my bad.

Mike,
Maybe not. From a published report...

Struggling Fountain slashes worker benefits

In an effort to reduce costs and reverse two years of operating losses, Fountain Powerboat Industries Inc. has joined the growing list of small companies cutting employee health benefits.
“We do not expect anyone to celebrate the changes we are making — they required some difficult decisions,” the company told employees in an Aug. 1 letter from president and CEO Reggie Fountain, and director of human resources Carol Price. Fountain, himself, has taken an 85-percent pay cut, the letter points out, as the company struggles to survive.
Price this morning acknowledged that benefits have been reduced, but she says none has been eliminated.
“I would rather leave a little bit on the table and be able to add it back later,” she said “I will fight tooth and nail when things pick back up to add these things back.”
The Washington, N.C.-based boatbuilder blames the slow economy and a reduction in orders for an operating loss of almost $4 million for the fiscal year ended June 30. In fiscal 2001 Fountain reported a loss of $900,000. The company is reorganizing its sales and operations processes to improve both sales and the efficiency of the operation.
However, none of the steps taken to this point goes far enough, the company said.
“We need substantial increases in sales and dramatic reductions in the cost of operations at Fountain to continue as a business,” Fountain and Price wrote in the letter.
According to the letter, the company’s medical and prescription drug costs increased more than 23 percent in 2001. That trend is expected to continue. As a result, the company increased employee contributions from $10 to $30 a week for single coverage. The boatbuilder says the effect on take-home pay will be less than $20 per week because it’s paid with pre-tax dollars.
The annual deductible for the company’s prescription drug plan also was raised from $50 to $100, with coverage reduced to 50 percent of the cost instead of 80 percent. Finally, the life insurance death benefit was reduced to $25,000 from $50,000.
Despite the reduced benefits, Fountain said the company remains committed to its employees. He said Fountain Powerboat continues to pay an average of $3 more per hour than other employers in the area, and will continue to offer a 401(k) plan with a 50-cent match per dollar.
“We need you, and we want to continue to offer the best pay and benefits we can,” the letter states. “We do not want to lay off workers or shut this business down so we are making responsible and necessary changes.”
Fountain is one of many small companies across the country forced to cut benefits because of rising costs and a sluggish economy. A recent survey by the Kaiser Family Foundation and the Health Research and Educational Trust, found that many workers are now paying more while benefits erode. The survey found a 12.7-percent increase in monthly premiums from 2001 to 2002. It was the second consecutive year of double-digit increases, and the largest increase since premiums rose 14 percent in 1990.

— Melanie Winters
[email protected]

By the way.....
 

I think I read on this board recently that Mercury High Performance Divisions biggest recreational boat customer is now....

...Cigarette. :eek:

Gordo, that's interesting that Reggie is releasing the almost four million dollar loss for this last fiscal year when in fact he has yet to file his 4th quarter and fiscal year 02 numbers.

Gordo,

I can't bash Fountain for the reduction in the company paid insurance benefits. Insurance costs have absolutly gone out of control for business owners. Not just Health care but all insurance costs. I don't know what kind of Health insurance they provide but to ask the enmployee to contribute $30/week does not seem out of line. As far as prescriptions go, again paying $100/ yr deductable isn't too bad. Picking up half of a persons prescription bill isn't bad either.

As a business owner we pay 100% for our employees health insurance for a very good BC/BS policy that includes dental and prescriptions which costs us $366/mo/employee. We pay 65% of the cost of the employee's family members coverage. Over this past year with NO claims our General liability insurance has risen 4 fold. Combine that with Workmans Comp premiums and we are talking many many Tens of thousands of dollars per year. We are a small company with less than 10 employees. We do what we can. Insurance costs will be the downfall of many companies in this country I'm afraid. :(

Usually I keep my mouth shut but.....
 

I had something to get off my chest. We've seen this time and time again. All it is boiling down to is CA$H. How much to you want to spend to be the biggest and the fastest. A person can go out a spend more money than I will make in ten years on a boat, and be the biggest and baddest. He can go out and run 110 in 8ft slop and think nobody can touch him, until this other boat goes by him at 115. All because that guy spent a little more CA$H.

Personally, I don't want to run 110 in 8ft waves. I want to come home that night not pi$$ing blood with blown out knees. Plus I would like to see my boat in one piece and not in some shop for the rest of the summer while I sit here and read about everyone's weekend(no offense to those with project boats or having trouble getting your boat back). I'll just sit back and wait for someone who needs to be pulled in because they broke something. That is like taking your new Ferrari and driving 100mph through a mall parking lot with speed bumps every 20ft. Somethings bound to break.

I have nothing against fountains or any other boat. I pretty much like them all. It is nice to see different ones. Fountain just doesn't happen to fit my style and what I want.

Now Reggie is another story...... I mean DDDDDDAAAAAAMMMMMNNNNN Reggie. Take some of that advertising budget and go to the mall. Eddie Bauer and the Gap are nice stores and they make nice clothing. And just because the buttons and zippers go to the top doesn't mean the have to be done that way. Oh and the comb over, man you aint foolin anyone.

you so smart
 

Man, you guys know a hell of a lot about Fountain and his company...too bad you don't know jack about his boats.
Your missing out on the best part...:p

Larry,
I don't make em up, I just pass em on to you'all. It's a published article, so maybe somebody has an inside line?

Playn posted;
"I can't bash Fountain for the reduction in the company paid insurance benefits'.
You're right. Actually, it really wasn't intended as a "Fountain Bash", but making the point that maybe Fountain isn't doing as good as maybe Mike Merola indicated. I'm not trying to hack on Mike by any means. I honestly don't know how many boats Reggie turned out last year. But, since Reggie has also been trimming down his employee numbers, it would seem that things at Fountain may not be all that "right".

B4M,
I've seen a pic of your boat. Beautiful ride. Fact is, I've been in a few Fountains. I've driven a few Fountains. I've raced against a few Fountains. I've beaten a few of em, I've been beaten by a few of em. I don't remember Jack driving any of them, but it's always hard to tell under an orange helmet.
Like I said before, I have nothing against Fountain boats. They are a damned GOOD boat. BUT, and It's purely my opinion, but they're not all that and a side of biggie fries like Reggie would have us all believe in his ads and interviews.

Marketing genius?
 

I'm not about to argue the fact, however, announcing your company is in danger of folding doesn't seem to be the best way to entice people to buy. Who wants to spend that kind of money only to have the company disappear? The threat of closing the doors at Fountain has been going on for some time now. It's amazing to me that anyone would buy a new Fountain for that reason alone.
I know Fountain a public company and its financial condition is a matter of public record. I wouldn't highlight it, though.
I guess it's the nature of the offshore beast that many manufacturers are not guaranteed tomorrow.

Newsflash....
 

Cigwillie makes 500th post about REGGIE FOUNTAIN!



:rolleyes:

just my $.02. I really think that Reggie is a pompas self reichous ass but some credit has to be given where credit is due. Fountains have held many records so have many other manufactureers. But the fact will always remain that their boats never really run in the proper classes with size. Take a 35' fountain subtract 2 feet for the beek and 2 feet for the platform and you get 31'. Now how can you expect another manufacture like cig or formula with their 35' boats to run with them. Now compare the rest of the boat if speed is the only thing you are worried about then that is great but I think that most of us want some comforts. Like a cabin that you can not only sleep in but use. A boat with some free board to feel like your riding in the boat not on the water. Throttles on the industry norm side. Racing is one thing but boating is another. again just my 2 cents.

After reading the title of this thread , I was afraid to open it up....:D

i had a steering wheel like fountains on my go kart back in 1980

The other part of my post that I forgot to add was i see the comparison between fountains against cig, Apache, Velocity, etc. What about a 38 fountain against a 388 Hustler or a 35 fountain against a 344 Huslter. I think we would all know the out come of those races and no offense I think you fountain boys will be a little upset. Again just my 2 cents

sonicse in all fairness the beak is about one foot. i do not understand how you guys think reggie is a marketing genius, please explain, from my point of view all he has done is advertised a ton, that hardly seems genius to me. his boats revolutionary?, i think thats more his hype than anything. next question, how do you have a company in fin. trouble when they get huge money for a boat. i believe i read in powerboat a 29 with a single 575 listed at 165K?

Question: Why does everybody bash Fountains?

Answer: They are jealous!

:D

Everybody that has another similar sized boat with similar power that gets spanked by a Fountain is just pissed. Forget the beak swim platform thing. Every boat with an intergrated swim platform has it figured in the length. So the beak and the platform are just a matter of taste. If you like it buy one if not buy something else.

The fact of the matter is that for a pleasure boat the Fountain is relitivly light and thus faster. Fountain also uses every trick in the book on the bottom (steps, pad, notched transom). Fountains bottoms are also surprisingly straight from the factory. Even the Fountain detractors on this thread have said that Fountain builds a strong boat.

So a strong light boat with a fast bottom is what you get with Fountain. Kind of sounds like a formula for a winning race boat doesnt it? NO WONDER THEY ARE SO FAST!

Ron :cool:

I never like to see companies in trouble. Even my competition!!!! When some one is hurting it means that the industry in a whole is hurting. IMO I think that Foutain over spent and did not realize the national slow down that we were going to have over the next few years. I really hope that they can keep it together untell things change. It would be sad to see them loose out and go under. Is Reggie the cause of this??? I do not know I do not sit in the board, and niether do any of us I am guessing. WOWEVER he has taken some serious pay cuts it would seem to try and keep the company afloat. I think he looks rediculous the way he dresses but the guy is real proud of his company and his product. How can you fault a guy for that. Am I the best at what I do? HELL YA I AM. Does TooOld make the best burger? Hell ya he thinks he does. We as self employeed guys think a little different from the norm. You have to be proud of your product if you want to survive. I would not fault Reggie for being proud of his boats.

Jon

SSSSNNNIIIIIIIFFFFFFF! aaahhh, I love the smell of fresh piss:eek:

So who is winning the contest?:D

Fever Mike -

Thanks for the support! We miss being out there but kids, work etc.. just have to take priority. My brother and I hope to get back into it in a year or two but Dad is definately had enough of the throttle seat!

Hollis -

Whats up buddy! I think I still owe you a beer from the night night in Marathon! Hope you're doing well

As far as this discussion -

I tend to base my opinions on my racing experiences and I have found that are wide variety of truly great boats. Formula, Fountain, Cig, Velocity, Phantom have all set atop the the F2 podium at some point and the new Donzi is just plain killer.

The one thing I have always seen with the Fountains is the quality of the crew and race team. Lute & Matt, Mitch & Bennie, Todd & Martin all are great racers and had great crews which we always tried to learn from.

We love Formula and have had a alot of success in the 353. They build a solid, fast boat and the support from Scott Porter and the factory is unmatched.

That said, maybe the best compliment I can pay is that we sometimes wondered how we would have done if we were in a Fountain.

Mike C,
Give Brian a call and we can all get together for dinner. Brian, how about Third Coast?
Robert

TOO OLD,
let me clarify my position for you since you seem to read things in my posts that are not there. i am not bashing fountain boats quality, did you read anything like that in my posts? apache/saber boats are what turns my crank, i never claimed they were superior to any other boat, did i? yes i do own my own company, not as large as reggies ,but small businesses have problems that big business does not have , bottom line is we all have business issues. i never questioned his management skills neither. my problem with him is he puts down two other well respected boat builders that have built a few boats that have kicked fountain butt more than once!where i come from that is arrogance, plain and simple. i may feel i build a better product than my competitor, thats fine, but i do not go around making blanket statements that basically are unprovable.IMHO his arrogance will be his downfall , as it has been with so many others.

Re: Marketing genius?
 

WHO GOES TO THE FACTORY FOR SERVICE ANYWAY ?AND PARTS ARE ALL OVER THE COUNTRY ,WHY NOT BUY HIS BOAT AND BY THE WAY ALOT OF SMALL COMPANIES ARE CUTTING BACK LETS BASH THEM FOR TRYING TOO :confused:
I'M NOT BASHING ANYONE , THERE ALOT OF NICE BOATS OT THERE
,WHEN YOUR ON TOP EVERYONE FIRES AT YOU,AND HE'S CERTAINLY ADVERTISED ENOUGH TO STAY IN THE SPOTLIGHT!!!!
HAVE A GOOD WEEK END MAY-BE WE WILL GET SOME RAIN TO REFILL OUR LAKES :D :D :D

when you own a "orphan" value goes down ask a yugo owner. my question again, how can they 500+ boats a year at those prices and not make money?

I doubt they've been anywhere near 500/year in a few years...Ask anyone who used their shop during the sbi races...not a lot going on. Secondly, advertising and racing costs a nice chunk I'm sure. Warranty work also amounts to quite a substantial amount. Just look at the gas tank situations and fullthrottle42's situation. I'm sure there's plenty more.

It's also a fact that they're in some serious debt...That's a lot of money out the window when you're on the payment plan. There's more in the way of debt out there than there is inventory and capital.

That's just what I hear...

It's a sad shame too because Fountain makes one kick-ass boat...There records are undeniable...

Probably right...Because it's certainly not due to the boats themselves.

The boat speaks for itself.

Perhaps it's been foolish to blow away so much money on racing and hosting National race series. But when you're reputaion and ego depend on being out on the race course so you can put it in pring the next month, I guess it's a catch 22.

mr offshore,
mcdonalds sells more burgers than anyone, does that make their burgers better than anybody elses? some might argue that the more product you make the less you can control quality. employees simply do not care like an owner would. records are made to be broken and somebody will top him before you know it. bottom like is top speed is just one measure of boat performance.

YES I WOULD SAY McDONALDS IS BEST TO MOST PEOPLE
IF THEY SELL MORE BURGERS ,SO THEY MUST BE NUMBER ONE ????:D

mcdonalds sells more burgers because they advertise more that anyone else and they have more locations than BK, wendys, etc.
yes i know subway now has more locations, there is REAL marketing genius, getting you to pay $7 for a cold sandwich that you could make a home for $1.

NOT TO ARGUE,AREN'T THEY STILL NUMBER ONE THOUGH ??
THEY GOT FROM ONE BURGER TO NUMBER ONE BY TONS OF HARD WORK AND HAVE STAYED NUMBER ONE ,I AGREE ON SUBWAY,:D

mike
i'm curious what info. do you use to rank boats? that's a large can of worms your opening

According to their 10Q for the 3rd quarter ending March 2002 Fountain produced 55 units compared to 72 units for the same quarter in 2001.

From their 10K they state what the capacity for productions is:


Manufacturing capacity is sufficient to accommodate approximately 30
to 40 boats in various stages of construction at any one time.
Construction of a current model boat, depending on size, takes
approximately three to five weeks. The Company, with additional personnel,
currently has the capacity to manufacture approximately 450 sport and
fishing boats, and 100 cruisers per year.

how do you rank no.1? sales , stores, profits, they certainly do not have the best burgers in the world, so it cannot be quality. care for a footlong , chips and a pop for $10, sorry not me

thats not 500 a year

So you have to capacity to make 550 units, but you made appx 220(55 x 4 quarters)....Too much overhead, money out the window!

HOW WOULD YOU RANK IT ?? I LIKE MOST PEOPLE WOULD RANK IT IN TOTAL SALES AS THIS WOULD INDICATE MORE PEOPLE LIKED THE PRODUCT (YOU SAID NOT FOR YOU AND THATS THE POINT WE'RE NOT TALKING ABOUT YOU OR ME WE'RE TALKING EVERYONE ,WHEN YOU SEE THIS POINT, YOU'LL UNDERSTAND ,I DON'T CARE FOR IT EITHER BUT MOST PEOPLE DO ,ITS GOOD TO THEM :D WORLD WIDE !! HAVE A GOOD WEEK -END

Hmmmmmmm ..... Quarter Pounder .. no cheese ... no pickles ... no onions. Taste the same anywhere in the country ... no surprises :D

This entire thread is hilarious to me!
I, personally do not care for the style of a Fountain. They are distinctive, however.
What I find truly fascinating is that an upper middle-aged balding man that dresses horribly and wears of all things GOLD CHAINS, can somehow convince other middle aged, mid life crisis type guys to buy his boats regardless of cost or quality!
The man is a genius when it comes to marketing.
Everyone talks about the beak and the platform. Ask yourselves why would Reggie want to make a boat appear larger than it is? Very simply put, penis envy my friends!:eek: Yep, but not really penis, but boat length envy. The guy wearing gold chains and luring young hardbodies on his boat DOES NOT want to be smaller than the next guy!
So, if he can tell the chick of the moment that his is 42 feet long when parked next to the guy with a 38 footer, he will (in his own eyes) be a hero.
Can't knock it, Reggie saw a niche and filled it!

Personally, I think he builds an OK boat, just not my cup of tea.

SUMMERO

penis envy says it all

Yeah, I got a little dick, thats why I bought my Fountain:rolleyes:

T.M.I. :D