Recently, the heads of the National Marine Manufacturers Association (NMMA) and the Marine Retailers Association of America (MRAA) announced that a coalition of 13 boat dealers, 12 manufacturers and other marine industry representatives from across the country had drawn up a set of guidelines for conducting business in a way they say will raise their level of performance and provide more satisfaction to their customers.

Their mission statement sums it up: “To develop a non-legislative approach to improving dealer/manufacturer relations, creating guidelines that will be embraced by dealers and manufacturers alike, creating an environment for mutual trust, growth and success while,” best of all, “providing a delightful boating experience for our customers [our emphasis].”

“This is a brand new day for the boating industry,” said David Slikkers, CEO of S2 Yachts, Inc. “We have created a foundation for future collaborative efforts to provide customers with the finest products and the best boating experience.”

Is this the real thing or just a bit of asphalt in the industry’s road of good intentions? The industry’s effort to find a “non-legislative approach” to solving its problems staves off influence from outside forces, like the government and consumer and safety advocates. Compared to other manufacturers, most notably car makers, boatbuilders are governed by a minimal number of federal regulations.

Nonetheless, the new dealer-manufacturer guidelines are a lot more specific than past industry dealer agreement breakthroughs.

“Sixty boat brands have committed to use the guidelines by the 2006 or 2007 model year at the latest,” says NMMA president, Thom Dammrich. Of the industry association’s 452 boatbuilder members, these 60 companies produce 90% to 95% of the new boats on the water.

“Change is always difficult,” Dammrich said, adding that the new guidelines represent “a cultural change in the industry.”

The centerpiece of the industry coalition’s work this year is a voluntary dealer-manufacturer agreement defining sales territories, warranty reimbursement at shop rates, inventory buy-back and performance standards. Dealers have lobbied for dealer agreements for decades, while manufacturers have countered that such agreements stifle competition and are bad for consumers (See “States Siding With Boat Dealers,” BoatU.S. Magazine, March 2005).

Despite industry opposition, the dealers have managed to convince legislators in at least eight states to enact marine dealer agreement laws that define the business relationships between manufacturers and the retailers of their products. Similar proposals are being considered in five more states. Dealers say that today’s economic climate makes it impossible to do business relying solely on the handshake agreements and one-year agreements that have been the norm.

From the new guidelines, it’s clear that boat manufacturers see the wisdom of teaming up with dealers. Industry studies have shown that non-owners perceive that owning a boat is a hassle and that current owners give the industry low marks for overall customer support.

Boating consumers stand to benefit when dealers’ and manufacturers’ obligations to each other are clearly demarcated. A stable dealer adequately compensated for warranty service and on the receiving end of strong factory support is in a better position to service his customers.

NMMA took a similar pro-active approach to manufacturing standards. Its boat certification program has been expanded and strengthened to the point where it encompasses almost every standard recommended by the American Boat & Yacht Council. The Council is a not-for-profit organization that has developed and updated safety standards for boatbuilding and repair for 50 years. ABYC standards are far more extensive than the minimal federal regulations administered by the U.S. Coast Guard.

By making certification a requirement of membership, NMMA has demonstrated its commitment to improving how boats are built while at the same time pre-empting possible arguments for expanding and strengthening existing federal laws. NMMA membership isn’t mandatory, but most of the major builders are members, which means most of the boats on the water bear the NMMA certification label.

The next steps, supporters say, are for all companies to embrace the new dealer-manufacturer agreement guidelines and to put their agreements in writing.

However, adhering to the guidelines will not be a requirement for NMMA members. Dammrich told BoatU.S. that, to avoid possible restraint of trade questions, NMMA will stop short of requiring its members to adopt the dealer-manufacturer agreement. The guidelines were reviewed by the Federal Trade Commission to ensure that they were legal and appropriate, but the commission advised against making them mandatory, Dammrich explained.

With the guidelines expected to be in widespread use with the 2007 model year — in other words, by summer 2006 — NMMA’s Dammrich sees this as the start of a new era.

Dammrich predicts, “In five to 10 years we’ll be able to look back and say, ‘Wow, we really have come a long way."

(c) Copyright BoatU.S. Magazine, July 2005