Boat Manufactures going out of business

[Regal-89]

I have an 1989 Raven Runabout with a mercruiser/alpha one. They no longer make this boat and was curious on whats normally the main reason they(mfg)go out of business. I'm asking just because I am curious, parts are easy to find for the motor and the drive(of course still made). I got this boat on a sweet deal, and the boat is in great condition, but I was wondering about what happens to resale value when manufacturers are no longer in business. I know it might be late now to ask this, I know I will get my money back two times over if and when I sale. I just had to much time to think I guess about this on the way to work. Any if you have any thoughts, let me know.

 

[James Bond]

Re: Boat Manufactures going out of business

As the owner of a 1998 Marada, I'm in the same boat....I mean situation as you. It seems to me that normally, there's nothing wrong with the boats they made, in fact, they tend to be built well, and slightly on the expensive side when new. And being a small manufacturer, they just didn't have the market to support the buisness.

 

[DJ]

Re: Boat Manufactures going out of business

The boat building biz is about as tough a biz as there is.<br /><br />Many are undercapitalized. Many are regional. It takes a huge pot of cash to go national.<br /><br />Boat building is not rocket science if you think about it. What do you need to build a f-glass boat?<br /><br />1. Molds.<br /><br />2. Wood.<br /><br />3. Fiberglass.<br /><br />4. Labor.<br /><br />Most, if not all, the electricals, controls, etc are generic and not specific to one brand.

 

[Admin5]

Re: Boat Manufactures going out of business

I have visited many of the different boat manufacturers over the years. I attended the last few Marada dealer meetings before they went under. I think it is fair to say that the two greatest reasons for a boat manufacturer to go out of business are poor management decisions and starting the business already undercapitalized (doomed from the start). Marada made a decent boat and I think that these two reasons contributed to their downfall. Too bad because they had some really good dealers under them!

 

[TOHATSU GURU]

Re: Boat Manufactures going out of business

Here's how you make a million dollars in the marine industry. First you take two million dollars.....

 

[Bondo]

Re: Boat Manufactures going out of business

Ayuh.........<br /><br />And,<br />What sometimes Really $uck$, is some of the Best, Die after the Debute Model.......<br />And, Some of the Worst, Just go on Forever.............

 

[MrBill]

Re: Boat Manufactures going out of business

Manufacturers, boat or any other, go out of business for one simple reason...expenses (operating costs) are greater than revenue. On a personal basis, many of us are familiar with this phenomenon...costs (mortgage, phone bill, insurance, taxes, etc.) become greater than the salary or income that is earned. I'm not trying to be a wise guy here...most folks (and businesses, too) undertake expenses, like car payments or boat payments with the expectation that they'll be able to pay them. Then some of the variables change, over-time gets cut off, or a lay-off occurs, or large unexpected expenses are incurred. Businesses go through the same problems, but most problematic is when sales are less than anticipated. Few companies go out of business by meeting sales targets and over spending, or I should say smart companies don't.

 

[swist]

Re: Boat Manufactures going out of business

Being undercapitalized is a doubly-whammy. You can't deal with slack sales AND you can't support a decent service operation. When service fails, anyone who has had a problem won't buy another one - since repeat sales are the cornerstone of any manufacturing business, down the tubes you go.

 

[Eggkr8]

Re: Boat Manufactures going out of business

I am pretty new to the boating world, but am very comfortable in the business world. There are so many incredibly talented and creative engineers out there that will make a phenomenal product. But business doesn't just happen. I have never seen the 'if you build it they will come' philosophy ever work in business. <br /><br />I would actually call business a technical discipline (and I come from a backround in the hard sciences), business also requires a whole lot of foresight and a whole lot of luck.<br /><br />With boating, there is an off season, if you are in manufacturing, you will need to plan for it. This could mean either lay-offs, or reduced work weeks, or even salary cuts. A Prudent manufacturer will need a 'winter' product to fill in the sales Slack, or encourage sales during the winter months by offering discounts or free storage until spring etc....<br /><br />Personally, the best model I have seen for such a business is by integration. Meaning company X builds hulls, Y does upholstery, Z does engines.....all the parts arrive and the manufacturer just assembles to order. This wowuld allow less overhead, less storage needs, and almost Zero inventory.<br /><br />OK, I digress