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Brunswick Breaks $10,000 Price Barrier
|Author||Topic: Brunswick Breaks $10,000 Price Barrier|
posted 04-30-2002 08:32 AM ET (US)
I thought this Press Release might be of interest to readers. Bayliner is announcing a new 17-foot boat package with 135-HP MerCruiser and galvanized trailer for under $10,000. Details and hype below:
Bayliner Reinvents Affordable Family Boating
-- Affordable boating is back! The new Bayliner(R) 175 boat, motor and trailer package for $9,995!
US Marine, an operating unit of Brunswick Corporation (NYSE: BC), announced today the introduction of the new Bayliner 175, expressly designed and developed for today's boating family. "For more than 45 years, Bayliner has represented affordable family fun on the water. In fact, Bayliner has introduced more American families to the joys of boating and family fun on the water than any other manufacturer," said William J. Barrington, president of US Marine. "Now, with our new Bayliner 175, at a package price of $9,995, we are again re-defining affordable family boating."
How is Bayliner doing it?
According to Barrington, Bayliner is able to offer the new 175 for $9,995 because it has developed and implemented the PRO System of boat development and manufacturing. The PRO (Process Resource Optimization) System(TM), exclusive to the Brunswick Boat Group, consists of three key elements: the first is global manufacturing; the second is global sourcing of high-quality parts and components; and the third is institutionalizing a world-class quality assurance system.
"US Marine currently builds boats in Brazil and Bulgaria, as well as in numerous plants in the United States. In conjunction with the Brunswick Boat Group, we expanded our global manufacturing capability by putting together a completely new manufacturing facility in Reynosa, Mexico," Barrington explained. "Our manufacturing and quality engineers have designed this new plant for optimum flow, maximizing manufacturing efficiencies. In addition, we built into the manufacturing process a quality system that includes a test tank at the end of the production line." Each and every Bayliner 175 will be produced and thoroughly tested in this new facility, and will be available at dealerships beginning in July.
Dustan E. McCoy, president of the Brunswick Boat Group, says that a great deal of planning went into choosing Reynosa, Mexico as the site for this new facility. "Brunswick is a global company -- manufacturing or assembling boats in more than a dozen countries around the world," said McCoy. "We know that to deliver the best cost and highest quality, a manufacturing facility must be located in an area that has a great workforce and a great supplier base. Through extensive research, we found that Reynosa had exactly what we sought."
Global Sourcing a Key to Right Price and Quality
"Global sourcing of high-quality parts and components is also a key element to delivering on best cost and highest quality," added McCoy. "More than 12 months ago we began assembling a global sourcing team that is second to none in the boat-building industry. Each team member has extensive experience in sourcing quality parts from around the world. They have all been trained in the Six Sigma quality assurance process (a cornerstone to many world-class quality organizations), and have been instrumental in the implementation of PPAP (production part approval process) into our global sourcing efforts." PPAP is a process that helps ensure that the supplier of the part or component fully understands the customers' engineering criteria, design methodology, and specification requirements, and that such requirements are met on an ongoing basis. McCoy said, "Our team has put a system in place that will provide only the very best quality parts and components for the best cost possible."
Bayliner believes that the new 175 will help grow the boating industry. Dave Taylor, senior vice president, sales and marketing for US Marine, said the new 175 has exactly what today's boating families are looking for -- roominess, versatility, quality, and performance.
"Through extensive consumer research, we know that today's boating family is active, energetic, passionate about the water and seeking new ways to enjoy family fun. We also know that they are practical and looking for the most for their hard-earned money. The Bayliner 175 was designed with these families in mind," Taylor explained.
By breaking the $10,000 price barrier, Bayliner believes many people who were looking for a used boat, can now enjoy a new boat.
"According to research, the new Bayliner 175 is priced between the calculated average prices of used 17- and 18-foot runabouts," said Taylor. "We believe that by offering a brand new boat, with full warranty coverage (including a limited lifetime hull warranty), through a dedicated dealer support network -- all for the same price as a used boat -- it will compel many potential used-boat buyers to migrate to the new Bayliner 175."
The new Bayliner 175 is a full-featured, fiberglass sport boat that comes complete with a 3.0 liter, 135-horsepower Mercury(R) MerCruiser(R) engine and a trailer (consumers will have a choice between having their trailer painted or galvanized -- at no additional cost). The Bayliner 175 features a full windshield, an easy-to-view dash panel, excellent storage for skis, wakeboards and other equipment, room for seven passengers, and plenty of power to pull skiers and wakeboarders at speeds in excess of 40 mph. The Bayliner 175 has been designed for accessibility, minimum preparation and low maintenance.
Dealers Sing Praises of Bayliner 175
A number of Bayliner dealers recently previewed the new 175 and, according to Taylor, are very excited. For example, John White of Sterling Marine in Denver, Colo., said, "The new 175 is a great running boat. I was very impressed with the layout, roominess and the quality of construction of the product. Bayliner has really hit a home run on this new boat; you'll be seeing them on lots of lakes in Colorado this summer. We ran the boat with five big guys along for the ride, and the boat performed exceptionally."
Bob Steinway of Olympic Boat Centers in Seattle, Wash., said, "By using all of Bayliner's resources, they are able to provide a quality boat, motor and trailer package that is easy for a family to own at an amazing price."
Warren Moulis from Fox Lake Harbor Marine near Chicago, Ill., added, "At $9,995 the boat is a winner. The performance is matched by the quality. The total package is a winner. The new 175 from Bayliner will attract used-boat buyers and take people off the fence who thought they could not afford a boat and allow them to experience the fun that Bayliner and boating provide."
Bayliner is making boating affordable -- again. "For the past decade, there have been many American families that would have loved to enjoy the boating lifestyle, but who just couldn't because of the cost," said Barrington. "Now, through the implementation of the PRO System, that has all changed."
$9,995. Changed indeed. Bayliner is back.
Bayliner Boats are manufactured by US Marine, an operating unit of Brunswick Corporation. Headquartered in Lake Forest, Ill., Brunswick Corporation is a manufacturer and marketer of leading consumer brands, including Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard engines; Sea Ray, Bayliner, Maxum, Hatteras and Sealine pleasure boats; Baja high-performance boats; Boston Whaler and Trophy offshore fishing boats; Princecraft fishing, deck and pontoon boats; Life Fitness, Hammer Strength and ParaBody fitness equipment; Brunswick bowling centers, equipment and consumer products; and Brunswick billiards tables.
posted 04-30-2002 08:41 AM ET (US)
How good can the boat be when they charge almost that that much for a 90HP+ outboard? Regards, Jay
posted 04-30-2002 08:41 AM ET (US)
By the way, before anyone tees off on the "made in Mexico" approach, I have to point out that General Motors has a GMC Truck Assembly plant in Mexico producing their top-of-the-line GMC SUBURBAN SUV that sells for upwards of $45,000.
posted 04-30-2002 08:48 AM ET (US)
The focus on increasing sales (unit) volume is interesting, too. In 1988 there were abou 350,000 boats sold. In 1998 there were only about 250,000 boats sold. This is a huge drop in the number of people in the boating market.
A $10K new boat with a warranty will get many people into boating. A new boat can be financed more easily than a used boat. And since practically everyone I know under 30-years old leases a small 4-WD SUV (to drive to work on paved expressways), they'll be able to hitch that boat up and go boating!
After they get people interested in boating again, then they can move them up to bigger and more expensive boats.
posted 04-30-2002 10:04 AM ET (US)
<After they get people interested in boating again, then they can move them up to bigger and more expensive boats. >
Yeah, especially after they experience the "Bayliner experience"! Anyone wanna buy a slightly used Bayliner?
posted 04-30-2002 10:33 AM ET (US)
I spent 6 years running a Bayliner dealership in Alaska. True they are not Whaler quality but they are not as bad as most claim. You have to give them credit for building affordable boats that get people started in boating. They may or may not buy a Bayliner as their next boat but they are a boater now and will buy something.
The major problems I have seen with boats of any brand is the dealership rather than the manufacturing. If a problem isn't taken care of by the dealer in a prompt manner the owner gets mad and things start going crazy from there.
I have no problem with a quality question related to Mexican production. I do have a problem with the fact that Bayliner closed several U.S. plants and then opened one across the border.
Enough ranting, it's time to go to work.
posted 04-30-2002 11:29 AM ET (US)
Dick, I find your comments very interesting.
About 2 years ago, I purchased a new 2000 Bayliner Trophy 1903 ( on the way to buy a new Montauk). The boat package was quite a deal, boat(center consule,with many extras), 125 HP Merc SW) and galv. trailer for $14,500. The boat had many gel coat flaws ($2,600). This was covered under warranty by a local fiberglass shop.
It made me wonder how Bayliner made any money because the F/G shop said they fixed Bayliners almost every day.
We sold the boat after one trip out for 2 reasons, quality and under perforemance. Regards, Jay
posted 04-30-2002 11:31 AM ET (US)
Congratulations, Bayliner, on being the first to offer the Yugo Seafarer.
posted 04-30-2002 01:35 PM ET (US)
This is aimed dead on at me and it is a great ploy. Less than a year ago I was shopping for a boat, and a new Bayliner 170 (or something like that) was one of the boats I looked at. Sale price was less than $10k for a new boat. That has a real attraction. Spouse in particular wanted a new boat, rather than someone else's 'used problems'.
Its was looking at 'slightly used' Bayliners that convinced me to get a used Montauk instead. A five year old Bayliner looks sort of depressing.
Now the spousal unit thinks I should call the Montauk "Buffy" because that's all I've been doing the last few weekends.
posted 04-30-2002 04:43 PM ET (US)
I feel Mexico is only going to steal more and more of our production from us, they have a Hershey plant just to make Hershey Kisses, they make our Levis Jeans now, what else will it be?? Carhardt clothing is slowly turning over to Mexican and Foreign made production,OshKosh clothing, remember that USA company, it just keeps getting worse, and they keep talking about letting Mexican Truckers deliver accross the border instead of transfering it to an American Driver, this is going to be real truble for the USA worker, you have to be carefull useing the word American anymore, just like something "Made in America" very tricky language, it could mean "Made in america(USA) or "Made in America(mexico) or Made in America(Canada), what companies do is hide behind the "Made in America" Tag to make people think it is made in the USA, which in some cases it isn`t, it is actually "Made in North America" taking on USA,Canada,and Mexico. These Corporations are sneaky and they could care less about the USA worker, only about the bottom line and I feel that will be our undoing. Jack.
posted 04-30-2002 05:59 PM ET (US)
Mercruiser makes maybe the best I/O's in the business. The only thing is I'm no huge Bayliner fan.
Hows about a 17 Whaler with the Mercrusier I/O for under $10K.
Now that would be a deal!
posted 04-30-2002 06:14 PM ET (US)
I'm with Taylor, give me a used BW for $10k, and atleast I'll have something to show for it in a few years. My 17 year old BW still looks like a 2 year old one would if they had made a 15' Sport in 2000! I guess I'm fortunate to have a wife who agrees to let me pay an extra few $ for a product that we intend to have for some time. My 11 year old garage kept BW was the first big purchase I made after I graduated from college, then a year later a 7 year old VW (German assembly, not Puebla Mexico), then a year after that my 36 year old house (with ocean access).
posted 04-30-2002 07:28 PM ET (US)
A Bayliner is just a Sea Ray with even poorer fit and finish, if that's possible.
posted 04-30-2002 07:51 PM ET (US)
Ok, time to be super politically incorrect, but as for U.S. companies going abroad to find labor so they can make more profit I can only wonder if during the time of the Egyptian Empire, the Pharaoh had asked why the grunt work was being done by slaves and not by Egyptians. This reminds me of a book I read while in college, called 'Power Shift', forgot the mane of the author, but it basically spells out that throughout history, power has been shifting from those who had Strength, to those who had money, to those who had information. We are shifting as a nation from Blue collar to White collar, and I don't see this as necessarily bad, when you look at it from a national point of view. When you look at particular cases, such as your neighbor that got laid off, or the guy who's machine shop can't compete anymore, it is sad, but so are a lot of thing in this world. It is evolution. As for quality control, workers are workers, and the control of quality is measured by how much control there is over the workers.
posted 04-30-2002 08:07 PM ET (US)
"The new Bayliner 175 is a full-featured, fiberglass sport boat that comes complete with a 3.0 liter, 135-horsepower Mercury(R) MerCruiser(R) engine and a trailer (consumers will have a choice between having their trailer painted or galvanized -- at no additional cost). The Bayliner 175 features a full windshield, an easy-to-view dash panel, excellent storage for skis, wakeboards and other equipment, room for seven passengers, and plenty of power to pull skiers and wakeboarders at speeds in excess of 40 mph. The Bayliner 175 has been designed for accessibility, minimum preparation and low maintenance."
This is the most interesting paragraph in the article to me, besides a free boat with a galvanized trailer and 135 HP Mercury outboard.
I believe that most of us in boating started on small slower boats, learning how to handle a boat, lines and learning the rules of the road. Many of us have taken boating safety classes even though they were not required just for the refreshment of knowledge on the aspect of safe boating.
It used to be a person would research and look at new and used boats to fill personal requirements in their boating needs. That boating and being on the water was something they wanted, and desired.
Now we may be looking at a totally different personality, buying a boat on compulsion because it is too much of an attractive deal to pass up and sounds like a good idea. These boats will be like puppies and kittens bought at Christmas time.
Imagine this Bayliner package as the equivalent of a jet ski. With speeds in excess of 40 mph and a price tag that will draw any inexperienced boater, ages 18 to 55, in for an easy sell. Think weekends are bad on the water now, just wait. And with all the variances in required boating safety courses between states there can be safety problems on the water beyond what is out there now. It used to be “more money than brains” with those big cruisers and go fast boats, now add in this possible new group of boaters consisting of fast inexpensive Bayliners, along with jet skiers.
I would like to be wrong in this possible dire prediction.
posted 04-30-2002 10:16 PM ET (US)
The boating industry has been down this road before. Remember Renken and Galaxy Boats. Boat, motor and trailer less than 10K. People buy them and the boats start to fall apart before they set foot on them. Then it's in the repair shop when it's a nice day, no boat to use. Suddenly it's October, I only got to use the boat 5 times and what...! winter storage bill! I need canvas? and depostit for next years slip!! and ...there is another repair but it can be done over the winter.
Suddenly, the guy is praying for snow so he can go shovel snow for enjoyment because anything is better than this agony.
The sad thing is it appears Bruiswick it dumbing down even Boston Whaler. I see a new Bayliner and the 2002 21' OR have the exact same engine well configuration. Is it going to come to the equivilant of the GM producing the Avalanche for Chevy and the Eschalad for Cadilac, same truck just different bells and whistles?
posted 05-02-2002 12:17 AM ET (US)
Mexico!? Why pay $4/day when you can get the job done in China for less than a buck?
posted 05-02-2002 03:24 PM ET (US)
Shadowcatcher, very good point. Compared to other countries, the USA workers make a decent buck, and compared to Cina, Mexicans make a good buck, I guess it`s all relative. But if a company has there product made with cheap labor and still sells it at USA market prices, that company is doing well in the pocket book. Levi`s jeans is a perfect example, have them made in a foreign country, nad still charge over $25 for a pair, why didn`t the price go down, because people will pay those prices regardless of where they are made, even when I personally point it out to them, go figure. I buy Wranglers, they are Made in the USA. Another company is Fruit of the Loom, they use to be a good USA Union job, but for about the last 10 years they have been forign made. It is very frustrating. Jack.
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