2022 mc boat(s) price increases?

[Mastercraftdave]

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.

[MCOR]

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.

[JohnE]

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.

[MCOR]

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.

[TolCarMan]

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

[Morety]

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.

What should be done is that the customer has an agreed upon price with the dealer, and the dealer came up with that price based on an agreed upon cost with MasterCraft. MC should honor quotes to dealers that were placed as customer ordered boats. Dealer inventory (if there is any!) boats could have a price increase because they haven't been priced to customers yet.

But this is all wishful thinking. MC is going to squeeze their dealers and not care, some dealers are going to squeeze their customers and not care, and others are either going to feel horrible about having to do it, or are going to lose money this year. Bad situation all around.

[osmonet]

In some ways its no different than ordering a new car. Although price may be fixed, the factory incentives are calculated and applied at time of delivery not time of sale.

Dealer is stuck in the middle and likely hates making that phone call as much as you hate receiving it.

[MasterCraft Ranger]

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 might be wrong here but I believe the transaction is between MC and the dealer. If a customer bails on an order, the dealer still takes delivery of the boat and then tries to sell it to someone else.


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[MCOR]

I might be wrong here but I believe the transaction is between MC and the dealer. If a customer bails on an order, the dealer still takes delivery of the boat and then tries to sell it to someone else.


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And if you bail on the order, you lose your deposit.

I agree that this issue is between MC and the dealer. MC should honor pricing on orders that have already been placed and deposits paid. How many boats could that possibly be, 100? If the average increase is 20K/boat, we're talking 2M. MC has a market cap of 512M. Seems like a money grab move rather than doing what's right.

They can adjust pricing on future custom orders and boats built for dealer inventory.

[Zrlee]

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

Agree! For those that think the dealers should eat the difference….If your dealer can absorb the 10% price increase for every customer in this situation, he was charging you too much to begin with.


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[Loewen]

There is a very distinct line drawn in the sand here regarding business ethics, with zero gray area. Which side of that line do you want to stand on? A deal is a deal. If the buyer backs out, keep the deposit. If the buyer doesn't back out, honor the price. In the end, what does the "contract" state? Has the dealer and buyer agreed upon a price, signed an agreement and has a deposit been accepted to guarantee the details and price described in the contract?? If not, buyer beware. If so, seller beware. Ethics and morals supersede profits in my book, but unfortunately businesses like mine have become the minority over time.

[Zrlee]

2022 mc boat(s) price increases?

There is a very distinct line drawn in the sand here regarding business ethics, with zero gray area. Which side of that line do you want to stand on? A deal is a deal. If the buyer backs out, keep the deposit. If the buyer doesn't back out, honor the price. In the end, what does the "contract" state? Has the dealer and buyer agreed upon a price, signed an agreement and has a deposit been accepted to guarantee the details and price described in the contract?? If not, buyer beware. If so, seller beware. Ethics and morals supersede profits in my book, but unfortunately businesses like mine have become the minority over time.

We have operated our business that same way for the 40+ years we’ve been in business. However when Covid hit, things changed. I’m in the food business and have never seen extreme price increases across the board like I’m seeing now. In the past if I quoted a price and my cost went up, i would honor my quote and It just meant I wasn’t able to make as much profit on that order. But with the increases now, if I don’t go up on my price to the customer, I would be closing my doors after 40 years of business. I imagine most dealers (at least in the small markets) are family owned businesses that want to take care of their customers but with the extreme amount of increase they can’t absorb it.
I also imagine that most dealers will return deposits if you decide not to keep the order.


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[Mastercraftdave]

Agree! For those that think the dealers should eat the difference….If your dealer can absorb the 10% price increase for every customer in this situation, he was charging you too much to begin with.

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What Percentage are dealers making on boats these days?

I do believe that the dealers should push back to MC but we all know that's not going to happen. I guess what I'm having a hard time wrapping my head around is that when a deposit is made the price isnt set for MC. I was under the impression that when order is made the price is given to the dealer at that time and that's what the dealer discounts?

Having just left the Ft. Lauderdale boat show we talked with alot of manufactures at the show about price increases as I'm in the market for a 26ft CC. It varied from each manufacturer as to who was imposing increases and when it would be effective. Most mid to high tier brands told us that if we purchased at the show they would honor the price today and have have written statements in the contract that cover this. The Mass produced boats like Sportsman, SeaHunt, etc. would not honor such language.

I guess the silverlining with the price increases is that my 2015 X23 value is holding strong. I see some listed on the internet for about 10K less than I paid in 2015. Crazy times were living in.

[wallos]

When I ordered my X20 in 2018 there was a clause in contract that said I would have to pay any price increases to MSRP by MC. I made the dealer cross it out and had a manager sign it before signing. Have any of you read your contract? Is this still in purchase agreement?

As far as absorbing the 10% has anyone else noticed the difference in discount you get now compared to before covid? Take a guess what difference is.

[TolCarMan]

As far as absorbing the 10% has anyone else noticed the difference in discount you get now compared to before covid? Take a guess what difference is.

Another UWS for the win moment... the deal I got on my '22 is the same deal my dealer has been running for over 10 years. The folks are awesome over there.