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Dealer refuses to service boat?


gmab

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I worked with my local dealer when looking for a boat, but bought it through another dealer. It was a used boat sale. I even tried to get a dealer to dealer sale so they could be part of it. They didn’t want to. In the end I bought from the other dealer. 

I really work at establishing a relationship with my dealer. I buy the parts there even though I could probably save a couple bucks off the internet. If the price is way off I’ll ask them to move. Sometimes they will, others they won’t. I make it about what they want to sell, not being heavy handed and strong  arming the negotiation. I figure if they get within 20pct that is good enough.

i get great service from my local dealer and I think it’s because of my investment in time and the small amount of business I do.

maybe someday I’ll buy a new boat, but I doubt it.

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I bought my Malibu used from another dealer-not a Malibu dealer and brought it in to my local Malibu dealer and they did the work on it no questions asked. Did an excellent job and were very friendly. I bought my Axis from them, always been great.

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We've got a sizeable Malibu dealer very close by. I've never used them, but they are known for good, quick service. They advertise they'll work on anything. Not sure about warranty repair. I like them because they have a huge showroom and have no issue with me going and sitting in them in the middle of the winter when there is no one around.

Steve B.

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I bought my boat and had the selling dealer do some work and he treated me well.  Once I moved, I thought it would be different.  My now local dealer treated me as he would those he sold to even though I had not.  He was up front about service times and even gave me a “discount”......  My normal rate is x I will do this for 25% off even in mid season.

Just make your expectations realistic, and expect to be treated just like everyone else walking in the door.  Courtesy is probably where the 25%discount comes from....

 

PS:  Both dealers were Malibu specific, not multi brand.

Edited by dlb
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51 minutes ago, braindamage said:

I worked with my local dealer when looking for a boat, but bought it through another dealer. It was a used boat sale. I even tried to get a dealer to dealer sale so they could be part of it. They didn’t want to. In the end I bought from the other dealer. 

I really work at establishing a relationship with my dealer. I buy the parts there even though I could probably save a couple bucks off the internet. If the price is way off I’ll ask them to move. Sometimes they will, others they won’t. I make it about what they want to sell, not being heavy handed and strong  arming the negotiation. I figure if they get within 20pct that is good enough.

i get great service from my local dealer and I think it’s because of my investment in time and the small amount of business I do.

maybe someday I’ll buy a new boat, but I doubt it.

I got all the expensive recommended services and I still got screwed with my boat over and over .  I guess they did me a favor that I was forced to learn the easy maintenance in these boats 

if they hadn’t mistreated my boat , motor and Trailer I would still be paying them . Side note Boat City is no longer a Malibu dealer snd I never used their name until just now, since they are no longer s dealer for good reason

their core  business  was fishing boats and toons

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That’s just a poor business decision on their part. 

I bought my boat via private party.  The local Malibu dealer (Wilsons Watersports) has been awesome when it comes to service. 

There is a 100% chance I’ll make my next purchase through them just based on how pleasant the experience has been.

 

 

 

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10 hours ago, TenTwentyOne said:

Yes, I realize they don’t get any markup on warranty parts, but a well running shop, with competent techs can remain profitable on flat rate warranty at shop rate. Yes, the margin is much lower, but they still make money. If they aren’t, they have another issue......

It is very common for dealers to charge high flat rates for regular services, and it is very common for them to charge a 50-100% markup for on the shelf maintenance parts.

when you are charged $500 for winterization, and they bill you $25.00 for an oil filter..... things like that, are a huge margin. They can’t make money like that on warranty work.

Where do you go that they charge 100% mark up on parts?   I’d love to make that margin!

Tomorrow when you show up for work, and your boss says “I know you’re here eight hours, but you’re only getting paid 4 hours flat rate” I’m sure you’ll be thrilled.  

Edited by wakebrdr94
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10 hours ago, nyryan2001 said:

 

The problem isn’t just that it happens... its that the Malibu leadership all the way up to Jack Springer knows it happens and let’s it happen to fatten their pockets.  

^^^^ unethical business practices 

 

 

 

4 hours ago, MadMan said:

I don't blame the dealers,  this is all Malibu's doing.

tVAaJHm.jpg

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4 hours ago, wakebrdr94 said:

Where do you go that they charge 100% mark up on parts?   I’d love to make that margin!

Tomorrow when you show up for work, and your boss says “I know you’re here eight hours, but you’re only getting paid 4 hours flat rate” I’m sure you’ll be thrilled.  

Haha, I was in the flat rate game for years. If you are efficient, proficient, a creative writer, and have a good warranty manager, you can do just fine.

As for markup, 50 to even 200% is a common range, especially on maintenance stuff, like oil filters, impellers, oil, etc.. 

do you really only charge like $7.00 or less for an oil filter??? Because, most commonly I see them charged out at around $20.00, and that is nearly a 400% markup.....

 

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10 hours ago, MadMan said:

I don't blame the dealers,  this is all Malibu's doing.

I don't think so. One of my Malibu contacts has told me that working on boats they did not sell is in their dealer contracts.

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50 minutes ago, TenTwentyOne said:

Haha, I was in the flat rate game for years. If you are efficient, proficient, a creative writer, and have a good warranty manager, you can do just fine.

As for markup, 50 to even 200% is a common range, especially on maintenance stuff, like oil filters, impellers, oil, etc.. 

do you really only charge like $7.00 or less for an oil filter??? Because, most commonly I see them charged out at around $20.00, and that is nearly a 400% markup.....

 

I hope you aren’t an accountant.  

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Pretty sure I’ve said this in a similar thread...

I called my dealer (California) before buying my 17’ out of state just to make sure there were no hard feelings and that I could count on warranty work. “Sure, no problem “ was the response.

I don’t expect to be put at the front of the line like it was a boat just purchased from them.

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45 minutes ago, Lees23 said:

I hope you aren’t an accountant.  

Luckily, no.......

But the last box of factory branded oil filters I bought for ford V8s was $4.18 per filter..... 

if they sell the filter at $20.00, and unit cost is $4.18, gross margin is $15.82. (GM/UC=Profit Percentage).

its 378%. I said “nearly 400%”. Sorry, I thought that was pretty close...... guess I should have been super specific.

im assuming you are hung up on the $7.00 figure I had in that post, but that was an example of what I thought he might be charging at a more reasonable markup. You might have missed that....

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2 hours ago, TenTwentyOne said:

Luckily, no.......

But the last box of factory branded oil filters I bought for ford V8s was $4.18 per filter..... 

if they sell the filter at $20.00, and unit cost is $4.18, gross margin is $15.82. (GM/UC=Profit Percentage).

its 378%. I said “nearly 400%”. Sorry, I thought that was pretty close...... guess I should have been super specific.

im assuming you are hung up on the $7.00 figure I had in that post, but that was an example of what I thought he might be charging at a more reasonable markup. You might have missed that....

Yikes, you are right.  I was thinking that you were saying $20 is 400% of $7.

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I bought my Malibu new from a dealer right in Malibu's corporate offices back door.  Little did I know this dealer sucked (he has since lost the franchise).  He was supposedly doing routine maintenance work on my boat, but pocketing the money and not doing the work.  Hence two years later, blown motor number one.  Took this to another Malibu dealer about an hour away and they put a new crate motor in, no questions asked and turned it in under the warranty.  This dealer was great to work with, brand new motor, didn't cost me a penny, but ruined most of my summer.  Two summers later, blown motor number two.  This was due to a faulty rod in the replacement motor.  Through the rod through the oil pan, but luckily didn't go through the hull.  Again, go back to dealer number two and they take great care of me and try to get this replaced by Indmar at no charge, but the 12 month factory warranty had just expired so no go.  Luckily my insurance covered this and all I was out was $700 for the deductible.  With this said, if I ever get a new Malibu, which given my experience I probably will not, I will use dealer number two.  I have had boats my entire life, but never realized how important the dealer was until I ran into issues.

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The most telling part of all this is the fact that you never really buy a boat, you buy a dealership.  The dealer can make a "great" boat feel like P.I.T.A. and a "serviceable" boat feel quite good.  As a matter of fact, when I bought my current boat, my local dealer was getting ready to change ownership.  Had I not liked the new owner, I would not have made my purchase there.  As a long time owner, I understand the value of the relationship.  I don't necessarily condone the way the system works, but I do thoroughly understand it and play accordingly.  @gmab it sounds like your brothers local dealer set the tone for future business to be done elsewhere.  My observation is that this will be a learning lesson for both parties.  Hopefully, they both are ok with the fallout.

Dave

 

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Thanks for the update and glad he's found a solution that works for now. It's really just lousy business to completely turn away work and a potential new relationship, rather than being open about the 3-5 weeks, or whatever it would be, lead time for the shop. But I've been seeing that some dealers run on luck, rather than being good at business and customer service. FWIW, I don't have that problem locally but seeing things like this and hearing stories from industry connections makes me really appreciate what I have around here.

The industry is in a tough spot with too few qualified techs and not enough shop space while their business has come roaring back over the past 4-5 years. Which means all of us can expect to be paying more and waiting longer for service this year, so plan ahead as much as you can.

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The fact that it was a used boat only makes this dealer look worse...... don't they know that somebody has to buy the nice used boats to keep the flippers buying new ones from them all the time?!? And most used purchases definitely end up as "out of area" purchases. What's the point of a 5 year warranty, if you can't get the dealers to work on it......

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This whole thing is weird, putting their new boat customers first is one thing but flat out saying no to service (assuming they run a real service dept.) sounds bizarre to me.  I wouldn't want to own a newer Malibu in that area if that was my only dealer option.  Luckily for older boats like mine I can get any part I need online.  The new boats they sell eventually end up on the used market then they won't service them? 

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23 hours ago, 23LSVOwner said:

I don't think so. One of my Malibu contacts has told me that working on boats they did not sell is in their dealer contracts.

It's still at Malibu's doorstep for not controlling their dealers.

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2 hours ago, MadMan said:

It's still at Malibu's doorstep for not controlling their dealers.

Because Malibu is the only manufacturer doing this??   :surprised:

Dealers have a right to do business with whoever they want.

Edited by Bill_AirJunky
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