Ordering 2022 malibu’s mid-year 8% surcharge

[SirDuke]

I agree on boats that have not been confirmed.  If their dealer did not contemplate this in their agreements with customers they need to contemplate changing future agreements.  But changing existing agreements is not good business. 

[Hyperryd]

This was posted on the FB group. Just for some clarity. 

[RCorsa]

Interesting that there is nothing about this on any of the ski nautique or MC forums. 

[Wcl]

Can i ask, is the 8% calculated on msrp or negociated sale price

[Wcl]

Negotiated

[ahopkins22LSV]

2 hours ago, RCorsa said:

Interesting that there is nothing about this on any of the ski nautique or MC forums. 

Those forums are not a free posting forum. The content is monitored. Idk if this would be an allowed conversation there. 

[NWBU]

1 hour ago, Wcl said:

Can i ask, is the 8% calculated on msrp or negociated sale price

It’s based on MSRP, since it’s a manufacturer cost increase.

[RCorsa]

Interesting.  Didn’t know those were company monitored. What a bad way to run a forum 

[The Hulk]

BREAKING:

THE FEDERAL RESERVE CHANGES NAME TO PRINTA

MALIBU CHANGES NAME TO MULA

 

[The Hulk]

I'm kinda thinking about considering a 2022 as the more I see what's happening in mfg  it's going be cheap compared to 2023.

 

 

[jjackkrash]

If you have a 2020 or 2021 to trade, maybe ask on price delta to upgrade instead of price of a new boat price.  The value of a used 2020 or 2021 is going to be tied in some way to the market price of the new boat (whether the dealer admits it or not).  Again, however you do it, I would avoid getting locked into the price of the trade until the price of a new boat is locked in at time of sale.   That 8% midyear bump is not just bumping the price of the midyear boats, it will bring the value of the used boats along with it as long as the market bears the price of the new boats.

 

 

 

 

[TenTwentyOne]

On 10/30/2021 at 6:25 PM, ahopkinsVTX said:

Those forums are not a free posting forum. The content is monitored. Idk if this would be an allowed conversation there. 

 

On 10/30/2021 at 7:39 PM, RCorsa said:

Interesting.  Didn’t know those were company monitored. What a bad way to run a forum 

 

There is a similar thread on Team Talk about this same thing. They are doing a similar mid-year price increase. Sold orders at the time of notice (mid-octoberish) aren't getting any surcharge, but stock orders and future sales orders are.

Nothing yet that I saw on Planet Nautique, but I know Nautique also had a similar increase. I don't think PN is run/monitored by Nautique....

[23LSVOwner]

Whenever I see the posts from people who say Malibu should just suck it up and eat/absorb he increases.

Reminds me of the "eat the rich people" for some reason.

 

Guess what. If they were to eat/absorb these costs they would roll into the next year models and then there would be more complaints of "Mean Malibu".

So many people do not look at the big picture and DO not understand big business at all.

Whenever new business taxes/supply costs, etc happen it is ALWAYS rolled down to the consumer.

[vanamp]

22 minutes ago, 23LSVOwner said:

Whenever I see the posts from people who say Malibu should just suck it up and eat/absorb he increases.

Reminds me of the "eat the rich people" for some reason.

 

Guess what. If they were to eat/absorb these costs they would roll into the next year models and then there would be more complaints of "Mean Malibu".

So many people do not look at the big picture and DO not understand big business at all.

Whenever new business taxes/supply costs, etc happen it is ALWAYS rolled down to the consumer.

Cost increases are not ALWAYS rolled down, only in cases like Malibu's where there is way more demand than supply. 

I think the "rub" here is the price increase after a price was negotiated and in some cases a deposite put down. That is far less common than just a price increase.

[23LSVOwner]

19 minutes ago, vanamp said:

Cost increases are not ALWAYS rolled down, only in cases like Malibu's where there is way more demand than supply. 

I think the "rub" here is the price increase after a price was negotiated and in some cases a deposite put down. That is far less common than just a price increase.

They are always rolled down eventually.

From my understanding Malibu actually ate a LOAD of these increases before they rolled out.

Fine print in almost every sales order also states that price increases can happen. People just don't look at them.

[vanamp]

I take issue with the word ALWAYS as I eat temporary costs increase way more then I pass them along even on items that I generally sell out of due to competition.  If you going to pass permanent cost increases along you usually plan ahead and increase them on the next season/year with notice.  You can even use it to push sales by letting people on the fence know an increase is coming. 

 

I am sure they are legally covered here but cost increases after deposit are not too common on the consumer/end-user end so I understand where people are coming from.  They should have planned this out a bit better for better PR but in the end there are more buyers than boats so they don't have to care. 

[drewski300]

2 hours ago, 23LSVOwner said:

Whenever I see the posts from people who say Malibu should just suck it up and eat/absorb he increases.

Reminds me of the "eat the rich people" for some reason.

 

Guess what. If they were to eat/absorb these costs they would roll into the next year models and then there would be more complaints of "Mean Malibu".

So many people do not look at the big picture and DO not understand big business at all.

Whenever new business taxes/supply costs, etc happen it is ALWAYS rolled down to the consumer.

 Well I own multiple businesses and feel like I understand how material costs can impact our bottom line. I think the rub that I take away from this is Malibu is forcing people who are already under contract to pay an additional 3%. If I did that in our business, we'd likely lose customers....but there is more competition and more choices in my industry.

You can't always predict a pandemic and supply chain issues. I get it. And if you have to raise your prices, do so. But forcing people mid contract seems BS to me. All the while, their record profits will continue despite these material "challenges."

[Sparky450]

1 hour ago, vanamp said:

They should have planned this out a bit better for better PR but in the end there are more buyers than boats so they don't have to care. 

I do believe it was mentioned months ago that mid year price increases would be happening. 

1 hour ago, drewski300 said:

You can't always predict a pandemic and supply chain issues. I get it. And if you have to raise your prices, do so. But forcing people mid contract seems BS to me. 

I have been in business on my own for over 20 years. This will be the FIRST year ever that I have hit a customer up for price increase.  I know many contractors that will hit the customer with a CO, for 1-2% They all know it is coming. We just can’t absorb the increases we have seen this last year. 

 
I had 3 jobs stop, after contracts were signed, because of The lumber price increases.  Now that lumber has settled down, all the resins are up. If we can even get product. Fortunately, I am a small guy and with the quantities I use I have been able to get product. I am now starting go to see the manufacturing delays for product. We will see if the projects get off the ground this year.  I just got word today that one is looking to start 01-06-22. 
Yes they will get hit with a price increase.

[vanamp]

3 minutes ago, Sparky450 said:

I do believe it was mentioned months ago that mid year price increases would be happening. 

I have been in business on my own for over 20 years. This will be the FIRST year ever that I have hit a customer up for price increase.  I know many contractors that will hit the customer with a CO, for 1-2% They all know it is coming. We just can’t absorb the increases we have seen this last year. 

 
I had 3 jobs stop, after contracts were signed, because of The lumber price increases.  Now that lumber has settled down, all the resins are up. If we can even get product. Fortunately, I am a small guy and with the quantities I use I have been able to get product. I am now starting go to see the manufacturing delays for product. We will see if the projects get off the ground this year.  I just got word today that one is looking to start 01-06-22. 
Yes they will get hit with a price increase.

As a consumer the first I heard of this was in this thread and I ordered a boat in September(I think I dodged this price increase).  I don't think this was announced or if it was it was not communcated clearly.  If it was, every dealer would have been saying get your order in berfore date XX to lock in at current prices.  

I understand your pain as I am dealing with shortages and increase on two completly different fronts but if I remember correctly from another post you are mostly commercial correct?  Business to business is not really an apples to apples comparison to business to consumer price increases because they are completely different ball games and consumers are generally not used to doing business that way.  Just imaging if someone grabed bag of apples marked 3.99 and when they went to check out it was 4.99 because of a mid-day price increase.   It would be complete armageddon, blow up on social media, and be the top story on the evening news....and I would be the poor sap who got in line behind them at the registered because thats just how my life works.

[The Hulk]

10 hours ago, vanamp said:

Cost increases are not ALWAYS rolled down, only in cases like Malibu's where there is way more demand than supply. 

I think the "rub" here is the price increase after a price was negotiated and in some cases a deposite put down. That is far less common than just a price increase.

Force majeure

Just about anybody buying anything with metal in it as probably experienced this in the past year.. most got so sick of dealing with this that the norm is just the price at time of delivery now.. not the price when you order.. take it leave it next guys will..

Does anybody have any insight to the actual production quantities I'm not going to be surprised if they're going down.. 

Record and profit need to be carefully described and or worded correctly..  record amount of profit vs record % profit or margins can be very different views and skewed by things like selling higher end models or less total boats or more boats at higher margin and so on..

What everyone is missing is boats are a steal of a deal right now! We are fully in Stagflation mode, it will go much higher as unit qtys come down due to constraints from supply to labor, to eventual tax hikes and more stimmy.. 

Someone has to answer and appease investors one way or another.. 

Edited November 1, 2021 by The Hulk

[94MalibuEchelon]

27 minutes ago, The Hulk said:

Force majeure

Just about anybody buying anything with metal in it as probably experienced this in the past year.. most got so sick of dealing with this that the norm is just the price at time of delivery now.. not the price when you order.. take it leave it next guys will..

Does anybody have any insight to the actual production quantities I'm not going to be surprised if they're going down.. 

Record and profit need to be carefully described and or worded correctly..  record amount of profit vs record % profit or margins can be very different views and skewed by things like selling higher end models or less total boats or more boats at higher margin and so on..

What everyone is missing is boats are a steal of a deal right now! We are fully in Stagflation mode, it will go much higher as unit qtys come down due to constraints from supply to labor, to eventual tax hikes and more stimmy.. 

Someone has to answer and appease investors one way or another.. 

2021 Malibu Boats Annual Report and Proxy from last month with production numbers from all of their brands:  Malibu, Cobalt, Pursuit, and Maverick.  
 

https://s22.q4cdn.com/332374443/files/doc_financials/2021/ar/Final-Annual-Report-2021.pdf

 

 

[The Hulk]

41 minutes ago, 94MalibuEchelon said:

2021 Malibu Boats Annual Report and Proxy from last month with production numbers from all of their brands:  Malibu, Cobalt, Pursuit, and Maverick.  
 

https://s22.q4cdn.com/332374443/files/doc_financials/2021/ar/Final-Annual-Report-2021.pdf

 

 

Thanks! Although I take these soft sugar coated reports with a grain of salt. Reality is everyone in rec industry blew it out of the water in 2021..  2022 is going to absolutely crush small companies..

I guess im more wondering about their current situation and monthly qtys.. i cant help but look at Auto and we'll.. about all other industries where volume is being cut, "unexpectedly" of course.. but reports upsell the "unprecedented demand" aspect to investors.. IMO i fear there will be much to rear it's ugly head over fiscal Q4 and Q1.. 

Supply chains will continue to get worse, the chip shortage will continue to deteriorate. Look at semi.. there sold out through 2023! Those new foundries.. No where near even beginning..  Low end boat chips.. good luck.. rural America $18-25/hr at fast food.. how long ya going to work at a boat factory at similar rates? Mandates.. let's not even go there.. labor rates are going to rec havoc on production in all sectors especially Agriculture as food prices are set to skyrocket very soon.

 

 

 

 

Edited November 1, 2021 by The Hulk

[RCorsa]

It’s kind of gross imo if it’s true that Malibu volumes and profits have increased so much that they then send a letter out (or via that Facebook post) that given their hard times they need to increase prices mid year.  I’d personally just prefer them to say. “We want to take advantage of record sales and profits while we can, and we feel we can make even more money by jacking up prices.  As CEO I’m hoping for an even bigger bonus in 2022 as I’m hoping to buy a new jet so I don’t have to travel with normal folk”.   That would be awesome and at least honest. 

[BlindSquirrel]

2 hours ago, The Hulk said:

Food prices are set to skyrocket very soon.

 

 

 

 

Yep. Going to get ugly.

[TenTwentyOne]

12 hours ago, The Hulk said:

Force majeure

 

That is a term that has definitely been thrown around a lot in my industry (and obviously a lot of others) as means to not honor a contract. It doesn't stand up in most cases, and is being used as a blanket excuse in instances in which it doesn't apply. Force Majeure is not applicable in instances in which costs go up, or a legal excuse to not honor a contract because of cost increases. Although that seems to be a popular excuse to just ignore a contract and raise prices.

Legally, Force Majeure is only applicable to unforeseen circumstances causing the fulfillment of the contract to be impossible. It has nothing to do with price increases being passed down.

I had a supplier pull force majeure on me, in order for them to capitalize on selling the product elsewhere at a higher market value.......... I contracted with them. The market price went up. They didn't honor my contract, and sold my product to the highest bidder. Maybe they thought I wouldn't chase it, but they were wrong. Their greed cost me a net loss of more than $1.4M. The case is ongoing......