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View Full Version : Mercrusier Dealers-Is This For Real ?????



REGISTERED USER
11-11-2003, 04:04 AM
Found this on another site and was wondering if is for real or just some internet bullshit.....................
Attention Mercruiser sellers: It is rumored as of October 1, 2003, any MerCruiser dealer or non-dealer that sells a new MerCruiser engine only or complete package outside his "Local" marine trading area by shipping or by loading into an out of state vehicle will be terminated as a MerCruiser dealer or terminated as an EPC dealer. MerCruiser has hired "test" agents that will call each dealer and EPC within the next 60 days to test the on-line availability to purchase MerCruiser engines and have them shipped out of their "Local" areas. This is not a joke. If you have legal council, now is the time to pursue all avenues available to you and your dealership. Your state Attorney General's office will be very interested to hear each and every complaint filed. When a MerCruiser or non-MerCruiser dealer is found to have violated this rule: The customer will be notified by Mercury Marine that no registration or warranty will be allowed without the installation by a "certified" Mercury Marine tech. Termination process will be started and the EPC that sold dealer the engine in question will be fined and incur their first strike. After 3 strikes, the EPC will be put on notice and with the fourth sale be terminated. As of Today, November 4, 2003, MerCruiser has canceled 45 dealers that were targeted by this campaign. It does not matter the sales volume of the dealer or the years of commitment to service. It is rumored that Volvo Penta Corp will be announcing a new incentive program aimed directly at the MerCruiser customer that will not be able to purchase his engine or engine package from out of state vendors. This will include free 4 year warranty on all engine & drive packages purchased form December 15 thru April 15, 2004. Along with this Volvo Dealers and non dealers will be given a very generous bonus for each engine sold and each engine installed.
I have deleted the e-mail of the person that posted this, but can PM it if anyone is interested.
WTF???

Dr. Eagle
11-11-2003, 04:18 PM
I don't know anything about this situation, but i do know there is a dealer on Boat Trader.com that sells Mercruiser Power packages, engines/drives nationwide from Boca Raton Fla, I think it is. Also if you look in the classifieds on ***boat.com you will see Victory Marine sells drives, transom brackets and other drive/engine combos too.
I don't know if Merc establishes sales territories or not...but this seems suspect to me...:confused:

Kilrtoy
11-11-2003, 04:37 PM
If that is true
Once again Merc screwing everyone again
What next only one engine
5.0L

Ziggy
11-11-2003, 04:56 PM
Read this tread about 30 minutes ago too---seems rather suspect to me as well....kinda like the BFG price fixin they did a few years back.
IMO, if they are authorized dealers to sell the product then they should be able to sell to whoever wants to buy one.
Sounds fishy.

Ziggy
11-11-2003, 04:59 PM
Originally posted by Kilrtoy
If that is true
Once again Merc screwing everyone again
What next only one engine
5.0L
Kilr,
Nice picture of the wife in your sig line but could ya shrink it to the thumbnail size so it doesn't take up all the space.

Froggystyle
11-11-2003, 05:14 PM
Guaranteeing territory is part of having dealerships though. It is possible that some of their dealers have overstepped their bounds, and pissed off some of the other dealers who are now forced to drop to those prices or not compete.
What my guess would be is, that Mercruiser has, in their dealership contract language that prevents this stuff from happening. No state to state sales, no sales outside of your area. I bet they are getting called to the carpet by one or more of their dealers now regarding it, and trying to rectify the situation to the dealers to stay out of court.
I can understand actually... tough nut to crack. We are selling only through dealers for Trident, and if you step on your dealers, your volume goes in the toilet, and if you let your dealers sense a lack of equity on the part of the manufacturer, you can guarantee a mutiny.

Ziggy
11-11-2003, 05:46 PM
Originally posted by Froggystyle
Guaranteeing territory is part of having dealerships though. It is possible that some of their dealers have overstepped their bounds, and pissed off some of the other dealers who are now forced to drop to those prices or not compete.
What my guess would be is, that Mercruiser has, in their dealership contract language that prevents this stuff from happening. No state to state sales, no sales outside of your area. I bet they are getting called to the carpet by one or more of their dealers now regarding it, and trying to rectify the situation to the dealers to stay out of court.
I can understand actually... tough nut to crack. We are selling only through dealers for Trident, and if you step on your dealers, your volume goes in the toilet, and if you let your dealers sense a lack of equity on the part of the manufacturer, you can guarantee a mutiny.
Pretty fine line to walk, It would be a unusual situation if Merc has a clause for territorial exclusivity...hundreds of manufacturers out there that could try to follow along if Merc actually is successful at ceasing this type of sales. Seems to me they'd be hurting overall sales but profitability for the dealers would grow(per unit)...albeit the guys that had mass sales/low grosses would still be loosing.
If Merc is anything like my two manufacturers, they can tell us to do many things but not where we can sell...
Still sounds fishy.

Dr. Eagle
11-11-2003, 06:07 PM
Originally posted by Froggystyle
Guaranteeing territory is part of having dealerships though. It is possible that some of their dealers have overstepped their bounds, and pissed off some of the other dealers who are now forced to drop to those prices or not compete.
What my guess would be is, that Mercruiser has, in their dealership contract language that prevents this stuff from happening. No state to state sales, no sales outside of your area. I bet they are getting called to the carpet by one or more of their dealers now regarding it, and trying to rectify the situation to the dealers to stay out of court.
I can understand actually... tough nut to crack. We are selling only through dealers for Trident, and if you step on your dealers, your volume goes in the toilet, and if you let your dealers sense a lack of equity on the part of the manufacturer, you can guarantee a mutiny.
Wes,
you are right on about the territory issue with boat sales...I remember the dealer I bought my Eliminator from was insensed when I told him of a friend that had bought one in his territory from a dealer back in Arkansas or Oklahoma without any power package, and had it engined up out here.
I am not really sure how that would work with Mercurys' dealers. I think there are at least 8 dealers in my area...unlike the Eliminator Dealer that had a large part of the Northern State. Seems like a different marketing model to me...
Anyway, the guy is still selling the power packages nationwide on Boattraderonline.com
http://www.boattraderonline.com/addetail.html?47385320

Froggystyle
11-11-2003, 06:13 PM
Keep in mind, we are not talking about OEM's. Manufacturers don't count. This is just about motor sales to individuals. I don't see anything wrong with limiting a dealers ability to encroach on another dealers territory, especially if it was part of the contract.
My .02
BTW, just for the record, I think Merc is communist, and I am not even considering them as a stock power option on the Revolution.

Dr. Eagle
11-11-2003, 06:24 PM
I think there are lots of other folks that feel like you do. I would not know, not being from the business but I do wish OMCwas still in business, leaves Volvo as the only other major out there. It seems Merc has a palpable swager almost wal martish... I imagine they are no fun to deal with.
BTW I don't think this is B2B sales or maybe D2D sales. I believe this is directed to the end user...
http://www.performancetrading.net/