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Ordering 2022 malibu’s mid-year 8% surcharge


PaintedRocksSurfer

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PaintedRocksSurfer

I am currently working on ordering a new 2022 24 MXZ from our local dealership.  I am trading in our 2020 24 MXZ that we had trouble with and we had a price all worked out and on  Friday I was told that Malibu just added an 8% mid-year surcharge to all the new boats being ordered.  I am wondering if they are trying to work me over or if any one else has been told this?

Edited by PaintedRocksSurfer
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Got the call last night from my dealer.  We put down deposit and order locked in summer so we're only being hit by the 3% increase.  I'm not pleased but I'm not upset either.  Just one of the innumero

We do not manage this forum with one brush. The meme thread has always had a bit more flexibility for “grey” area posts based on each post. There was no swearing, there was no direct TOU line crossed.

Option #2 - stop buying new boats and keep the one you have?

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It could be true, but I’d be very suspicious.  I’ve been disappointed by what dealers will say and blame on Malibu that are simply not true — especially when they think they have you “locked-in” which may be the case with your dealer and your trade-in price.

I suggest that you phone around and talk with other dealers to see what they say. 

Couldn’t you get a better price by selling your ‘20 yourself rather than trading in?  A good dealer will still allow you to process the paperwork through them for a small fee so you can get “net sales tax” treatment — may depend on your state.

 

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I was tip toeing around ordering a new boat this year and was just told the same thing. The surcharge is real. Whether or not it applies to you I think will depend on a few things. Did you have an order locked in with a deposit or just an agreed upon price? I don’t truly know how it will work out but I’d guess unless your order was locked it it will be up to the dealer to honor the original agreed upon price. 

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I have a 23 LSV on order since Sept 20th with a deposit and got a phone call Friday about the surcharge. I was told if you didn't have a deposit down already it is 8%. In my case because of the deposit it's only 3%. 

 

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I have my order in with a spray date on November 4th.  Price already negotiated.  Unless I get a phone call I guess I just got a free 8% in my boats value.  I wonder how Malibu is handling this with the dealers.  I hope my dealer is not taking a hit on my boat. 

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I just purchased a 2022 m240. The list price of everything on the 2022 was about 10% higher than the same options on the 2021 used demo I looked at.  That said, the dealer was awesome (new for me) and I was able to still negotiate a near 30% discount off MSRP so it ended up being less out of pocket than what the used boats were going for.  
 

Anyway. Based on my July spray date and sticker, all dealers should know of these bumps for months now unless you are now talking about an extra 8% on top of the price bump for 2022. 

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25 minutes ago, RCorsa said:

I just purchased a 2022 m240. The list price of everything on the 2022 was about 10% higher than the same options on the 2021 used demo I looked at.  That said, the dealer was awesome (new for me) and I was able to still negotiate a near 30% discount off MSRP so it ended up being less out of pocket than what the used boats were going for.  
 

Anyway. Based on my July spray date and sticker, all dealers should know of these bumps for months now unless you are now talking about an extra 8% on top of the price bump for 2022. 

This is an extra mid-year price bump, on top of the ~12% average price increase for the 2022 model year.

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14 minutes ago, NWBU said:

This is an extra mid-year price bump, on top of the ~12% average price increase for the 2022 model year.

Woah!  Thats pretty nuts as this will push boats like the m240 close to $400 MSRP after prep and taxes depending on the state. Good news for current owners however as this will keep used boat prices even higher. 

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1 hour ago, NWBU said:

This is an extra mid-year price bump, on top of the ~12% average price increase for the 2022 model year.

So anyone who orders/buys now will have a 20% markup from 2021???  Is this across the board?

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16 hours ago, Sixer said:

So anyone who orders/buys now will have a 20% markup from 2021???  Is this across the board?

Closer to 21%, thanks to magic of compounding markups.

Each model may vary but I know the average was around 12%, and that held true for the 2022 LSV I priced with the same options as my 2021.

FWIW, these price increases aren’t out of line with most of my manufacturing clients, unless they’re in the aerospace business.

Edited by NWBU
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2 hours ago, vanamp said:

I have my order in with a spray date on November 4th.  Price already negotiated.  Unless I get a phone call I guess I just got a free 8% in my boats value.  I wonder how Malibu is handling this with the dealers.  I hope my dealer is not taking a hit on my boat. 

Let me know if you get hit with a 3% surcharge. I'm in almost the exact same position you are at the moment. I was told if you already had a deposit and order is in its not 8% only 3%. Not sure how Malibu can do that when a price has already been negociated.  I know my dealer isn't too happy about this at all. He spent Friday calling his customers explaining the certified letter he got from Malibu. On Monday he will be sending out modified sales agreements.

 

 

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PaintedRocksSurfer

Because of the trouble I was having with my previous boat they were giving me the same price on trade that I would have received if I were to have sold it out right, which was $10K more than I actually paid for it.  They were giving me 27.785% off MSRP for the new order, but the mid-year surcharge added $15K over what we had originally agreed on.  I have been in contact with one of the west coast reps directly from Malibu because of my previous issues with the boat and I will see what he has to say about this situation.  I am not happy about the 8% increase, but happy that my dealership wasn't trying to pull a fast one on me.  Thank you for all of your input with this

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This is not good news.  We are looking at trading in a 2021 so hopefully this gives the trade in a bump and will offset the price jump a little.

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Same thing is happening over at MC. If your boat is shipped from the factory after 1/1/2022, you get the increase. Big thumbs down from me. 

I get the sense that dealers are just as confused as we are. 

Edited by TolCarMan
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A few brands did this. Likely because 2021's ended up turning into 2022 models due to delayed production and they needed to introduce the yearly price increase somewhere. 

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This happened last year as well.  There was a mid year price increase.  When I first started talking with the dealer about ordering our 23LSV, the MSRP was a few points lower than what it was when my order was placed, which was October 30.  I have put a deposit down on a new boat and they have not said a word to me about this yet.  I was there on Saturday dropping my boat off for all the cosmetic warranty issues that were never resolved at the beginning of the season.  I'll report back if they are adding a surcharge to my order. 

 

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I think what I heard was all stated above and the 3% for current orders applies after dec 1. Either delivery or build after dec1. Yes this is rough , but everything we see every day is going up due to supply and simple freight charges 

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16 minutes ago, Livinlogs said:

Yes this is rough , but everything we see every day is going up due to supply and simple freight charges 

This is not unique to the boating industry.

I'm in the electrical business and most of the products are heavy in commodities (steel, copper, aluminum) and we have had multiple instances where the factory has accepted the purchase order at an agreed upon price (without any provisions for price escalation) and a month later we have to ask the customer for a price increase or cancel the order. Most of our equipment has a 16-20 week lead time and customers realize that if they cancel the order the increase in cost will be at least double the increase our factory is asking for.

I'm sure everyone here has a similar story.

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When you are essentially an assembly company - one that assembles other company's products together on your core to make a product of your own - and every single component you buy to assemble into your product has increased by 20% at a minimum, eventually you have to pass it on.

Anyone in manufacturing knows why the price of the finished goods are skyrocketing. It's because every raw material for component in every in every item used has been raised multiple times in the past year or so. Some have doubled. Some are worse.

In other words, when your suppliers raise your prices each time you place a new order, you either sell your product at a loss, or you raise your prices. Malibu is a public company, and will not sell their high-demand product at a reduced profit margin, much less at a loss. 

End of story.

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4 hours ago, BearCreekBum said:

This is not unique to the boating industry.

I'm in the electrical business and most of the products are heavy in commodities (steel, copper, aluminum) and we have had multiple instances where the factory has accepted the purchase order at an agreed upon price (without any provisions for price escalation) and a month later we have to ask the customer for a price increase or cancel the order. Most of our equipment has a 16-20 week lead time and customers realize that if they cancel the order the increase in cost will be at least double the increase our factory is asking for.

I'm sure everyone here has a similar story.

How bout 1/2” emt at $.74 and 1/2” pvc at $.94. 🥺🥺

Edited by Sparky450
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Partial list of Polyester resin and related component price increase announcements for 2021 as complied by trade publication Composites World.

 

October 18, 2021

AOC announces a price increase effective Nov. 5, 2021 for the following products sold in the U.S., Canada, Mexico and Latin America:

Vinyl ester products: $0.16/lb

Pigment Dispersions Products = $0.30/lb

Gel Coat and B-Side Products = $0.16/lb

UPR and all other Products = $0.10/lb

This action is due to severe and continued supply disruptions and escalation of costs for key raw materials.

October 1, 2021

Due to a continuous and unprecedented escalation of unsaturated polyester resin (UPR) raw material prices, Polynt Composites has announced a further increase of €150 on its entire range of products in the Composites product line — UPRs, gelcoats and ancillary products.

Effective as of Oct. 1.

September 24, 2021

AOC has announced another price increase of €100-200 per ton (depending on resin chemistry) for its entire portfolio of unsaturated polyester (UPR) and epoxy vinyl ester (VE) resins, as well as its Neoxil Sizings & Binders products sold in Europe, the Middle East and Africa. The price increase will take effect on October 1st, or as soon as contracts allow.

AOC reports that it is seeing steep increases in energy prices, fees for logistics services (increasing as a result of reduced capacity availability) and the cost of raw materials.
 

September 17, 2021

AOC announces a price increase of $0.10/lb for all products sold in the U.S., Canada, Mexico and Latin America, effective Oct. 4, 2021.

August 9, 2021

AOC announces a price increase effective September 3, 2021 in the amount of $0.07 per pound for all products sold in the U.S., Canada, Mexico and Latin America. All products sold in totes, drums or pails will increase an additional $0.06 per pound above the aforementioned raw material increase.

July 7, 2021

AOC has increased prices for all vinyl ester resins sold in the U.S., Canada, Mexico and Latin America to $0.14 per pound. This increase is effective for all orders shipping on or after August 1, 2021.

June 15, 2021

Engineered Bonding Solutions (EBS) announces a price increase of $150 per 50-gallon drum and $15 per five-gallon pail for all MMA containing adhesives packaged in drums or pails. Additionally, all dual component cartridges will increase by 8%.

The new pricing is effective for all shipments on or after July 1, 2021.

May 28, 2021

AOC reports a price increase up to 35% (depending on chemistry) for its entire Neoxil sizings and binders product portfolio sold in EMEA, the Americas and Asia Pacific. The price increase will take effect on June 1st, or as soon as contracts allow.

May 21, 2021

AOC announces a price increase of €350 per ton for its entire epoxy vinyl ester (VE) portfolio sold in Europe, the Middle East and Africa. The price increase will take effect on June 1st, 2021, or as soon as contracts allow. This price increase is in addition to the increases that were announced on April 12th, 2021.

May 11, 2021

AOC announces a price increase of $0.10 per pound for all UPR, $0.12 per pound for all gelcoat and pigment dispersions and up to $0.26 per pound on all vinyl ester resins and synergistic materials sold in the U.S., Canada, Mexico and Latin America.

This increase is effective for all orders shipping on or after June 1, 2021.

April 27, 2021

Engineered Bonding Solutions (EBS) announces a price increase of $150 per 50- gallon drum and $15 per five-gallon pail for all MMA containing adhesives packaged in drums or pails. Additionally, all dual component cartridges will increase by 8%.

The new pricing is effective for all shipments on or after May 15, 2021. 

EBS hopes that the sudden rise in MMA monomer and many other raw materials will begin to decline soon, as production/supply and transportation issues return to normal.

April 21, 2021

As a consequence of the production and logistical disruptions experienced since early Q1 2021, and despite efforts made to mitigate the cost pressure in the supply chain, Polynt Composites has announced a price increase of €400 per ton on the entire range of compounds products for Europe.

This takes effect immediately, and customers will be promptly contacted by appropriate sales representative for more details.

April 16, 2021

AOC announces a price increase in the amount of $0.10/lb for all UPR, $0.15/lb for all gel coats and up to $0.20/lb on all vinyl ester, pigment dispersions and synergistic materials sold in the U.S., Canada, Mexico and Latin America. This increase is effective for all orders shipping on or after May 1, 2021.

April 8, 2021

Polynt Composites has made a €250 price increase for its entire composite line product range in Europe, effective April 10, 2021. The price escalation is a consequence of the production and logistical disruptions recorded in recent weeks.

March 22, 2021

AOC announces price increases, effective for all orders shipping on or after April 2, 2021 in the U.S., Canada, Mexico and Latin America:

 $0.07 per pound for all UPR

$0.12 per pound for all vinyl esters

$0.10 per pound for all gelcoats

$0.30 per pound for pigment dispersions 

This action is due to the ongoing and significant escalation of costs for key raw material ingredients, packaging and freight.

March 19, 2021

Polynt Composites announces a further price increase for its entire composites product portfolio. Effective April 1, 2021, the company will increase prices for polyester resins, gelcoats, and ancilliary products by €300 per ton and for vinyl esters €500 per ton. 

March 10, 2021

Lanxess is increasing prices for its engineering plastics with immediate effect or as contracts allow. The adjustment affects Europe, the Middle East and Africa. The increase for individual products of the brands is as follows and is applied in addition to the adjustments announced in December 2020. For individual materials, higher adjustments may be necessary:

Durethan A (polyamide 6.6) unreinforced + €0.80 per kilogram,
reinforced + €0.70 per kilogram

Durethan B (polyamide 6) unreinforced + €0.50 per kilogram,
reinforced + €0.40 per kilogram

Pocan (polybutylene terephthalate, blends) unreinforced
+ €0.80 per kilogram, reinforced + €0.70 per kilogram.

March 8, 2021

Specialty chemicals company, Lanxess, is raising its prices for 1,6-hexanediol (HDO) globally with immediate effect. The increase amounts for €800 per metric ton.

March 8, 2021

AOC has made a price increase in the amount of $0.15 per pound for all UPR, gelcoat, pigment dispersions and synergistic materials and up to $0.45 per pound for all vinyl ester products sold in the U.S, Canada, Mexico and Latin America. This increase is effective for all orders shipping on or after March 8, 2021.

March 3, 2021

As a result of the price escalation in the raw materials supply chain, Polynt Composites has announced an immediate price increase across its entire UPR vinyl ester (VE) and gelcoat portfolio for Europe. Numbers were not specified in the released report.

March 2, 2021

AOC, increase of €350 per ton for its entire UPR portfolio and €450 per ton for its entire epoxy vinyl ester (VE) portfolio sold in Europe, the Middle East and Africa. Effective immediately for all new orders or as soon as contracts allow.

Feb. 15, 2021

AOC, increase of €250 per ton for its entire UPR portfolio and €300 per ton for its entire epoxy vinyl ester (VE) portfolio sold in Europe, the Middle East and Africa. Effective immediately for all new orders or as soon as contracts allow.

Feb. 12, 2021

Polynt Composites is increasing prices by €200 per ton for its polyester resins, gelcoats and ancilliary products and €300 per ton for vinyl ester resins as a result of relentless logistic, freight and packaging costs.

Effective March 1, 2021, or as contracts allow.

Feb. 8, 2021

Lanxess is raising its prices for iron oxide and chrome oxide pigments globally, effective immediately. Prices for iron oxide pigments will increase by €110 per metric ton and for chrome oxide pigments by €220 per metric ton or its equivalent in local currency. Customers will be contacted individually regarding the specifics of the measure as it applies to their products or regions.

Feb. 4, 2021

AOC has announced a price increase of $0.05/lb USD on all UPR, gel coat and pigment products and $0.12/lb USD for all vinyl ester products sold in the U.S., Canada, Mexico and Latin America.

Effective for all orders shipping on or after Feb. 28, 2021.

Feb. 3, 2021

The Fire Retardant Additives (FRA) division of Huber Engineered Materials (HEM), a portfolio business of J.M. Huber Corporation, announces a global price increase of 7.5% for its Kemgard smoke suppressants, effective April 1, 2021, or as current contracts allow.

While Huber continues to focus on minimizing the inflationary impact for its Kemgard products, cost increases in raw materials, labor, packaging, regulatory compliance and freight have necessitated this price adjustment.

Jan. 18, 2021

AOC increases prices to €100 per ton for its entire UPR portfolio and €150 per ton for its entire epoxy vinyl ester portfolio sold in Europe, the Middle East and Africa.

Effective for all new deliveries after Feb. 1, 2021 or as soon as contracts allow.

Jan. 7, 2021

Wacker Polymers is raising prices for vinyl acetate dispersions of the Vinnapas and Vinnol brands, polyvinyl alcohol solutions (brand name Polyviol) and Vinnapas solid resins in Europe, the Middle East and in Africa. Effective Feb. 1, 2021, prices for dispersions will be raised by up to €80 per metric ton, prices for polyvinyl alcohol solutions and solid resins up to €100 per metric ton, or as customer contracts allow. This measure has been necessitated by the increase in raw material market costs.

Jan. 7, 2021

As a consequence of further escalation of UPRs raw materials and logistic costs, Polynt Composites has announced a price increase of €100 per ton on its full range of UPR and gelcoats, and €180 per ton on its full range of vinyl ester. Effective Jan. 15, 2021, or as agreement allows in Europe, the Middle East and Africa.

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Our beloved BU’s are almost entirely made of plastic, and hence, tied directly to the price of a barrel of oil.

Worse yet, the feedstocks that go into the components of a plastic BU are roughly 1.4 gallons out of each 42 gallon barrel of crude (see chart below). So, not the high volume stuff, but the lower volume harder to make stuff. The lower volume hard to make stuff almost NEVER goes down in price. If the price of oil recedes then feedstock prices “hold”. I’ve been in an industry tied to these feedstocks since 1997…

With the exception of the economy completely folding over (causing leveraged folks to hold half price sales on boats) new BU’s ain’t gettin cheeper anytime soon, if ever.

 

977268E3-72EA-4738-8040-3DA1590361AA.thumb.png.e8b636ddd5d56d61f30f64b834d5926e.png

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