Selected Slides from 2020 Yamaha WaterCraft Dealer Presentation

[mrtrav]

Talked to our dealer today and they were told they would be available in December. Let’s see if they can deliver on time this year. We don’t get boating weather until May, so as long as it is by then I’d be happy.

 

[SCP1]

Not that it matters to me as I have a 2017 AR195, but how hard is it to make the WakeBooster available for purchase without the ballast bags and the pump? If I had newer boat at $1,199 when I already have a ballast bag and a pump seems crazy.

 

[SCP1]

Doubt it has ballast for 57 and change.
I do like the AR240 colors though.
Better than the boring 19my colors

Agreed, I like that they are not white. I really wish we could pick colors options. As the prices are getting high, I think this needs to be addressed as I know for a fact other members are wanting to upgrade but they are not offering the color choices they want. I like the blue but not with the grey hull (also don’t care for the graphics especially on the blue one).

 

[Beachbummer]

With most boats selling for msrp they don't have a lot of incentive to renew or make many changes.

Maybe with increased production capacity, if they don't sell a particular model there will be room for discounts.

 

[2kwik4u]

With most boats selling for msrp they don't have a lot of incentive to renew or make many changes.

Maybe with increased production capacity, if they don't sell a particular model there will be room for discounts.

Isn't this what made the bottom fall our of th Beanie Baby Market back in the early '00's. Had tons of demand with limited production, so they opened a new plant and flooded the market and demand dropped like a rock.

I doubt we see that kind of reaction here, however I am curious if they will find that some models sell much better than others. I've often wondered, due to low production numbers, if there were people that really wanted into a new Yamaha, but couldn't find the model they really wanted, and settled on something smaller/different so they still bought new. Might be interesting to see if suddenly the AR190's are no longer selling because everyone that wanted a 195 can get it, or something like that........I'm probably over thinking it.

 

[biffdotorg]

With most boats selling for msrp they don't have a lot of incentive to renew or make many changes.

Maybe with increased production capacity, if they don't sell a particular model there will be room for discounts.

The business model Yamaha has been following has been to produce just enough to allow dealers to clear out stock annually. It also keeps values up without discounting. They have done this over the past few years in other lines as well. This is very important with a seasonal product line.

Not that it is a good comparison, but the snowmobile industry has really been hit the last few years with some MFG's over producing and leaving dealers with piles of stock they have to discount in the off season. This is a poor business model that is forcing them to pull back inventory and liquidate through the high volume dealers. The dealers, many times, don't own the stock.

The vicious circle is the consumers are flocking to the volume dealers assuming those are standard discounts even further hurting the low volume dealers and killing overall value of the product. Now both Yamaha and Arctic cat have spring order only models, that require the consumer to spring order a new model year sled, as inventory will not be on the dealer showroom floors in season. This lessens the available inventory, increases profits on lower volume and cuts the cost of inventory for the MFG and the dealer. And used prices will remain up, as it may be the only option for consumers in season.

This is an extreme last ditch effort by the two lowest marketshare holders (Arctic cat and Yamaha) to reduce inventory and regain profitability. Yamaha has proven that their low inventory model with boats is profitable, and dealers are very strict on ordering proper quantities based on demand. Consumers do not expect to see steep discounts other than the sales we saw prior to new model release late in the season.

So don't expect these plant additions to turn Yamaha into a high volume producer, and change their model. It's just not good business for them. I think they are probably ramping up for increased demand, but I bet the model remains close to the same.

The launch of the 275 was smart and two-fold, by only producing what was ordered at first. Allowing them to ramp up production once the demand is proven, and when they can create the space to do it. There is is very good chance that they may be making plant changes to accommodate that new hull production. They may have had enough space to produce those initial orders, knowing that they could not go full production till the expansion took place. Producing a different, larger hull at the same time as all the others takes space.

 

[biffdotorg]

I doubt we see that kind of reaction here, however I am curious if they will find that some models sell much better than others. I've often wondered, due to low production numbers, if there were people that really wanted into a new Yamaha, but couldn't find the model they really wanted, and settled on something smaller/different so they still bought new. Might be interesting to see if suddenly the AR190's are no longer selling because everyone that wanted a 195 can get it, or something like that........I'm probably over thinking it.

It was funny when the 190 series was announced. As most of us here and on the other board already had a 21, 23, 24' boat and didn't understand the need for this model. It was very obvious that Yamaha needed an entry boat, as it was the gateway drug to the larger boats.

With SeaDoo out of the picture, it fills a market for folks to get into boating, and the Yamaha line. I still feel they need a lower cost entry yet. But the cost to produce is probably not making sense as the margins are so low on that entry boat. Cutting out some cushions, spare tires etc can't make up for the fact that the margins are still thin. The MFG just has to put a number on that entry point and stick to it over the long haul. Just like Apple pretty much giving computers to Elementary school decades ago.

 

[afsigma21]

I think the 212x was marketed specifically for me

 

[Compatico]

Agreed, I like that they are not white. I really wish we could pick colors options. As the prices are getting high, I think this needs to be addressed as I know for a fact other members are wanting to upgrade but they are not offering the color choices they want. I like the blue but not with the grey hull (also don’t care for the graphics especially on the blue one).

Opinions vary, is part of the problem. My wife's favourite colour is red, but she likes the black/grey scheme because it's neutral and allows other combos of colours for accessories. Go figure...

 

[Compatico]

I doubt we see that kind of reaction here, however I am curious if they will find that some models sell much better than others. I've often wondered, due to low production numbers, if there were people that really wanted into a new Yamaha, but couldn't find the model they really wanted, and settled on something smaller/different so they still bought new. Might be interesting to see if suddenly the AR190's are no longer selling because everyone that wanted a 195 can get it, or something like that........I'm probably over thinking it.

Maybe not...there are lots of buyers with different needs/wants, and those who want it now will jump on it, and those like me who are willing to wait to get the right choice. We've been shopping for a couple years now and still haven't made a purchase (I think it pisses off the sales people because we don't make an impulse purchase LOL). And because we already have a boat we're not desperate to buy, and we're waiting for the right time to buy a brand new boat again, but it has to fit our needs or it's a waste of time. I hate buying and then trading in/up to something else the following year...I like to feel satisfied when I make a purchase, and that applies to boats, cars, houses, computers, whatever!

 

[Compatico]

So don't expect these plant additions to turn Yamaha into a high volume producer, and change their model. It's just not good business for them. I think they are probably ramping up for increased demand, but I bet the model remains close to the same.

It's funny you mention anticipation of increased demand. We've noticed that Yamaha has apparently responded to competition from Vortex and Scarab by adding more premium features and expanding their lineup to try to maintain sales (anyone have figures to show that?). A few years ago I would have ignored the thought of buying a Yamaha boat...today not so much.