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36 | Boating Industry | April 2014 www.BoatingIndustry.com www.BoatingIndustry.com /// Market Trends /// development muscle on bowriders and hybrid- style sport deck runabouts. Skeen added that the sales trends favoring larger boats aren't necessarily clear-cut, as the company saw strong interest in its 18s and 19s at this season's Midwestern boat shows. That said, Stingray has seen its average unit price increase as dealers change their orders in a reflection of entry-level sterndrive customers continuing to shrink as a portion of the overall sterndrive marketplace. In response, the company has put an empha- sis on keeping prices as low as possible, which has become difficult with the increased cost of on-board technology, emission controls and sterndrive engines themselves. "We do all we can to keep prices as low as we can, but we have seen our average [selling] price going up, meaning people are buying larger products," Skeen said, acknowledging a silver lin- ing to the trend. "It's more profitable for us, too." Stingray's recent addition of outboards has been a shot in the arm to add incremental vol- ume, while also giving its dealers a new type of product that consumers have been asking for. "The technology of the outboard product now makes it an acceptable power choice for a runabout-style boat," Skeen said. "We under- stand how people like to use a sterndrive boat, so it makes us feel like we can do a better job designing … an outboard boat that has the attri- butes of a sterndrive boat with a large sun deck, the ability to have as much swim platform as you can and still have outboard power and really in- tegrate the outboard into a more traditional sterndrive platform for that buyer." The company doesn't expect its sterndrive- to-outboard mix to change dramatically going forward, but it's hedging its bets with a more diversified product portfolio. "We're going to continue to evaluate the outboard market and continue to put models in where we feel like there's the ability to give our dealers something that's unique that they can sell, and give us incremental volume," Skeen said. "Ob- viously we're going to keep moving and doing the things we can to drive volume into our plant, and if that means the outboard segment becomes more a part of our portfolio then so be it." To support its outboard expansion, Stingray has created several outboard models to show consumers and dealers that the company is truly invested in the category, rather than just experi- menting with a few outboard boats. Skeen was careful to reiterate the company's ongoing support of the sterndrive segment, and the company has recently introduced a new 19-footer as well as the reintroduction of a 25-foot sterndrive. He added that the company is pleased with advancements in sterndrive engine technology, but hopes that the engine OEMs focus on main- taining costs as volumes decrease. "We are hopeful that both [Volvo Penta and Mercury] do all they can to keep our costs as low as possible, because at the end of the day any time they switch technology and go with some- thing different it's going to cost," Skeen said. "We understand why they have to do it, but we are hopeful that they can keep costs in check to keep our prices as low as possible." Cost management will remain a key factor for the sterndrive market going forward, he said, and Stingray puts a strong focus on producing high- value products to appeal to its customer base. Skeen also sees style differentiation as a way to drive sales growth in the category, as well as in- tegrating new features and technologies. While economic indicators became mixed as extreme winter weather hit much of the United States, he says Stingray remains positive about its fortunes as the 2014 selling season ramps up. "What we're seeing at the boat shows makes me believe that and talking to dealers about the activity of consumers and what's going on really makes me feel positive about '14," he said. "The fact that people are looking at sterndrives again, in conjunction with a posi- tive outlook on the future, these next 12 to 18 months makes me feel good." Monterey bets on versatility Located 25 minutes southwest of Gainesville, Fla., Monterey Boats offers a full lineup of run- abouts, performance ski boats, high-performance sport boats and sport yachts. The company clas- Stingray expects style to be a motivating factor that encourages people to upgrade or buy new sterndrives. P34x40-BI14APR-MarketTrends.indd 36 3/14/14 11:18 AM