Boat dealer terms, in plain language.
This boat dealer glossary gives short definitions of the words dealers use every day, with how each one works at a boat dealership and where BoaterOS does and does not fit.
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Aged inventory
Aged inventory is the set of boats that have stayed in stock longer than the dealer expects to hold them. The longer a unit sits, the more it costs in interest, space and lost value.
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Curtailment
A curtailment is a scheduled partial payment a dealer owes on a floor-planned boat that has stayed unsold for a set period. It reduces the lender's exposure on aging units.
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Floor plan financing
Floor plan financing is a revolving credit line a dealer uses to pay for boats on the lot. The lender is repaid as each boat sells, and the dealer pays interest and fees while the boat sits in inventory.
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BDC (business development center)
A BDC, or business development center, is the team or function that answers inbound inquiries and follows up on leads so salespeople can focus on showing and selling boats.
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Dealer CRM
A boat dealer CRM, or dealer CRM, is customer relationship management software built for dealerships. It records every lead and customer, the conversations with them, and the deal from first inquiry to delivery.
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DMS (dealer management system)
A DMS, or dealer management system, is the core software a dealership uses for accounting, inventory, service, parts and deal paperwork. In the boat business it is called a boat dealer management system or marine DMS. Marine examples include DockMaster, Lightspeed and IDS Astra.
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Lead source attribution
Lead source attribution is the practice of recording where each lead came from, and later which of those leads became sales. It tells a dealer which marketing spend and channels are worth keeping.
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Speed to lead
Speed to lead is the time from the moment a customer inquiry arrives to the first real response from a person at the dealership. Faster answers give a lead less time to contact another dealer.
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Back-end gross
Back-end gross is the profit a dealer earns on a deal after the boat itself is priced, mainly from F&I: lender compensation, service contracts and other protection products.
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F&I (finance and insurance)
F&I stands for finance and insurance. It is the part of a boat sale where the dealer arranges financing and offers products such as service contracts, gap coverage and insurance.
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Trade-in appraisal
A trade-in appraisal is the process of inspecting and valuing a customer's current boat so the dealer can offer a trade allowance toward another boat.
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Commissioning
Commissioning is the final stage of preparing a boat for the customer: setup, systems checks and a water test so the owner receives a boat that works as ordered.
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CSI (customer satisfaction index)
CSI, or customer satisfaction index, is a survey-based score that measures how satisfied customers are with a dealer's sales and service experience.
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PDI (pre-delivery inspection)
PDI, or pre-delivery inspection, is the checklist of inspections and tests a dealer completes on a new boat, engine and trailer before delivery to the customer.
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Rigging
Rigging is the work of installing and connecting the engine, controls, steering, electronics and accessories on a boat so it is ready for the water.
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Service absorption rate
Service absorption rate is the percentage of a dealership's fixed operating expenses that is covered by the gross profit from its service and parts departments.
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Co-op advertising
Co-op advertising is a manufacturer program that reimburses a dealer for part of the cost of approved marketing, usually as a percentage of the dealer's purchases from that brand.
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Inventory syndication
Inventory syndication is the automatic distribution of a dealer's boat listings from one system to other places where buyers search, such as BoatTrader and social or search platforms.