Tige ASR -Edmonton Boat Show

[Ewok]

I bet boat buyers are getting hosed on the parts that make up the boat. It seems that these boats are made up of parts, the only thing really made at the factory is the hull. The boat is assembled, not created. One small example would be the board racks. R and D costs a fair amount, but after that, it is just a matter of raw alluminum and plug it into the CNC machine.

Don't car manufacturers actually make a fair number of the parts that go into them? Or at least they have them made specifically for them. Boat companies don't have the volume to do that.

It's not a fair comparison between the boat manufacturers and car companies. Cars are usually made with metal bits that can be stamped on an assembly line and mostly assembled by robots. Boats are more like 1 off customs every time they pop out of the mold. The boat manufacturers spray and "make" the hull, stringer system, bond them all together and they also manufacture the interior from scratch too. Of course they don't build their own engines but they order them to spec for their applications, and need to design and install the electrical system from scratch too.

Then you have to think volume. According to the Bu IPO in 2012 there were 5,500 sport boats sold across the country. That's from all the boat companies. Compare that to, what, 450,000-500,000 F-150s sold? That's why they are so expensive, there are not many units to spread around the overhead.

Of course I don't think that justifies the quick run we've seen up to the 100,000 price tag on lots of new boats, but apparently the market supports it so it will continue.

I've been on a few factory tours of boats and cars, the most impressive to me was the BMW factory in Munich. Vastly different types of construction between boats and cars.

[Wickedcummins]

They wont ever do volume at the prices they are reaching and if they keep jumping there prices every year there sales wont stay climbing like they are they will start falling as most will see it how I do.. The prices they are reaching are turning me off the want to even boat. Its sicking me to the point where id rather find other things to do then support a industry that wants to screw me into the broke house.

[Wickedcummins]

This looks just like the boat that was at the Calgary boat show a few weeks back. It's not a great picture, but neither is the price ...

154k LMFAO wow is all I can say.. GTFO here with that BS and 13k for a boat trailer? I can buy a effing Nice bumper pull camper for that which is a trailer PLUS all kinds of structure and appliances n so forth.. Out of hand

[Wickedcummins]

5k for racks to hold your boards ? 2,700 for wheels you can get at discount for less than 1,000 my heads spinning in AWWEEE

By time thats boats payed off you will have spent over 350,000 for it lol.. 7.9 interest on a loan the size of a house that you could get less than 4% on ::chuckle::

[lorney]

That price looks about right for that dealer and that market. No competition close by so they can charge whatever they want and if people want that boat they have to pay. Comes back to the whole dealer protection thing and not being able to buy a new boat outside your local area because you get no 360 plus plan and trying to get warranty work done locally won't happen.

[What she said]

I owe like 11 years on my 2011 RZ2. It sucks, but thats the only way i know how to afford what i want. Big monthly payments for ever! ;(

[Wickedcummins]

That price looks about right for that dealer and that market. No competition close by so they can charge whatever they want and if people want that boat they have to pay. Comes back to the whole dealer protection thing and not being able to buy a new boat outside your local area because you get no 360 plus plan and trying to get warranty work done locally won't happen.

Here is some cray facts they sell the most boats for Tige too.. So know they are leaving you with gap when you buy from them.. Seriously pisses me off. But hey thats why we have choice to buy other brands =)

[Tulsah]

Let's not lose sight of the fact that there's an automatic price increase of 11% on account of the CAD/USD exchange rate. That said, I would be surprised if this dealer didn't maintain a margin of nearly 10-15% on the sale price.

[JohnnieMo]

In defense of my dealer, I don't think you guys are being fair. You'll talk to many happy owners up here in Alberta.

The prices i was commenting on are all msrp, with the added Canadian dollar markup.

As for this particular ASR.... it's the first of its kind in Alberta. And this is a wealthy area. If you want the first of anything you gotta pay big money for it. Charge what you can.

I for one am happy to see them make money. Makes it better for me in the long run . If you don't like the price, but buy a Z3.

[Tulsah]

In defense of my dealer, I don't think you guys are being fair. You'll talk to many happy owners up here in Alberta.

The prices i was commenting on are all msrp, with the added Canadian dollar markup.

As for this particular ASR.... it's the first of its kind in Alberta. And this is a wealthy area. If you want the first of anything you gotta pay big money for it. Charge what you can.

I for one am happy to see them make money. Makes it better for me in the long run . If you don't like the price, but buy a Z3.

You won't get any argument from me. I don't begrudge any dealer from making a fair profit, which happens to depend on local market conditions.

[Wickedcummins]

In defense of my dealer, I don't think you guys are being fair. You'll talk to many happy owners up here in Alberta.

The prices i was commenting on are all msrp, with the added Canadian dollar markup.

As for this particular ASR.... it's the first of its kind in Alberta. And this is a wealthy area. If you want the first of anything you gotta pay big money for it. Charge what you can.

I for one am happy to see them make money. Makes it better for me in the long run . If you don't like the price, but buy a Z3.

Been looking at Supreme's As Mr Walker sure loves them.. Loaded 60K brand new... Hmm I really would like to buy a ASR just the price is really out of this world On what I think is fair market and what Im willing to spend on something I get 5 months with maybe 30-40 days of use.

[lorney]

In defense of my dealer, I don't think you guys are being fair. You'll talk to many happy owners up here in Alberta.

The prices i was commenting on are all msrp, with the added Canadian dollar markup.

As for this particular ASR.... it's the first of its kind in Alberta. And this is a wealthy area. If you want the first of anything you gotta pay big money for it. Charge what you can.

I for one am happy to see them make money. Makes it better for me in the long run . If you don't like the price, but buy a Z3.

It is a wealthy area and I think your dealer will have no problem selling this boat. Just like you say you can talk to many happy customers in Alberta you can also to talk to unhappy ones too. I personally know guys who have bought there and will never buy from there again. It is no different than a car dealership though. Some guys want to drive their vehicles right through the showroom doors on fire and others will love the same dealership. It all comes down to how you are treated when you have a problem. If a person has a problem with a car dealer though they can usually find another in the same city or within an hour or so. In the boating industry a guy is kind of screwed. But like Wicked said that is why we have the option to chose another brand. I just don't know how a company can justify letting a customer go to a different brand instead of giving them options to buy outside their local area and stick with their brand.
I have heard they sell the most boats for Tige. That is great. So if the price seems high for the ASR a person should just overpay for a Z3 instead. There is a lot of wealthy people in that market that don't mind spending that kind of money. Which is why they have no problem moving that many boats at those prices. Just sucks for the guy that does his homework and can save thousands on a boat but is not able to buy outside that market. Is that fair? Guess it depends on which side of the sale you are on.

[EricU]

My wife and I checked out the ASR at the Sacramento Boat show and we both agree that boat and the G23 were our favorite. The storage in that boat is amazing and I love how everything is so well laid out. It would be a tough call to choose between a ASR and G23, luckily for me I dont have to make that decision because that lotto hasn't come through for me yet...

I went by the Sac boat show also and saw the ASR that CMS had on site, awesome boat. The storage is amazing! There is a slot behind the engine that holds surf boards and you can close the lid over it!

At one of the other displays (don't remember which one) I saw a dealer list a monthly payment of over $600 for 240 months! Time wise, do the math on that one, I just bought a house on a 15 year loan and I bet that house is worth a lot more than that boat is in 20 years!!!!

There were some good looking boats there, but I started drinking beer and told my buddy that I needed to get out of there. Too easy to come home with a new boat, when I haven't finished upgrading the current one and haven't sold the one previous to that one.

[Tulsah]

As a pragmatist, I can't help but look at it from the most fundamental of perspectives ... If Tige and their dealer network were charging TOO much money for their products, then they would either:

1) Lower prices to drive increased sales

2) Go out of business because sales are too low to provide sufficient/suitable profit margins

I haven't seen either of the above happening, and I suspect Tige is a profitable company. Therefore, I would conclude that their boats are priced exactly where they want them. The ASR may be a caveat to this as it is too soon to tell whether the market will bear its price/value offering. We'll see ...

[tigecanuck]

Yup, that is the price sheet that I created, printed, laminated, and attached to the first ASR that Hyperactive received. I never ever thought I would see a price that high on a towboat when I started selling Tiges in 2001. And I can't believe that I have this much money tied up in one inventory item! No, the profit margin is not 50%, to the dealer anyway. And at our new world of it costing 1.12 Canadian to buy 1.00 United States Dollar, all towboats have taken a big jump in price for 2014 in Canada. But setting all of that aside, this is one badass boat and the day our ice thaws here in the great (but ridiculously expensive) white north, I will have that boat in the water and I know it will be a blast to run, ride, and rock. The price is crazy, but the couple that placed a factory order with me for one last week summed it up well: "An expensive two-seater sportscar is often just another guy having a midlife crises. A great new boat just shows how much we love our time with family". I don't think they meant that everyone needs a boat at this price level, but there are plenty of other expensive hobbies that guys (and it is generally us that do so) can get into that don't always create years of valued memories and photos of great family time (sales pitch off).

In the rush to get this boat up here for the Calgary and Edmonton Boatshows, the convex was held up and should be here soon.

Can't wait to launch that boat at the Hyperactive Marina!

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