Shame on Malibu corp.

[Lance B. Johnson]

Charlie the Unicorn.

WTH are you guys smoking?

[Chia]

all this speculation reminds me of the Mark Twain quote:

Reports of my Demise are Greatly Exaggerated. "The report of my death was an exaggeration." -Mark Twain

Malibu builds a great boat. My experience with Malibu dealers has always been positive. This is the same company as it was yesterday before we heard the news that Bakes decided to not become a "stocking" dealer, so if you weren't bashing them or getting rid of your boats then, why are you now?

Without knowing the whole story, does it appear this situation could have been handled differently, probably, but it seems the end result would have been the same as Bill stated he was not prepared to become a "stocking" dealer.

Bill is not Bitter, so why should we be? I don't believe he was blowing smoke up our a** with his post.

Malibu builds a great product and I believe their goal is to continue to build the best boat possible in the manner that Bob Alkema envisioned in the early 80’s. My hope is that the new dealer will earn your respect and mine.

Thank you all for your support and well wishes. I have enjoyed a wonderful and successful lifestyle on the coat tails of Malibu for over twenty years. The world is an ever changing place and I have no complaints. Sorry for being so long winded. Bill Baker

[Bill_AirJunky]

I thought malibu was employee owned? Or do the employees only own the minority

Employees & Black Canyon Capital. Maybe BCC is gaining interest somehow?

[Bobby Light]

all this speculation reminds me of the Mark Twain quote:

Malibu builds a great boat. My experience with Malibu dealers has always been positive. This is the same company as it was yesterday before we heard the news that Bakes decided to not become a "stocking" dealer, so if you weren't bashing them or getting rid of your boats then, why are you now?

Without knowing the whole story, does it appear this situation could have been handled differently, probably, but it seems the end result would have been the same as Bill stated he was not prepared to become a "stocking" dealer.

Bill is not Bitter, so why should we be? I don't believe he was blowing smoke up our a** with his post.

Are you reading the same thread we all are... Awww never mind you wouldn't understand anyways.

[skyskier]

So Malibu says they will sell parts to Bakes and allow them to perform warranty work for a minimum of one year and then re evaluate. A year sounds like just enough time to get a new dealer up and running. Does anyone think the new dealer will be ok with Bakes selling parts and performing warranty work in the new dealer's territory a year from now? Anyone care to make a little wager on this?

On the other hand, if I had my Malibu dealership up for sale and Malibu pressed me to buy some showroom boats in order to continue being the exclusive Malibu dealer in that territory, I believe I would do whatever I needed to do to buy some boats. There just has to be more to the story, for better or for worse. If I had to guess, I would say corporate mentality and a small business man with good morals and values came to a crossroads and neither one flinched.

[CTSunsetter]

This situation stinks for sure, but folks it’s not the first time Malibu pushed one of its great dealers out. Like Bakes, A&S was there in the early days with Malibu and the destructive situation here sounds very similar. Keep in mind that partnership ended prior to the VC deal, during an economic upswing and while Bob was the head of the company. At the end of the day crew, business is business. I don’t always care for it either but it is what it is.

Quiz for you, why did Malibu bring in VC? Among others: to compete, grow the brand and survive! It’s possible there wouldn’t be a Malibu today without VC and it certainly wouldn’t be what it is (or isn’t) today. Malibu needed the money to keep up the pace of model updates, invest in new models and add great features like the Power Wedge, MaliView, MUX switches and the JBL black box. (thought I’d lighten it up at the end there)

I may be here on the east coast but I’ve placed orders though Bakes Online more than once with fantastic service. I hope that continues for everyone but I’m not wagering against skyskier’s bet either.

[MaddMaxx]

I had a Crownline that I sold last summer. They totally shut their doors, laid-off everybody, kept a person or two in the main office, put the company up for sale and ended up filing bankruptcy. Customer's didn't want the new boats on the showroom floors for fear of no warranties and dealers quit doing warranty repairs because the company couldn't authorize the repair nor send checks. There were people with brand new Crownlines that had no warranties. Some, and I mean some, dealerships stood behind the boats they sold and did warranty repairs, but the repairs were minor and not stuff like gel-coat delamination. The company name and the facilities were bought by an investment group but there was much debate and aruing as to if they also bought the outstanding liabilities (read warranties) because the original company had already gone through bankruptcy and ceased to exist. I don't know how it all turned out because I sold my Crownline and bought the Malibu (maybe I'm bad luck for boat companies). That being said, my point is that it could be a lot worse, and maybe it will get worse, but as it stands now, we have a company still producing new boats, producing replacement parts and honoring warranties.

[RTS]

First of all, I'd like to say that I do not think selling Malibu to a V.C. was a bad thing, for the previous owners. What I am saying is that since the company was sold, we should not expect the Malibu we knew to continue as it was.

Here's the rub. Take a longtime dealer likes Bakes. For 20 some odd years, they were working with the 'Old Malibu' company, the Malibu we all knew and were fond of. When there was a problem, the final decisions were made by Mr. Alkema, likely in concert with guys like Mr. Bakes...guys/gals who 'grew up' with Malibu and this watersports industry we all love.

Now, the decisions are with the 'board', and the final decisions rest with the majority owners...the V.C. company.

Here's a bit of the bio from the two big wigs at the V.C.

"Mr. XXXXX began his career in the Beverly Hills office of Drexel Burnham Lambert. Throughout his investment banking career, Mr. XXXXX specialized in complex financings, restructurings and other advisory assignments, with a strong expertise in leveraged finance."

And

"Mr. XXXXXXX started his investment banking career in the Beverly Hills office of Drexel Burnham Lambert. Throughout his investment banking career, Mr. XXXXXX provided corporate finance and advisory services to a broad range of industries, with an emphasis on negotiating, structuring and financing leveraged acquisitions, recapitalizations, restructurings and mergers on behalf of private equity firms and their portfolio companies."

Now, I have no beef with investment bankers, nor any beef whatsoever with the two guys I've referenced above.

BUT, the fact is, a couple years ago, Malibu was run by a man and his family with a passion for boats. Now it is being ultimately run by investment bankers. Investment bankers with stockholders to satisfy above all else. It is a different company now, is all I'm saying. A very different company.

Edited June 23, 2010 by rts

[mlange]

I'm starting to get a little worried with what could potentially happen in our area given this thread.

We're lucky enough to have a great dealer in Tinus around here, but Malibu also "expanded" to allowing a largely I/O (SeaRay and FourWinns) dealer (Skipper Buds) sell Malibu as well two or three years back. My understanding was that orders were still going through Tinus, but this other dealership is MUCH larger than Tinus. If Malibu ever pulls the plug on Tinus and moves to Skipper Buds they may sell more boats, but they will lose the passionate Malibu followers and they will definitely lose me.

I'm crossing my fingers that it never comes to that, but...

Mike

[rodman]

First of all, I'd like to say that I do not think selling Malibu to a V.C. was a bad thing, for the previous owners. What I am saying is that since the company was sold, we should not expect the Malibu we knew to continue as it was.

Here's the rub. Take a longtime dealer likes Bakes. For 20 some odd years, they were working with the 'Old Malibu' company, the Malibu we all knew and were fond of. When there was a problem, the final decisions were made by Mr. Alkema, likely in concert with guys like Mr. Bakes...guys/gals who 'grew up' with Malibu and this watersports industry we all love.

Now, the decisions are with the 'board', and the final decisions rest with the majority owners...the V.C. company.

Here's a bit of the bio from the two big wigs at the V.C.

"Mr. XXXXX began his career in the Beverly Hills office of Drexel Burnham Lambert. Throughout his investment banking career, Mr. XXXXX specialized in complex financings, restructurings and other advisory assignments, with a strong expertise in leveraged finance."

And

"Mr. XXXXXXX started his investment banking career in the Beverly Hills office of Drexel Burnham Lambert. Throughout his investment banking career, Mr. XXXXXX provided corporate finance and advisory services to a broad range of industries, with an emphasis on negotiating, structuring and financing leveraged acquisitions, recapitalizations, restructurings and mergers on behalf of private equity firms and their portfolio companies."

Now, I have no beef with investment bankers, nor any beef whatsoever with the two guys I've referenced above.

BUT, the fact is, a couple years ago, Malibu was run by a man and his family with a passion for boats. Now it is being ultimately run by investment bankers. Investment bankers with stockholders to satisfy above all else. It is a different company now, is all I'm saying. A very different company.

Well put RTS and guess what if Malibu get's profitable enough it will be sold again and again. Now that Malibu is on the stock market it will be sold maybe for a dollar profit to the next highest buyer. These people count money and nothing else and could care less about quality of the product. They will cut quality and flood sales to make a qreat bottom line and then dump it at a profit.

Malibu must of been a ripe acquisition to purchase as a medium to make more money not boats.

[85 Barefoot]

Well put RTS and guess what if Malibu get's profitable enough it will be sold again and again. Now that Malibu is on the stock market it will be sold maybe for a dollar profit to the next highest buyer. These people count money and nothing else and could care less about quality of the product. They will cut quality and flood sales to make a qreat bottom line and then dump it at a profit.

Malibu must of been a ripe acquisition to purchase as a medium to make more money not boats.

Where is Malibu on the stock market?

All speculation, but in any event, Malibu owes its past customers nothing other than to honor its warranties. Malibu does not exist to make past customers happy with its business model. Malibu management owes it to its owners to sell boats, which is NO different than when it was Bob's. It has the prerogative to go about that as they see fit. That a lot of people feel loyalty to a dealer who has an impeccable reputation may or may not be a big deal to Malibu, but Malibu doesn't owe it to us (former buyers) to keep a franchise with a dealership that is for sale. When it comes time for us former buyers to become future buyers again, if Malibu wants to compete, it owes us dealers who can satisfy our needs, and Malibu has apparenlty now spoken as to how they fell most confident in doing so in the future.

This is not a hobby for Malibu like it is us consumers, this is their livlihood. While their decision may turn out to be the wrong one, we have no right to gripe that Malibu made a business decision to the detriment of a dealership who has a great reputation. While Bake's reputation is obviously stellar, is anyone really surprised that Malibu would give the franchise to a dealer who is interested in carrying them in a horrible economy? Although unlikely, Bake's could get bought by a competitor and intentionally order no boats. And if Malibu couldn't then award/sell/whatever the franchise to a ready, willing, and able dealer (not unforeseeable), and they're left with no market presence. It seems to me (from the cheap seats) that that is the situation that they are trying to avoid, and if Bake's was not such a good dealer with whom so many people are apparently friends, no one would disgaree with Malibu's decision. It is actually the only prudent decision for Malibu, if the identity of the buyer of the dealership is unknown. Not taking this step shows a short-sightedness on Malibu's part, as painful as that may be to those who are close with Bake's.

[Chia]

First of all thanks to all the Bake's supporters past, present and future. Virtually all of the information I have read so far has merit. I have read some very savvy comments that both reflect business understanding and the fact there are many ways to make a successful business.

When I first made the decision to ease out of the business by June 2013 (which coincides with my son’s planned graduation from college) I wanted to be transparent with my employees, customers and my vendors. I had planned to buy boats and run the same business as I have for the past 22 years until I found a competent buyer. We have always done more custom orders than stock boat sales. Some years we would do 80% custom and some years we would do 65%. With the economy in its current state I chose to go back to our custom roots. We sold out our allowed production at the boat show. I would have continued to operate with appropriate stock levels and custom orders until a new dealer was found.

I understand Malibu’s need to have a “stocking” dealer because from a manufacturing perspective it is much easier to plan when you know what the dealer is going to order. From a dealer perspective the risk is on us to predict what customers will want including model, color, options etc. So you see the problem. Arguably I will sell more boats but they would be more difficult to forecast. The new owners of Malibu do not know me and probably shouldn’t trust me any more than the next guy. There business model requires a “different” type of dealership. I am not the easiest dealership owner because my employees and customers come first, I am conservative to a point and my customers are my friends. I usually say I am an overeducated boat salesman. I have asked Malibu who the new dealer is and they will not respond. Of course I have heard all the same rumors that you have. I will say that I had two buyers for the business that would stay in this location with my crew but my broker was told by Malibu that they had selected a dealer already. This was over a month ago.

I want to assure you all that we will continue as the best warranty, service and parts center. I am not willing to compromise on the customer service we have worked so hard to gain. We strive to do the best job we can for Malibu and all other brands of watersports boats. We will continue to build our online presence with Malibu and other brands and increase our canvas manufacturing. Malibu has assured us we can buy parts and be reimbursed for warranty work for a minimum of one year at which time they will consider our performance and make a decision for our future. We want to be your service center!

I have many friends that are current Malibu Dealers and I wish them all well and offer any assistance that we can provide. Malibu builds a great product and I believe their goal is to continue to build the best boat possible in the manner that Bob Alkema envisioned in the early 80’s. My hope is that the new dealer will earn your respect and mine.

Thank you all for your support and well wishes. I have enjoyed a wonderful and successful lifestyle on the coat tails of Malibu for over twenty years. The world is an ever changing place and I have no complaints. Sorry for being so long winded. Bill Baker

all this speculation reminds me of the Mark Twain quote:

Malibu builds a great boat. My experience with Malibu dealers has always been positive. This is the same company as it was yesterday before we heard the news that Bakes decided to not become a "stocking" dealer, so if you weren't bashing them or getting rid of your boats then, why are you now?

Without knowing the whole story, does it appear this situation could have been handled differently, probably, but it seems the end result would have been the same as Bill stated he was not prepared to become a "stocking" dealer.

Bill is not Bitter, so why should we be? I don't believe he was blowing smoke up our a** with his post.

Are you reading the same thread we all are... Awww never mind you wouldn't understand anyways.

I think I am, Bill sold his allowed custom production at the boat show. If he doesn't floor a bunch of boats, he doesn't have anything to sell to a customer walking in the door today.

Bill has had a pretty sweet no risk deal over the years by selling custom pre-sold boats and now that Malibu has made a business decision and is asking him to carry some inventory, Bill has decided, as a businessman in tough economic times, to not carry inventory.

That decision, not too surprisingly, opened the door for Malibu to go with someone that will have a boat in stock come the middle of July for a customer that walks in their door.

Don't forget, Bill is not bitter and has no complaints, he says he has had a wonderful and successful lifestyle over the last 20 years because of Malibu.

Ask yourself if you would be upset if Malibu did this to a new owner of Bakes who changed the business model, brought in his own people and generally changed the way business has been done under Bill's vision?

If your answer is yes then your points are taken, if your answer is no, you wouldn't be upset in that scenario, then you have no argument with what Malibu has done because it shows you are upset because it was Bill and not the situation, and just so we are clear, that is not a bad thing.

[Guest J-Ro]

Too much emotion and mis-information here.

[Bobby Light]

Too much emotion and mis-information here.

Care to "enlighten" us with your "facts"?

[liljohn]

Care to "enlighten" us with your "facts"?

+1 please tell us your facts! The only miss information is that the crew still has not been told the hole story from both sides.Only one player in this game has stepped up and made a statment that honestly showed just how big of a man he is. He could have layed everything on the table and let it be instead he took the high rode.. Kudos to him!

Put your self in bakes shoes for two minutes. you spend 20+ years growing a buisness to what we all see today then when you go to sell it (which is the name of the buisness game) you have the rug pulled from under you and now you have no buisness to sell. While bakes is lucky to have other things to fall back on what do you think the new for sale sign and price will say? It won`t look like it did thats for sure.

[The Bake]

Care to "enlighten" us with your "facts"?

It is probably better that I don't.

[85 Barefoot]

Wait a second, with all due respect what I understand is a great dealership, any assurances or lack of assurances of the continued Malibu franchise in that area is between Malibu and Bake's. No one has any right to be upset at Malibu unless it didn't live up to its promises regarding the perpetuity of its franchise license. I don't know Bake's from Adam, but I find it to be an odd perspective that Malibu is pulling rug on Bake's when Bake's clearly was who was attempting to get out of the business first. That's not a criticism of Bake's, it sounds like they (rightfully) wanted a break, but that doesn't mean that Malibu has not been loyal to Bake's when clearly the relationship between Bake's and Malibu was fundamentally changed by Bake's in wanting to sell. I don't fault Malibu or Bake's so long as no agreements are being violated. This is actually an EXAMPLE of Malibu caring about the relationships it has with people as clearly they were committed not to the dealership, but to the people who owned Bake's, and in the larger scheme of things, no offense to anyone from Bake's, but Malibu has provided far more financial rewards to Bake's than the inverse. It's true that no manufacturer can succeed without quality dealers, but Malibu's product is what has provided the financial rewards and quality of life that the Bake's owners, understandably, want to enjoy. If Malibu has broken some agreement, then that's obviously very different.

Edited June 23, 2010 by 85 Barefoot

[Ndawg12]

It is probably better that I don't.

Bill, just to clarify, that comment from 06vlx was directed at J-ro, not you. You have already done a respectable job at stating your position

[Badger]

I still don't understand the quote "we sold our allowed production at the boat show". Can somebody fill me in? I would think this would be a good thing???

[NewMalibu]

What i find interesting, is that Bakes DID stock boats. And from what i have seen, those 'stocked boats' were the hardest to sell (example: if you look at Bakes website today, they have 1 2010 LSV and 1 2009 VRide (i am ignoring the Vette), and they JUST sold the 2010 VLX they had). However, they were able to sell out of their quota of custom boats (i am not sure if i understand this as they sold out of their total quota or Custom order quota...)

So the question is, how many boats was Malibu expecting them to 'stock' to sustain the franchise. AND, were they offering any assistance to dealers for flooring. I am not sure if we will ever know the answers to these questions, but they would help me understand the situation better.

Wait a second, with all due respect what I understand is a great dealership, any assurances or lack of assurances of the continued Malibu franchise in that area is between Malibu and Bake's. No one has any right to be upset at Malibu unless it didn't live up to its promises regarding the perpetuity of its franchise license. I don't know Bake's from Adam, but I find it to be an odd perspective that Malibu is pulling rug on Bake's when Bake's clearly was who was attempting to get out of the business first. That's not a criticism of Bake's, it sounds like they (rightfully) wanted a break, but that doesn't mean that Malibu has not been loyal to Bake's when clearly the relationship between Bake's and Malibu was fundamentally changed, not at Malibu's doing, but by Bake's in wanting to sell. I don't fault Malibu or Bake's so long as no agreements are being violated. This is actually an EXAMPLE of Malibu caring about the relationships it has with people as clearly they were committed not to the dealership, but to the people who owned Bake's.

I would have agreed with this statement if they had informed Bill about the move. but from what it sounds like, they have not even paid him the courtesy of telling him.

so here is the real question at the end of the day....Bakes has 3 Malibu's left. who is going to be the one to pony up and help him clear out the rest of his inventory? Trust me, i have already tried, but got the 'i hope you plan on sleeping permenently in the boat, if you buy it' look from the wife

[85 Barefoot]

What i find interesting, is that Bakes DID stock boats. And from what i have seen, those 'stocked boats' were the hardest to sell (example: if you look at Bakes website today, they have 1 2010 LSV and 1 2009 VRide (i am ignoring the Vette), and they JUST sold the 2010 VLX they had). However, they were able to sell out of their quota of custom boats (i am not sure if i understand this as they sold out of their total quota or Custom order quota...)

So the question is, how many boats was Malibu expecting them to 'stock' to sustain the franchise. AND, were they offering any assistance to dealers for flooring. I am not sure if we will ever know the answers to these questions, but they would help me understand the situation better.

I would have agreed with this statement if they had informed Bill about the move. but from what it sounds like, they have not even paid him the courtesy of telling him.

so here is the real question at the end of the day....Bakes has 3 Malibu's left. who is going to be the one to pony up and help him clear out the rest of his inventory? Trust me, i have already tried, but got the 'i hope you plan on sleeping permenently in the boat, if you buy it' look from the wife

And if that's the case, I agree with you. That's pretty ridiculous.

[Faceplant409]

About the 1 year and review for service & warranty...

I've seen it before. I bought my '99 SLXI from Marine Max (Huge dealer network in Cali. -maybe nation wide??). 6 months later they (for reasons I do not know) were not dealing Malibu any more. That's when Ultimate Watersports--Cope & MCPheters took over They said they were still going to be an authorized warranty and repair shop but that soon ended... I'm sure after the 1 yr & review...

Maybe it will work in this situation??? (I certainly hope so, but I would not hold my breath!)

All the best to the Bakes team!!!

[NewMalibu]

Ok, so how do we make this a productive thread? Obviously, we all appreciate a dealer like Bakes whom has built a reputation as being a dealer that cares about their customer. Some people on this thread, were fortunate enough to buy a quality boat from the quality business that Bill and team have built.

In my mind, there are two things that we all want to address here:

1) How do we get the message accross to Malibu Corp, that we value the relationships with our dealers. I dont know how many people i have spoken to and/or threads i have read where people have walked away from a MC (or any other brand) because they did not like the dealer (myself included). Unfortunately, these losses are hard to quantify. Lets face the fact that even if all of Bill's loyal and repeat customers chose to walk away from Malibu, it would have very little impact on the decisions that Malibu has and will make in respect to Bakes as a Malibu franchise. But we all appreciate the combination of a quality boat from a quality dealer, and this 'personal relationship' is something that we dont want the Malibu brand to lose.

2) More specific to Bakes and something that has more of an impact to the people on this board, is the Service and Parts situation. I know that many of you have bought stuff from Bakes Online and have apprecaited the feedback that Paul and team have provided here. In my mind, it would be an absolute shame if we lost that to a dealer who does not have the passion or knowledge of Malibu. What can we do to tell/show Malibu that we highly value these guys and that we feel it would be a major loss to the Malibu community if this relationship were severed.

Thoughts???

[Guest J-Ro]

Care to "enlighten" us with your "facts"?

Nope.....and I am not referring to Bakes but the belief that everyone knows how and what is going on in Merced.

[Bake's Marine]

so here is the real question at the end of the day....Bakes has 3 Malibu's left. who is going to be the one to pony up and help him clear out the rest of his inventory? Trust me, i have already tried, but got the 'i hope you plan on sleeping permenently in the boat, if you buy it' look from the wife

How did I know you were going to try that? Your Silver Edition is awesome!

-Paul