Struggling boat retailers hope event helps them stay afloat

As sales began slumping in August 2007, Seattle Boat CEO Alan Bohling sensed the economic tide was going out.

Bohling, whose company has been selling boats in Seattle since 1984, sees the boating industry as an "early indicator" of the state of the general economy. In 2008, as banks failed and Wall Street tanked, Seattle Boat's sales declined nearly 40 percent.

The company was bracing for another 25 percent decrease in 2009. But in December, somewhat to Bohling's surprise, people started buying again.

"We have had more action during that last three-week period of time than we have had in the past two years," Bohling said during a preview party for the Seattle Boat Show, which opened Friday at Qwest Field Event Center and South Lake Union.

To Bohling, it's another early indicator — this time, of an economic upswing.

"The worst is behind us," he declared, leaning against a 21-foot Cobalt 210 sport boat priced at $54,161, about $5,000 less than usual retail.

The preview Thursday night was the first in the boat show's 62-year history. Dealers invited clients and prospective boat owners for a special sneak peek at the merchandise, hoping to make connections and jump-start sales.

More than 1,000 guests were expected to RSVP. Almost 3,000 showed up, according to the Northwest Marine Trade Association, which has more than 850 members. It was a welcome sight for dealers, some of whom scored handshake deals at the event.

"They're just happy to see a few thousand people walking and talking and breathing oxygen," said association President Michael Campbell as he watched people slip off their shoes and climb onto boats on display. "We're so far down, anything looks like an improvement."

With about 1,000 exhibitors, the 2009 Seattle Boat Show is about 20 percent smaller than last year, reflecting the contraction of the market. Some former exhibitors, including Seattle's Olympic Boat Center, closed for good in 2008, while others teetered on the edge of bankruptcy.

"Business has been a challenge over 2008, but we've made some moves to take advantage of some of the white space in the market," said Mark Helgen, sales vice president at Lake Union Sea Ray. His business expanded last year, opening three new service locations and a store on Lake Union.

"It's encouraging," Helgen said, as he watched people mingle among the stock Thursday. "The comments are positive."

The slowdown left dealers with more inventory than they're comfortable with, which meant large sticker discounts. But dealers also expect boat manufacturers to curtail production this year. They hope the result will be a return to equilibrium.

At the moment, however, dealers are pointing to a tried-and-true slogan.

"It's a great time to buy," Campbell said, smiling as he acknowledged the cliché. "But it is. There are deals to be had in boats that won't be had again."

Along with remarkably low prices, with a down payment of 15 to 20 percent, financing is "very, very available," Bohling said, noting that interest rates are running between 7 and 8 percent. "I see an opportunity for the consumer."

All this is good news for those with the means and inclination to buy, said Bill Baker, president of Bakes Marine Center, which is celebrating its 20th anniversary this week. It's not bad for the dealers, either.

"I actually think this year's going to be pretty decent," Baker said, standing near a blue and white Malibu boat, priced at $57,633, down from $64,915. Nearby, a $101,822 Malibu was on sale for $86,048. "Is it going to be as big as the banner years? Probably not. But I think the industry is going to start climbing."

Consumers, for their part, are all about the bargains.

"Instead of a drink ticket, can I have that?" joked one preview-goer as she checked in at the Lake Union Sea Ray desk, pointing to a $1.9 million 55-foot Sundancer yacht, on sale for $1.34 million.

"I think we'd all like to buy a boat," said John Dombroski, a Sammamish resident invited to the event by Baker. Dombroski's question to dealers: "What kind of deals are you cutting?"

Others wish they had waited longer to buy. Kirkland resident Gary Webb, who keeps his 2007 Sierra Bayliner on Lake Washington, said he would love to upgrade from a 30-foot model to a 34-foot model. If he had bought a boat this year, Webb could have gotten the bigger one for the same price he paid for his 30-footer.

As it is, trading the boat in would result in a $30,000 to $40,000 loss.

"If I hadn't bought that boat last year, I'd be so happy right now," Webb said, looking wistfully at the Malibu models. "With the economy the way it is, you can't flip your boat or do anything you'd usually do."