Marina Dock Age, April 2002

Is Yours Ship’s Store a Profit Center or a Necessary Evil?
by Dennis P. Kissman

What is today’s ship’s store? I can remember when it was the local chandlery or the place where I bought my deck shoes. But now most ship’s stores are convenience stores on the water. Today one is more apt to find your favorite beer than that much needed screw in a marina’s ship’s store. What caused this change and is it for the good of the industry? And, closer to home, is it good for your marina?

I think it’s easy for everyone to recognize what has happened. We do not have to look any further than your local hardware or of office supply store that was once owned and operated by your neighbor down the street. Now we have the Home Depots and Office Depots, and a single-location proprietor cannot compete with their buying power. These giants in retailing deal directly with manufacturers and dictate what they will pay for a product. Can you imagine even trying to deal directly with a manufacturer rather than a local distributor?

Because marinas comprise a multitude of different businesses, it was inevitable that certain segments would succumb to the same fate as the local hardware or office supply store. The ship’s store is one of those segments that is challenged by the arrival of super marine stores such as West Marine, Boat Owners Warehouse and BoatsU.S.  

I believe there can be a profitable future for ship’s stores, just not in the style we are familiar with. Today’s ship’s store is more like a convenience store than a chandlery. We are consistently reminded that marinas are in the service business and that boating is family recreation. How many times have you seen mom and the kids down at the marina while dad is changing the oil? I’ll bet not many. When the family comes to the marina they want to use the boat.  

With this in mind, what should you carry in your ship’s store: oil and an array of oil filters, or beer, soda, and chips? Personally, I would opt for the latter for three reasons: your margin is greater, your turnover is faster, and your inventory carrying cost is less. All of these add up to greater profits and happier customers. Continue »