Sam's Club to sell boats

lwrandall · Dec 4, 2007

Looks like they are going to need bigger carts It will be great to by my new Carver while I pick up 5 pound bag of Cheerios.

Genmar Holdings revisits boat partnership with Sam's Club

Minneapolis / St. Paul Business Journal - by Sam Black Staff reporter...

Thanks to the success of a trial promotion last June at Wal-Mart stores that generated $100 million in sales in less than 30 days, boat maker Genmar Holdings Inc. has signed an exclusive one-year marketing agreement to sell Genmar boats at Sam's Club stores throughout the United States.

Sam's Club, which is owned by Bentonville, Ark.-based Wal-Mart Stores Inc., is the latest non-traditional sales outlet that Genmar has begun as a way to lure new customers in a slow market for motor boats.

Selling boats in parking lots is nothing new, but it has never been this organized, Genmar CEO Irwin Jacobs said.

In 1995, Genmar 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 inventories and pricing.

"We weren't organized enough, for them or for us," Jacobs admitted.

Jacobs has had a long relationship with Wal-Mart, including a co-branded professional bass fishing tournament circuit. A partnership also exists between Wal-Mart and another Irwin Jacobs-owned company, Jacobs Trading Co., Plymouth, which resells merchandise that has been returned to Wal-Mart stores.

Jacobs said the difference this time from the 1995 effort is the amount of preparation. For example, Genmar has created an entire department to plan and execute parking lot sales.

Also, this time around, boats will be sold only to Sam's Club members and only with no-haggle pricing. Which models of boats are sold on the lots will still depend on the local dealer, but the options are greatly expanded because of the addition of a new joint Web site, www.samsboatclub.com.

A spokeswoman for Wal-Mart did not return calls seeking comment.

A parking lot sale is "a non-threatening environment," said George Sullivan, senior vice president of marketing at Genmar.

And unlike a traditional boat show that can cost a family of four $100 to attend, it is free to browse at Sam's Club lot sales.

Genmar also has started marketing its boats in General Motors automobile dealerships. This month, it hosted its first "Genmar-only" free-admission boat show at Canterbury Park Racetrack and Card Club in Shakopee.

Louisa Rudeen, editor of MotorBoating Magazine, South Norwalk, Conn., praised Genmar's new marketing programs because they appeal to families.

Rudeen cautioned there could be a backlash if first-time buyers don't enjoy their experience, based on other examples where companies have marketed to non-boaters.

It will be important for Genmar to follow through with good service after a Sam's Club customer buys a boat, she said, adding that the maker has a good reputation for after-sale service.

Charlie Hunter, a service manager at Rilar Marine in Rosemount, said the program at Sam's Club will benefit from the popularity of the fishing tournament.

Hunter, who also participates in pro fishing tournaments, predicted that the less expensive $5,000 to $7,000 boats -- Ranger, Crestliner and Lund -- are likely to sell well at Sam's Club.

sblack@bizjournals.com | (612) 288-2103
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catmando · Dec 4, 2007

I don't shop Sam's so I won't be buying Genmar.

Loren Schweizer · Dec 5, 2007

Wonder which marque Saks will go with.

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Sam's Club to sell boats

lwrandall senior member

catmando Senior Member

Loren Schweizer YF Associate Writer