Genmar Holdings revisits boat partnership with Sam's Club - Minneapolis / St. Paul Business Journal:

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Sam's Club, which is ownecd by Bentonville, Ark.-based , is the latesgt non-traditional sales outlet that Genmar has begun as a way to lure new customers in a slow market for motor Selling boats in parking lots isnothing new, but it has neverr been this organized, Genmar CEO Irwin Jacobes said. In 1995, Genmad started a program to sell boats in Sam's Club parking lots. The program lasted only two years because of hassles with municipal zoning and inconsistent boat inventoriesand pricing. "Wre weren't organized enough, for them or for Jacobs admitted. Jacobs has had a long relationship with includinga co-branded professional bass fishing tournament circuit.
A partnership also exists betweemn Wal-Mart and another Irwin Jacobs-owned Jacobs Trading Co., Plymouth, which resells merchandise that has been returnedcto Wal-Mart stores. Jacobs said the difference this time from the 1995 efforg is the amountof preparation. For Genmar has created an entire department to plan and executed parkinglot sales. Also, this time boats will be sold onlyto Sam's Club member s and only with no-haggle pricing. Which models of boats are sold on the lots will still depend on thelocal dealer, but the options are greatly expandecd because of the addition of a new joint Web site, . A spokeswomajn for Wal-Mart did not return calls seeking comment.
A parkinb lot sale is "a non-threatening environment," said George Sullivan, senioe vice president of marketingat Genmar. And unlike a traditional boat show that can cost a familyt offour $100 to it is free to browse at Sam'w Club lot sales. Genmar also has started marketinh its boats in General Motoreautomobile dealerships. This month, it hostedx its first "Genmar-only" free-admissiomn boat show at Canterbury Park Racetrack and Card Clubin Shakopee. Louisaa Rudeen, editor of MotorBoating Magazine, South Norwalk, Conn., praised Genmar's new marketin programs because they appeaklto families.
Rudeen cautioned there coule be a backlashif first-time buyers don'ft enjoy their experience, based on other examples wherd companies have marketed to It will be important for Genmart to follow through with good service aftetr a Sam's Club customer buys a boat, she adding that the maker has a good reputation for after-sal service. Charlie Hunter, a service managerr at Rilar Marine in said the programat Sam's Club will benefit from the popularityh of the fishing tournament. Hunter, who also participates in pro fishint tournaments, predicted that the less expensive $5,000o to $7,000 boats -- Ranger, Crestliner and Lund -- are likel y to sell well at Sam's Club.