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Steps on becoming a Boat Dealer

9/23/2013 2:12:40 PM | by Anonymous

Boat Dealers

Boat dealers are individuals who engage in retail sales of boats for a living. Becoming boat dealers would involve meeting requirements of boat manufacturing companies and the set of state laws. The appropriate combination of skills and experience contributes to a successful retail business venture. Attention to minor details and sound business planning are essentials. The following are instructions on how to become a boat dealer:

 

1. Evaluate the retail experience in selling boats. The key factor in becoming a boat dealer would be possessing good interpersonal skills. Having good interpersonal skills would help in the increment of sales and eventually sealing deals. Additionally, they will also be needed to guide a sales team to do the same.

 

2. It is important to always familiarize with the boat dealer requirements. Most states would require a license. Thus, you may need a business license and appropriate sales registration. The following would list down the types of licenses:

 

  • Dealer’s License

The boat dealer’s license would be similar to obtaining an automobile dealer’s license. In some states, additional requirements would be imposed. Surety bond is the insurance that provides the necessary coverage if licensee fails to meet the licensure obligations.

 

  • Wholesale License

This license allows the sale of boat dealers only. This license provides the best type of options for those who prefers to avoid dealing with their consumers directly. They are the relatively similar to the regular dealer’s license.

 

  • Other Types of Licenses

Licenses are also made available to interested boat dealers. A license allows businesses to lease boats to their vehicles. The salvage license would allow sellers to buy boats from different salvage yards and sell them off. Auction license allows dealers to sell boats that do not belong to them. A used parts license would allow the sale of used parts to customers. A used vehicle license would allow the sale of used vehicles by sellers to other buyers.

 

3. There is also a need to determine the kind of dealership to operate. They can be chosen from the list of used boats which represents certain manufacturers or even doing both.

 

4. Formulate the business plan. Doing this will set out the sales methods, projected sales, size of the operation, sales facilities, size of staff. If necessary, marketing could be included as well. Some boat manufacturers will require a quota to be met by selling a certain amount each year.

 

5. Ensure that there is secure financing. Money would be needed for the inventory, driving the car to sales calls, sales centers and even marketing need. Even if the necessary inventory is not prepared, it will also be known as the start up money. Depending on the state, some will require a surety bond for license they issue.

 

6. Always determine the boat lines to carry. Major manufacturers always have specific requirements such as service training, purchase of marketing materials and minimum annual sales.

Tips & Warnings


- Unless the target commercial industry has been decided, it is crucial to always remember that boating is a leisure activity. Most people who spend on boats come from disposable incomes and that the economy can succumb to down turns as and when it happens.

 

- Nowadays, online marketing is no longer just effective for boat dealers. It is also their main sale tools and many potential customers engage in websites to narrow down their choices and research prices. Selling boats and various watercrafts would require a dealer’s license. Most states will require the submission of necessary documents and a fee to be paid subjected to the different states.

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