I can't imagine selling merchandise was a priority for Skip. I think it wasn't worth the aggravation. I'm sure they make more off selling 1 boat than a years worth of merchandise. They'd have to have a dedicated employee to manage it and after paying him/her and cost of shirts; I bet it is probably a break even endeavor.
I don't the the Harley correlation is valid...How many Harleys are sold a year?....about 200,000 I think....how many new Cigs are built a Year?...not sure but I'm guessing less than 50?.... Cigs are for a very elite buyer and yes there are millennials out there into these type of boats. Harley needs to sell many more units so they need to spread the sales out across generations. Cig doesn't need to or is capable of selling a large quantity of units.

he isnt building the boats, he is overseeing the operation. there are still employees there that do that. in essence he is looking out for his dads investment. whether he does it well or not remains to be seen. if they can take the quality and keep it the same or better it they should be fine.

That he isn't building the boats was my point in comparison.... Mike & Dan were hands on with a passion you can not purchase.... again imo

Ferrari sells more merchandise than cars... they have a 2.5 Billion dollar merchandise market annually. Yes, Billion with a B. Cigarette could (and should) do the same. I haven't owned a cigarette but when I was a kid every year I'd get a cigarette shirt or two from the miami or Lauderdale shows. I still have a cig shirt and I'll eventually get the boat to match but it just hasn't lined up yet.

cigarette lately hasn't capitalized on the apparel market and it has been a huge mistake.

• 2020 2019 2018
  
• United States 103,650 125,960 132,868
  
• Total Worldwide Sales 180,248 218,273 228,051
  

Harley is down 22% in worldwide sales in the last 3 years. Odd because recreational products (boats/RVs/ATVs) are all sold out and had record sales. My point was the buyer is aging out of the brand, the diehard fans are aging to the point they are not buying new HD's anymore. Cig has the same issue, the diehard guys aren't buying new builds anymore. Switching to a different style of boating or just getting out of it. What happened to the guys like Tony/ Plastered that built a handful of new Cigarettes in less than 5 years (American Muscle II was his last boat)? That type of buyer is what Cig needs for long term sustainability. Converting millenials is likely a waste of time, they won't want to spend the money or have the headache of a performance boat. HD's research found millenials want simple A to B transportation and then came out with the LiveWire which at 30K smoked the millenials budget minded expectations. Old guys don't want an electric bike, they simply don't get it. To me: jet skis with a Cig logo is going to be seen as overpriced like the LiveWire electric Harley was seen by millenials.


A HD bike can be ridden virtually anywhere (Nationwide) weather permitting and anyone can buy/finance one. If they are running out of buyers at a reasonable cost of entry (millenials are not replacing the diehards as they age out) then Cig will certainly have the same issue. Would you agree that HD and Cig attract the same type of interest? Rumbling machines coveted by extroverts that like hanging out with others in the same lifestyle? Fact is many Cig owners also own HD's so there is clearly a correlation and Cig would definitely benefit from looking at the results of HD's research despite the difference in price points as it pertains to the same issue of aging out of the product line.

The Italian company on Tuesday announced sales for 2019 came in at 10,131 units, up 9.5 percent on the previous year. All those cars resulted in 4.1 billion euros (approximately $4.5 billion) in revenue and a profit of 917 million euros (EBIT).

Not sure where you got 2.5 billion in merchandise (not doubting you just couldn't find it quickly). But clearly 10,000+ sold Ferraris had gross sales of 4.5 billion. Think about how many t-shirts you would have to sell at $35 to replace ONE car sale ($300,000+). 2.5B is still strong money and shouldn't be overlooked as a revenue stream but the cars are the primary driver of revenue.

I like the Harley analogy.... I've owned a Harley since I was 18 yrs old.... now 66.... still do....but it's now 10 yrs old with less than 5000 miles....most of my riding buddies are dead or just physically can't ride anymore ... I've also gone from Hydrostreams to Fountains over the past 50 yrs.... now I'm back to a 21' SUPERBOAT that I can handle by myself towing, launching etc..... the millennials don't identify with their cars, motorcycles, boats the way we did years ago.... I would suggest Cigarette go back to the FIrefox platform and see if they can't get some attention from the older owner looking to get out or downsize and the millenial that might be looking for a way into the sport?

I dont disagree, but before mike passed they were in financial straights (not saying that in a bad way). When i taught classes to people that were entering my industry through the nations largest supplier. my class had 2 parts, the physical installation and then the business side of it. when you look at how many hands on companies, not just in the marine industry all industries combined. its VERY hard to find someone that can physically do the work and run the business side of it as well (all hands on) I would put it in 1 out of 20, if even that high. it applies to mechanics, carpentry, plumbing etc. A person may be the best at his physical craft, but when he is doing the books he may be horrible, every minute spent doing the books is time away from making money. Something has to give, you need your best person doing the task that they are assigned. i dont want my best installer wasting time answering phones, he makes me the most when he is installing. As for the Harley analogy, they lost sales because of their divesting overseas, as a matter of fact their only sales are the older boomers that are moving into cruiser style bikes as they get older, like cigarette they have people moving from I/O to outboards. not to mention when you walk into a Harley dealer the merchandise section is twice as big as the sales floor. i'm 58, still have my FXRS that i bought in 85, its all custom. I havent ridden it in 4 years. I ride my streetglide now for comfort.

I don't disagree with your comments regarding running & doing the work both.... after 40 years in public accounting I have witnessed many times the demise of a great businesses because the owner/builder couldn't delegate authority where needed.....mainly in the office.....Harley, which I have had a franchisee for decades as a client has shot themselves in the foot with the way they treat the "Mom & Pop" dealer.... they went with the McDonalds/Honda idea all dealers need to look alike.....didn't work... HD buyers look at their dealer as a "Family" for the most part imo.... the Motor Company has desensitized that feeling, again imo..... and imo if Cigarette is not run by a "passionate" owner....it too will suffer.... btw... my 90 FXRS-SP was the best handling Harley i ever owned..... should have kept it!

Originally Posted by offshoredrillin View Post
I dont disagree, but before mike passed they were in financial straights (not saying that in a bad way). When i taught classes to people that were entering my industry through the nations largest supplier. my class had 2 parts, the physical installation and then the business side of it. when you look at how many hands on companies, not just in the marine industry all industries combined. its VERY hard to find someone that can physically do the work and run the business side of it as well (all hands on) I would put it in 1 out of 20, if even that high. it applies to mechanics, carpentry, plumbing etc. A person may be the best at his physical craft, but when he is doing the books he may be horrible, every minute spent doing the books is time away from making money. Something has to give, you need your best person doing the task that they are assigned. i dont want my best installer wasting time answering phones, he makes me the most when he is installing. As for the Harley analogy, they lost sales because of their divesting overseas, as a matter of fact their only sales are the older boomers that are moving into cruiser style bikes as they get older, like cigarette they have people moving from I/O to outboards. not to mention when you walk into a Harley dealer the merchandise section is twice as big as the sales floor. i'm 58, still have my FXRS that i bought in 85, its all custom. I havent ridden it in 4 years. I ride my streetglide now for comfort.

............

Mike became a dear friend as I followed and covered his career from his early days with Outerlimits. As I said in a eulogy during his West Coast celebration of life event, he could also be incredibly frustrating because while he was a creative genius, he was not a good businessman. Your analogy is spot on.

Regarding Skip and Cigarette apparel, for whatever reason it didn't work. Maybe there's inherent stigma in the word "Cigarette" in today's culture, maybe not, but regardless Skip is/was a good businessman who made the decision to focus on the boats and the brand rather than apparel. Branded apparel as a revenue stream isn't as easy as it looks.

But if the owners of the company can make it work, power to them. Everyone wins.