Issue link: https://read.dmtmag.com/i/173871
BOLD B MOVES M A new YachtWorld iPad app designed to take advantage of full-screen photos for listings The BoatWizard iPhone app that provides brokers with real-time access to their inventory, MLS search and leads from their phone QR code boat specs that brokers and dealers can use in advertising to direct boat shoppers to listing information on their phones Dominion is also developing new mobile marketing solutions to help its dealer clients redesign their websites or launch mobile sites. 200% » Increase in mobile traffic to Dominion sites over the last two years Besides that, Dominion has created a number of social media tools and services to help dealers manage their online reputations. Claxton is also taking a lead role in educating dealers and others in the industry on the importance of mobile through webinars, in-person seminars articles and more. JOIN THE CLUB JOHN GIGLIO President/CEO Freedom Boat Club Sarasota, Fla. While boat sales struggled during the recession, participation in boating remained relatively strong, surging to record levels in 2012. Even if people weren't willing to take the purchase plunge or couldn't get the financing to buy a new boat, they were still interested in the sport. Boat clubs and rental operations have continued to grow in popularity. With 69 locations across the United States, one of the biggest beneficiaries of that trend has been Freedom Boat Club. "When the economy took a dive, that's when our business skyrocketed," said President/CEO John Giglio. "People enjoy being out on the water, they just couldn't afford it." Although around since 1989, Freedom Boat Club has seen the most growth over the last few years. Freedom Boat Club had a 29 percent in24 | Boating Industry | October 2013 P22x28-BI13OCT-BoldMoves.indd 24 crease in revenue in 2012, following a 25 percent increase in 2011. The company has increased the size of its boat fleet by 54 percent since 2010. While many view boat clubs as a competitor to marine dealers, Giglio doesn't see it that way. As far as he is concerned, the competition is all of the other options a consumer can choose to spend their recreational dollar on from golf to RVs. "Keeping that money in the industry is a tremendous benefit," he said. "They can join a club like ours, try it out, determine if they like [boating]. Many of our members go out and purchase a boat after a year or two." It can also mean more revenue for the marinas that host Freedom Boat Club, with club members spending money on fuel, service, restaurants and supplies on the property. The goal for Freedom Boat Club is to continue to grow, spreading the brand to other locations, with two more scheduled to open this fall and more next year. The demand for boat clubs should continue to be strong as an alternative to ownership, Giglio said. As for the peer-to-peer rental strategy that has garnered so much buzz this year as companies such as Boatbound and Fun2Rent enter the marine market, Giglio said he doesn't see that as a threat to the boat club strategy. The one-off customer, like boat rental operations, is a different one than Freedom Boat Club targets with its membership program, he said. KEEPING R&D FLOWING PATRICK HEALEY Executive Vice President, Viking Yacht Co. New Gretna, N.J. Cutting the research and development budget is an all-too-common response when the economy heads south. But that can be fatal in the yacht category, where new is what sells. It's crucial to keep innovating in the 42- to 92-foot market that Viking Yachts competes in, said Patrick Healey. It's a lesson the company learned during the luxury tax days of the early 1990s. Even as others cut back, the company kept investing in research and development, confident the tax would eventually be repealed. "By keeping our group moving with R&D, we were able to introduce two new models when the tax went away in 1993," Healey said. "When things went sour in 2008, we followed the same principle." The company's current flagship model, the 82 Convertible, was launched right after Thanksgiving 2008. Hull No. 25 was delivered this fall. The company dedicates at least $3.5 million to research and development and is introducing two new models for 2014 – a 52 Convertible and a 42 Sport Coupe. Viking has committed $7 million to develop two new models for 2015. Despite working in a high-end market, Viking still needs to control overhead and that, along with creating a turnkey experience, has been a constant focus of the last several years. To that end, the company created subsidiary companies to make the experience easier for the buyer: Atlantic Marine Electronics, focused on marine electronics, communications and entertainment, and Palm Beach Towers, a tuna tower company. Viking has even built its own wastewater treatment plan on site and added solar panels to some of its larger buildings in order to reduce utility costs. In December 2012, Viking flipped the switch on its own tri-generation plant. "Five to 10 years ago, the boats we built would have 100 onboard systems. These days it's more like 400 to 450 systems," Healey said. "When you add these new systems to each boat, the costs spiral upward tremendously and we have been seeing this upward climb for the past five to seven years. We try everywhere we can to control costs." PROPANE POWER BERNARDO HERZER CEO, Lehr Inc., Los Angeles Whenever it's possible, Bernardo Herzer believes it's the responsibility of manufacturers to look for environmentally friendly technologies. That is what prompted the Lehr CEO to focus his company on creating propane-powered small engines, first in the lawn and garden marwww.BoatingIndustry.com 9/5/13 11:42 AM