Re: Kansas City Boat Show.
Funny, I thought the same for the chicago show. Yesterday I met with with one of the exhibitors who claims the boat market is changing drasticly. High fuel prices and the econemy result in people buying smaller boats. not to mention some dealers have not sold all of the 2008 inventory yet an it is 2011
Yes, this seems to be the future trend. I reminded the people at Cobalt about this in an email. I reminded them that back in the early eighties they came out with their economical line of boats known as the Cobalt Specials, starting with my boat, the CS7. I stated that today's issues are similar yet more drastic. The smart money in the boat builder's business, if they so decide to stay in business, is to diversify. I suggested that Cobalt should look at the amount of used boats that will always be kept by loyal owners, not just Cobalts either, and the market for replacement parts, especially now that so many boat companies are closing their doors, is a viable market. We all know that many parts overlap the boat lines, and those that don't can still be made and sold at a profit based on a survey of boat retention. I suggested they think of a boat owner that would not wish to buy new again due to the economy, the job market, or his abilty to cover the depreciation with the glut of used boats already out there. Keep in mind the babyboomers are being followed by a smaller generation, and therefore supply and demand kicks in. Instead, streamline your product line and expect less sales and a slower market, but still afford to stay in business by selling quality parts. I am talking replacement seats, hardware, accessories, and even powertrain parts, since many are no longer available. You don't think it wise to own an OMC designed boat, but they will continue to be on the water for the next twenty years, due to the used part market. The truth is, major boat manufacturers will need to reaccess their ability to continue as things get tougher and tougher in the industry, but one smart company is going to wake up and diversify.