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2022 mc boat(s) price increases?

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  • TolCarMan
    replied
    I am kind of on the dealers side on this one... the imposed price increases are 100% out of the dealers control and thus their hands are tied. The dealers are getting a lot of the heat for this one. Fingers should be pointing towards MC corporate.
    $.02

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  • MCOR
    replied
    Originally posted by JohnE View Post
    At $36K increase in the XStar example, a dealer may not be able to eat the increase. If he has 10 boats on order, that'd be $360,000.00. I'd rather lose all 10 customers than lose every customer bc I have to fold.

    Not that it would play out exactly that way, but something to think about.

    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.

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  • JohnE
    replied
    Originally posted by Loewen View Post
    If you had a contractual agreement with money down, do the right thing---> Honor the price agreed upon. Easy answer.
    At $36K increase in the XStar example, a dealer may not be able to eat the increase. If he has 10 boats on order, that'd be $360,000.00. I'd rather lose all 10 customers than lose every customer bc I have to fold.

    Not that it would play out exactly that way, but something to think about.

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  • MCOR
    replied
    Originally posted by dlamont View Post
    As a dealer of another brand, I'm wondering what customers are expecting dealers to do? Eating a 10% price increase could put some dealers out of business.
    I would assume anyone that doesn't want to pay for the increase can simply get their deposit back and find a different boat to purchase?
    All around this is an unfortunate situation. No one likes to be told they have to pay more.
    I am a repeat MC customer (4th boat, 3 of which were/are custom ordered) and do all my service at the dealer for my boats, bought many surfboards, lead bags, accessories, etc. from the dealer. I would think this should be taken into consideration by both MC and the dealer.

    Regardless, as a dealer, once you set a price and an order and deposit is placed with you by a customer, that price should be honored. Happy customer = long term customer loyalty. It's not just the boat sale, it's all the service and other purchases that come with the boat sale that make you profitable.

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  • Mastercraftdave
    replied
    Originally posted by dlamont View Post
    As a dealer of another brand, I'm wondering what customers are expecting dealers to do? Eating a 10% price increase could put some dealers out of business.
    I would assume anyone that doesn't want to pay for the increase can simply get their deposit back and find a different boat to purchase?
    All around this is an unfortunate situation. No one likes to be told they have to pay more.
    If I put a deposit down on a boat at a set price I would expect that price to be honored.

    As a dealer, if a deposit is put down and the buyer backs out for whatever reason, most of the time the dealer is keeping the deposit. We all know boat prices are marked up a good bit to begin with.

    Sounds like either way the buyer is getting screwed. In my opinion as a business owner if you have a set contract you should honor that contract regardless of your price and profit margin. Sometimes companies are bloated with overhead cost that they need everybit of profit. That poor operation IMO.

    I own a service company and we haven't raised prices with the increase in gas prices or operating cost. I have some contracts that date back to the 1980s and the price has remained the same sense. I cant tell you how many work of mouth referrals I get because of our service. We haven't lost any business, if anything were growing at an unprecedented rate.

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  • Loewen
    replied
    Originally posted by dlamont View Post
    As a dealer of another brand, I'm wondering what customers are expecting dealers to do? Eating a 10% price increase could put some dealers out of business.
    I would assume anyone that doesn't want to pay for the increase can simply get their deposit back and find a different boat to purchase?
    All around this is an unfortunate situation. No one likes to be told they have to pay more.
    If you had a contractual agreement with money down, do the right thing---> Honor the price agreed upon. Easy answer.

    Leave a comment:


  • dlamont
    replied
    As a dealer of another brand, I'm wondering what customers are expecting dealers to do? Eating a 10% price increase could put some dealers out of business.
    I would assume anyone that doesn't want to pay for the increase can simply get their deposit back and find a different boat to purchase?
    All around this is an unfortunate situation. No one likes to be told they have to pay more.

    Leave a comment:


  • MCOR
    replied
    Originally posted by roadster02 View Post
    So you are willing to pay $324,000 for the boat???
    Nope. I want to pay the agreed upon price on the order and what I paid my deposit on.

    Leave a comment:


  • roadster02
    replied
    So you are willing to pay $324,000 for the boat???


    Originally posted by MCOR View Post
    We were looking at the new Xstar S as soon as they were announced. I liked the new Surfstar system, surf pipe, and thruster, so thought it would be a good upgrade over our '20 X22. Played around with a preliminary build with almost all the options ticked that came out to 278K msrp. Our dealer warned us about rising prices, so got serious, paid our deposit and placed our order for the same build near the end of Aug with a 288K msrp, a 3.8% increase. Colors had yet to be decided as we were looking at an April delivery. We were told we had some time since the build slot wasn't until Feb, so thought we had several weeks.

    Well yesterday, I asked our dealer to send me the current build sheet so I can finalize colors. I received the same build sheet as before, but the msrp is now 324K! That's a 12.5% increase in 2 months! The base boat msrp was raised 9% alone. On top of that, I missed an email from the dealer that said our boat was suddenly locked in red at the end of Sept, with a build date in Feb. Now it will potentially cost me to make any changes. Not really happy about that.

    I did a itemized price comparison to see where overall increase came from and it's not a straight increase across the board, which makes me believe there's a different motivation rather than just increased material costs and supply chain issues. For instance, if this was just a material cost increase, why did cool feel price for each base location increase 8%, 6.9% and 8.8% respectively? If it were a material cost, they would be the same as the material comes from the same company.

    The Z10 tower price increase is nearly 62%, S85 speakers w/lights - 8% increase, Elite billet mirror - 7.7% increase. These are made mainly of aluminum, and the increase per tonne for aluminum from July to September was 3%. Additionally, LME is forecasting the prices for aluminum to decrease from now through 2024. Why is the increase of the tower so high? The trailer price increase is 25%, yet the steel cost dropped almost 29% from its August high and trending downward as well. Will we see pricing for the boats to decrease just as rapidly due to material cost reductions? I highly doubt it.

    MC is a public company and has to answer to its shareholders. Are they taking advantage of the current "supply chain" situation to perhaps buoy their stock price with increased profit per unit? I suppose they can as long as people are willing to pay.

    I work for a company that deals with supply chain issues daily, yet we strive to maintain pricing as much as possible because the market is competitive and everybody else in our sector has to deal with the same problems. This is understandable with the manufacturing offshore as logistics issues are a major component of supply chain troubles. MC is manufacturing in the US, so unless they are getting the majority of their components and raw materials from overseas, the price increases seem unreasonable.

    my 2 cents.
    Last edited by roadster02; 11-01-2021, 08:10 PM.

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  • Loewen
    replied
    Different brand altogether, but I ordered a SeaArk in October 2020 (2021 model). It was delivered in August as a 2022 model and the dealer ate a price increase instituted by factory. It all depends on your dealer. There are some good dealers and there are some incredibly bad apples. I have dealt with both in the many new boats we have purchased over the years.

    Sad thing is, with MC demanding you purchase new within your region, it's almost impossible to bad mouth a terrible dealer, for fear of ruining future bargaining leverage on the next boat. To make matters worse, there are some really terrible MC dealers out there, as well as some really good. I had a MC dealership out of country (COUNTRY) help me remedy a warranty situation once, because my dealer was "one of those".
    Last edited by Loewen; 10-29-2021, 10:11 AM.

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  • FourFourty
    replied
    Originally posted by Tony84121 View Post
    Well it seems Brunswick is not operating the same. My father ordered a 32’ SeaRay SLX in June ‘21 and expects delivery in March 2022. In part because of this discussion here, he called the dealer (MarineMax) and his dealer told him since he’s already signed a purchase order, and placed the deposit, his agreement will survive any additional increases SeaRay applies. Seems SeaRay values the relationship more than the situation.
    March 2022 is still 5 months away…… don’t be surprised if that changes….

    Leave a comment:


  • MCOR
    replied
    Originally posted by Lakelife View Post
    Our dealer has raised the price of our trade in sitting on their lot a way better solution than calling us to say they are ripping up the contract, no one wants that conversation.

    I have yet to have this conversation. Anxious to see what the resolution is.

    Leave a comment:


  • Lakelife
    replied
    Our dealer has raised the price of our trade in sitting on their lot a way better solution than calling us to say they are ripping up the contract, no one wants that conversation.

    Leave a comment:


  • tmothy07
    replied
    Originally posted by GoPokes View Post
    For those of you trading in your boat for a new one call them up and ask for 8-9% more for your trade and tell them used prices are reflective on new prices. See how quick they back themselves into a hole.
    Lol, with the insane crap I see on OnlyInboards, this would be hilarious.

    Leave a comment:


  • GoPokes
    replied
    For those of you trading in your boat for a new one call them up and ask for 8-9% more for your trade and tell them used prices are reflective on new prices. See how quick they back themselves into a hole.

    Leave a comment:

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