cunninghams marine

[LittleSkipper]

I'm assuming once receivers are appointed the business can no longer trade,buy,sell or service anything.....gates closed!

[PADDLES]

Very sad to see such a long standing business go into receivership. Only the ignorant will blame the reserve bank, the Gillard government or maybe even the Queen, the reality is that Australia has been dragged into a free world economy, not by it's government or it's banks but by it's consumers, we buy a service or a product for it's value or it's perception of value, if a vendor is not seen to be providing value then we shop elsewhere to get that value. This is just harsh economic reality, whilst it's sad to see business' go under and livelihoods lost it's quite obvious that this business wasn't able to provide consumers with the value they demanded (for whatever reasons, high overheads, servicing the credit for their inventory etc.) so they shopped elsewhere. Someone has brought up a good point earlier though, would they have gone under if they were still in their little yard and workshop unit down the road? Would they have exposed themselves to less risk by not stocking brand new an American brand of boat that was readily available as an import at half the local second hand price? What Grand Marlin is saying about a shakeup in the marine industry is going to happen to many industries i reckon.

[trueblue]

the middlemen wholesalers need to pull their heads in and get realistic with pricing. they can't keep raping the australian population and expect for it to continue with plain sailing.

its the pure definition of insanity -just doing the same thing over and over again, charging up to 50% too much compared to the rest of the world and expecting a different result... sorry, the result can only be the continuing decline of aussie businesses

[themerlin]

North side marine don't do merc, not for warranty claims anyway.

I got my boat from the and found them fine.

[charleville]

the middlemen wholesalers need to pull their heads in and get realistic with pricing. they can't keep raping the australian population and expect for it to continue with plain sailing.

its the pure definition of insanity -just doing the same thing over and over again, charging up to 50% too much compared to the rest of the world and expecting a different result... sorry, the result can only be the continuing decline of aussie businesses

Yup! Agree entirely.


I am not backward at importing stuff especially since I discovered that I could get a downrigger delivered to my door for AUD$192 versus $500 from Aussie retailers for exactly the same product - plus the import came with the lead bomb included, which the locally retailed product did not.

That was about seven or eight years ago when the Aussie dollar was not as high against the USD as it is now.

Yet the retail price of that same downrigger is still $500 in the shops in Australia.


However, we know that the prices in Australia can be more realistic if the supply chain wants them to be.


I recall importing a Shimano baitrunner a couple of years ago because local prices were far too high and then a few weeks afterwards, Tackle World had the same thing on sale at a marginally higher price than I had paid. They would not negotiate the price much lower prior to that so I assume that the Aussie importer cut their prices temporarily. Perhaps he had a sudden need for cash. I would have bought it locally if the difference in price was, say, 20% rather than the 80% - 90% that it had been.


I also buy woodworking tools offshore and also locally and was delighted to buy a US made tool from a local retailer here in a package deal here a couple of weeks ago for only about 10% more than what I would have paid for it on the internet from an American retailer.


I cannot help feeling that it is the importers who are ruining retail business in Australia by continuing to load their wholesale prices in the belief that their national franchise is impenetrable. It might be on things like Apple computers but it sure ain't on fishing and boating products for which there are a zillion overseas sellers ready to trade.


.

[themerlin]

What's going to happen to all of the display stock, auctioned off? Hate to be a vulture but might be a few bargains about.

[PinHead]

What's going to happen to all of the display stock, auctioned off? Hate to be a vulture but might be a few bargains about.

depends on certain aspects. I don't know if they are liquidators or perhaps administrators, who may decide to trade out. Too early, I think to know.

[tunaticer]

I was talking to a neighboring business last night and he has been told the floor stock will most likely not go to auction.

[antg2378]

As far as I know receivers are appointed when someone hasn't been paid/owed money. Pretty sure receivers aren't appointed by the owners but by a third party. Administrators are appointed by the owners.

http://www.asic.gov.au/asic/ASIC.NSF...20Receivership

[Stuart]

I am pleased you asked that question.
In some areas we are now seeing price adjustments to do with the Aus $$$.
Many importers / dealers have contracted prices for 12 months or more, as well as stock on hand. This means they cant immediately drop prices as soon as the dollar goes up and alternatively cant immediately put prices up when the dollar falls.

All dealers are passing on any savings they get at the wholesale level.
They have to. Customers know how to use the phone and know how to use the Internet.
Within half an hour a customer will know the best price they can get in their area, the best price across the rest of Australia and the comparative prices from the USA.

Also factor this in:
Dealer buys item for $10,000 and makes 10% profit ($1000)
Dollar goes up from 80c to 100c USA exchange rate.
Dealer now buys item for $8,000 and makes 10% profit ($800)
In a tight market like now, just because the item has dropped $2000 doesn't mean people will be rushing out to buy it. Yes it obviously helps but it isn't the saviour of all.
So...
Tight market = less sales.
Lower buy price = less net profit, even with the same 10% mark up.
Overheads stay the same, therefore the dealer is $200 worse off for his efforts.

(not exactly how it works as there are a lot of other factors to be taken into account, but not far off either)

Cheers

Pete

I agree but its to little to late. They should have moved a few years ago but they chose to keep the margins high and now they are paying for it. I totally agree with small margins, its not easy. Many think the retailer are making all the money and in some cases they do. The heart of the problam is that Australias retail structure, to many hands out before the customer. I spoke with Furuno Australia when I baught all my commercial electronics fo rthe boat. I asked why there prices havent come down even by some small %, well we have to make money. I said you will find more and more people shopping off shore there for reducing your turnover. He didnt reply, so i moved on.

[Beatsworkin2]

Been in the industry for years, love boats, love fishing... thanks Chris Conroy. If you look at the imports they a mostly shit such as Sea Fox etc. No weight, No laminate, like a aluminium boat. All though boats like Grady White (American Boat) are awesome boats. Weight in the water means better ride but unfortunately due to people loving aluminium boats in QLD the fibreglass boat builders have tried to remove weight from their boats to compete...bad idea! I've been fishing snapper comps in Victoria, people down there do not care about the weight of a boat. They even go to the trouble of buying an old boat and spending $30 - $40K on it to make it better. But there is an easy solution to this, when buying a brand new boat ask for extra laminate in it. As your sales guy may not understand, just say that is what you want done. You can buy a brand new boat BMT 6.5m Australian built for $70K, then when you have a problem you can return it to the manufacturer and have it fixed every time. Support Australian jobs.

[Beatsworkin2]

me too there is not much mark on anything i know but buy australian built boats were here got a promlem fixed

[truth stretcher]

Just google say a Yamaha 115 four stroke price in the us and the same engine in aus (at todays exchange rate) , the difference is astounding , either the importation cost and taxes are too high or someone is too greedy.
This isn't just high priced items either try the same with reels or lures.

[Tangles]

there are dealers in the states with 750 outboards in stock, the market there and here are worlds apart, we live on a big island with less people than some big cities....there is a reality..

Saying that you can get an ARB locker shipped to your door from the States a lot cheaper from a dealer 15 klicks away even though its made just down the road...so its cheaper to ship it to the States and back to your front door than from a local manufacturer to a local dealer to you down the road.

Go to the States and see what 20 bucks gets you in a local store, then go to the local here, Australia is an extremely expensive place to live and do business now, even relatives from London couldnt believe the costs of basic items/cafe's here now and they come over every year, they likened the costs of getting a meal here to a top restaurant in London now.

In our line of business now we often outsource to the States now rather than local as less hassle, less fees and usually more professional on delivery. 5 years ago the States was too expensive to outsource work too, it certainly is a changing landscape.

[theangryangler]

I know a bloke that worked for sundown marine and then crew marine (same owners) and he told me that
neither were actually put out of business due to the economic climate but due to SHOCKING mis-management!!!
Just thought id put that out there
The Angry Angler