Issue link: https://read.dmtmag.com/i/459238
www.BoatingIndustry.com 38 | Boating Industry | January 2015 MARKET FOCUS SECTION { BOAT CLUBS } BY NICHOLAS UPTON N ot long ago, boat rental was seen as the competition of boat dealers. But in the shadow of the great re- cession, drastic changes have brought clubs and rentals into the realm of traditional boat dealers and stakeholders. That novel alliance has created new synergies for the dealer and has raised the profile of non-standard boating options. John Giglio, president and CEO of Free- dom Boat Club said that as it celebrates its 25th year as a company, that relationship has undergone some drastic changes. "Traditionally, dealers have looked at us as a competitor," said Giglio. "But in the last several years we've really tried to foster relationships with dealers." He said that sea change helped the company find 30 new franchisees in the past two years and has opened up boating to people pondering the idea of buying, but who just might not be ready to commit to traditional ownership. "One thing that we've seen as a trend in our memberships is we get a lot of people new to boating or people that have had some limited experience, but boating is something they want to get into," said Gi- glio, who added that FBC's training gives new boaters confidence in their skills and gets them thinking about what they want out of boating. "What ends up happening over time is they either continue with the club -- which many people do -- or they determine they want a bigger boat, a little more flexibility in what they can do with their boat and they go out and purchase their boat," said Giglio. He said that while FBC hates to see people leave the club, the company goes the extra mile to help them on their next step in boating. "We try to foster those relationships with dealers locally, so when someone is Opportunities in boat clubs, sharing Creating synergies and new profit centers ready to exit the club, we say, 'Go see our friend up at Naples Boat Mart and they'll put you into a Key West or a Hurricane.' We try to make it really easy for them to transfer out of the club," said Giglio. He said just getting familiar with the boats is a huge sales driver for the brands Freedom Boat Club works with. "We've found that people buy the types of boats that they use on a day-to-day basis," said Giglio. "On the west coast of Florida here, we do a lot of business with Nautic Global Group and the Hurricane boat line. So what will end up happening is a lot of people who want a deck boat get a Hur- ricane, if they're looking for a fishing boat they looking for a fishing boat, they're going to go buy a Key West or a Cobia because that's primarily what we run and those are the boats that they're comfortable with." Giglio said FBC's statistics show that club members are primed to buy when they do exit the club. "A good 50 to 60 people leave my club each year to buy their own boat," said Giglio. Jeremy Holcomb, marina manager and club director at Legendary Marine said those same synergies helped the dealer's new boat club fill a critical gap in the Des- tin, Fla., boating community. He said the club, which launched in January of 2013, has translated into a new profit center for PHOTOS COURTESY OF FREEDOM BOAT CLUB