Shame on Malibu corp.

[stroker-ace]

It is usually best for the parties involved not to comment on such transactions due to legal issues.

...sometimes you have to have the balls to strap a factory to a tree and whack it with a shovel...

[rodman]

I see what you're saying but there is no way in hell you can compare a car dealer to a boat dealer that has only ever carried one brand (Malibu) for it's entire existence. I would say apples to oranges but it's more like apples to grapes in comparison. Car dealers move more cars in a month sometimes than a Malibu dealer would move in an entire year.

First I feel bad for Bake's for loosing there franchise, I hate to see any small business be forced out. And I can express your concern about the dealer that you guys love.

There is something that does not add up here guys. A franchise just can't be stripped away for no reason. Maybe someone didn't want keep up the floor plan, maybe out of trust, maybe they sold off the franchise, maybe someone PO'd Malibu and we will never find out either.

The comparison was Malibu and Oldsmobile are very much alike, they are the manufactures, boat or car dosn't matter. I agree that car dealers sell more cars than boats dealers sell boats, but isn't it all the same in respective. They do not care about there dealers, who have had loyality over all the the years.

They are interested in one thing today, SALES weather apples, oranges, grapes, cars or boats sales is what makes the Malibu Company money. Malibu wants there dealers to stock INVENTORY, people are impulse buyers and don't want to wait for months for a boat or they will plainly cool off. If you are in my area and call Malibu they send you to there super shop. The guy has 8 Malibu's on the show room floor to buy now and how many were in storage I have seen them first hand. If you think that Malibu gives a rats butt about us you are very mistaken.

Edited June 22, 2010 by rodman

[Bobby Light]

First I feel bad for Bake's for loosing there franchise, I hate to see any small business be forced out. And I can express your concern about the dealer that you guys love.

There is something that does not add up here guys. A franchise just can't be stripped away for no reason. Maybe someone didn't want keep up the floor plan, maybe out of trust, maybe they sold off the franchise, maybe someone PO'd Malibu and we will never find out either.

The comparison was Malibu and Oldsmobile are very much alike, they are the manufactures, boat or car dosn't matter. I agree that car dealers sell more cars than boats dealers sell boats, but isn't it all the same in respective. They do not care about there dealers, who have had loyality over all the the years. Well they are very different in size and the fact one is part of a huge organization and the other a manufacturer of a much smaller scale and not traded on the stock market.. Malibu would have liked you to believe they were all about their customers and dealer network not to long ago. These are some of the subtle changes I have noticed and illuded to. They probably are selling out to the large corporate mentality. Will that get them where they want to be? I doubt it, the boating industry (especially this type) is a much smaller market and customer base and that was my point.

They are interested in one thing today, SALES weather apples, oranges, grapes, cars or boats sales is what makes the Malibu Company money. Malibu wants there dealers to stock INVENTORY, people are impulse buyers and don't want to wait for months for a boat or they will plainly cool off. If you are in my area and call Malibu they send you to there super shop. The guy has 8 Malibu's on the show room floor to buy now. If you think that Malibu gives a rats butt about us you are very mistaken.

Edited June 22, 2010 by 06vlx

[shawndoggy]

Man, in today's environment (anybody know a business that closed?) it's striking to me that people don't jump to the same conclusion as me (that malibu is desperate to move some units pronto, to the point of burning down its existing dealer network). That doesn't sound mean or cold hearted or unethical or whatever, it sounds desperate.

If the company were in a good position it would be building on its dealer network to get more marketshare, not canibalizing the existing dealer network.

To me this says "we don't have the luxury of waiting it out."

[Bobby Light]

Man, in today's environment (anybody know a business that closed?) it's striking to me that people don't jump to the same conclusion as me (that malibu is desperate to move some units pronto, to the point of burning down its existing dealer network). That doesn't sound mean or cold hearted or unethical or whatever, it sounds desperate.

If the company were in a good position it would be building on its dealer network to get more marketshare, not canibalizing the existing dealer network.

To me this says "we don't have the luxury of waiting it out."

Kinda seems that way to me.

[The Bake]

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

[Bobby Light]

Well put Bill.

[upinya]

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 sons 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 Malibus 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 shouldnt 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 80s. 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,

Your a very Professional Business Man, I Praise you.

Edited June 22, 2010 by upinya

[SunriseH2OSkier]

Wow, you have a great attitude Bill. Not sure I would be able to take such a high road in your circumstances. It says a lot about your character for sure.

I must admit that the events of the past year at my employer (GM) have forced me to come to grips with the very perspective that it seems Malibu's management has taken. They do have a responsibility to pay attention to their finances and take sometimes less than desireable actions to protect their viability as a company. Interestingly, at the peak of GM and Chrysler's woes last year, we had lengthy discussion here about the boating industry, and the risks it was facing. An industry fed entirely by a combination of disposable income and cheap financing was particularly vulnerable, and I said at that time that there would no doubt end up being some casualties as the market got considerably smaller - either by manufacturers folding, or by consolidation of brands. It has clearly taken a toll on manufacturing capacity as the mfgs have closed plants (Malibu included). Now it seems they are going after the sales side of the business, unfortunately to the detriment of some very good people.

Personally, I would like to see some recognition from Malibu that they need to address their product line. Not that the boats aren't great - not at all. But these boats have moved so high up into the luxury realm that the boats are just not accessible to even those with "some" disposable income. I know they have Axis and the Ride series. But maybe they should be playing that angle more aggressively. They need to find a way to make their products reachable to a larger population of people, and not just by forcing dealers to stock more boats.

Bottom line for me is that this is just a stark reminder that the Malibu we all came to think of as 'our company' is in fact a business that runs on cold hard cash. It is a disappointing realization for sure.

[Bill_AirJunky]

Wow, you have a great attitude Bill.

And sounds taller too.....

Seriously, wish you guys luck in whatever direction you take. I never bought a boat from you, but we always enjoyed being around your family & employees over the years.

[liljohn]

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

This is why I bought a Malibu. He could have been selling bay liners and I probably would be rockin a bay liner. lol

[TheKiwi]

Bill, well put.

Do you have any plans to bring on another brand?

[RTS]

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.

If I remember correctly, Malibu Boats was sold to a V.C. company, right?

[The Bake]

Bill, well put.

Do you have any plans to bring on another brand?

No plans yet but you never know...

[The Bake]

If I remember correctly, Malibu Boats was sold to a V.C. company, right?

Yes, Black Canyon Capital based out of LA. http://www.blackcanyoncapital.com/portfolio.html

[RTS]

Yes, Black Canyon Capital based out of LA. http://www.blackcanyoncapital.com/portfolio.html

There's a big part of the problem. When a company like Malibu, built by a man with a vision, is sold to a V.C. company, nothing good can happen. The previous owner can talk about selling for estate planning reasons, wanting to spend more time with his/her family, being sure to take care of the current employees/vendors/dealers, whatever, but it seldom works out that way. If a company made 6% profit last year, the V.C.s need 7% this year. No exceptions. To Hell with the current, and hopefully temporary, state of the economy. The previous owners made 6%, we are smart enough to make 7% this year and 8% next year. Doesn't matter that we don't know crap about the tournament towboat industry...we've got the money to buy Malibu, we are smart enough to run it better. They will 'sacrifice' a well established, savvy dealer for one that will promise to order 'X' number of boats each month. Sounds good to the stockholders. If the new dealer sits on a showroom full of boats and stuggles do you think the V.C. cares. No, they do not. Malibu has made their sales for the month. When the new dealer fails, they will repo the inventory and 'pawn it off' on the next dealer with dreams of a Malibu banner hanging in the showroom who will promise to place the orders.

The clock is ticking on Malibu boats, in my humble opinion, and it started the day Mr. Alkema signed controlling interest over to the V.C. company.

Edited June 23, 2010 by rts

[Faceplant409]

First I feel bad for Bake's for loosing there franchise, I hate to see any small business be forced out. And I can express your concern about the dealer that you guys love.

There is something that does not add up here guys. A franchise just can't be stripped away for no reason. Maybe someone didn't want keep up the floor plan, maybe out of trust, maybe they sold off the franchise, maybe someone PO'd Malibu and we will never find out either.

The comparison was Malibu and Oldsmobile are very much alike, they are the manufactures, boat or car dosn't matter. I agree that car dealers sell more cars than boats dealers sell boats, but isn't it all the same in respective. They do not care about there dealers, who have had loyality over all the the years.

They are interested in one thing today, SALES weather apples, oranges, grapes, cars or boats sales is what makes the Malibu Company money. Malibu wants there dealers to stock INVENTORY, people are impulse buyers and don't want to wait for months for a boat or they will plainly cool off. If you are in my area and call Malibu they send you to there super shop. The guy has 8 Malibu's on the show room floor to buy now and how many were in storage I have seen them first hand. If you think that Malibu gives a rats butt about us you are very mistaken.

I'll bet a weeks pay that Mr. Alkema would have a reply for that statement, but he's not No.1 anymore...

Sad state of affairs...

[TrickyNicky]

Wow, I feel like I'm reading an obituary. In my very short time with Malibu and the crew, Bakes has earned my respect through their informative posts, willingness to help and what seems to be an ongoing ambition to progress malibu boats with desirable options and functionality. I have never even been to Washington state and I feel like Bakes is the first place to look when adding options to my bu. I can't recall how many times people have asked "where can I get this" and the answer was "BAKES has them." You have truly built an outstanding business and more importantly customer appreciation that I'm sure will follow you into the future. I wish I were so lucky to have a Bakes near me. But such is the business world and when it comes down to it, what is done is done and life will go on. I wish all at Bakes the best of luck moving forward and I Sincerely hope that you continue to evolve the Dealer-customer relations as well as make available your sweet malibu options.

...Bottom line for me is that this is just a stark reminder that the Malibu we all came to think of as 'our company' is in fact a business that runs on cold hard cash. It is a disappointing realization for sure.

This is a bitter pill to swallow. There are very few businesses left that still feel like a community and it is something that I found very attractive about the Malibu (and inboard) industry. I was amazed when I was first searching for products and people would CALL you back instead of email. For me to receive a phone call from Ron Scarpa about a barefoot boom just blew my mind. But it is these very important things in our relatively small industry that make it feel special. I feel informed and I feel I am a very small part of the industry who can voice an opinion and be thought of as a member and not just a customer. As much as I know it's going to change, I hope Malibu doesn't fall too out of line because as much as I love my Bu, I would not hesitate to switch to another company if they possessed that customer service I so desire. In the end the boat is a physical product very similar to the competitions and it is the people who work and play in the industry and on my bot that make the experience one to be proud of.

[shade]

Did I hear right.. is Malibu now owned by an investment company. If so bottom line performance is now the only thing that matters. It's not is it the best widget but how many widgets and how much profit on each. They generally don't care if it is boats or tampons.

I was watching Wall Street on the plane the other day and the line comes back to mind "Greed is Good, Greed is Right"

Bad move. Just like Harley Davidson did in the 70's selling out to AMF. The quality went to s*** and people started buying jap bikes. Fortunately, the employees of HD bought the company back and turned things around. Maybe Malibu will eventually do this, but it usually doesn't work. One things for sure though, quality will most certainly suffer and the company will too.

I hear Nautique still makes a pretty good boat with a good warranty and they stand behind their boats too.

[Bobby Light]

Bad move. Just like Harley Davidson did in the 70's selling out to AMF. The quality went to s*** and people started buying jap bikes. Fortunately, the employees of HD bought the company back and turned things around. Maybe Malibu will eventually do this, but it usually doesn't work. One things for sure though, quality will most certainly suffer and the company will too.

I hear Nautique still makes a pretty good boat with a good warranty and they stand behind their boats too.

For some reason I keep thinking Malibu is cutting off their nose in spite of their face here on this one.

[TheKiwi]

I hear Nautique still makes a pretty good boat with a good warranty and they stand behind their boats too.

SV211s look real good to me.

[RTS]

I hear Nautique still makes a pretty good boat with a good warranty and they stand behind their boats too.

SV211s look real good to me.

Don't think for a minute tha Correct Craft is not without their troubles right now. The Meloon's dealership here in South Orlando is now a Mastercraft dealer. I got a letter from one of the Meloons explaining things, but I don't recall exactly what it said.

[liljohn]

There's a big part of the problem. When a company like Malibu, built by a man with a vision, is sold to a V.C. company, nothing good can happen. The previous owner can talk about selling for estate planning reasons, wanting to spend more time with his/her family, being sure to take care of the current employees/vendors/dealers, whatever, but it seldom works out that way. If a company made 6% profit last year, the V.C.s need 7% this year. No exceptions. To Hell with the current, and hopefully temporary, state of the economy. The previous owners made 6%, we are smart enough to make 7% this year and 8% next year. Doesn't matter that we don't know crap about the tournament towboat industry...we've got the money to buy Malibu, we are smart enough to run it better. They will 'sacrifice' a well established, savvy dealer for one that will promise to order 'X' number of boats each month. Sounds good to the stockholders. If the new dealer sits on a showroom full of boats and stuggles do you think the V.C. cares. No, they do not. Malibu has made their sales for the month. When the new dealer fails, they will repo the inventory and 'pawn it off' on the next dealer with dreams of a Malibu banner hanging in the showroom who will promise to place the orders.

The clock is ticking on Malibu boats, in my humble opinion, and it started the day Mr. Alkema signed controlling interest over to the V.C. company.

EXACTLY! RTS you hit the nail on the head! Malibu will either fall to there feet or join the ranks of mastercraft in my opinion. Either way I have lost the respect.

[lsccc]

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

[board brained]

Yes, Black Canyon Capital based out of LA. http://www.blackcany.../portfolio.html

All the best Bill, I am out of Vancouver Canada and have purchased parts from your guys and the price and service was always great.

re the VC's............ crap.....I have started 4 businesses, 3 of them VC funded.........purchasing my ride was what I thought was the beginning of a long malibu relationship, the first of many BU's.........that I think is now at risk, trust me the company is gonna change... I have seen this movie, three times.........