09' price increase %

[KonaKing]

I wish I could have sold mine

[mtnsmith]

What do you consider "kid"? I was just wondering age wise?
Considering the cost of raw materials I agree, 9% isn't that bad.

[Tanner]

What do you consider "kid"? I was just wondering age wise?
Considering the cost of raw materials I agree, 9% isn't that bad.

I should have said you will see less "kids" w/ brand spankin new boats. I would say the 16 y/o to 20 y/o would qualify as the "kid" I'm talking about. There are 21 y/o's that are starting off right out of college w/ some very high paying jobs, that will qualify.

But once again, it all depends on your debt to income ratio. Of course, if your 16-20 w/ a 50K plus boat, you've either busted your balls working in; more than likely either construction or mowing alot of lawns. In that case I commend you, as I've been there and feel for you. Or mom and dad bought it (I.E. alot of WW'ers)

[da.bell]

Well, I am not surprised at the increase but it would be nice for Tige to step up to the plate and let everyone know the cost. But again, everything with Tige is a big secret.

Tall, you can buy my 24Ve still. It didn't go up 9% last year.

[Guest]

A 9% increase will be tough for a lot of people depending on what part of the country the are in and how well their company is doing if self employed or employed by a company.

Unfortunately for me we just froze raises until 2010. At the end of the first qtr we were 40% ahead of the expected bottom line so I decided to replace an Expedition I bought in 02 because we rolled up too many miles on it and I did not want to loose all of its value. Even though I got a loaded Tahoe for 18K less than sticker it turns out that it was a big oops.

We have large National builders delaying ground breaking on new subdivisions because sales are so slow. Now we see promotions like $70k in options and a $10k vacation as incentives. Unfortunately a lot of young couples overspent and went with 5 year arms or interest only loans that are rolling over and they just can't afford them. In my neighborhodd of 116 homes we have about 35 for sale right now. The market is tough around here.

As you all know this will dramatically affect discretionary spending.

Tige had a choice in 09 with some aspects of their price increase. PCM vs. Marine Power, New tower and tooling and line changes related to it are just a couple that they choose to do to improve the line and gain market share. Other items like fiberglass, wire, vinyl, carpeting and any derivative from a petroleum base has gone way up so IMO 9% is not totally unreasonable.

In the Midwest used boats are selling but way below dealers asking price. As an example the FourWinns I Traded in last November finally sold in May.They sold it for less than they gave me on trade and it was in immaculate condition. The new owner has called me to find out how I cleaned it etc. It certainly did not loo like a 1994 boat.

My dealer has 7 Tiges on the lot and 4 are 2007's and rest are 2008's as of today. Late last week the site showed over a dozen Tiges so they are moving some boats. They are in an area where there is no Tige competition and mainly MC in the other inboards. Their major market is Southern Wisconsin lake property owners as well as Northern IL lake property owners so their prospects tend to be less concerned by pricing and 9% won't really affect them too much. Here is what the have now in inventory.

2007 20i Frost, Black & Graphite 5.7 L MPI GM Vortec Direct Drive (340 h.p.) $46,279
2008 Z1 Frost and Black 5.7 L MPI GM Vortec V-Drive (320 h.p.) $50,722
2007 22 Ve Frost and Pacific Blue 5.7 L MPI GM Vortec V-Drive (340 h.p.) $70,745
2007 22 Vé Frost, Red and Graphite 5.7 L MPI GM Vortec V-Drive (340 h.p.) $76,281
2007 RZ 2 Red and Graphite 5.7 L MPI GM Vortec V-Drive (340 h.p.) $86,225
2008 24 Vé Frost and Navy Blue 5.7 L MPI GM Vortec V-Drive (340 h.p.) $68,979
2008 RZ 4 Frost and Black 5.7 L MPI GM Vortec V-Drive (360 h.p.) $80,538

Between Tige, Azure, and Chaparral they have at least 30 boats in inventory with mostly 08's for Azure and Chaparral.

The prices are supposedly msrp but I don't think in the boat industry that a true MSRP exists. It is what the dealer wants to show so they show high MSRP and give discount from there and the buyer if they get a deep percentage of the dealers calculated MSRP feels that they got a good deal.

Last year on my 07 20V they showed a 57K MSRP without trailer. On the same boat with different color a Tige dealer in Northern Indianna had a 60K msrp on same boat also w/o trailer. It is all about playing with the numbers to make the buyer think they got a good deal.

[chpthril]

I don't see how boats can keep going up 5-10% every year. At this pace prices will be twice as much in 2017. Imagine paying $110,000 for a decent wakeboard boat. I don't see it happening. As for the auto industry, they aren't having any significant price increases going into 09, but will be offering more standard features like TPMS.

I am ok with these price increases because I am not in the market for a new boat and I think it helps hold the value of my 2007 but I think overall it hurts the industry more than it helps.

Everything on a boat is from man-made materials except the engine/drive-train. If it's a non-natural resource, it's made from petroleum.

Glass, resin, vinyl, polyester, etc........all these materials have gone up big time. Heck, copper is through the roof, about once a week we here about a church or something have there A/C unit ripped off by thieves just for the copper and other.

Look what the price of groceries have done over the last year. We can eat out for the same price as it cost to buy from the grocery store and cook at home, and someone else cleans up and does the dishes.

[Matt Garcia]

We can eat out for the same price as it cost to buy from the grocery store and cook at home, and someone else cleans up and does the dishes.

I am telling my wife that the next time we have dinner, lol!

Also $86,225 for an 07 RZ2, that seems ridiculously high?

[da.bell]

I am telling my wife that the next time we have dinner, lol!

Also $86,225 for an 07 RZ2, that seems ridiculously high?

That is very, very high for an RZ2 of that year also. Could be MSRP though.

[Guest]

I am telling my wife that the next time we have dinner, lol!

Also $86,225 for an 07 RZ2, that seems ridiculously high?

That is very, very high for an RZ2 of that year also. Could be MSRP though.

da.bell you win the cupie doll. I stated in my post that those where my dealers MSRP numbers.

From my post:
"The prices are supposedly msrp but I don't think in the boat industry that a true MSRP exists. It is what the dealer wants to show so they show high MSRP and give discount from there and the buyer if they get a deep percentage of the dealers calculated MSRP feels that they got a good deal."

[da.bell]

Ops, didn't read beyond the boat's and the prices. sry

[Guest]

No biggee. At whatever time I wrote that I was just a rambling on.

[balair]

so now are the PCM engines costing more than the MP ones?

[Jason B]

Actually 9% isn't that bad. Inflation this year is estimated to be abnormally high with some "expert" opinions in double digits. Normal is 4-6% inflation/year. In the long run (the time it takes businesses to adjust fixed costs NOT variable costs) 9% is probably pretty low--everything else is going to go up for Tige ; taxes, wages, medical insurance, unemployment insurance,electricity... everything. At the same time 99% of us will have our salaries adjusted for inflation at around a 2-5% raise (obviously self employed and certain unfortunate individuals won't get a raise per se). If you adjust that 9% increase by your raise then realistically the boat will cost you 4-7% more. IMHO, Tige REALLY stepped it up with these new models. The outward appearance seems to be very high quality, dare I say in the Malibu range? I will gladly pay a small (4-7%) premium to have a MUCH better product.

just my

[KonaKing]

What do you consider "kid"? I was just wondering age wise?
Considering the cost of raw materials I agree, 9% isn't that bad.

anyone under 30

[yearroundboarder]

I can attest to the increasing raw materials cost. Resin suppliers have been implementing price increases almost monthly. To add, marine manufacturers have seen price hikes on gel coat, catalyst, and certainly fiberglass. Globally, glass fibers are in short supply which is further complicated by the close of a large glass supplier in TX and reduced Chinese Glass coming into the states. The foreign exchange rates have made it more profitable for Chinese glass suppliers to ship product elsewhere ~ Europe and the Middle East. This tight supply is expected to continue through the end of the year which will ultimately drive prices up even more. I think 9% is reasonable for Tige' considering the downturn in their production and rising costs.

Many of the large boat builders have already had layoffs and/or closed their plants for weeks on end. Although some dealers have said they are selling the same numbers as last year, production run rates don't indicate the same.