Why is MC not the market leader?

[thatsmrmastercraft]

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.

Malibu is only part of the big 3 by their own claim. Most people I know look at Mastercraft and Correct Craft as the leaders with Bu falling into tier 2 classification.

[MC25]

I have to disagree. While in the past their boats weren't all that up to MC and CC par, but ive spent quite a lot of time in a 14 23lsv and it definitely is a tier one boat.


Now the market share question, I would say CC is hammering out some of the best boats right now with MC in a close second. Malibu cheats by using axis in their numbers. Lol.

[Nick911]

I have to disagree. While in the past their boats weren't all that up to MC and CC par, but ive spent quite a lot of time in a 14 23lsv and it definitely is a tier one boat.


Now the market share question, I would say CC is hammering out some of the best boats right now with MC in a close second. Malibu cheats by using axis in their numbers. Lol.

Elaborate.

[ap77]

I like Malibu boats, but would say they are a slight step behind MC and CC from a quality perspective. That said, their pricing is lower so it could be said they are a better value.

[FoggyNogginz]

I am a huge MC fan, and somewhat addicted to this forum. However, I do have several friends that have switched to Malibu for surfing because of the simplicity of getting a clean wave and a crisp lip behind the VLX and LSV. The G23 has captured some attention on my lake as well. (Prior to the launch of the X46 and new X10).

For many years I felt like MC was squarely focused on skiing, and abruptly switched to a wakeboarding focus with little innovation on the sport that put them on the map. Then somewhere in the middle, they missed the surfing market for a few years while their counterparts began to outsmart them both in style and perceived innovation (my opinion - everyone had one - YMMV). They have made great strides in recent times though, with the new Prostar, X46, X10, X30, Gen 2Surf system, ZFT towers, etc...but this took some time and a few missteps IMHO. Having the senior leadership turn over in the late 90's and again at the beginning of this decade is very apparent in many ways....and a lot of those folks are now running companies like Skier's Choice for Moomba and Supra. So it's really a small industry with a fair amount of turnover at times too, and this makes waves in sales, vendor management, distribution, etc.

As for margins, I wouldn't imagine that the exclusive relationship with Ilmor did much to help when we consider the supply/demand and volume curves. Nor do I think that the ridiculous electronics of the 2012 systems did much at a critical time to improve sales. In the long scope of things, I still believe that MC has the best resale value though, and they are committed to watersports innovation with quality which I respect. They have made some bad management calls over the years though which are discussed at great length elsewhere on this forum. I imagine that the same can be said for Malibu and Correct Craft over the years though, and to stay strong for 46 years in this evolving industry is quite impressive. Especially through years of economic ups and downs in an industry that is clearly not targeted at those with an average salary.

My $0.02

[dlamont]

Malibu would still be #1 without Axis included in the numbers.

[FourFourty]

^ If so, it would be an extremely small advantage. Axis is over 35% of their sales now...... Take that out of the equation, and they have only about 20% Market share.....

Not to mention, Axis is not a brand that has a parasitic effect on Malibu (or MC and CC). It is a whole separate market demographic.

[FoggyNogginz]

^ If so, it would be an extremely small advantage. Axis is over 35% of their sales now...... Take that out of the equation, and they have only about 20% Market share.....

Not to mention, Axis is not a brand that has a parasitic effect on Malibu (or MC and CC). It is a whole separate market demographic.

It will be interesting to see what NXT does for MC too.

[neil.anderson63]

Interesting thread We looked at and considered several different brands before we bought our 2nd Mastercraft. Kept an open mind and weighed quality, resale, total package for $$$ and reliability. We looked for the right boat at the right price for almost 9 months - Mastercraft stayed at the top of the list throughout the whole search. We also had a Tige in the mix for a bit. There are certain things we liked about other manufacturers. However, when you look at all the features and quality you get for your money at purchase and what you retain at resale - Mastercraft wins. The numbers? I could care less who sells more units at the end of the year. I'm happy with our purchase and proud to be in the Mastercraft family.

[madcityskier]

Simple question.... The quality of the MC is leaps better and the dealers that I have met have all been excellent. MC has more features, better ride, more selection. Everyone knows MC name and heritage, why are they not the market leader?

Gave up on reading this entire thread, so sorry if this has already been said. So when you say Market Leader, is that strictly a sales volume question? For most other factors I think they are the market leader.

[MC25]

In terms of watersports performance, I think MC is losing market share because they are becoming soft "do it all" boats. Out of the box, mc is not making the best wakes by any means. I would like to see the sales numbers when the 2nd gen x star was still raining king of new wake boats.


*not saying any of these wakes are below my level of riding, just like big wakes!

[FourFourty]

^ well, the market leading boat company is no better in that regard. If anything, out of the box Malibu wakes are smaller. It takes more additional weight to slump the average Bu, not to mention, the compartments are smaller, and not as easy to fit added ballast. (Except for lockers, which are about the same size on average)

Also, Malibu tends to run flatter bottoms, which requires more weight. They sure do handle nice though!!

No doubt that CC has the right idea with the G series..... Big ballast with big storage. All of the other boat companies lack in that regard, not just MC. That being said, it is a trade off on looks. I prefer to have a sleeker looking boat, and dedicate my lockers to ballast. Sure, I would love my lockers back, but I don't want the "barge" look.

[JohnE]

In terms of watersports performance, I think MC is losing market share because they are becoming soft "do it all" boats. Out of the box, mc is not making the best wakes by any means. I would like to see the sales numbers when the 2nd gen x star was still raining king of new wake boats.


*not saying any of these wakes are below my level of riding, just like big wakes!

I really don't understand your logic. Every boat they have now is an improvement on what was available in their largest sales/ production year which is 06 for sales and 07 for production I believe. The new prostar blows away the 197, the Xstar is an improvement over the previous (arguably I know in terms of wake which is subjective, but certainly every other aspect - and admittedly I am not much of a boarder), The X10 and X30 do everything better than the X15 and old X30. What exactly are you looking for? MC boats are far from "getting soft". If you want to make the argument that another brand boat does something better, go for it. But I really find the statement that MC is getting soft to be ridiculous. Are you really saying that CC is now reigning king of the wakes?

[Nordicron]

johnE: yes I'd say with the G series that Nautique is the reigning king of the wakes. Id also agree with you though that the current gen boats aren't softer than the older gen but MC did struggle a bit getting there: last to go to 2pt tower, last to have a surf system, last to get decent software, and it lets not forget the whole dropping Indmar thing. All the while raising their prices 10%+ each year. Those are quite a few shake ups.


Sent from my iPhone using Tapatalk

[AlbertaSurfer]

JohnE - I wouldn't say that CC is "now" the reigning king of wakes, I'd say they always were. Granted, the new Prostar is shaping up to be awesome, but the DD Nautiques have dominated the slalom wakes arena for a long time. The G Series boats and the NSS work. Huge ballast and a simple and effective surf system. MasterCraft was lacking in the surf department, so they replaced their bags and tabs system... with bags and custom tabs. Really pushed the innovation boundaries there. Wakeboard Magazine just published a list of the "Best 2014 Wakesurf Boats" with no MC on the list. Now of course one can argue the validity of that list, but rest assured if the X46 was at the top, bragging rights would be had around here. The 210, 230, G23 & G25 are all in there, as well as 2 Axis and 2 Wakesetter models.

Before everyone piles on, I'm sure the Gen 2 surf system works great, and I hope owners of the new boats are satisfied and proud of their purchases. They are all great boats. It just seems that on here there a lot of "apples to oranges" type comparisons made when referencing other brands, when maybe a "Macintosh to Ambrosia" comparison is more fair.

Not acknowledging an argument for another brand, doesn't mean an argument can't be made.