Boating Industry

March 2015

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MARKET FOCUS SECTION { AUDIO } March 2015 | Boating Industry | 45 www.BoatingIndustry.com "We see more people choosing our brand and putting it into segments that we've not previously been in. We're seeing our brand now going into fish," said Oswell. "I have to as- sume that the innovation in the marine audio brand has been what's fueling demand and pushing into new segments." He said he's happy to see the brand grow beyond the tower boat market and aims to push it into more segments. "We're focused on designing new products for specific market segments. We'll have a fish-spe- cific line coming out – mostly center console and offshore guys. And of course yachts and cruisers – there's a new product line coming out for that," said Oswell, noting that consumers are currently buying for quality, not price. "What I'm finding is that a lot of people that are paying for higher quality, they really want a higher-quality sound. " OPPORTUNITIES FOR DEALERS While a lot of the movement in the audio seg- ment is focused on selling to OEMs, the evolu- tion has created a pair of great opportunities on the sales floor and in the service bay. With all the new features installed at the factory, it's an easy way to demonstrate higher value for new boats. Everyone wants new gadgets. Beyond new boats, however, spend-happy consumers and great new, premium gadgets create the perfect profit storm for dealers with a good service department. "One of the biggest challenges for the boat builders is cost. A lot of these systems are seen as dealer-installed options because the boat builders are trying to control the costs. When they ship a boat from the fac- tory, they are increasingly reluctant to add to the cost," said Pilvelait OEMs are certainly changing their tune somewhat, but there is a still a huge market for high-end audio equipment, design-forward devices and the new line of connectivity prod- uct that enhances even current-year offerings from boat manufacturers. "I think the emphasis at manufacturer level has actually been a boon for dealers who are good installers and have really good service de- partments. It's a tremendous opportunity for dealers," said Pilvelait. Audio systems can be a great conversation starter for the service department to have with customers. Just asking what kind of sound system they have in their car or at home can be a jump- ing off point. Or customers browsing the water- proof cases in the showroom probably have a new device -- one that they want to use on the boat. Why not make it easier for them to experi- ence that device in conjunction with their boat? Finding deals and incentives pushes that profit even further. Pilvelait recommends find- ing good incentives, but dealers should also not be afraid to ask about incentives or bulk deals. The segment is very competitive, so audio manufacturers might be open to working with dealers to keep their product flowing. After all, small margins require large volume. "I think the most successful dealers going forward in this segment will offer a wide range of products to their customers," said Pilvelait. "It requires a little more work at the dealer- ship level to become more familiar with all the different manufacturers and all the different products, but I think that's time well spent."

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