Davidmnc
Contributor
I'm not sure it will work that way. It's still the dealers choice what they stock. There may be stock levels in there dealers agreement, but that should be brand specific.
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Deadline is set for Fountain bidders
- Thread starter Davidmnc
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I'm not sure it will work that way. It's still the dealers choice what they stock. There may be stock levels in there dealers agreement, but that should be brand specific.
Ratickle
Founding Member / Super Moderator
I understand they don't have too.
But, if you have been selling them all along, have them sitting on your floor, are still a boat dealer, and the company is purchased by a new entity, (whether out of bankruptcy or not), what other choice do you have??????
Send your floor boats back and try to get some other brand on your floor????
But, if you have been selling them all along, have them sitting on your floor, are still a boat dealer, and the company is purchased by a new entity, (whether out of bankruptcy or not), what other choice do you have??????
Send your floor boats back and try to get some other brand on your floor????
JupiterSunsation
New member
Yeah if you didn't make any money before why would you take on the risk especially adding a low volume/low sales brand like Hustler? 1/2 your walk in clients will need a history lesson on who/what Hustler is. Then any buyers that may be interested won't be when they see the price when compared to a production Fountain that is faster/more recognizable in the first place.
How many guys do you know that are wealthy from owning a boat dealership? Hell you can't even make a living owning a car dealership these days (which almost everyone needs) what would make a boat dealership so lucrative?
Davidmnc
Contributor
I think we are talking about two different things. I am talking about adding the Hustler line. A dealers agreement with Fountain or Baja would not include Hustler. So a dealer would not be required to sell Hustler just because they are a Fountain or Baja dealer. But in some cases I'm sure it would make since to take the line on.
I would assume the dealer agreements made with Fountain would stay in place with the new ownership, but bankruptcy may void those contracts.
Ratickle
Founding Member / Super Moderator
If I owned Hustler, and I purchased the Fountain/Baja operations. I would make absolutely sure you sold all three if I so wanted. Otherwise, I might look to find someone new in your area.
All contracts/dealer agreements with anyone are null and void in a bankruptcy situation. Just like the non-secured creditors are losers.
Doesn't mean you would have to, but I think you will see that happen with Fiat as soon as they start importing their American versions of their autos.
Ratickle
Founding Member / Super Moderator
Wouldn't need to be all. But dealers like Shogren would most likely benefit from haveing a custom high-end performance baot line added.
I do not know much about hustler but from what I gather is low volume custom builder. I do know if they attach thier name to a company that everyone is talking about they watch the hits on the website go up and the calls come in. Then when the deal falls through now people know more about hustler.
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Davidmnc
Contributor
I agree.
Ratickle
Founding Member / Super Moderator
I think you'd have to floor plan the boats yourself currently. But, in the long run, for the right price on the existing inventory??????
DollaBill
New member
I'm hearing there will be NO floorplanning going into '10. For anyone... period.
Magicfloat
Charter Member
Haven't heard that.As far as I know GE plans to continue with their existing dealers that are current and in good standing with them.I don't think they are signing any new dealers tho.And they went up on their rates and tightened up some guidelines.
I would think that a facility as large as the NC one, with a huge dealer network in place, would be able to draw potential buyers that could possibly be afforded three brands. (Forgetting about the nature of the brand overlaps and current market conditions for the moment.)
Last I knew, Reggie still had a great deal of assets, including some 300 plus rental properties. Reggie is still a major draw for celebrity status, and no doubt it would still be a plus to have him available.
With a property and location like that, you first need to have someone with the coin to fund the asset purchase, plus carrying costs for a year or two. Overhead is dramatically lower due to layoffs, but so is revenue. Yes, they definitely need to have serious discussions regarding the brand and the models they will carry on with. (must be hard for Hustler which states they are the Fastest Vee hulls). Reggie would probably recommend a change in that wording:rofl:
I'd have to "assume" they have the capital behind them to do this. Probably the backing of Brunswick as well? The entire performance boat market is not that big now in terms of units. Small and custom brands are all over the place. The company that positions itself across a multitude of lines (say 25' and up), with a large dealer network can survive. I'm sure the dealer model will change, regarding floorplanning, in stock models etc.. But if I can get customers pre-approved, or cash customers, ship them down to meet the people at the factory, possibly Reggie himself, I view that as a big plus. People in the business can try and figure out how many boats they would need to sell to keep that investment solid.
I also think the Baja line has a place, depending on what's left of it. If they still had the smaller Islander series through the 28' that would be a huge advantage. It cultivates future buyers. Having boats like that that can be fitted with single engine power is a major plus.
Just thinking out loud. Lots of possibilities for those with the right amount of cash. If this is mostly a cash investment with reserves, I can definitely see it working. One huge advantage is that your large competitors are still saddled with debt, and smaller facilities, while this would be a clean slate with limited investment.
Last I knew, Reggie still had a great deal of assets, including some 300 plus rental properties. Reggie is still a major draw for celebrity status, and no doubt it would still be a plus to have him available.
With a property and location like that, you first need to have someone with the coin to fund the asset purchase, plus carrying costs for a year or two. Overhead is dramatically lower due to layoffs, but so is revenue. Yes, they definitely need to have serious discussions regarding the brand and the models they will carry on with. (must be hard for Hustler which states they are the Fastest Vee hulls). Reggie would probably recommend a change in that wording:rofl:
I'd have to "assume" they have the capital behind them to do this. Probably the backing of Brunswick as well? The entire performance boat market is not that big now in terms of units. Small and custom brands are all over the place. The company that positions itself across a multitude of lines (say 25' and up), with a large dealer network can survive. I'm sure the dealer model will change, regarding floorplanning, in stock models etc.. But if I can get customers pre-approved, or cash customers, ship them down to meet the people at the factory, possibly Reggie himself, I view that as a big plus. People in the business can try and figure out how many boats they would need to sell to keep that investment solid.
I also think the Baja line has a place, depending on what's left of it. If they still had the smaller Islander series through the 28' that would be a huge advantage. It cultivates future buyers. Having boats like that that can be fitted with single engine power is a major plus.
Just thinking out loud. Lots of possibilities for those with the right amount of cash. If this is mostly a cash investment with reserves, I can definitely see it working. One huge advantage is that your large competitors are still saddled with debt, and smaller facilities, while this would be a clean slate with limited investment.
Davidmnc
Contributor
Under statement.
MarylandMark
Charter Member
I was getting an email every week from around 10/08 until 6/09 saying come take a Fountain Factory Tour and every model they make is in the water ready for a test drive. Ride to/from airport and hotel up to X amount taken off purchase price (LOL!).
Davidmnc
Contributor
In one word................yea. :ack2:
HPOffshore
Charter Member
....word!
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