Nautique purchase outside of local area

[blueroom]

You are not required to buy at a specific location. By saying this, you are implying that dealerships outside of your territory will tell you they will not sell to you, which is refusal of service - aka lawsuit territory. Anyone who flat out tells you no is clearly not aware of this.

You are absolutely wrong on this. Manufacturer controlled sales territories are not only legal, they are often encouraged or defended by the FTC. Their view is that the public may actually get a better product or service, as the local dealers can focus more resources into a territory, and that the competition between brands (consumer choice) is better when sales territories are protected - ie. the local Nautique dealer can better compete with the local Malibu dealer.

[wakerider107]

You are absolutely wrong on this. Manufacturer controlled sales territories are not only legal, they are often encouraged or defended by the FTC. Their view is that the public may actually get a better product or service, as the local dealers can focus more resources into a territory, and that the competition between brands (consumer choice) is better when sales territories are protected - ie. the local Nautique dealer can better compete with the local Malibu dealer.

There is nothing legally stopping a dealership from dropping a boat out of territory (at least with the 4 inboard manufacturers I have worked with) - unless you consider the follow slaps on the wrist:

From the dealership side, they are "required" by the manufacturer to sell current year models in their territory. Each manufacturer has different implications if a boat is sold out of territory. For instance, Nautique would require a portion of the profit to be given to the local dealership, as a buffer for service, if an agreement was not made between dealerships prior to the sale. If this is not paid, the only legal action that would be taken is the manufacturer dropping the dealerships contract, but it's doubtful that this would happen even after many instances - which I have seen plenty at multiple locations.

Another manufacturer, who I am not naming, allows boats to be sold anywhere and the "fine" only gets imposed if that boat goes to the local dealership for warranty work 3 times within its warranty period. This action is not based one where the boat is registered. This so called fine is a small portion of the true profit off the boat.

Another manufacturer told two dealerships who often went up against each other on price and dropped many boats in the others territories was told to "figure it out" by the manufacturer.


I understand the manufacturer controlled territory like you mentioned, which I believe is a part many are forgetting. Competition between dealerships of different brands drives a fair price just like having more dealerships of the same brand would - in my opinion, I suppose.

[blueroom]

Except, as was already stated in this thread, there is likely a penalty - payable to the dealership that had their territory breached.

[AdamJBarn]

At our dealership, those that have bought boats from us get priority service. I’m booked out to the middle of June. That’s why you buy and support local.


Sent from my iPhone using PLT Nautique

[nyryan2001]

these dealers that struggle to keep to keep up with services are often the same ones who provide terrible service hack jobs.

the best serving dealers I’ve seen manage all customers very well.

if you find a dealer not having time for you... run away. You shouldn’t feel lucky to get great service. You probably wouldn’t have got it from them anyway even if you bought from them.

there are dealers out there that will treat you with respect, provide quality service, not back woods “you didn’t buy yer boat here”

[Infinity]

I understand that the guys that bought the boats from that dealer would get priority, it only makes sense....but not taking care of the customer that did not buy their boat there is a guaranteed way to make sure they never do. I have dealt with some great dealer and some crappy ones. I DIY everything except warranty work, mostly cause I enjoy it but also cause I will never be put in the position of being at the mercy of a dealer who may decide they dont have time for me and cost me weeks/months or boating time.

[Samuel]

The guidelines can be bowed yet it will probably require a decent working connection between the obtaining merchant and your neighborhood merchant. One is stating Nautique is dumping item, an incredible inverse, they seem to constrain their merchants to withhold item from clients who live outside the merchant's business area.

[wakerider107]

I understand that the guys that bought the boats from that dealer would get priority, it only makes sense....but not taking care of the customer that did not buy their boat there is a guaranteed way to make sure they never do. I have dealt with some great dealer and some crappy ones. I DIY everything except warranty work, mostly cause I enjoy it but also cause I will never be put in the position of being at the mercy of a dealer who may decide they dont have time for me and cost me weeks/months or boating time.

Absolutely true - the service department is responsible for many new and repeat sales. In my previous comment regarding priority, it's important to know that I am not saying the dealerships I have worked for have turned people away, or that every single non-sales customer goes to the back of the line - every situation is different. But in a very general sense, there is a priority to NEW boats that were purchased from the local dealership over NEW boats that were purchased out of territory. I am not talking about used boats here at all.
I would see every service customer that walks through the door as a potential sale whether they have bought from us previously or not. The point I am trying to make, is if you purchase new outside of territory, it should come without the expectation of your local dealer bending over backwards for you - they may still do that, but it shouldn't be expected. Again, every situation is different.

This area gets even more gray with other manufacturers, specifically pontoons, which is essentially a free for all with no territory penalties.

[wakerider107]

these dealers that struggle to keep to keep up with services are often the same ones who provide terrible service hack jobs.

the best serving dealers I’ve seen manage all customers very well.

if you find a dealer not having time for you... run away. You shouldn’t feel lucky to get great service. You probably wouldn’t have got it from them anyway even if you bought from them.

there are dealers out there that will treat you with respect, provide quality service, not back woods “you didn’t buy yer boat here”

Important to remember that the service time frame varies by location. You have a longer season in TN, but a dealership with 7 techs in WI, IA, or MN can still get backed up 3 weeks in their short summers because everyone only has 3 good months to use their boats.
Dealerships down south often have better service time frames because their seasons are spread out which in turn spreads out the service schedule.

[wakerider107]

Except, as was already stated in this thread, the penalty is a few thousand dollars - payable to the delaership that had their territory stolen. If dealers want to risk their territory, or inventory allocations, by selling out of territory, without involving the appropriate dealer, that is their choice for sure. Nothing legally keeping them from doing so, other than a legally enforceable agreement with the manufacturer.

It would take A LOT of out of territory sales for the manufacturer to pull inventory allocation or drop their contract. I know of a few dealerships who are notorious for selling out of territory and all they do is pay a couple thousand to the local guys and get a bad reputation with other dealerships.
It's not as severe as you make it sound.

[nyryan2001]

Important to remember that the service time frame varies by location. You have a longer season in TN, but a dealership with 7 techs in WI, IA, or MN can still get backed up 3 weeks in their short summers because everyone only has 3 good months to use their boats.
Dealerships down south often have better service time frames because their seasons are spread out which in turn spreads out the service schedule.

being military... I move every 2-3 years, and I’m rarely at my home dealer. I’ve had 4 dealers that were terrible (Chessie, WSA, Wilson Watersports, and Poplar Pointe). I’ve had 2 that were exceptional (Buxton and TNT).

never once have I got good service from anyone that started the conversation with “where’d you buy your boat?” Regardless of the wait game you describe. And I am talking lying, unethical, damage to boat hack jobs at EACH of these hack service depts.

WSA- liars and thieves “a mystery man jumped a fence and did a bad vinyl repair on your boat, it wasn’t us”

Wilson- hack job screw through CAN cable grounded it out by weed smoking 18yr old wake grom during warranty vinyl repair. “We dont know why none of your electronics are working and we’re too busy to fix the damage we did to your boat.” “You didn’t buy yer boat here”

Chessie- destroyed boat cover with 100gals of pooled water and mold over every surface in interior and compartment, customers fault. And treat you like trash when you try to use a coupon for $75 in road tolls reimbursement they send you i the fall for winter services. “ we treated you great!”

Poplar Pointe- charged for an impellor change, was never done, and then ran the boat dry out of water destroying existing impellor, the bits clogging tranny cooler. “We have no idea what happened.” “You didn’t buy yer boat round here”

on the inverse, neither Buxton nor TNT ever asked me where I bought my boat or why i was bringing a new 1-2 yr old boat to them. They are just great folks that treat customers with respect exceeded all expectations. “Let us fix this crap these other dealers wouldn’t “

The good this is, Nautique have Ron Nace heading customer service. When these ^^^ shenanigans are going on, he will bend over to make it right.

[wakerider107]

being military... I move every 2-3 years, and I’m rarely at my home dealer. I’ve had 4 dealers that were terrible (Chessie, WSA, Wilson Watersports, and Poplar Pointe). I’ve had 2 that were exceptional (Buxton and TNT).

never once have I got good service from anyone that started the conversation with “where’d you buy your boat?” Regardless of the wait game you describe. And I am talking lying, unethical, damage to boat hack jobs at EACH of these hack service depts.

WSA- liars and thieves “a mystery man jumped a fence and did a bad vinyl repair on your boat, it wasn’t us”

Wilson- hack job screw through CAN cable grounded it out by weed smoking 18yr old wake grom during warranty vinyl repair. “We dont know why none of your electronics are working and we’re too busy to fix the damage we did to your boat.” “You didn’t buy yer boat here”

Chessie- destroyed boat cover with 100gals of pooled water and mold over every surface in interior and compartment, customers fault. And treat you like trash when you try to use a coupon for $75 in road tolls reimbursement they send you i the fall for winter services. “ we treated you great!”

Poplar Pointe- charged for an impellor change, was never done, and then ran the boat dry out of water destroying existing impellor, the bits clogging tranny cooler. “We have no idea what happened.” “You didn’t buy yer boat round here”

on the inverse, neither Buxton nor TNT ever asked me where I bought my boat or why i was bringing a new 1-2 yr old boat to them. They are just great folks that treat customers with respect exceeded all expectations. “Let us fix this crap these other dealers wouldn’t “

The good this is, Nautique have Ron Nace heading customer service. When these ^^^ shenanigans are going on, he will bend over to make it right.

Yikes, sorry to hear. You have certainly had some unfortunate situations and hopefully that is not something that is consistent with those dealerships.

[blueroom]

It would take A LOT of out of territory sales for the manufacturer to pull inventory allocation or drop their contract. I know of a few dealerships who are notorious for selling out of territory and all they do is pay a couple thousand to the local guys and get a bad reputation with other dealerships.
It's not as severe as you make it sound.

A $4,000 fine is pretty severe, and it comes out of the customers pocket ultimately. With allocations being dynamic until the day of delivery these days, even after they are allocated to the dealers, it actually is pretty easy for a dealer to find themselves with a boat or two less to sell.

[wakerider107]

A $4,000 fine is pretty severe, and it comes out of the customers pocket ultimately. With allocations being dynamic until the day of delivery these days, even after they are allocated to the dealers, it actually is pretty easy for a dealer to find themselves with a boat or two less to sell.

I suppose, I just have yet to see allocations be harmed due to selling out of territory. The allocation process is also very different depending on manufacturers.

Also, depending on the location, the manufacturer is not going to punish the selling dealership unless the local dealership raises the issue and demands payment.

It sounds like you have some personal experience with territory issues though - it's nice to hear another view point.

[Wayward]

Important to remember that the service time frame varies by location. You have a longer season in TN, but a dealership with 7 techs in WI, IA, or MN can still get backed up 3 weeks in their short summers because everyone only has 3 good months to use their boats.
Dealerships down south often have better service time frames because their seasons are spread out which in turn spreads out the service schedule.

Im in the northeast, and even though I stretch my season from may 1- nov 1, most customers are on the water 3-4 months here. I have to work with several different dealers around here, and I can tell you that it is easy to see the differences between them on service.

luckily, both the local Nautique dealer, and Mastercraft dealer, have properly managed service departments, and exceptionally helpful attitudes for ANY customer. Both of them will do whatever it takes to keep you on the water, and a backlog of more than a couple days is unheard of with these two dealers.

On Saturday, we went to another local dealer, and my friend demoed a boat he was interested in. He was close to buying it, until the dealer told him they couldn't do the prep and delivery until the second week of June..... This also happens to be the same dealer that made him wait until fall to replace a cracked ballast tank on his brand new boat. The excuse was "it's too big of a job for us to do during the busy season". Needless to say, he is moving on to another dealer/brand.

nonetheless....... my point is, if they are "too busy" to get stuff taken care of in a reasonable amount of time, or if they are purposely turning away business, it is a business management problem, not a customer timing problem.


on your other points- I totally agree.

The "dealer territory" crap isn't helping anyone, except the crappy dealers..... a good dealer doesn't have to worry about keeping customers. And it's not like territory restrictions help any customer. Quite the opposite actually.