How to Become a Boat Dealer
Becoming a boat dealer involves meeting the requirements the boat manufacturing companies and state laws set. As with any retail business venture, the right combination of experience and skills contributes to success. Sound business planning and attention to details are essential.
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Things You'll Need
- State boat dealer license
- Surety bond
- Manufacturer agreement to sell specific brands
Instructions
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Evaluate retail experience in selling boats. As a boat dealer, you need good sales skills for closing your own deals and guiding a sales team to do the same.
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Familiarize yourself with your state's boat dealer requirements. A license is required in most states. You may also need a business license and appropriate sales tax registration.
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Determine the kind of dealership you want to operate. You can deal used boats, represent only certain manufacturers or do both.
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Formulate a business plan. This sets out the size of the operation, sales methods, projected sales, size of staff, sales facilities, if necessary, and marketing. Plus, some boat manufacturers require you sell a certain amount each year.
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Secure financing. You need money for inventory, driving a car to sales calls, a sales center and marketing. Even if you don't carry inventory, you need some startup money. Some states demand a surety bond for each license they issue. For instance, in the state of Maryland a surety bond costs $20,000.
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Determine the boat line or lines to carry. Major boat manufacturers have specific requirements, such as service training, minimum annual sales and purchase of marketing materials.
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Tips & Warnings
Unless you are targeting a commercial industry that depends on boats, remember that boating is a leisure activity. The money people spend on boats comes from disposable income, and sales can rise and fall with the health of the economy.
Online marketing is not only effective, it is one of the main sales tools for boat dealers. Many potential customers use websites to narrow down choices and research prices.
