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-   -   Walker Out As Baja Marine President (https://www.offshoreonly.com/forums/general-boating-discussion/333061-walker-out-baja-marine-president.html)

Brandonb_05 12-23-2015 02:55 PM

Hard to make a 100 mile trip when it's white caps in a Malibu.

PremierPOWER 12-24-2015 08:03 AM

I beg to differ on what the girls would think is cooler. What gets more attention, a $150k Mastercraft/ Malibu/ Nautique/ etc or a $750k Cigarette/ Outerlimits/ Nor-Tech/ Donzi/ Fountain/ etc? Most girls on either boat want attention and the go fast will get more attention

Jupiter Sunsation 12-24-2015 08:14 AM


Originally Posted by PremierPOWER (Post 4387842)
I beg to differ on what the girls would think is cooler. What gets more attention, a $150k Mastercraft/ Malibu/ Nautique/ etc or a $750k Cigarette/ Outerlimits/ Nor-Tech/ Donzi/ Fountain/ etc? Most girls on either boat want attention and the go fast will get more attention

Yeah but how many 750K offshores are at small town lake, USA?

Back to the Donzi valuation......I suspect they would never sell the brand unless it was for several multiples of what it was actually worth. Lets just say they are into the "4 brand mess" for 5 million dollars essentially making each brand worth 1.25 million (just to make the numbers work on the 5 million dollar guess). If you offered 1.5 then they would need to get 3.5 million for the other three brands just to break even. Are the other three brands worth 3.5? Of course not so then they would need more for Donzi to cover the beating they are going to take on the other 3!

To me a business whether it is a hot dog stand or IBM, is worth what the breakup value is (selling inventory, selling assets such as land/factory) or future income value (how much money could I make running it as is). Anything past those two considerations is "good will" and the logo/trademark would be in that category. Breakup value of Donzi is the value of the molds/parts (no real huge cash value) and future income looks bleak as sales have been terrible. So whatever you buy it for then add you startup costs will essentially be your "debt shadow" and no matter how hard you work in the sun, as time goes on your shadow will get bigger unless you sell a lot of boats! :cool:

I think doing a "Lipship" type role for existing Donzi's would be the way to preserve the brand.........not trying to build more boats for non-existent buyers!

Nauti Kitty 12-24-2015 09:16 AM

The offshore boat market died because no matter who builds the boat, how well it's built, marketing, sex appeal, reputation ect you're spending huge money from Mercury for motors and drives
Most custom engine builders are gone and with them it's now 400k to put 2 Mercury 1350's in a boat before you do anything else like build the actual boat
Middle class? How about a nice 28 with a pair of 520 mercs and xr drives? Over a hundred k before you build a boat
It's not practical for a working family making even a hundred k to pay more for their depreciating new 28 for a boat they spend 50-75 hours a year driving then what they owe on their house and banks now won't let them
Next up is center counsels. Popular now but anyone realize three 400 verados cost near a hundred k installed?
This is now an industry back to a very small market for wealthy individuals that pay cash and can afford to pay the upkeep
The rest of us will have to buy good used boats that have taken huge deprecitation hits and have fun and fortunately there are a lot of them to choose from
Those boat brands will never come back cause there just isn't a market for this many builders anymore
Sad but the new reality
The ones left will do well to sell the high end cause there will always be one
Just my .02

buck35 12-24-2015 12:17 PM


Originally Posted by Nauti Kitty (Post 4387868)
The offshore boat market died because no matter who builds the boat, how well it's built, marketing, sex appeal, reputation ect you're spending huge money from Mercury for motors and drives
Most custom engine builders are gone and with them it's now 400k to put 2 Mercury 1350's in a boat before you do anything else like build the actual boat
Middle class? How about a nice 28 with a pair of 520 mercs and xr drives? Over a hundred k before you build a boat
It's not practical for a working family making even a hundred k to pay more for their depreciating new 28 for a boat they spend 50-75 hours a year driving then what they owe on their house and banks now won't let them
Next up is center counsels. Popular now but anyone realize three 400 verados cost near a hundred k installed?
This is now an industry back to a very small market for wealthy individuals that pay cash and can afford to pay the upkeep
The rest of us will have to buy good used boats that have taken huge deprecitation hits and have fun and fortunately there are a lot of them to choose from
Those boat brands will never come back cause there just isn't a market for this many builders anymore
Sad but the new reality
The ones left will do well to sell the high end cause there will always be one
Just my .02

4 hunna thou...:eekdrop::faint2:

pasquesi 12-24-2015 12:29 PM

Easy financing and inflated real estate values drove the high performance boat market. When reality came back around, banks wisely stopped lending 200K to people who make less than half of that a year. When equity loans and re-financing real estate by pulling every cent of cash out from the inflated appraisals stopped, another door closed for boat purchasing. Hence, only the custom and semi-custom boat builders whose buyers can pay cash or obtain financing because they ACTUALLY qualify are left.

Too Stroked 12-24-2015 03:03 PM

This may be a bit of a revelation, but does anybody think the reason Bajas aren't selling might be that the new ones are just plain ugly? I used to think that Baja made some of the best looking boats out there. The new ones? Words fail me.

Jupiter Sunsation 12-24-2015 04:22 PM


Originally Posted by Too Stroked (Post 4387934)
This may be a bit of a revelation, but does anybody think the reason Bajas aren't selling might be that the new ones are just plain ugly? I used to think that Baja made some of the best looking boats out there. The new ones? Words fail me.

The 33 and 36 Outlaws had one of the nicest silhouettes in the offshore world! The curved helm/dash wasn't my favorite and the paint schemes usually looked like sticker kits but the lines of the hull were awesome.

Jupiter Sunsation 12-24-2015 04:24 PM


Originally Posted by pasquesi (Post 4387910)
Easy financing and inflated real estate values drove the high performance boat market. When reality came back around, banks wisely stopped lending 200K to people who make less than half of that a year. When equity loans and re-financing real estate by pulling every cent of cash out from the inflated appraisals stopped, another door closed for boat purchasing. Hence, only the custom and semi-custom boat builders whose buyers can pay cash or obtain financing because they ACTUALLY qualify are left.

While you are correct about boom times.......it seems all the crazy spending is back again but not in the go fast world! Palm Beach has opened a Lamborghini and Ferrari/Maserati stores in the last five years and the stuff is moving as fast as they stock it yet nobody is building big quantities of offshore stuff......same type buyer for high end cars no?

flat rate 12-24-2015 04:56 PM

Those cars aren't near as expensive as boats. The upfront cost is lower. You can store them in any standard garage. Don't need a high dollar tow rig to haul it. And they don't burn anywhere close of the amount of fuel. Most owners of exotic cars aren't pulling engines and drives every year.


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