Tige dealers closing up shop left and right?

[talltigeguy]

So I hear that Skihut is closing in Tennessee and now Majestic says the Seattle area Tige dealer is closing up shop. The Vegas dealer has downsized dramatically. The government keeps telling people that the economy is not that bad. There are several empty subdivisions near my neighborhood.

What is the future for Tige?

As boat sales tighten up, who will suffer the most? Will the rich who want a nautique or MC continue to do just fine? Will cheaper boats like Moomba begin to outcompete the others?

Will Tige prices go up as they try to make ends meet with fewer boat sales?

[da.bell]

I think the prices will stay the same. The amount of Tige's that are produced will decrease because of the layoffs. It's sad times and the government is full of ch!t if they think the economy is okay.

[TigeDuner]

Tige will triumph...Long live Tige..

[spharis]

Just proof that money talks. Wall St. goons have done this making millions off of worthless paper and popping into the petroleum stocks when all the walls fell around them.

[Tanner]

I was thinking the same thing today Tall.

I told my dealer today, that I was concerned that I might not be able to sell my old boat b4 the new one got here

I can add some perspective though, as I deal for the most part, w/ the same type of client that is buying these boats.... Generally speaking.

I deal in two markets in custom homes.... The first market I deal in, well, I build homes in the luxury to to ultra luxury market. This market seems to never die. They'll always have the money... and although may tighten up on some spending. They always like new. The funny thing is... I would say approx. 80% of my customers are borrowed to the max and will borrow more if you let them, but in a pinch could pay everything off w/ the stroke of a pen. You'll see these guys rotating new boats every 1-3 years consistently as they got to keep up w/ the Jone's.

The second market I deal in are homes that range from about 3000 sq. ft. to 5000 sq. ft. ($380K - 1 mil). These customers all pretty much pay cash for everything and don't like notes hovering over them. Of the 80% that own boats, 50% of those have brand new boats, and have told me they rotate them every year, and this year will be no different. And as a matter of fact, I know at least 7 of them who rotated into 08's at the boat show this year.

What you will see fading out from buying new boats, are the middle class. The extra couple hundred dollars on gas per month, is hurting alot of people. These people will back down from buying boats...at least on new boats. But this should help move some used boats, and thus keep the new market moving.

One thing to keep in mind is that boat sales have been setting all kinds of records over the last couple of years. What I think you will see is things stabilizing. While boat sales may be down compared to last year (if they are at all... we'll see) I think they'll be on par for w/ a 6 year average.

[Jason B]

In a market economy the price where demand meets production is called an equilibrium price. The more the demand, the more boats will be produced,, the more they will cost. With store closings and factory layoffs consider this- If supply drops further than demand drops the equilibrium price will go up. If demand drops further than supply, the eq. price will go down. When an economy drops quickly and middle income consumers tighten thier belts manufacturers are left with a surplus--supply outpaces demand and prices drop. A GOOD TIME TO BUY. (Unless you live in one of Tanner's houses, then it's always a good time ) When the economy recovers and demand increases the supply will have shrunk and the prices will sky rocket again. GOOD TIME TO SELL.
The $ 64,000 question is how bad is the economy really?

[lee]

[QUOTE=talltigeguy;150814]So I hear that Skihut is closing in Tennessee and now Majestic says the Seattle area Tige dealer is closing up shop. The Vegas dealer has downsized dramatically. The government keeps telling people that the economy is not that bad. There are several empty subdivisions near my neighborhood.

QUOTE]

Ski Hut closing had nothing to do with the economy.

[talltigeguy]

[QUOTE=lee;150904]

So I hear that Skihut is closing in Tennessee and now Majestic says the Seattle area Tige dealer is closing up shop. The Vegas dealer has downsized dramatically. The government keeps telling people that the economy is not that bad. There are several empty subdivisions near my neighborhood.

QUOTE]

Ski Hut closing had nothing to do with the economy.

Lee,

Sorry that I made the assumption that the economy was at least a part of the equation.

Jason B,

Thanks for the economics lesson. If Tige overreacts and starts producing too few boats...prices could go up. It seems it still boils down to supply and demand.

I am surprised by the prices in the other threads people are quoting for RZ2's. I never thought I would see an RZ2 in the low 50's that was decently equipped. It would seem now is a good time to buy a new boat. But selling my current boat would likely rake me over the coals for the same reason.

[lee]

The mad face was not directed toward you but to the reason of the closing.

[lightning59]

Tige Dealers Closing Up Shop

Nail hit on the head Jason B. Great economics synopsis. I consider myself
a "bottom feeder" when it comes to buying boats. I wish I could throw down 50 to 60 large on a new Tige'. I do appreciate new boat purchasers as those boats end up in the hands of thankful used boat buyers. Our local Tige dealer sold out to a Malibu dealer so we no longer have any dealer support. My buddy has MC dealership here on TRock and I went with a Tige' b/c of bang for the buck. I hope Tige' weathers the storm, I will be ready for my next New/Used boat in a couple years.

[evil0ne]

Can you elaborate lee? We all wish you the best.

[Domsz06]

I think tige will lower the prices to compete, but just my

[Jason B]

I think tige will lower the prices to compete, but just my

Every manufacturer will lower thier prices to compete if people stop buying.

[Domsz06]

yup and that's when I'll buy a new one

[shane]

xtreme woods and water in Jackson Ms., closed the beginning of 08'. Don't know the reason.