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2022 mc boat(s) price increases?

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  • The more I read this thread the more I'm frustrated by what it appears that MasterCraft is doing with dealers and the predicament they are putting them in.

    I've been very close with the TXMC guys for 15+ years but never worked directly for the dealership selling boats, so I don't have experience directly with MasterCraft on a manufacturer / dealership basis. But I have spent years in the agriculture equipment industry selling both Case IH and Kubota equipment.

    In this case I think that Case IH is more in line with MasterCraft than Kubota. Kubota sells a lot of smaller equipment in our territory and most of it is dealer inventory and not custom ordered. Case IH is larger (more expensive) equipment and is increasingly more custom ordered for the farmer. It is not uncommon for the MSRP of a new combine to be over $700,000.

    When a dealer places an order for a piece of equipment, we have to mark it as dealer inventory or for a customer. If we order it as dealer inventory, we know the MSRP but we do not know what, if any, discounts the manufacturer may give us. That is always based on the current programs when we price to a customer, which is fair to the dealer, because we know what it will cost us before we price it.

    If we order the equipment special for a customer, we lock in our price and discounts with the manufacturer the day the equipment is ordered, which allows us to price it to the customer when it's ordered, since it may take 3-6 months to arrive. If the programs / discounts get better when it arrives and the customer pays for it, then the customer gets that benefit. But if the prices increase or the programs are not as good when it arrives, the customer is locked into the price when the dealer ordered the equipment.

    To me, this system makes sense for the manufacturer, the dealer, and the customer. The customer knows the price when they order the equipment (seems obvious). The dealer knows the cost when they price the equipment to the customer (seems obvious). And the manufacturer is encouraging both the dealer (their customer) and the end customer (the dealer's customer) to place orders to keep the factory busy, which is what they want. The manufacturer wants to make 100% of the units that they are capable of making.

    I think what may be happening in the tow boat world is that the manufacturers are seeing every build spot fill with customer orders and there being basically no dealer inventor orders any more. They can't build any more boats, there is more demand than supply, so they they say to hell with the contracts in place, if a specific dealer won't pay the price increase, another one will and buy the boat. Dealers know if they start turning down boats, they won't have anything to sell and may not get as many build slots next year.

    Being in a related industry on the dealer side, I think the only fair way to do it for all three parties is for the pricing to be locked in when a custom order is placed. If the end customer backs up, the dealer cost then goes up, but they can adjust their sales price accordingly to make up for it. Alas.

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    • Originally posted by MCOR View Post
      MC being a public company would need to take a charge on their balance sheet. 10 boat lost sales would be closer to 5-6M lost revenue.
      I was looking at it strictly from dealer perspective with each of 10 customers. The might just as quickly sell those 10 boats to 10 new customers, as opposed to being out of business. Nothing to do with corporate in this exaggerated hypothetical.
      Prior boats - (3) X14's, (3) Prostars, and a Tristar.

      Comment


      • Originally posted by Morety View Post
        I think what may be happening in the tow boat world is that the manufacturers are seeing every build spot fill with customer orders and there being basically no dealer inventor orders any more. They can't build any more boats, there is more demand than supply, so they they say to hell with the contracts in place, if a specific dealer won't pay the price increase, another one will and buy the boat. Dealers know if they start turning down boats, they won't have anything to sell and may not get as many build slots next year.

        Being in a related industry on the dealer side, I think the only fair way to do it for all three parties is for the pricing to be locked in when a custom order is placed. If the end customer backs up, the dealer cost then goes up, but they can adjust their sales price accordingly to make up for it. Alas.
        This.

        With supply chain issues, MC’s production may only be 80% capacity. To maximize revenue, an upcharge on the boats they can build helps the bottom line.
        2022 XSTARS
        2020 X22
        2019 XT22
        2017 XT20

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        • Talked to my dealer yesterday and as expected we had no luck in getting Mastercraft to honor our original agreed upon price from July. My NXT order went from MSRP of $137,180 to $149,601. Right at a 9% increase. The very frustrating part is that we were originally scheduled to be delivered in December and with the last push back, it put us delivered on Jan 3rd. 3 days made a difference of 9%. My guess is mastercraft wont be delivering many boats in December. They'll push them all to January and stick it to everyone with the increase.
          Because I live in a smaller market I do have another option. My dealer has 1 stock boat that isn't sold yet (XT23). It was delivered within the last couple of weeks so its "pre price increase". Considering the additional markup on the NXT we will likely be purchasing the stock boat. Makes more sense in the end. I wont get my original design but we do like the way the dealer built the XT23. What a mess this has been and a really crappy way MC has treated its customers and dealers. They've had the attitude of "everyone else is doing it so get over it or don't buy it". And to the above post MCOR....According to Mastercraft, from the Training week they had in Vegas last week, "They've had a great year and are selling more boats than ever"

          Comment


          • Originally posted by Zrlee View Post
            Talked to my dealer yesterday and as expected we had no luck in getting Mastercraft to honor our original agreed upon price from July. My NXT order went from MSRP of $137,180 to $149,601. Right at a 9% increase. The very frustrating part is that we were originally scheduled to be delivered in December and with the last push back, it put us delivered on Jan 3rd. 3 days made a difference of 9%. My guess is mastercraft wont be delivering many boats in December. They'll push them all to January and stick it to everyone with the increase.
            Because I live in a smaller market I do have another option. My dealer has 1 stock boat that isn't sold yet (XT23). It was delivered within the last couple of weeks so its "pre price increase". Considering the additional markup on the NXT we will likely be purchasing the stock boat. Makes more sense in the end. I wont get my original design but we do like the way the dealer built the XT23. What a mess this has been and a really crappy way MC has treated its customers and dealers. They've had the attitude of "everyone else is doing it so get over it or don't buy it". And to the above post MCOR....According to Mastercraft, from the Training week they had in Vegas last week, "They've had a great year and are selling more boats than ever"
            Remember when NXT's were 60k All Day?
            Tim
            2021 Lone Star MasterBash
            Ohio State Engineering - Go Bucks
            1998 MC MariStar 225VRS
            1995 MC ProStar 205
            ISO MC 205V/XStar, X2

            Comment


            • Originally posted by Zrlee View Post
              What a mess this has been and a really crappy way MC has treated its customers and dealers. They've had the attitude of "everyone else is doing it so get over it or don't buy it". And to the above post MCOR....According to Mastercraft, from the Training week they had in Vegas last week, "They've had a great year and are selling more boats than ever"
              It’s a money grab… public company…
              2022 XSTARS
              2020 X22
              2019 XT22
              2017 XT20

              Comment


              • Agree. They’re more worried about making their investors happy than their dealers and customers.


                Sent from my iPhone using Tapatalk

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                • Originally posted by Zrlee View Post
                  Talked to my dealer yesterday and as expected we had no luck in getting Mastercraft to honor our original agreed upon price from July. My NXT order went from MSRP of $137,180 to $149,601. Right at a 9% increase. The very frustrating part is that we were originally scheduled to be delivered in December and with the last push back, it put us delivered on Jan 3rd. 3 days made a difference of 9%. My guess is mastercraft wont be delivering many boats in December. They'll push them all to January and stick it to everyone with the increase.
                  Because I live in a smaller market I do have another option. My dealer has 1 stock boat that isn't sold yet (XT23). It was delivered within the last couple of weeks so its "pre price increase". Considering the additional markup on the NXT we will likely be purchasing the stock boat. Makes more sense in the end. I wont get my original design but we do like the way the dealer built the XT23. What a mess this has been and a really crappy way MC has treated its customers and dealers. They've had the attitude of "everyone else is doing it so get over it or don't buy it". And to the above post MCOR....According to Mastercraft, from the Training week they had in Vegas last week, "They've had a great year and are selling more boats than ever"
                  The fact you got pushed back like that and didn't make the cut by 3 days, I would absolutely be walking on that deal, just on general principle. I know the common response is that they will just give it to the next guy in line. Hell, let em have it.

                  Is any brand NOT doing this?

                  Comment


                  • Originally posted by Huckelfin View Post
                    The fact you got pushed back like that and didn't make the cut by 3 days, I would absolutely be walking on that deal, just on general principle. I know the common response is that they will just give it to the next guy in line. Hell, let em have it.

                    Is any brand NOT doing this?

                    That’s the thing. If I want a new boat I don’t really have a lot of bargaining power. They’re all doing it.


                    Sent from my iPhone using Tapatalk

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                    • I've had a new NXT22. It's a fine boat. But I know what the normal discounts are off MSRP and if those hold true, I cannot possibly imagine paying what they must be asking for based on a $149k MSRP.

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                      • agreed. Companies have a new master once they go public. We all know the reasons for going public but investors unfortunately end up driving the company. happened at Malibu, happening at MC too. Prices go up, quality goes down and corners are cut.

                        Comment


                        • Originally posted by Zrlee View Post
                          Because I live in a smaller market I do have another option. My dealer has 1 stock boat that isn't sold yet (XT23). It was delivered within the last couple of weeks so its "pre price increase". Considering the additional markup on the NXT we will likely be purchasing the stock boat. Makes more sense in the end. I wont get my original design but we do like the way the dealer built the XT23.
                          That's crazy money for an NXT! You used to be able to get a well equipped XT22 for that.

                          If it's the redesigned XT23, jump on it! I might be slightly biased, but that thing is pretty sweet.
                          -Tolman
                          '22 XT23 "Big Kahuna"
                          '06 X30 (Sold)

                          "Sometimes my genius, it's almost frightening" -JC

                          Comment


                          • Originally posted by TolCarMan View Post
                            That's crazy money for an NXT! You used to be able to get a well equipped XT22 for that.

                            If it's the redesigned XT23, jump on it! I might be slightly biased, but that thing is pretty sweet.

                            I agree. Keep in mind though These are MSRP prices.


                            Sent from my iPhone using Tapatalk

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                            • And just to add some fuel to the conversation, December 14 is the penciled in ship date for my boat. If that for some reason changes and I get the increase, I'm walking and finding a good condition X22.
                              -Tolman
                              '22 XT23 "Big Kahuna"
                              '06 X30 (Sold)

                              "Sometimes my genius, it's almost frightening" -JC

                              Comment


                              • Originally posted by Zrlee View Post
                                I agree. Keep in mind though These are MSRP prices.
                                Oh yeah, I guess I should've thought of that... I had in my head that was the final price lol

                                Still crazy
                                -Tolman
                                '22 XT23 "Big Kahuna"
                                '06 X30 (Sold)

                                "Sometimes my genius, it's almost frightening" -JC

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