Marine Max Problems, anyone else?........

I had the unfortunate experience of dealing with Surfside on LI earlier this summer. I was looking for dockspace for a very clean 87 30’ Sundancer that I was lucky enough to buy this summer. I spoke with the Dockmaster in person and he confirmed that they had availability. He wanted to know the condition of the boat and asked to see pictures first before committing to renting me a slip. He explained that his policy is that he doesn’t want any crappy boats in his marina and that if he took a deposit from me he would return it if the boat wasn’t up to his standards. I explained to him that the previous owner had purchased the boat from Surfside in April of 2003 and that their reputation was that they only sell nice boats. He dismissed this and told me “that’s not true, we sell a lot of $hitty used boats here.
Needless to say, I never went back. The lady I bought the boat from was surprised to hear his response, especially since she had bought three boats from them over the years.
The funny thing is that I bought this used boat so that my wife who has never been in to boating could give it a try for a while, and if she likes it we intend to move up to something newer and larger. Rest assured that I won’t be purchasing my next boat from them.
 
JVM,

Good for you, and I hear you loud and clear.
"I explained to him that the previous owner had purchased the boat from Surfside in April of 2003 and that their reputation was that they only sell nice boats. He dismissed this and told me “that’s not true, we sell a lot of $hitty used boats here." All I can say to that is WOW, obviously the guy you were talking to is a a-ss.

Your post, as written would be a letter I would send to Surfside, and Marine Max. IMHO it is non-bias and simply states the facts.

FYI, I own a slip across from Surfside(Anchorage Yacht Club) that is for rent (the office is looking for me to have them rent it again for next season) If your intrested it email me soon, before they rent it(next week or so). We allow shi-ty boats :). This is a full service marina with swimming pool, tennis courts, and a playground for kids. The marina has bathroom, showers and 24/7 security. The mechanics on site are Mercury certified and are a great company MRD. The slip also includes free winter storage.

Best thing about this place is there are no snobs, just people that like to boat.

Walter
 
Thanks Walter! I appreciate it, we were actually thinking about the Anchorage but there wasn't anything available at the time so we wound up with a slip further up the canal at Karl Tank.
It is a working Boatyard but it is immaculate, the owner is incredibly helpful and friendly, it's well protected, and the price was right so we are probably going to stay there next season too.
I'll drop you a line if anything changes though.
John
 
I use the Sarasota Marine Max and have found them to be a little more expensive than I think is fair and they do generally acceptable work. I have had several things "fixed" that I had to have "re-fixed" after I got my boat back and the boat is always dirty when I pick it up.

I've learned to deal with the delays in having repairs done by allowing twice as long as I would expect the work to actually take. Once I realized it would always take more time for repairs, I was able to better plan as to when I should drop off my boat and I was less stressed about the pick up date.

(Actually, I thought I was a happy Marine Max customer until I just reread my post. I guess I am more of a lukewarm Marine Max customer).
 
My local (Pompano) MarineMax store has always done a pretty good job on my 54'. John Martone is the service mgr. and a real descent fellow. However, their "yacht" facility "Associated Marine Technologies" in Dania was HORRENDOUS.
#1. My boat was filthy with permanent stains on the cockpit seating when returned to me.
#2. They installed a new salon refrigerator ($3,200) and didn't attach the water feed to the icemaker with a clip. So this weekend (9/1/07) in Grand Bahama it pumped several gallons of water into my rear stateroom and the main salon.
#3. They charged almost $1,000 to remove and reinstall the salon entry door. It failed within 1 week.
#4. They painted the bottom and the bow thruster area. The paint was so thick on the bow thruster blades that it glued itself to the surrounding hull. I noticed before launching and they cut away the excess paint. Had I not visited prior to launch, it would have fried my bow thruster.
#5. They were to apply Prop Speed to all running gear, including trim tabs. They did the bottom of the tabs, not the top. The project coordinator said they would before launching. They didn't.......

My anger is not from the price of the service, I knew what it would cost going in. My anger is over the absolute incompetence and just not giving a hoot attitude of the project coordinator and the service workers.

Again, the Pompano Store does fine work, as does their Miami facility that Bruce runs. Another good guy who truly cares. I only wish their "yacht' Facility would take a lesson.

Steve David
54' DA GRATEFUL
 
I have my boat brokered with Marine Max Catawba Island and have not heard one woed from them since i signed the contract. I have requested information from them on various subjects regarding the boat and have never had a response.
 
steve, can u pm me . looking at your type of boat and wish to ask some ?? tks john
 
Wow...nice to know I am not the only one.
I'm in WWIII with the SR dealer in Charleston.
One of MANY MANY MANY problems is they also damaged my pewter hull and the SS SR plate on the side when returning my new 310 from haul out for the repair of the 4th leak in the bilge!
But I got lots of proof...Next boat will be pre-owned for sure.
 
If you think things have been bad at MM, just wait. While you are waiting read what Tom Kelly released on Sunday 9/30. He is the editor of OTC Speculator. www.otcspeculator.com I wonder if the salaried and hourly employees 401(K) money is locked into MarineMax stock!
 
More. If Kelly's prognostications are near right the customer can expect the first wave of staff reductions will be voluntary; including the best of the line management and service people. They'll be off to grab the jobs available at the Toyota dealership or ----. That may already have occurred. Next the pressure will increase to improve the monthly profit and loss results. It can't be done on the revenue line, soooo cut expenses by further cutting staff. The next move would be to scrub up the balance sheet and put MM on the auction block. But it isn't an insurance company or department store with lots of potential buyers. It will be interesting to watch.
Practically speaking, if they have been providing generally poor service all along I don't think I would want much to do with them now or in the near term.
 
Current inventory makes up 500 of the 600 Mill in assets. HMMM. Does that mean that on 1 January 2008 the current inventory makes up 250 of the 350 Mill in current assets. Bottom line is 07's are literally last years boats then. I would normally not wish anybody ill will, however I must admit I felt a slight grin come onto my face after reading that article.
 
Inventory values are a serious bal. sheet problem. Quotes are down a tad last I saw.
 
A couple things.

1. An article early this year from MM stated this would be their worst year. So I doubt MM are surprised by the lack of sales. Now that the numbers are coming in we can see how bad it is. AND the markets are at all time highs ???? Dow etc. Citigroup is down 60% in 3rd qtr from last years 3rd….WOW ! 60 %

2. Manufactures will no doubt try to give incentives to move inventory and help the dealers. I think it was CNBC that said if the Euro wasn’t so strong against the dollar that it would be even worse for boat manufactures. Stronger sales overseas ( I can’t provide the source ) are helping keep them afloat.

Great post Bliss. Looks like a short call would be a good bet.

Mark
 
This is just my observation from my local dealer. Back in the day with the old owners there was always a deal to be made. Product was moved my not have been at a great mark up but boats were always moved. When searay needed to unload a certain # of boat for what ever reason this was usually the go to dealer that could get it done for them. Now under marine max... The #'s the number u can turn blue and there is little to no wiggle room. Its a shame the way long time customers are treated. Then add on the service dept issues and there driving customers away in droves. ITs a shame how things have changed. Searay has alot at stake with marine max. ITs kinda like having all ur eggs in one basket. ( tail wagging the dog etc ) People are buying boats in other states shipping them ( new boats and used ) and its still a better deal then marine max's Value price. Im just stating the obvious ... Maybe one day some marine max suit will get back to selling boats the old fashioned way ... I guess we can all dream...

Rob
 
Rob.......it boils down to...we all got kicked off the " wheel of fortune " . The days of buying a boat from SS3.....keep it for a year or two.....trade it back in for an upgrade at 85% (+/-) of what you paid ..............are LONG gone.

With M/M the party is over !!!
 
This whole thing has an Enron smell to it.

IMHO, Sea Ray has nothing at stake. Brunswick does. IF Sea Ray goes down, one of their more recognized brands ceases to exist. The reputation of Brunswick goes down (if that is possible). I see from their www they own Hatt. Brunswick tried this once before and almost destroyed the reputation of one of the finest fishing machines in the world. I can't recall if Hatt staved them off or not. It would be interesting to see what the quality of a new Hatteras is now as compared to say 15 years ago.

IIRC, Brunswick about killed Harley Davidson and look where Harley is today after taking the company back to its roots. Sea Ray and others under the Brunswick umbrella could take some lessons.
 
It was AMF that almost killed Harley Davidson (in 1974ish )...............the bowling ball company.
 
Kida,
IMHO, Searay aint going no where, and Brunswick is very diverse so no problem there. If Marine Max can't fulfill their obligation to Brunswick, well then I guess they will unlock that product to other dealers that can move it at less inflated costs to the consumer.

My point is this, if Marine Max can't weather the storm , there is no doubt the will have some problems. Brunswick may take a hit if Marine Max fails to come through, but being that Brunswick is more diverse (the marine max line of Brunswick is only a handful of the boats they build, plus they own merc, kohler and a number of other products that appear in other manufactures boats)they are better postioned to weather the storm and survive.

Will Bruswicks stock get beaten up? You bet it will, but when all shakes out they will be fine, can't say the same for Marine Max.

Also, If Brunswick does not get the orders from Marine Max to commit to the 2008 inventory and If Marine Max makes up a good chunk of Searay's and Meridians they sell, Brunswick can cut their losses quickly by closing down plants and laying off workers (consolidate). Marine Max is all over the place and their fixed costs (overhead) will be a little more difficult to consolidate with out loosing precence in the market.

I could be wrong but just my 2C

Walter
 
Bliss ,

These are some of the numbers they predicted earlier this year. Looks like they're on the lower side of the numbers forecasted but within them. I don't think the bonus program will pay out well for those counting on them at year end.

April 25, 2007
What management says:
Just two weeks ago, MarineMax came out with its earnings guidance for the rest of this fiscal year. It was, if you'll forgive the expression, a shipwreck. Previously expecting to earn $1.40 to $1.50 per share, the retailer now expects to deliver just $0.45 to $0.65. Also, MarineMax is looking for same- store sales to be flat or, at best, in the low single digits.

Full read here http://www.fool.com/investing/small-cap/2007/04/25/foolish-forecast-marinemax-to-sink-or-swim.aspx

Walter,

Jim Cramer believes Brunswick is undervalued, recession-proof and poised to deliver +30% in the next year, regardless of the state of the economy. Although he is not god thats a big statement to make about any companys stock.

Seems you guys out on the island are smarter than you look :)
 
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