question: How different do you think it will be from the “regifted” boats that are selling at heavily discounted prices?One unfortunate repercussion from this economic upheaval will be that much of the “new” product will look very much like the old product throughout the next year. Product is always expected to drive sales. This time it’s different.

If we’re going to get out of this slump, we’re going to have to rely upon the dealer organizations to sell our way out of it. The real salesmen of our industry will have to stand up and defend our future. They are the cavalry, but as in any good fight one would hope reinforcements are on the way. Dealers want to make darn sure that their manufacturer is preparing some solid products to be introduced in the very near future. And please, no regifting. Saleable product has to be either inexpensive or unique, a successful product has to be both.

After everything a dealer will go through during the upcoming selling season, he’s going to need the next round of new product to fit the new demands of the changing consumer. Smaller outside, larger inside, fuel efficient, towable, cost effective, and most of all, unique. Unique, because the customer is smart enough to know regifting when he sees it.

Boating Industry Magazine, December 11th 2009

Are we There yet?

By Peter Granata, President, Granata Design  — There comes a time in everyone’s business life when we are faced with having to make a critical decision that requires action. We’re getting very close to being “there.”

Many of us will have to decide if we are going to aggressively pursue sales during the upcoming selling season, or continue to wait until something happens. In choosing to wait, we may be deciding upon an inglorious end to our business.

Most of the industry has conceded that the 2009 selling season was a bust, and so far, I haven’t found anyone who wants to repeat THIS year!

It’s nearing the time to sing or get off the stage. The 2010 selling season begins next month, starting with the boat shows. If you’re a dealer, it’s time to clean up that inventory and try to put on a fresh face; if you’re a boat manufacturer, you might want to be working on some exciting new product for next year.

Human behavior being what it is, most of us will be looking forward to the holidays and the time off from business worries.

Once the holidays have passed, I anticipate that the beginning of the new year will bring a flurry of activity from many dealers and boat builders alike. Sort of like a poorly organized fire drill. Unless, of course, you are one of the few that have planned for your future instead of just waiting for it to happen.

It’s December, please remember you’re just around the corner from being “there.”

Boating Industry Guest Blog December 2009