Brunwick to sell sea ray

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Brunwick to sell sea ray

Postby Kikaboo » Wed Dec 06, 2017 10:06 am

Does any one have any thoughts/opinion on what was just announced? Brunswick to sell Sea Ray.
Do you think this indicates anything for the boating industry overall?
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Re: Brunwick to sell sea ray

Postby Batchski » Wed Dec 06, 2017 1:01 pm

It definitely is not a good sign of the overall health of the industry. They obviously weren't returning the margins Brunswick wanted, and it's especially interesting to see how they specifically targeted stern drive models as the issue. The Sea Ray dealers here really sell the completely vertical concept of Brunswick owning the propulsion (Mercury) and the electronics (Raymarine). So that's no longer relevant for them! Based on my own experiences, I can see how one can afford to buy a boat, but the process of maintenance and repair on stern drives and pod drives gets insane to manage. Perhaps that has hurt them on growth, which has thus squeezed margins since they are set up for pretty high volume comparatively.
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Re: Brunwick to sell sea ray

Postby xixp » Wed Dec 06, 2017 5:33 pm

My two cents is that SR focused too much on updating the higher end of their line up (where supposedly big $$ are) but they disregarded the sub 40 line of boats until recently.
Above 40 ft competition is brutal with many European manufacturers and people with deep pockets arent so concerned about the advantage of a local manufacturer.

I store my boat at a Regal dealer and they have been bringing the Grand Coupe 42 since earlier this year back and forth and it hasnt been sold yet but in contrast ive seen more than 10 SC35 and 32 Express that came wrapped from the factory and were sold already along this year...
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Re: Brunwick to sell sea ray

Postby Chris_in_Texas » Wed Dec 06, 2017 10:51 pm

Batchski wrote:It definitely is not a good sign of the overall health of the industry. They obviously weren't returning the margins Brunswick wanted, and it's especially interesting to see how they specifically targeted stern drive models as the issue. The Sea Ray dealers here really sell the completely vertical concept of Brunswick owning the propulsion (Mercury) and the electronics (Raymarine). So that's no longer relevant for them! Based on my own experiences, I can see how one can afford to buy a boat, but the process of maintenance and repair on stern drives and pod drives gets insane to manage. Perhaps that has hurt them on growth, which has thus squeezed margins since they are set up for pretty high volume comparatively.



Flir owns Raymarine. They are brand loyal for sure, but they aren't part of Brunswick. Just like Regal used Raymarine exclusively for quite some time and then switched to Garmin.
Thanks, Chris

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Re: Brunwick to sell sea ray

Postby Kikaboo » Thu Dec 07, 2017 7:12 am

xixp wrote:My two cents is that SR focused too much on updating the higher end of their line up (where supposedly big $$ are) but they disregarded the sub 40 line of boats until recently.
Above 40 ft competition is brutal with many European manufacturers and people with deep pockets arent so concerned about the advantage of a local manufacturer.

I store my boat at a Regal dealer and they have been bringing the Grand Coupe 42 since earlier this year back and forth and it hasnt been sold yet but in contrast ive seen more than 10 SC35 and 32 Express that came wrapped from the factory and were sold already along this year...



When the 42SC originally came out, I was not impressed. However somehow it's really grown on me. If I were to upgrade to a 40-42 foot range, it would be on my top 3 for sure. The issue for me is the price 700-800K range. Out of my price range for sure. Even if I were to wait (n) years until that boat depreciated to 50% of its selling price it would still be very expensive (to me).
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Re: Brunwick to sell sea ray

Postby Kikaboo » Thu Dec 07, 2017 7:22 am

I have nothing against Sea Ray and it's one of the best known brands out there but ever since I started looking at boat (about 2011) the Sea Rays seemed a bit behind the others in terms materials and finish. Plus there always seemed to be price premium on Sea Ray due to the brand name and what I was always told would be a higher resale value. At every boat show since 2011 I would always look at Sea Ray wanting to like them but never really did until the last few years. In my opinion it seemed to me they stepped up their game over the last few years. Prices in my opinion still seemed to be very high, just going by retail numbers.

If I recently bought a new Sea Ray I would be annoyed that they seemed to be losing money, laid off workers and now being sold. I suppose someone will buy them, they may scale back and stick to what sells or they can make a profit from. I would like to see Sea Ray do well as it offer more competition in the industry.
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Re: Brunwick to sell sea ray

Postby ChesapeakeLover » Thu Dec 07, 2017 9:38 pm

This sale of Sea Ray is a symptom of the issues with the Boating Industry.
1) Price of new boats have sky rocketed. 30ft boat since 2004 has averaged a 20% increase in List price per year. Now, what once was a 'do-able' boat for a family of 3 or 4 is simply not affordable. That boat has gone from $90 - $100k to $250k +
2) Price of new boats goes up - people look more to used boats. Soon, our used boats will actually increase in value due to inventory. Supply and Demand!
3) Outboards, Outboards, Outboards.... Stern drives are going away. I fear for brands like Chapparal, Monterey, and to some degree Regal. The outboard engine has caught the buyers attention. Personally, I think its ugly and in the way of everything, but the public is speaking. Look at Yanmar - introducing a Diesel Outboard! #GameChanger. Boat builders (IMHO) should focus on Inboards, Outboards or Pods. Problem with pods is maintenance expense!

The 26ft - 35Ft 'pocket cruiser' class of boating is all but gone. That was Sea Ray's bread and butter. But don't look now... The attack of Pontoons is upon us. If Regal and others are smart, they'd introduce a Pontoon boat or buy a Pontoon Company.

The boating industry is going through a wholesale change. Demographics and Economics are pushing it (i.e. Baby Boomers leaving boating, Millennials are an odd group of kids....stuff like that)

Where it goes from here is scary.... I'd love to look at a new boat one day. I have a great boat in a 3880. Love it! Bought it used for $130k. If I wanted to upgrade to a new say 45ft boat....I'm looking at 800 - 1m. Stupid!

It's sad really - I grew up boating and I am so fortunate to be able to give my kids a similar experience on the water. I hope the industry does something different so my kids can continue this passion that I see is being instilled in them.
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