Why is MC not the market leader?

[501s]

The thing about this question is all the other Manufacturers are breaking that $100k mark on their upper tier boats (Tige, Supra, ect...) You can now get a nicely loaded X-30 for about the same price as a Z3 or Supra SA. So it's not like MC is priced all that much higher than these other brands, they just don't have any "cheap" models out to compete with the cheaper boats ..... yet.

While at my local dealer chatting, average Moombas 22.5 footers are now going out the door for between 70-75. They also told me they have virtually no X-30's left for 2014 to order, so it's not like MC is short on sales.

I think while MC might not be the "sales leader" they are definitely one of the market leaders in terms of quality and innovation.

[Nick911]

The guy we rent our lakefront home from is a rich guy but uses an I/O at the lake. He made a comment to me that his buddy was coming by with his new Bu LSV. He said something along the lines that "he paid 104K for it, not on same tier as your boat, but good enough for him." I told him I didn't even spend that on my boat. He said (he grew up on the lake) that he always thought MC's were the best.

So I think that conception is still out there to an extent. I don't worry much about it. I could easily buy a G21-23 for my next boat. I like the fact that you just don't see them, so the perception is that they are rarer, more exclusive, lore expensive, etc...

[Tristarboarder]

They definitely are more expensive....I looked at (for fun, no $) a 2013 G23 at a dealer last year, and the sticker was north of 110k....I think resale value and the used market truly indicate the strengths and weaknesses of a boat manufacturer. Used MC's hold their value pretty well; and when purchasing a depreciating asset (boat, car, RV, etc) that is most important to me.

[atthelake]

I for one enjoy the fact that there are less MC's around. I'd rather be exclusive than inclusive. My boating lake there are at least 15-20 new Tige's and Malibu's for every new MC or Nautique. I'd prefer to be unique than just another RZ2.

Agreed.

[atthelake]

They definitely are more expensive....I looked at (for fun, no $) a 2013 G23 at a dealer last year, and the sticker was north of 110k....I think resale value and the used market truly indicate the strengths and weaknesses of a boat manufacturer. Used MC's hold their value pretty well; and when purchasing a depreciating asset (boat, car, RV, etc) that is most important to me.

Even just comparing boat for boat, year for year on Wizard Lake Marine's website for used boats, they're asking alot more for used MC's than the "comparable" (cough cough) Malibu.

[Snipe]

I for one enjoy the fact that there are less MC's around. I'd rather be exclusive than inclusive. My boating lake there are at least 15-20 new Tige's and Malibu's for every new MC or Nautique. I'd prefer to be unique than just another RZ2.

You sure nailed this one. At our lake we have a lot of Nautiques ( I too HAD one). I'm so grateful I was able to make the switch. No problems, just complements.

[Indyxc]

It is an interesting topic. From the Malibu IPO we get some good data for market share:

http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=9307324

It's clear Malibu's market share is steadily growing. I believe that filing probably includes Axis boats in that filing.

It is also clear that growth in market share has come largely due to Skier's Choice and Nautique both of which have steadily lost market share. MC was holding steady, except 2011-12.

In my opinion MC has always held the differentiation strategy, where they maintained the higher end market, and sold a lower volume, at a higher profit market. Malibu in the past was more of a mid range brand. As they increased the price point of the Malibu boats they realized that they needed a more value of a brand to cover the lower end, hence Axis. Therefore Malibu of the big 3 has the biggest range of price/boat offerings.

It is also interesting to note that now since Master craft is responding with the NXT series they want to capture some of the value brand market share.

Surfgate was a brilliant introduction for Malibu as well. They really led the market on surf shaping devices that garnered attention.

[mikeg205]

It is an interesting topic. From the Malibu IPO we get some good data for market share:

http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=9307324

It's clear Malibu's market share is steadily growing. I believe that filing probably includes Axis boats in that filing.

It is also clear that growth in market share has come largely due to Skier's Choice and Nautique both of which have steadily lost market share. MC was holding steady, except 2011-12.

In my opinion MC has always held the differentiation strategy, where they maintained the higher end market, and sold a lower volume, at a higher profit market. Malibu in the past was more of a mid range brand. As they increased the price point of the Malibu boats they realized that they needed a more value of a brand to cover the lower end, hence Axis. Therefore Malibu of the big 3 has the biggest range of price/boat offerings.

It is also interesting to note that now since Master craft is responding with the NXT series they want to capture some of the value brand market share.

Surfgate was a brilliant introduction for Malibu as well. They really led the market on surf shaping devices that garnered attention.

Ah an IPO - we'll see how this fairs.. when shareholder equity has to be maintained...

[jsturvey]

Okay, here is something to consider. I do believe that Master Craft is a leader in overall design. Now I am not certain which boat builder put out the first VD ski boat, but it seems to me that after MC began building the MariStar, all the other manufacturers followed with a boat with the same lines and versatility, and quickly there after we saw VD boats like it everywhere. The same is true with with the pickle fork. Master Craft did it first. A few years later, CC and Malibu, and others even on the I/O side (Cobalt I think) are now manufacturing boats with their own version of what Master Craft did first. Malibu has their Surfgate, (I'll give them that) but CC has done nothing unique to put them into the category of an industry leader. In fact, I'd consider all the others followers.

[jdhart73]

Quality boats for the working man

[scott023]

Quality boats for the working man

[JDK]

It is also clear that growth in market share has come largely due to Skier's Choice and Nautique both of which have steadily lost market share. MC was holding steady, except 2011-12..

I think you need to re-read the table in the report.
2008 2013 - as of Sept. 30
MC 23.8% 19.7%
CC 15.2 % 15.5%
BU 23.2% 32.9%
SC 16.9% 12.9%
Seems to me that BU's growth has come partially at MC's expense and not CC.

[Indyxc]

I think you need to re-read the table in the report.
2008 2013 - as of Sept. 30
MC 23.8% 19.7%
CC 15.2 % 15.5%
BU 23.2% 32.9%
SC 16.9% 12.9%
Seems to me that BU's growth has come partially at MC's expense and not CC.

I had the chart kind of misaligned! doh. Shame on me.

Well between 2008 and 2011 MC's market share was essentially flat. Then it took a dip of 5% market share from 2011 to 2013, which corresponds both with with the launch of Axis and Surfgate.

You're right Nautique stayed basically flat, then gained marketshare slightly in 2013. Interesting to note Skier's pier brands are on the downhill.

[mikeg205]

Interesting read... http://www.fool.com/investing/genera...-the-rest.aspx

52 week range - 16.67 - 24.90

today is $21.42.

Will be interesting how the industry progresses.

[bamabonners]

Here is the part that grabs my attention:

Malibu Boats boasts margins superior to those of its peers. For the trailing 12 months, it delivered EBITDA margins of 19.4%, compared with margins of 10.6% and 5.3% for Brunswick and Marine Products, respectively.

IN MY OPINION, Malibu builds the cheapest boat of the "big 3". It floors me why they can continue to charge what they do for thier boats.