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Boat & watercraft market????? Down??

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Old 10-20-2007, 01:27 AM
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I heard from some reliable sources that Mercury has had some layoffs in several facilities. This is a good indicator that the market is real soft now. We seem to be moderatly busy now and I hope it keeps up and the market comes back strong soon for everyone in the industry.

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Old 10-20-2007, 09:16 AM
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I posted this in another thread. The issue of market softness of high performance boating in particular is around the increased cost to be in the sport/hobby. In 2001, you could buy a brand new Cig 38 Twin Step Top Gun for 150K. Today, you pay $350K. This has something to do with the increase cost of petroleum based material but also, quite frankly, the products are a whole lot nicer around finishes. The variable and associated costs are up as well. In 2001, gas was $1.50 on the water, today it is between $3- $3.50, Insurance was about $1200 a year, and today I pay $4700. Storage has also doubled, trailers have doubled. Name another industry that you have seen a rapid inflation of cost. If you can find a few other than South Florida condos, I bet they fit in a “need” category versus a “want”. The bottom line is that the sport/ hobby is now only affordable to a few. The middle class can no longer afford to participate, which softens the market as a whole. With no middle class, the secondary or resale market dies. It eventually pulls down new boat market as well. You are seeing some of that now. That is why companies like OL and Active Thunder are only doing limited production of their product, so they can control their margins and ability to profit in a smaller market. Production makers like Donzi and Fountain will suffer given the shift. That’s just my .002.
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Old 10-20-2007, 09:40 AM
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I've been slow lately, but it is normal for sales to drop just before the boat shows in this area. At least I finally got some time to work on my cars! Next week is already booked for 3 days, so this vacation is over.
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Old 10-20-2007, 09:58 AM
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Most of the boat industry is down. Small cheap stuff is selling according to other dealer....and I mean inflatables and aluminum boat are hot.....BUT CHEAP.

Now the HP stuff........very slow in the NE, mid west and central south, but certain pockets of the country are doing just OK....like FL, CA, TX and thats about it.

So is it economic or gasoline or just a shift in demographic clients getting older and moving into fishing and cabin cruisers?

Just look at Poker Run attendance.......from what I see it is down nationwide.......right there is a solid indication of market change.
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Old 10-20-2007, 10:00 AM
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My business has been down for the last 10 - 11 months.
I am a member of lots of other A/V dealers and everyone of them is experiencing a slow down. Where's this booming economy we keep hearing about?
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Old 10-20-2007, 10:13 AM
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I also have a small boat business. Our sales have been off quite a bit this year, but service has been pretty good. I attributed it a lot to the fact we had record rainfall this year and our main lake was closed all of July due to flooding. I haven't seen the gas prices having a noticable impact on boating around here. None of my custmers have even mentioned gas prices(related to boating).
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Old 10-20-2007, 10:40 AM
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Quote:
Originally Posted by crb76 View Post
I posted this in another thread. The issue of market softness of high performance boating in particular is around the increased cost to be in the sport/hobby. In 2001, you could buy a brand new Cig 38 Twin Step Top Gun for 150K. Today, you pay $350K. This has something to do with the increase cost of petroleum based material but also, quite frankly, the products are a whole lot nicer around finishes. The variable and associated costs are up as well. In 2001, gas was $1.50 on the water, today it is between $3- $3.50, Insurance was about $1200 a year, and today I pay $4700. Storage has also doubled, trailers have doubled. Name another industry that you have seen a rapid inflation of cost. If you can find a few other than South Florida condos, I bet they fit in a “need” category versus a “want”. The bottom line is that the sport/ hobby is now only affordable to a few. The middle class can no longer afford to participate, which softens the market as a whole. With no middle class, the secondary or resale market dies. It eventually pulls down new boat market as well. You are seeing some of that now. That is why companies like OL and Active Thunder are only doing limited production of their product, so they can control their margins and ability to profit in a smaller market. Production makers like Donzi and Fountain will suffer given the shift. That’s just my .002.


INTRESTING (I BELIVE THE MIDDLE CLASS IS BEING TERORIZED BY ITS LEADER BUSH. PERIOD
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Old 10-20-2007, 10:46 AM
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Originally Posted by mccaffertee View Post
Is this because of the oil prices raising the cost of materials?
compared to the sinking dollar yes...
It has been going down at a rate that if it was a ski-jumping hill not even the best would wan´t to try it...

Last edited by MikeyFIN; 10-20-2007 at 10:49 AM.
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Old 10-22-2007, 03:33 PM
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I am in the business of selling companies. Our firm Premier Business Group, LTD is representing two large boat dealers in the Midwest. Both have sales that are up for the year. Both sell upscale quality boats. I have been told quality boats with solid brand names are selling.
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Old 10-22-2007, 08:51 PM
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About two weeks ago I was talking to different boat dealers when I was at Lake Travis and both said this year has been a banner year for sales.
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