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Author Topic:   Mercury ONLY ?
rudy2431 posted 07-06-2003 09:37 PM ET (US)   Profile for rudy2431   Send Email to rudy2431  
I just found out a couple of weeks ago that I could not buy a WHALER unless I purchased a Mercury motor on it. I have been a loyal Boston whaler customer for over 30 years and own a 17 and a 13 at the moment.I visited my Boston Whaler dealer to Purchase a new 17 and found out that Whaler will not sell their boats unless you buy a Mercury outboard with it. I have never been a Mercury fan and don't Intend to start now, What could Whaler have been thinking, trying to force their loyal customers into buying something they don't want? For the first time in 30 years I am looking at different brands.
Rudy
jimh posted 07-06-2003 10:29 PM ET (US)     Profile for jimh  Send Email to jimh     
Rudy, what you are going to find is that more and more the boating market has become vertically integrated and that it is more common than not to find boats being sold in packages with certain engines. The new boat market is dominated with boat and engine alliances.

If you really want a Whaler and don't want the engine that the dealer wants to sell you with it, you can try two different approaches:

--buy the boat you want, sell the engine immediately, and put what you want on the transom;

--buy a boat from the Government and Commercial product line and rig it with the engine you like. These boats are more expensive and take longer to get, but if you really don't want a Mercury they are one alternative.

Both of these approaches cost more, but if you really have to buy an engine other than a Mercury, they are the solution to your dilemma.

It would be interesting to hear about your searches for other boats that can be bought without an engine in a package. My thinking is that some of these package set ups are good values and the engine-delete credit may not be nearly enough to cover the replacement with a different choice of engine.

Jerry Townsend posted 07-06-2003 10:38 PM ET (US)     Profile for Jerry Townsend  Send Email to Jerry Townsend     
Rudy - welcome to the Forum.

Your comments and thoughts have been addressed in the forum just a short time ago. You can go back maybe 20 days ago and read all of those comments.

Many, including myself share your thoughts and while I have nothing against Mercury, the approach taken by Boston Whaler and Mercury in trying to force the Mercury engine down my throat REALLY turns me away from them.

But as was pointed out in the previous discussions, many manufacturers are doing the same thing. I don't understand it because it thwarts competition and increases prices - by definition.

But as Walter Cronkite would say - "That's the way it is". ------ Jerry/Idaho

Big_S posted 07-06-2003 11:01 PM ET (US)     Profile for Big_S  Send Email to Big_S     
It's my understanding after talking to an old friend which happens to be my boat mechanic. Mercury has purchased Boston Whaler which would explain them forcing the issue on buying a whaler with a merc attached. Can anyone confirm this?
jimh posted 07-06-2003 11:50 PM ET (US)     Profile for jimh  Send Email to jimh     
"On May 31, 1996, [Brunswick] acquired the assets related to the Boston Whaler line of boats from Meridian Sports for $27.4 million in cash and the assumption of certain liabilities."

The above is cited in an article I have written on the corporate history of the Boston Whaler company. See http://continuouswave.com/whaler/reference/history/whaler.html for more details.

Mercury and Boston Whaler are both owned by Brunswick and have been for the last seven years. It is not a secret, although the Boston Whaler catalogue does not explicitly mention Brunswick ownership.

lhg posted 07-07-2003 03:02 PM ET (US)     Profile for lhg    
Rudy - tell us what your prefered engine brand is, and maybe we can help find you a 17' fiberglass boat that comes with one of those.

Incidentally, 170 Montauk sales, your boat of interest, are flying through the roof these days, so you would be a small minority. Most must like their Mercurys! Someone else (maybe a new, never before whaler buyer) will quickly pick up the 170 you don't want.

gnr posted 07-07-2003 03:31 PM ET (US)     Profile for gnr  Send Email to gnr     
lhg,

I am curious as to why you take any negative comments about Mercury so personally. Is it not all right for the rest of us to have our own opinions even if they differ from yours?

I bet if you look at your last twenty posts to this fine forum the majority of them would be defending Mercury against some perceived attack.

Seems like such a waste. A man who posesses your in depth knowledge of boats and motors should be spending his time on this forum helping those that need help not trying to win a pee-off.

Remember....

You are what you write.

Greg, who has nothing against Mercury or OMC/Bombardier.

JBCornwell posted 07-07-2003 03:56 PM ET (US)     Profile for JBCornwell  Send Email to JBCornwell     
I have no antagonism toward Mercury engines. I just prefer other brands and dislike Brunswick's marketing policies. I would therefore not buy a Mercury, period.

I do have a strong antipathy toward Brunswick, who seem to have led the way in no-option packaging of their engines with Boston Whalers. That means no new Whaler for me until I can specify how it is equipped and powered.

There are many Merc fans out there, and many who don't know a Mercury from a Force. They can easily be convinced that a Mercury is the "right" power for them, and perhaps correctly so.

If vertical marketing is the future of new boat marketing, Brunswick will next paint their engines desert tan and put Whaler logos on them. That approach didn't do Tracker any good.

Maybe if Brunswick had an engine line as clearly superior as the boats they want to sell engines for them are, it would make better sense. Boston Whaler/Bearcat made sense, but the Bearcat was 50 years too soon.

Red sky at night. . .
JB

Big_S posted 07-07-2003 04:16 PM ET (US)     Profile for Big_S  Send Email to Big_S     
I guess instead of asking if anyone can confirm Mercury's purchase of Whaler I should have phrased it, Can jimh confirm this ;) I tip my hat to you.

Jimh, I notice there aren't any forms of advertisement on your forum. Is this just a hobby for you or is there somewhere one can donate to help supplement the costs of running the board?
I hope I haven't offended you by asking.

Tight Lines!

lhg posted 07-07-2003 04:54 PM ET (US)     Profile for lhg    
As someone else here said so well, all this whining about the Mercury/Boston Whaler relationship isn't going to change anything. Currently, it appears to be enhancing BW sales volume. For boat models that offer the Mercury 90, 115 or 225 4-stroke options, you are actually getting an optional choice of Yamaha.
Jarhead posted 07-07-2003 04:58 PM ET (US)     Profile for Jarhead  Send Email to Jarhead     
Are you saying my '03 115 4s Merc is a Yamaha?

How'd that happen??

JFM posted 07-07-2003 05:09 PM ET (US)     Profile for JFM  Send Email to JFM     
Oh No, not again!

Just kidding Big_S and also to a lot of you new members.

Forgive me Jimh, but I don’t know if you’ll answer this question, so I’ll take a stab at it.

This site started by a very good guy with very good intentions to be an educational, informative site to show the history of cruising the Great Lakes with Boston Whalers.

It has turned into a world-class site that gets over 1,000,000 hits per month, maybe 2,000,000 by now. This site contains more knowledge about everything possibly imaginable about Boston Whalers. It may even get more traffic than Whaler’s own website.

This site has No commercial funding, ads or anything of the like. In the past 3 years we kind of all get together and pass the hat for Jim. I have had the honor of organizing the last 2. I want to personally apologize for the last one because it seems to some, that there were some strings attached that were not intended. Some contributors were lead to believe, by me, that certain things were to be upgraded and for this I am sorry. Many of the “old timers” tried to make it clear that we were just passing the hat, but not everyone saw things that way.

Our gracious host has never asked for a thing other than some minor manners, that’s all. He has put up with more grief on this site than I think anyone here could stand. I know more than I could.

Sorry All I needed to get that off my back.

Regards, Jay

whalernut posted 07-07-2003 07:49 PM ET (US)     Profile for whalernut  Send Email to whalernut     
Larry, I have never seen anyone defend Mercury as hard as you do, evewn on Neutral posts like the author of this one. What is wrong for asking for a choice of engines, nothing. Is it wrong for Brunswick to offer only Mercury`s on their boats, no becuase they own both. all people like me have been saying is, it isn`t cool to not offer a choice and that we would pass on a Whaler without that choice. You get really uptight over Brunswick critisism over the Mercury only policy, we have a legitimate beef and I like all engines, but would not let a boat company push a Brand X only motor down my throat, it`s either choice of or choice of bare hull only, no packages, unless I choose it, that`s all :) Basically the bottom line is, i feel no boat company should force just 1 brand of engine on anyone, B/W should go back to offering wide open options anyway we like them, but I fear they probably won`t and that is their perogative. What happened to the cool, light hearted and informative LHG, it is kinda eerie lately the way you have been and I am kinda concerned, is everything alright? I don`t meen anything bad against you Larry, you have been great to me in the past, but I fear something is wrong, don`t let the Mercury comments get you uptight, I don`t let the OMC comments bother me :) Jack.
lhg posted 07-08-2003 08:36 PM ET (US)     Profile for lhg    
Jack - I have always spoken highly of you!
whalernut posted 07-08-2003 08:57 PM ET (US)     Profile for whalernut  Send Email to whalernut     
I know you have, I was worried about you :) I am just a little concerned about you getting upset over anti-Mercury speak. I think alot of it stems from B/W shoving it down buyers throats. There will always be people with their favorite outboard motor brand, but people that don`t like Mercury even get more upset when the boat brand they love makes you take their motor also :( This goes for Grady/white and Yamaha also, I know i prefer choice :) It`s all cool here, I just can`t wait for the PEM Rondevous!! I won`t have my Currituck, but i will be with Sam on his 13` Sport!! Next year, hopefully we can take my Currituck, in fact I should have the Interior done by Late Summer to spring some time, I don`t have all of the money yet:( It will happen :) Jack.
jimh posted 07-08-2003 09:25 PM ET (US)     Profile for jimh  Send Email to jimh     
I see the paradigm here: take a shot at Brunswick/Mercury, then complain about any response.

As for "neutral" article, this began with:

"I have never been a Mercury fan and don't intend to start now.
What could Whaler have been thinking, trying to force their loyal customers into buying something they don't want."

I would say that from reading that it is clear that the author is not "neutral"; the author is anti-Mercury.

LHG responds with "tell us your preferred brand", and suddenly he is accused of being an obsessive pro-Mercury booster.

Folks, read what people say, don't invent words for them. And if you want to take shots at particular brands, be prepared to get some return fire.

hey you posted 07-08-2003 09:47 PM ET (US)     Profile for hey you  Send Email to hey you     
The big issue with me is that I will drive to the nearest/best dealer to buy a boat, but if I can't get the engine serviced near my home port by a qualified/reputable dealer then I would not purchase that brand.
whalersman posted 07-08-2003 10:17 PM ET (US)     Profile for whalersman  Send Email to whalersman     
I haven't seen rudy2431 "complain about any response"...

I think he is just letting go of some of his frustrations about being stuck with only one brand of engine... Even it were another brand of engine like OMC, or Yamaha, etc., we still would not be given a choice...

Even with Automobiles, we do have a little choice in the engine we buy along with our new car or truck.. For Dodge, you can buy a gasoline dodge engine or go with a Cummins Diesel, etc..... For Chevrolet, you can buy the Chevy 350 or the new DuraCell (DuraMax) Diesel...

I think all Outboard engine manufactures these days make a fairly good product. Are their going to be lemons with every manufacturer??? Definitely..... I would hate to see the day when there was only one Outboard engine manufacturer left to choose from....

We all have our preferences. Like Automobliles, Computers, Stocks and Bonds, etc..... I don't care if someone does not like the brand I use as long as they don't bash it over and over.. Obviously, they had a bad experience with that particular brand.

Some people would own nothing but Mercury, but Mercury is not for me... I am not putting it down, I just prefer another brand besides Mercury... I can't stand the Mercury Binncale Controls. I also won't buy a Dodge Truck right now because they don't offer Captain's Chairs.

Like jimh points out, buy the boat and the Mercury, sell the Mercury and get what you want.... Or, buy a Commercial Hull and put the engine on it of your choice.... Both Great Ideas.... There is always more then one way to skin, scale, fillet, or steak a fish......

Get what you want and enjoy it....If it doesn't work for you, then get rid of it and try something else..... Life is too short....

Joe Kriz

jaccoserv posted 07-08-2003 11:32 PM ET (US)     Profile for jaccoserv  Send Email to jaccoserv     
FYI... Just received my Boston Whaler Quality Commitment survey for the Montauk, There were 3 or so questions directed to how satisfied I am with the engine/propulsion system. Maybe this is Whaler's way of seeing if they're doing the right thing with the Merc. only plan. Maybe we'll see a change as I have never met anyone who is happy about the lack of engine choice. (Not to say they are not happy with their Mercs)

Also, I found it interesting that the owner's manual mentions a pre-rig model without any engine controls or gauges as being available.

hauptjm posted 07-09-2003 10:28 AM ET (US)     Profile for hauptjm    
I hate like hell to enter one of these threads, but I have a question. Lets say I have just speared my Whaler hull on a piling (sorry Bigs). In addition, just prior to the accident I bought a brand new 2003 Bearcat. Now I stroll into my favorite dealer and put in an order to buy a brand new 170 Montauk. Of course, I explain I already have a 90 hp engine with all of two hours and will be putting that engine on the transom of my new purchase. What I'm hearing is that this can't be done. Can it? I find it incredibly hard to believe someone could not buy just the hull under these circumstances. If they could, then the problem is solved. If they can't, then that's a much deeper problem than vertical integration.
jaccoserv posted 07-09-2003 12:11 PM ET (US)     Profile for jaccoserv  Send Email to jaccoserv     
These new Whalers will not be sold as "blank boats", it doesn't matter if you have a brand new engine at home, Bearcat or otherwise(Do they still make Bearcats?) You're only hope would be that your local dealer would remove the Mercury and either broker it, or buy it from you, and then install your engine for you. You'd probably be into the Whaler for as much as if you kept the Merc. power however.
hauptjm posted 07-09-2003 01:31 PM ET (US)     Profile for hauptjm    
jaccoserv, so what you're telling me is that it can't be done. I find that to be incredible. I'd like to hear from a dealer or Whaler employee that would confirm or deny. As far as my Bearcat reference, I was just attempting to focus on the issue not the brand. I really don't think Bearcat is still in production. Have we not had some Whaler folks on the line recently? I know we have some dealer/ex-dealer folks here: let's hear the truth.
hauptjm posted 07-09-2003 01:40 PM ET (US)     Profile for hauptjm    
p.s. to the above, I'm not a Mercury basher. In fact, see this thread http://continuouswave.com/ubb/Forum1/HTML/005504.html . I believe that Mercury is a good company with a fine product.
gnr posted 07-09-2003 02:00 PM ET (US)     Profile for gnr  Send Email to gnr     
I called the two dealers nearest me last spring to inquire about purchasing a bare hull as I had a motor already lined up.

Neither would (could) quote me a price.

Yea you can get a CPD boat, (I have one), but if you don't want the added weight and expense you're out of luck.

jimh,
I don't think you're being fair by the qoutes you chose to use in your last post.

Greg,
Who loves his OMC but gets along just fine with his buddies Mercury.

elaelap posted 07-09-2003 02:42 PM ET (US)     Profile for elaelap  Send Email to elaelap     
I thought that this was a "classic" Whaler forum. Buy a real (read, pre-Brunswick) Whaler and repower any way you want. I ain't trolling, my now-angry friends. I can recognize a classic Whaler at a glance, from a quarter of a mile away...luckily some of the Brunswick boats have Whaler decals (often oversized, in my 'umble opinion), or I'd not be able to tell them from the herd.

The idea that because other companies do it, it's okay for Whaler to force a particular brand of motor on us is offensive nonsense. We're BW lovers because Whaler is, or at least was, different and distinctive. Who the hell cares what some other corporate bean counter decides about his/her marketing bottom line?

As some of you know, I've come to this fairly well along in life (I've done extensive worldwide sailing; this is my first motorcraft, if you don't count dinks). I've only owned my '71 Katama since last October, but I use her two or three times a week (130 hours on my new motor since repowering this past March). I'm absolutely in love with my old beauty, though those '80s 18/19 Outrages sure catch my eye. If/when I get two-footitis real bad, you'll find me over in the Marketplace forum, looking for a true, classic Whaler, not a pre-packaged bowling ball.

No offense, guys. I was hesitent to write at all on this topic, but I just got back from court where a corporate defense attorney was trying to convince me, the judge, and my clients that it was "corporate policy" to forgo badly needed repairs to an apartment complex, since the complex was to be sold next year, and it was just too bad for the tenants that had to live in uninhabitable conditions.

Corporate policy be damned.

Tony

diveorfish posted 07-09-2003 04:29 PM ET (US)     Profile for diveorfish  Send Email to diveorfish     
I don’t know why this is so hard to understand. Brunswick owns Boston Whaler. Brunswick owns Mercury. Brunswick is in business to make money. Since the engine is a significant part of the cost of a new boat/motor combination, Brunswick would be morons to sell a Whaler with an engine other than Mercury. If you really want a Whaler, you have to get the Mercury. What’s the big deal, it’s not like Mercury is some off brand? They are the most numerous engines on the water in this country. Recently, I’m hearing as many horror stories about the Yamaha HPDI as I am about the Mercury Optimax and of course the Fichts are legendary for horror stories. I honestly don’t know if any of these brands are any better than the other and I’m not sure anyone else does either.

Many on this site that have the hardest time with this concept wouldn’t buy a new Whaler anyway so why keep raging on about it over and over again? Sometimes I think this site should be re-named “Continuous Whine.”

lhg posted 07-09-2003 07:04 PM ET (US)     Profile for lhg    
What happened to "one post" Rudy. Who knows this person? Anybody? Just another anti-Mercury set-up if you ask me, probably from the competition. Whaler's "only Mercury" policy sure must be hitting some hard, which means it's probably working.
elaelap posted 07-09-2003 07:13 PM ET (US)     Profile for elaelap  Send Email to elaelap     
IT ISN'T ABOUT MERCURY MOTORS!

What's so hard to understand here? The concept that annoys many of us is being forced to buy any kind of motor at all, if we'd rather not, when we buy a new Whaler.

I'm trying to think of examples of similar marketing strategies...here are a few, and see if you'd like them:

Ah, just found my dream house...too bad I've got to buy it completely furnished (very nice furniture, too -- just not my taste).

Nice suit...but they won't sell it to me unless I buy their choice of shirt and tie.

Just offered $50k for a Boxter. We had a deal until the salesman said he couldn't swap tires for me...some sort of dealership policy. Guess I'll check down the street.

Finally...a brand, spanking new 32 ft Cheoy Lee ketch, canoe stern, teak decks and trim, roller jib AND stays'l, set up for single-handing, only $200,000...but they won't sell it to me unless I buy Head sails (great stuff, but not what I want), a gasoline auxiliary (I like diesel), and, to top it off, a Carolina Skiff dingy instead of the little Whaler dink I want. "Hey, it's corporate policy," the salesman says. "Anyway, you can buy it as it comes, all nicely pre-packaged, and just sell the stuff you don't care for and replace what you don't like. What's the problem?"

You know, when you (better you than I) go into a McDonald's fast food joint, you really don't expect the chef (!) to cook your burger to your specification, or whip up a variation on that yummy strange-colored Big Mac sauce for your gastronomical pleasure. But when you dine at a decent restaurant, you expect your culinary preferences to be acknowledged and acted upon. If Brunswick sees Boston Whaler as just another money-making part of the "fast food nation," that's their corporate right, I guess. But how very, very depressing...and it's our right to sorrow and complain.

Tony

Jarhead posted 07-09-2003 07:32 PM ET (US)     Profile for Jarhead  Send Email to Jarhead     
Tony....

I really don't see why you give a damn. You wouldn't have one of those "pre-packaged bowling balls" [your words] anyway. Right?

jimh posted 07-09-2003 09:45 PM ET (US)     Profile for jimh  Send Email to jimh     
Good Point LHG--

It does appear that we've all been suckered by this one-post Rudy.

Re-reading his initial article--to which he has never responded--it does sound like its intention was to stir the pot, and nothing more. Both LHG and I explicitly solicited one-post Rudy to respond, but nothing heard.

And next time I pick out some quotes to use, I'll try not to use one that make my point so well.

JFM posted 07-09-2003 09:48 PM ET (US)     Profile for JFM  Send Email to JFM     
Who in their right mind wouldn't take the Mercury when your damn near getting it free. Look at the package deal with EZ Loader trailer. This is a package deal that goes with the 130, 150, 170 and the new Nantucket.

Let's look back and see what the old Montauk was unrigged, than add a Yamaha 90 2 stroke, then a Shorelander trailer. Right about $24,000- $25,000. Now let's look at a new one, Motauk 170, 2 stroke Mercury 90 and E-Z Loader trailer for $18,000- $19,000. Seems like about a $6,000.00 savings. What's a Mercurcy 90 2 stroke cost $5,000- $6,000. The bottom line is your getting a FREE motor. Throw it away and buy what you want, you'll still probably be ahead of the game. This is not rocket science people.

I know the boats are different and I personally think the new 170 Montauk cost more to make.

Regards, Jay

John Bocskay posted 07-09-2003 10:43 PM ET (US)     Profile for John Bocskay  Send Email to John Bocskay     
Sold my 1988 22 Outrage/250 Merc because I had nothing but problems with the engine, since purchasing it, with the intention of buying a new BW, while at the Edgewater factory, I was notified that I could not buy the boat with anything but a Merc on the back, but parked in their yard was a trailer with Yamaha engine's partially covered which I found out (later in the day at the Grady White/Yamaha dealer 1/8 of a mile south of the BW factory) were purchased by the Gov't to be installed on the BW's that they ordered.....
jimh posted 07-09-2003 10:44 PM ET (US)     Profile for jimh  Send Email to jimh     
I like your thinking, Jay. Last summer at Bass Pro Shops they were clearing out some 90-HP Mercury two strokes at clearance prices ($4500), so if we factor that into your analysis it turns out that Brunswick is actually paying the customer about $1,500 to please take the motor as a gift!
elaelap posted 07-10-2003 02:58 AM ET (US)     Profile for elaelap  Send Email to elaelap     
Yikes, Jim...is that the ultra new math? But beware, old friend...for to the noble mind,
Rich gifts wax poor when givers prove unkind.
Hamlet III.i.100

I knew I should have never even read, let alone commented upon, this topic. But while Mercs might be the finest outboard motors ever made, it's unkind of Brunswick not to sell hulls sans power, no matter how great a deal their pre-packaged boats are. Then again, Jarhead's absolutely right...since I don't intend to buy a new Whaler anyhow, I should, and hereby do, butt out of this conversation for ever and ever. Good night all, and good Whaling in whatever fine craft powered by whatever good motor.

Tony

diveorfish posted 07-10-2003 11:18 AM ET (US)     Profile for diveorfish  Send Email to diveorfish     
Tony: I can understand your sorrow. I am not exactly thrilled with my Mercurys by any means. Your analogies though, assume that the engines are merely accessories. The engine is an integral part of the boat especially when you get into rigging the larger boats. To revisit your upscale restaurant analogy: If you were at Morton’s steak house and told the waiter to run out to Ruth’s Chris streak house and get their baked potato, salad, dessert and coffee because you like theirs better, he would laugh at you. That’s basically what you would be asking Brunswick to do and they're not going to do it. Anyway, enough said.
lhg posted 07-10-2003 02:20 PM ET (US)     Profile for lhg    
I have a solution to all this whining about no choice, as is the case with the used Classic Whalers so many of you have bought. You took what came on the boat. Don't hear much whining about that, except when the thing poops out.

Yamaha should make Mercury an offer they can't refuse to buy Boston Whaler, say $250,000,000. But the Japanese, being the fair minded and liberal businessmen that they are, should sell their Whalers without engines, so the Mercury fans could still get their engine of choice, and Mercury could still make plenty selling these engines. It would also avoid the endless complaining on this site. Would Yamaha ever do this? HARDLY, if their Century Boat company model is any indication! Then think of all the fun the Mercury, E/J, Honda and Suzuki people could have unrelentingly bashing Yamaha and their DFI engines.

This subject is getting to be a total waste of time and Jim's disk space.

gnr posted 07-10-2003 03:08 PM ET (US)     Profile for gnr  Send Email to gnr     
lhg
This topic would get just as much attention if Brunswick were hanging OMCs or Yamahas or any other outboard on their transoms. It's not about Mercury. What is so hard for you to understand about that.

I know you will pretend to ignore this but what the heck let me ask you a question.

What would be the downside of Whaler selling hulls without power through their recreational division dealers?

They very likely would have sold me a boat last year.


I would love to see your reaction if the unthinkable happened and Brunswick sold Whaler to the new owners of Bombardier's outboard motor division.

That would be interesting...


As far as disc space goes, If you count em up you and jimh are tied with the lead for the most "disc space wasted" in this thread.

Nothing personal.

Keep the faith brother.

lhg posted 07-10-2003 05:58 PM ET (US)     Profile for lhg    
I'm not your brother. Nothing personal.
jimh posted 07-10-2003 10:25 PM ET (US)     Profile for jimh  Send Email to jimh     
I really like that analogy about the steak houses. Very good point.

I was reading an article in a magazine for boat dealers (sorry I don't have the citation handy). The article was looking at the hull motor packaging from the manufacturer's point of view. From what I read, it seems like boat builders are not exactly crazy about having to keep on hand a large (and expensive) inventory of outboard motors to put on the transom of their boats so they can ship them with the engine pre-installed and pre-rigged.

One concern for the builder was trying to guess what the customers were going to order in terms of engines. The point was made that this is an additional problem when dealing with engine makers that have three month lead times for deliveries. I took that to mean Yamaha, since they have to ship their product over on a slow boat from Nippon. It was much easier to keep the engine mix on hand current with orders if using domestic engines available on shorter delivery schedules. I took that to mean Mercury.

If the boat builder guess wrong he might get stuck with unsold engines that are about to become last-year's model. I think this accounts for the source of some of the better deals that show up at dealers. They get great deals on engines from their boat builder connections.

Of course, buying these engines wholesale direct from the engine makers probably allows the boat builder more profit on this boat. That has to be the reason, otherwise why would they go through all the extra labor and logistics?

Since Mercury and Boston Whaler are all part of the same conglomerate, it may be that they get engines without big interest payments and floor plan charges. Thus they can probably make even more profit out of the selling the motor with the boat.

And again, all these relationship between boat builders and engine companies are designed for mutual profit. The engine maker gets to sell more engines and keep his competition off of another transom. The boat builder can get some profit out of the engine sale. The dealer can deliver the boat without putting $1000 labor into the rigging of it.

jimh posted 07-10-2003 10:35 PM ET (US)     Profile for jimh  Send Email to jimh     
Fellas, if you want to participate in this thread, please limit your comments to the topic (which is packaging of boats and motors).

Posts that contain comments from the peanut gallery directed toward particular individuals are not welcome and have been deleted.

JFM posted 07-10-2003 11:06 PM ET (US)     Profile for JFM  Send Email to JFM     
Jim,

Jamie and I are laughing so hard we are crying.

The peanut gallery, what a hoot. I still can't stop laughing. That's a beaut!

Regards, Jay

elaelap posted 07-11-2003 12:28 AM ET (US)     Profile for elaelap  Send Email to elaelap     
Sorry folks, the devil makes me do it:

Jimh, since you like diveorfish's steak house analogy so much, let's examine it a little further...

I walk into one of those corporate franchise steakhouses (grudgingly, since I posited a "decent" restaurant in MY analogy). I sit down and order a porterhouse, medium rare, and, of course, a Sierra Nevada pale ale. The waiter (I better say "waitperson" or "server" here on the left coast) tells me that my steak comes with a baked potato, salad, dessert and coffee.
"Thanks anyway," I reply. "Just the steak and brew for me tonight."
"Oh no, mon dieu, zut alors, et cetera," the server exclaims. "You MUST have the baked potato, salad, dessert and coffee, whether you want them or not."
"No thanks...just the steak."
"But it's the rule..."
And back and forth until that great film from happier times gone by, Five Easy Pieces, contributes this dialogue and concludes this rant:
"But sir, this restaurant only serves the porterhouse with baked potato, salad, dessert and coffee...I mean, how could I do it any other way...it's corporate policy and it's just too confusing!"
"I'll tell ya what," Jack Nickelson replies. "Bring me a porterhouse steak, medium rare, a Sierra Nevada pale ale, baked potato, salad, dessert and coffee, and hold the baked potato, salad, dessert and coffee, understand?"
"But sir, where should I hold the baked potato, salad, dessert and coffee?"
"Hold 'em between your legs!"

Yummeeee! Makes me think about the then young Karen Black, in thoughts much, much more interesting than this very important discussion. Those who remember the film will know what I mean...

Tony

JFM posted 07-11-2003 08:43 AM ET (US)     Profile for JFM  Send Email to JFM     
elaelap,

I also remember Jack saying; “Here’s Johnny” in the Shining, and how about Randal McMurphy in “One Flew Over The Cuckoo Nest”. Seems like Jack is always playing some crazy madman or a troublemaker just like in the movie you suggest.

In my entrepreneurial spirit I have just decided to start another company. This one will take the Mercury Engine off the transom of any Boston Whaler and dispose of it for $1,000.00. Not a bad deal and you might even be able to twist my arm and I’ll rid you of it free. How’s that for a real deal?

Regards, Jay

jimh posted 07-11-2003 09:02 PM ET (US)     Profile for jimh  Send Email to jimh     
elaelap,

Your variation on the Five Easy Pieces dialogue is funny, but you neglect to consider the character who is speaking those lines.

Bobby Dupea (Jack Nicholson) is the son of a wealthy and artistic family from whom he has disassociated himself. He works and lives as a trashy oil rigger in Texas or someplace. He treats his girlfriend Rayette (Karen Black) cruelly, abandoning her at a truck stop.

Dupea seems to fight against authority, discipline, structure and responsibility. I see some of those same qualities in the people who want Boston Whaler to change their marketing plan to suit them.

elaelap posted 07-11-2003 11:54 PM ET (US)     Profile for elaelap  Send Email to elaelap     
Do you remember Rayette Dipesto's greatest line? Hint, it was "Hiieeeennnttt..." dragged out about three seconds. What a great performance by Karen Black (and everybody else in "Five Easy Pieces," for that matter).

I'm not sure that disagreeing with Brunswick's marketing plan for Boston Whaler constitutes a cruel attack on authority, discipline, structure and responsibility, jimh. But what do I know?

Tell me one thing...how do you get italics in your posts? I'll take my answer off the air, that is, over in Meta.

Tony

What do I know? I do know that Karen Black wouldn't have to hint too hard to get my attention.

Peter posted 07-12-2003 08:11 AM ET (US)     Profile for Peter  Send Email to Peter     
I am not at all surprised by the backlash against this tying, or bundling, marketing practice, myself included, for I have a hard time seeing how it can be perceived as pro-consumer even if there is the appearance of favorable pricing involved. The ability to choose that consumers once enjoyed has been taken away. Those who would have choosen the tied motor, Mercury in the case of Whaler or Yamaha in the case of Century, may not be offended by the practice because it really makes no difference to them (they would have bought that motor in any case) but they should be. Even if that is their engine choice, the tying arrangement reduces their ability to negotiate a good bargain because it eliminates price competition on the outboard motor aspect of the purchase and which is a product that is more like a commodity than the hull. In some cases, this tying practice has been held to violate the antitrust laws.

A little primer on tying arrangements:

A tying arrangement has been defined as an agreement by a party to sell one product, the "tying product" (Whaler or Century hull) but only on the condition that the buyer also purchases a different product, the "tied product" (a Mercury or Yamaha motor in this discussion). Such arrangements are viewed harshly by the courts, because in the typical tying arrangement the buyer is forced to purchase a product he or she does not necessarily want in order to obtain one which he or she does, and because such arrangements are thought to serve hardly any purpose beyond the suppression of competition.

A tying arrangement must involve two distinct products (in this case hulls and outboard motors) and is unreasonable under the Sherman Act (antitrust law) in and of itself when the seller has "sufficient economic power with respect to the tying product [boat hulls generally, Whaler or Century hulls specifically] to appreciably restrain free competition in the market for the tied product [Mercury or Yamaha outboards] and a 'not insubstantial' amount of interstate commerce is affected." The primary anticompetitive effect of tying is to foreclose competitors of the seller from supplying the tied product (outboard motors in this case) to the buyer, and to prevent the buyer from seeking alternate sources of supply for the tied product (outboard motors). The greater the desirability of the tying product (boat hulls in this case), or the seller's competitive position or market power with respect to it, the greater the likelihood that competition in the tied product (outboard motors) will be adversely affected or even stifled.

Thus, this backlash against this practice is not a backlash against Mercury or Yamaha at all although it happens to frequently involve the discussion of Mercury in this case as it is the tied product to the Whaler hull, the tying product. The tying arrangement is a form of market segmentation and is intended to relax competition. I submit that anytime that competition for a product is reduced, that cannot be a benefit to the consumer and that all those who are Mercury fans (or Yamaha fans in the case of Century, for example) should be highly skeptical of these marketing practices.

Although I see that hull manufacturers have aligned themselves with various outboard manufacturers, I would be interested to know whether such other hull manufacturers will not sell a bare hull. I think that is a critical difference. If they are willing to do so, then there is no tying arrangement and the practice that has been so vigorously discussed herein is not comparable.

Jarhead posted 07-12-2003 09:17 AM ET (US)     Profile for Jarhead  Send Email to Jarhead     
I've heard good arguments on this topic from both sides.

It's not hard to understand the frustration felt by those with a preference over Mercury outboards.

As I see it the only way Brunswick would change their current policy would be for their sales to suffer. I don't believe however that's the case at this time.

Even with the economy in the shape it's in Whaler [Brunswick] seems to be doing well.

The only thing I can say is if the consumer speaks loud enough [$] the supplier will listen.

My 2 cents...

elaelap posted 07-13-2003 01:08 AM ET (US)     Profile for elaelap  Send Email to elaelap     
Peter's thoughtful analysis makes one wonder whether Brunswick's Whaler (and Century, and probably many others) aren't potentially facing the same sort of problems that Bill Gates, jimh's favorite citizen after Bobby Dupea, encountered over the past several years. Still think this is about Mercury-bashing, lhg?

Tony

jimh posted 07-13-2003 09:30 AM ET (US)     Profile for jimh  Send Email to jimh     
I was going to bring that up...

If there ever was a case of tying one product with another, it has to be the market for PCs. For a while there it was almost impossible to buy a PC without having to buy the Microsoft Operating System. Even a billion dollars of government prosecution could stop it.

Back to boating.

With its recent moves to acquire a major marine parts distributor, and from the clear and unmistakable comments of CEO Buckley, Brunswick plans to take over the replacement parts market, too. In a few years you will be buying parts from Brunswick owned sources, not an aftermarket supplier.

And the investment and ownership of electronics manufacturers like Navman probably foretells more pre-installed electronic equipment on the boats.

Buckley is an engineer. He sold off the cooler company (Igloo), and a few other underperforming assets, in order to concentrate on the marine business.

Dick posted 07-13-2003 12:52 PM ET (US)     Profile for Dick  Send Email to Dick     
I think that Buckley is a genius.
He heads a company that produces the most popular boat line, Bayliner, the best boat line, Whaler and others. His outboard motor line and I/O line are the largest sellers in the world.
The purchase of Land N Sea distriutors was a smart move but has no effect on the marine industry except that there may be more money to keep the warehouses full. I purchase most of my accessories from Land N Sea but there is the option of purchasing from several other wholesale marine distributors which will not go away because of this purchase.
Navman, I could care less.

Dick

hauptjm posted 07-14-2003 11:05 AM ET (US)     Profile for hauptjm    
Peter,

I'm not sure the "tying arrangement" applies to this situation. Since both Whaler and Mercuruy are owned by the same parent corporation (Brunswick), then there is no tying.

GM uses motors from different divisions in cars of other divisions without any offer of another manufacturers engines (i.e. Ford, Chrysler, etc.). Ford and everyone else in the auto sector do the same.

I would agree, the ice may get a little thin in the event of a hull manufacturer forcing you to buy the engine of another manufacturer where they may be no corporate tie. However, if the manufacturer can show a compelling reason to offer this exclusivity, then so be it. I'm not fond of the courts telling a manufacturer what he can and cannot offer in his product any more than a manufacturer not giving me choice. The difference is I can walk away from the product if I don't like the package. The manufacturer cannot walk away from government intervention.

Just a thought!

Peter posted 07-14-2003 02:04 PM ET (US)     Profile for Peter  Send Email to Peter     
I must respectfully disagree. I believe that this practice is the typical tying arrangement.

As far as I know, there is no common ownership exception to tying arrangements. In other words, the analysis does not, and should not, take into account whether the products come from a common source. You can have a tying arrangement whether it comes from a common source or two sources in agreement with each other. However, I believe that it is more likely than not that a tying arrangement will involve a single source.

One of the key words in the tying analysis is "distinct" products. I submit that comparison of outboard hulls/outboard motor to an automobile/engine is not a very good one.

In the case of automobiles, the automobile is a highly engineered product from stem to stern and the engines are very much integrated into the entire automobile for safety, performance and efficient manufacturing reasons. That is a compelling reason to permit no choice in engine brands and I do not believe it is a tying arrangement as previously defined because there are no "distinct" products. Perhaps accessories like air conditioning might be better candidates as "distinct" products relative to the automobile as a whole. However, even that might be a hard one to argue these days because as cars got smaller in dimensions with more and more required saftety features, it became necessary to highly integrate and engineer air condition into the whole automobile in order to provide that feature.

In contrast, in the case of outboard hulls and outboard motors, the various outboard brands are readily interchangable without any appreciable change in safety, performance or efficient manufacturing of the hull or motor. This is evidenced by the use of common shaft lengths and bolt hole patterns among other things by all manufacturers. They are all designing to a common set of standards which evidences the manufacturer's belief in interchangability and distinctiveness relative to the hull. Because a Mercury or ____________(insert your favorite brand) motor works, or should work, just the same whether it is bolted to a Whaler or _____________ (insert your second favorite brand) hull, or vice versa, I suggest that an outboard is a distinct product relative to the hull. As far as I know, no additional engineering of the outboard motor is required to use it from one hull brand to another and no additional engineering of the hull is required to use one brand of motor or another.

In fact, I just swapped two different brands of two diffent horsepower ratings a week ago on two 15' classic hulls. The dismount/mount and derig/rig procedure was exactly the same and took about the same amount of time for both. I don't believe that I could have done that with automobiles.

Sure you can always walk away from a deal that you don't like but the bottom line is the practice forces some folks to take something that they don't necessarily want in order to get something they want. Even if they want the offered combination, their ability to negotiate a better deal has been reduced by the lack of competition in the power plant choice. That is a classic tying arrangement. Elimination of competition is typically not done for the benefit of the consumer.

I'd still like to know how extensive this practice is. Besides Whaler and Century, what other hull manufacturer's have a policy in which they will not sell a bare hull? Having recently visited the Pursuit site, an independent manufacturer, I noticed that they advertise a price of a hull without power which suggests to me that they will sell a bare hull even though they seem to have aligned themselves with Yamaha. That further suggests to me that they do not wish to alienate themselves with respect to prospective customers and their respective outboard brand preferences even if they have arranged some exclusive dealings with Yamaha. Perhaps we need to look at common hull/outboard manufacturers. In my opinion, they, not the independents, are the ones who seemingly have the most to gain by such practice.

hauptjm posted 07-14-2003 02:22 PM ET (US)     Profile for hauptjm    
Peter,

I have no idea how many hull manufacturers have these restrictions, but I would imagine that it is in the minority. I would have to believe most boats can be bought sans engine. In fact, a Whaler can be bought without an engine by purchasing it through the Commercial Division. I can't imagine how that throws a monkey wrench into the tying scheme.

I curious. At what point does the proliferation of these arrangements become the point of attack for legal purposes. My point being, if some little boat builder only sells his skiffs with XYZ motors, who or what will cause proceedings? If Whaler and Century and Bayliner do it and control X% of the industry, then the legal aspects are probably inevitable. Have you seen this in other industries?

Peter posted 07-14-2003 02:49 PM ET (US)     Profile for Peter  Send Email to Peter     
I wish I could answer your question (so would many organizations) but I'm no expert on tying arrangements. Besides the tying of distinct products, the definition of illegal tying arrangements from an antitrust perspective requires that not "an insubstantial amount of commerce must be affected" by the arrangement. I suspect that the Department of Justice antitrust enforcers won't get involved until they perceive that that threshold is exceeded, whatever that threshold is in their eyes.

Can one buy a commercial Conquest or the retired Impact sans engine?

I think the prior reference to Microsoft is an example of a tying arrangement in another industry. I seem to recall (fuzzy now) at some point in the trial that Microsoft tried to argue that Explorer was integrated with the operating system and therefore not a "distinct" product to avoid having the product arrangement, Windows operating (tying product), Explorer (tied product), considered an illegal tying arrangement. Why would they do such a thing, to keep Netscape off the "transom." (Actually, I believe that is more difficult to do in the case of Windows than in the case of the single powered hull because the Windows operating system's "transom" is usually big enough to run at least twin browsers, although one might run a little better than the other.)

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