The boating business must be good.

[Tuscany]

IMO, I think they are just not very good at understanding people, and how a little respect goes a long way. That attitude may come back to burn them some day..
Another reason, and probably the MAIN reason is that Cobalt has a no compete agreement amongst most of their dealer network, so you don’t have the choice of going to a competing dealer to buy a new boat. You are stuck with your closest dealer and they know it.

On the other hand, no matter where I buy our vehicles from, we get the attention we deserve because they know that their customer can buy the same thing 15 miles away..

[sailor55330]

Another reason, and probably the MAIN reason is that Cobalt has a no compete agreement amongst most of their dealer network, so you don’t have the choice of going to a competing dealer to buy a new boat. You are stuck with your closest dealer and they know it

See---This drives me nuts. 2 dealers, one is 65 miles away, the other is 110 miles away and for 45 minutes of my time, I can't conduct a fair shopping experience and they know it. I even saw the owners of both dealerships at the boat show talking to each other in the Cobalt booth (yes, I introduced myself) and having a good laugh at something. The skeptic in me believes this leads to price collusion in some cases.

[TruckerTim]

When I was looking I called on one at a dealer in WI. First thing he asked was “where are you calling from” and I responded why does it matter? His answer- “because if you are not in my territory I can’t sell you a NEW Colbat.”
When I pressed him he said he couldn’t sell or make a deal with me over the phone. But, if I walked in the dealership, he’d be happy to cut me a deal and sell me a new R7. Ridiculous.

[LuckyDog2]

When I was looking I called on one at a dealer in WI. First thing he asked was “where are you calling from” and I responded why does it matter? His answer- “because if you are not in my territory I can’t sell you a NEW Colbat.”
When I pressed him he said he couldn’t sell or make a deal with me over the phone. But, if I walked in the dealership, he’d be happy to cut me a deal and sell me a new R7. Ridiculous.

TT -
That is the strangest thing we’ve ever heard! We bought our new 2019 R5 9 hours away from our home. Put a large deposit down over the phone and trekked up there a few days later. Ordered a few things that it didn’t have (flag kit, battery saver and the way overpriced table), wrote a check for the remaining balance. Trekked back up there after the “extras” were delivered to the dealer and the check had cleared the bank. Not once did they say anything about not being able to sell to “outsiders”. The first call we made to a Dealer in Arkansas didn’t mention it either....
Strange....

R

[Tuscany]

One explanation could be this.. your dealer turned a blind eye because its a gentleman’s agreement, not a contracted sales area. If there is ever a disagreement between the dealers, I hope you don’t have a service issue down the road.
The next closest dealer to me is in Cleveland. My dealer told me that they found them (Cleveland) selling a new boat in our territory.
Of course they apologized, and then compensated and promised to honor the territory.

The collusion thing is real, although it would be difficult to prove in court unless one felt compelled to dump a ton of money into it to prove the point.

[CaptainTom]

I think there is a distinction between buying a new Cobalt the dealer has in stock versus ordering a new Cobalt. I could see the dealer agreement making a distinction between selling in-stock new inventory out of territory (allowable) versus selling made to order new boats out of territory (non-allowable). There could also be a distinction between where the new boat is delivered. Some dealers might treat sales to out of territory purchasers who come and pick up their new boat at the dealer as a sale within the territory.

[MnLakeBum]

When I contacted a Minneapolis Cobalt dealer in October of 2018 to order a new R5, they asked me what lake the boat would docked on and directed me to the Cobalt dealer nearest our lake home 140 miles north. I didn’t have a problem with it and it only makes sense to buy from the closest dealer for obvious service reasons.

[liquid]

One explanation could be this.. your dealer turned a blind eye because its a gentleman’s agreement, not a contracted sales area. If there is ever a disagreement between the dealers, I hope you don’t have a service issue down the road.
The next closest dealer to me is in Cleveland. My dealer told me that they found them (Cleveland) selling a new boat in our territory.
Of course they apologized, and then compensated and promised to honor the territory.

The collusion thing is real, although it would be difficult to prove in court unless one felt compelled to dump a ton of money into it to prove the point.

Your next closest dealer is my dealer Tusc: German Brothers in Canandaigua. Really good people.

https://www.germanbrothers.com/

[liquid]

Village Marina and Slalom Shop were both very responsive when I purchased Cobalts from them. One thing to consider. They might not want to sell you their last in-stock R5 if they use it for demos for customers who want to order an R5.

On a macro level, boating stocks got beat-up pretty bad yesterday, including Malibu. https://www.tradeonlytoday.com/industry ... categories

I have a theory about this... many in fact.

Main thought is that the production value of boats from the late 90's into the 2000's made significant strides. So much so that this has created a larger pool of used boats that still look good, are serviced well and stay on the water longer. There's also a stronger awareness (IMO) after the crash in 08-09 that people are conscious of as it relates to the value of a new boat vs one just driven off a lot vs a mid 2000's boat that's been well-maintained.

[CaptainTom]

Those factors sound right.

I think there is also a generational change. I am in my late 30s. Growing up in the late 80s/90s, let's say I had 10 friends whose parents had boats. Now, my generation is about the same age of my parents when they purchased their first boat. Of those 10 in my generation, none of them have boats, let alone a new boat. There are only so many 40-60 years olds to buy new expensive boats and it's not growing. That demographic is getting wealthier and that's why (I think) the boats are getting bigger and more expensive. The manufacturers are chasing the same pool of potential customers instead of working on expanding that pool. When you are chasing quarterly results, you aren't thinking that far ahead. My two cents is that the manufacturers or the NMMA need to get some entry level boats in the hands of influential people on instagram. Go after the millenial Moms.

On a related note, another down day for Malibu and Mastercraft. I don't see any bad news or disclosures so not sure what's going on.

[Docj]

Those factors sound right.

I think there is also a generational change. I am in my late 30s. Growing up in the late 80s/90s, let's say I had 10 friends whose parents had boats. Now, my generation is about the same age of my parents when they purchased their first boat. Of those 10 in my generation, none of them have boats, let alone a new boat. There are only so many 40-60 years olds to buy new expensive boats and it's not growing. That demographic is getting wealthier and that's why (I think) the boats are getting bigger and more expensive. The manufacturers are chasing the same pool of potential customers instead of working on expanding that pool. When you are chasing quarterly results, you aren't thinking that far ahead. My two cents is that the manufacturers or the NMMA need to get some entry level boats in the hands of influential people on instagram. Go after the millenial Moms.

On a related note, another down day for Malibu and Mastercraft. I don't see any bad news or disclosures so not sure what's going on.

I think this is very accurate. I’m in my mid 40’s and just got my first boat. Similarly at our lake in Oklahoma growing up there were lots of young families boating and enjoying water sports of all kinds. Now there is a trend towards larger boats/cruisers and the lakeside community we stay is filled with grandparents, their kids and grandkids- very few dual generational families. I love my Cobalt and am fortunate to have found the right one at the right price, from the a dealer on Beaver Lake in Arkansas ironically, but many of my peers are getting Yamaha’s or the equivalent. No easy solutions but boating might end up like Harley Davidson and not have a replacement generation. Quality entry level boats are critical to building a boating culture that is self-perpetuating.

[Tuscany]

When I was looking I called on one at a dealer in WI. First thing he asked was “where are you calling from” and I responded why does it matter? His answer- “because if you are not in my territory I can’t sell you a NEW Colbat.”
When I pressed him he said he couldn’t sell or make a deal with me over the phone. But, if I walked in the dealership, he’d be happy to cut me a deal and sell me a new R7. Ridiculous.

TT -
That is the strangest thing we’ve ever heard! We bought our new 2019 R5 9 hours away from our home. Put a large deposit down over the phone and trekked up there a few days later. Ordered a few things that it didn’t have (flag kit, battery saver and the way overpriced table), wrote a check for the remaining balance. Trekked back up there after the “extras” were delivered to the dealer and the check had cleared the bank. Not once did they say anything about not being able to sell to “outsiders”. The first call we made to a Dealer in Arkansas didn’t mention it either....
Strange....

R

Hmmm, Another potential reason may be that you are not in a designated sales area, and may be shared by agreement.
Did you sign a service contract? When you buy a new Cobalt, it does require a service contract, which means your warranty and service is 9 hours away.

[tgrace98]

Those factors sound right.

I think there is also a generational change. I am in my late 30s. Growing up in the late 80s/90s, let's say I had 10 friends whose parents had boats. Now, my generation is about the same age of my parents when they purchased their first boat. Of those 10 in my generation, none of them have boats, let alone a new boat. There are only so many 40-60 years olds to buy new expensive boats and it's not growing. That demographic is getting wealthier and that's why (I think) the boats are getting bigger and more expensive. The manufacturers are chasing the same pool of potential customers instead of working on expanding that pool. When you are chasing quarterly results, you aren't thinking that far ahead. My two cents is that the manufacturers or the NMMA need to get some entry level boats in the hands of influential people on instagram. Go after the millenial Moms.

On a related note, another down day for Malibu and Mastercraft. I don't see any bad news or disclosures so not sure what's going on.

Very very true. When I went to the boat show back in the winter I had already made the deal on the R7 and I knew from day 1 I was buying another Cobalt. But I went to just see what the other makes were bringing out and price comparison. 10 years ago Cobalts were priced a lot more than the competitors but you knew the reason why. In 2019 Cobalt is not much more than Regal, Chap, or Sea Ray. I was shocked. And we all know Cobalt is the superior boat. After that I had 0 buyers remorse.

[sailor55330]

When I contacted a Minneapolis Cobalt dealer in October of 2018 to order a new R5, they asked me what lake the boat would docked on and directed me to the Cobalt dealer nearest our lake home 140 miles north. I didn’t have a problem with it and it only makes sense to buy from the closest dealer for obvious service reasons.

I know the dealers your talking about Bum. The one you bought from is the one that didn't respond. The reason I called them is that the other dealer (which is where I bought my R3) didn't have any R5's. It's really too bad for Cobalt. We might have been a player on an R5 if the deal was right, but because one dealer has no inventory and the other dealer can't/won't sell because he's 50-ish miles farther away, no one wins and Cobalt loses and the boat sits in the showroom.

When I was looking I called on one at a dealer in WI. First thing he asked was “where are you calling from” and I responded why does it matter? His answer- “because if you are not in my territory I can’t sell you a NEW Colbat.”
When I pressed him he said he couldn’t sell or make a deal with me over the phone. But, if I walked in the dealership, he’d be happy to cut me a deal and sell me a new R7. Ridiculous.

Hmmm, Another potential reason may be that you are not in a designated sales area, and may be shared by agreement.
Did you sign a service contract? When you buy a new Cobalt, it does require a service contract, which means your warranty and service is 9 hours away.

With all due respect to Cobalt, that's not very smart.

Really? I wasn't presented with any service contract when I purchases. Given all the different experiences we are all seeing, I'm not sure how much Cobalt is driving these practices vs individual dealer creativity. My guess is a combo of both. Can you imagine buying a car and not being able to choose a dealership for warranty repair?


On a side note, I had a nice chat with my dealer (not sure, but I think I was talking to the owner who I met at the boat show....I recognized the voice and he claimed to remember my name) that didn't have any R5's in stock about the difference between towing an R3 vs R5...their advice having towed many of them? Big difference between the 2 on the trailer even thought it's only 2 foot....nothing less than a 3/4 ton diesel. Interesting feedback--just throwing that out for common knowledge and fodder

[sailor55330]

Mods, can you please delete the post prior the one above? I don't know how I cloned it.