Opinions mixed on Grow Boating decision
Some advise patience, while others are skeptical of how the redirected dollars will reach them
By Beth Rosenberg / Staff Writer
b.rosenberg@tradeonlytoday.com
Boat dealers have mixed reactions to the announcement that the bulk of the funds collected for Grow
Boating will be given back to manufacturers to pass
along to the dealers. Some express skepticism this
will actually happen, and others say dealers need to
be patient as boatbuilders figure out how to best distribute the money.
In October, the National Marine Manufacturers Association said it was temporarily redirecting Grow Boating
assessments because the money collected would not be
enough to mount an effective national campaign.
It was agreed that 85 percent of what’s collected
from engine assessments will be given back to manufacturers to pass along to dealers, and the other 15
percent will support public relations, the Discover
Boating Web site, Marine Industry Dealership Certification and other core programs.
The change began with assessments incurred on or Built-in safeguards
after Oct. 1 and will continue through June 30. Phil Keeter, president of the Marine Retailers Asso-
Industry leaders expect about $6.5 million to be ciation of America, says he understands the concern,
redistributed back to manufacturers and then to but feels the “new direction has plenty of safeguards
dealers, and about $1 million will remain for the in it for dealers.”
Grow Boating budget.
“There becomes a threshold The iindusttrry--wide efffforrt tto “grrow”
that the efficiency that you rrecrreattionall boattiing thrrough marrkettiing
gain on a national basis really iis takiing a step back because of the
starts not to pay off,” explains sllumpiing economy..
Carl Blackwell, vice president
of marketing and communications for Grow Boating Inc.
and the NMMA.
Blackwell likens the redistribution to a “stimulus package”
for dealers.
“The $6.5 million spread out
through all the companies and
all the dealers may not be a lot
on an individual basis, but I
wouldn’t be surprised if it
doesn’t stimulate more investment in [sales building] tactics
by those companies,” he says.
also hadn’t heard anything from his manufacturers on
how they plan to disperse the funds.
“In my opinion, it simply needs to be dropped and
monies not collected, or it needs to be channeled
[differently], not company by company,” he says.
“That’s like earmarks.”
Thorpe, who also hasn’t heard anything from his
manufacturers, noted that dealers already get rebates,
and he envisioned a situation where a dealer might
say the Grow Boating money is included in part of
the rebate they already receive.
“It took so long to get the Grow Boating campaign
going, and we all know it’s tough times, but in
tough times that’s when you need to advertise,” says
Thorpe, who sells Carver, Marquis and Cruisers
boats. “It would be like me saying I’m not going to
go to the next year of NMMA boat shows. Well, then
what’s that going to do to my business?”
rect funds, saying the industry needs boat buyers
now, not two years from now.
“We need buyers today, not next year and the
year after, and all of our marketing messages were
geared toward non-boaters in non-boating venues,
non-boating publications, attracting and trying to
persuade new participants into the recreation of
boating,” he said.
He urged dealers to be patient with their manufacturers and give them time to decide how the funds
will be dispersed. Russo also urged the retail community to be vigilant about knowing how much money
they are entitled to receive from their manufacturers.
“I honestly believe most manufacturers will institute a rather traditional approach to the distribution
of funds,” he says. For example, dealers could get
more in the way of boat show co-op funds — perhaps 100 percent instead of a 50-50 split.
One of Russo’s manufacturers, Boston Whaler, recently introduced a new series of boats and wants dealers to buy new in-store and boat show displays that
cost hundreds of dollars. The company, Russo says, is
allowing the assessment funds to offset the cost.
“Those are the kinds of things that need to happen
everywhere,” he says.
‘Nobody asked us’
Some dealers, however, are not convinced that’s
how it will work.
“We all agreed as dealers and manufacturers and
the NMMA that money was supposed to be spent for
the Grow Boating campaign, and we’ve paid into it all
these years, and all of the sudden a bunch of guys get
together and redirect it and (decide) not to use it for
what it was meant to be for,” says Jim Thorpe of
Spring Brook Marina in Illinois.
“Nobody asked any of the dealers what their
opinion was,” he says. “I think it’s the most ridiculous thing.”
Jason Padgett, of Modern Marine in Tennessee, was
unaware of the change when contacted by Soundings
Trade Only. He says he hadn’t been notified by his
manufacturers.
“We’re fully expecting this upcoming year to be a
tough year, and so we’ve backed off as far as orders
for the ’09 year,” says Padgett, who sells Cobalt and
Chapparal boats.
RICH ARMSTRONG
“It won’t be too much money,” he says. “But every
little bit helps.”
Manufacturers received a pledge card they must
sign and return to the NMMA in order to receive
any of the redirected Grow Boating assessment
credits. They must agree to apply 100 percent of
the money toward creating marketing and promotional efforts that assist dealers in moving product,
assist dealers in converting prospects into buyers,
and fully report to dealers on how the credits are
being spent.
It’s up to the boatbuilders, however, to decide how
to spend the money. They can put it toward boat-show expenses for dealers, promotional events such
as demo days, give credit vouchers to pass along to
customers, or other efforts.
Any manufacturer that does not live up to its pledge
will risk its NMMA membership, Keeter says.
It’s only temporary
Industry officials insist this is
not the end of Grow Boating,
but rather a temporary shift in
the program to help offset the
current economic climate. The
NMMA board plans to readdress the issue at the American
Boating Congress next May,
and will determine whether
the redirected assessments
should be extended beyond
June 30, 2009.
Grow Boating has been successful, they say, with the
Discover Boating Web site
getting 3. 5 million visitors
annually; 171,000 people requesting the “Get Started in
Boating” DVD; and nearly 10
percent of those people purchasing a boat.
NMMA says the campaign also has increased boating participation.
This change in direction will likely put the program
“in neutral for a year,” says Blackwell, stressing that
about $1 million will still be spent on marketing.
“This program is not suspended,” he says. “The
budget is really being redirected. There are a lot of activities going on.”
It’s like ‘earmarks’
A Midwestern dealer, speaking on the condition of
anonymity, called the plan “ludicrous” and says he
The need is now
Larry Russo, Sr., of Massachusetts-based Russo Marine, says it’s too soon for manufacturers to have hammered out details of how they plan to redistribute the
funds, and dealers should be patient.
Russo is a Sea Ray and Boston Whaler dealer who is
chairman of the dealership certification program and
was involved in the decision-making process to redirect the funds. He agrees with the decision to redi-
Emphasis on PR
In a letter to the industry, NMMA president Thom
Dammrich stressed that Grow Boating is more than
just a 30-second commercial. The ads are important,
he says, but other efforts are equally important.
“We won’t be advertising in 2009, but we will be
spreading the message of the positive benefits of the
boating lifestyle nationally through our PR efforts, interactive marketing and DiscoverBoating.com, and
will continue to support and grow product certification, dealership certification and our focus on improving water access,” he says.
“And while we continue our work to get more
Americans interested in boating,” Dammrich adds,
“there will be more dollars available to manufacturers
to help their dealers sell boats now.” n
