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A sign of the times?
- Thread starter gregsnow
- Start date
Gary M
Well-Known Member
The one thing that G-W might not like about overhauling our older boats is that what they REALLY want is for us to buy new boats from them! By upgrading our old boats, they'd be competing against themselves somewhat and delaying the purchase of some new boats from those that upgrade their boats..... Why should I but a new Marlin when I can buy a mint condition, 2002 with new 4-strokes that has been overhauled at the factory from one of you guys?
Reality would probably dictate that they rachet down production to match current and forecast sales...... They can do that by eliminating a few slow selling models, or slow down production on the slow-pokes.... This also might mean a delay in any new/bigger models....
Reality would probably dictate that they rachet down production to match current and forecast sales...... They can do that by eliminating a few slow selling models, or slow down production on the slow-pokes.... This also might mean a delay in any new/bigger models....
BobP
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go fish
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Scout had the refurbishing idea a few years ago, but have not heard anything else about it recently. Are they still offering it? It makes a lot of sense, but the logistics can get in the way.
Here's a problem, since the workers pay has been cut (I doubt GW is paying workers for not working) they have to make do with less money. Since costs are skyrocketing how long can you get by with less money? If workers get too strapped, they will find work elsewhere where they can make more money. For the average schlep it's not a big loss but I'm sure there are valuable workers they don't want to loose.
deltarome
Well-Known Member
Sign of times
The answer is far more complicated than just considering boat builders profits.
Boats are a discretionary spending item for most of us. The cost is second only to most house prices.
The amount of money that most Americans have discretion over has drastically dwindled in the past few years.
I see no turn around for that situation as the economies of the world are having to digest the bursting bubble in realestate values, drop in most stock markets and increased costs for commodities, especially those related to much higher energy costs.
All these and more make us a LOT less wealthy, in reality and perception. Therefore, we are not going to go out and be able to sell our old boat, let alone purchase a bigger new one and wait until we sell our old one.
We have been thru these inflationary/recessionary times before and we will recover to some degree from this one.
Making boats in lower labor cost countries will help in the short run as the reduced labor costs will offset the higher cost for oil related materials.
Our economy is much more dependant on the cheap labor of other countries and this worked well when our balance of payments and budget deficits were not as far in the negative as they are presently.
We keep borrowing to pay our bills and someday, they will either want a whole lot higher interest rates or just stop accepting dollars in return.
When that happens, making boats in Mexico or China won't help us out.
In the meantime, enjoy what you have and stay closer to home on those fishing trips.
The answer is far more complicated than just considering boat builders profits.
Boats are a discretionary spending item for most of us. The cost is second only to most house prices.
The amount of money that most Americans have discretion over has drastically dwindled in the past few years.
I see no turn around for that situation as the economies of the world are having to digest the bursting bubble in realestate values, drop in most stock markets and increased costs for commodities, especially those related to much higher energy costs.
All these and more make us a LOT less wealthy, in reality and perception. Therefore, we are not going to go out and be able to sell our old boat, let alone purchase a bigger new one and wait until we sell our old one.
We have been thru these inflationary/recessionary times before and we will recover to some degree from this one.
Making boats in lower labor cost countries will help in the short run as the reduced labor costs will offset the higher cost for oil related materials.
Our economy is much more dependant on the cheap labor of other countries and this worked well when our balance of payments and budget deficits were not as far in the negative as they are presently.
We keep borrowing to pay our bills and someday, they will either want a whole lot higher interest rates or just stop accepting dollars in return.
When that happens, making boats in Mexico or China won't help us out.
In the meantime, enjoy what you have and stay closer to home on those fishing trips.
Re: Sign of times
I concur. :?
deltarome said:The answer is far more complicated than just considering boat builders profits.
Boats are a discretionary spending item for most of us. The cost is second only to most house prices.
The amount of money that most Americans have discretion over has drastically dwindled in the past few years.
I see no turn around for that situation as the economies of the world are having to digest the bursting bubble in realestate values, drop in most stock markets and increased costs for commodities, especially those related to much higher energy costs.
All these and more make us a LOT less wealthy, in reality and perception. Therefore, we are not going to go out and be able to sell our old boat, let alone purchase a bigger new one and wait until we sell our old one.
We have been thru these inflationary/recessionary times before and we will recover to some degree from this one.
Making boats in lower labor cost countries will help in the short run as the reduced labor costs will offset the higher cost for oil related materials.
Our economy is much more dependant on the cheap labor of other countries and this worked well when our balance of payments and budget deficits were not as far in the negative as they are presently.
We keep borrowing to pay our bills and someday, they will either want a whole lot higher interest rates or just stop accepting dollars in return.
When that happens, making boats in Mexico or China won't help us out.
In the meantime, enjoy what you have and stay closer to home on those fishing trips.
I concur. :?
BobP said:Not unusual in the manufacturing business such moves, including furloghs or long holidays like two weeks at Christmas.
With no unions down there, should however still be based on seniority, & flexibilty of individual's skill base. And ask for volunteers first, many times the older guys want to scale back days worked instead of full retirement. Me too one day!
I suggested years ago that Grady open a factory refurbishment/reconditioning business line to take back old Gradys and restore them to OEM level, including evaluation, rotted wood replacement, new wring, cosmetic repairs, upgrades to customer specs, etc,. Those who choose to pass on new models in favor of keeping their older ones longer can bring in such a business and more so during these times, when the opposite occurs as new boat production backs off. They can even base prices on a fixed priced menu by model, with upgrades priced individually. Then have their dealers push, during these times, as an alternative for sticker shock and more so the uncertain times.
Too bad.
The factory setting, equipment, supplies, worker skills, can make it very attractive in price, and something diferent for the factory guys - not the usual widget production line mundane work. Each old boat coming in is going to be different.
A "Grady factory reconditioned" re-labeled used boat will be worth more on the market too.
Too bad.
The only problem is that they would be competing against THEMSELVES!
And why on earth would they have a business that exposes potential past
production flaws etc?
gwwannabe
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I own a 40' American Eagle diesel motor home and have experienced the business model where the factory operates a service center that performs regular and custom service on any year and model American coach. Anything the factory or service center put on the coach can be taken off and repaired or replaced.
When I first heard about this I wondered why they would compete against themselves but soon came to realize that customer loyalty is the goal and payoff. Because of the factory service and support, American Coach claims the highest repeat sale percentage in the industry. They also have a high percentage of people buying their first American Coach brand new because of the word of mouth about the service and support.
To be sure, it takes a very progressive management team to see beyond the obvious costs of this business model and it also requires a high margin on the new products. But once operating it can be a profit center and with quality products, a great marketing tool. Other high end motor home manufacturers operate service centers, too, such as Monoco, Marathon, and Foretravel.
Startup costs are huge as a separate facility is necessary along with tools and equipment. Sharing the production facilities would be a scheduling nightmare.
I've had my coach back to the service center 3 times and would haul my boat to a GW service center in a heartbeat. I'm learning it's as hard finding good boat service as it is to find good motorhome service. My 2 cents worth...
Gary 89 Overnighter
When I first heard about this I wondered why they would compete against themselves but soon came to realize that customer loyalty is the goal and payoff. Because of the factory service and support, American Coach claims the highest repeat sale percentage in the industry. They also have a high percentage of people buying their first American Coach brand new because of the word of mouth about the service and support.
To be sure, it takes a very progressive management team to see beyond the obvious costs of this business model and it also requires a high margin on the new products. But once operating it can be a profit center and with quality products, a great marketing tool. Other high end motor home manufacturers operate service centers, too, such as Monoco, Marathon, and Foretravel.
Startup costs are huge as a separate facility is necessary along with tools and equipment. Sharing the production facilities would be a scheduling nightmare.
I've had my coach back to the service center 3 times and would haul my boat to a GW service center in a heartbeat. I'm learning it's as hard finding good boat service as it is to find good motorhome service. My 2 cents worth...
Gary 89 Overnighter
BobP
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Mronzo, the production flaws are well known, no secrets to hide, rotted wood is rotted wood, it can't be hidden and easy to determine who screwed up.
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As far as going to China or Mexico, no reason to, all they have to do is build boats with robots like the car factories right here do.
I wished you guys saw the Hist channel special on Hyndas (spelling?) or the one on Lamborginis (more with spelling?) or one of those other italian car companies.
Robots build high quality cars cheap right in the USA, Robots work 24/7 and don't screw up, 1 mil accuracy.
If Ford was still building cars like they did in the 70's, they would still be (Found On Road Dead) problems and cost many times more to buy on top of it .
Grady is still building boats like they did in the 70's, right?
Why?
Grady has become a high end builder while you guys were asleep at the wheel, the high end "well heeled" folk is the last group effected by economic woes - better for Grady.
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As far as going to China or Mexico, no reason to, all they have to do is build boats with robots like the car factories right here do.
I wished you guys saw the Hist channel special on Hyndas (spelling?) or the one on Lamborginis (more with spelling?) or one of those other italian car companies.
Robots build high quality cars cheap right in the USA, Robots work 24/7 and don't screw up, 1 mil accuracy.
If Ford was still building cars like they did in the 70's, they would still be (Found On Road Dead) problems and cost many times more to buy on top of it .
Grady is still building boats like they did in the 70's, right?
Why?
Grady has become a high end builder while you guys were asleep at the wheel, the high end "well heeled" folk is the last group effected by economic woes - better for Grady.