Dallas, Texas 09/11/2014 (FINANCIALSTRENDS) – MarineMax, Inc. (NYSE:HZO) the boat dealer with a national presence has in the past few quarters, made a marked, predictable move to offer premium products with an expensive price tag. The average pricing in the recent times, is at $148,000.
The boat dealership for MarineMax has come a long way from its recreational boats category to entering the sport business segment as well. Its storefront too have expanded in over 52 locations in a dozen and half states. The locations were actually down-sized from the 88 in the pre-depression period and pared down to current t54 following financial crisis.
The definite phase for this company has been the period of crisis when it marked losses for four consecutive years, between 2008 and 2011. The turnaround has been only in 2012.
Crisis drives upscaling
Perhaps the off-shoot of the troubled times, the turnaround phase for MarineMax, Inc. (NYSE:HZO) has been marked by ‘upscaling’ its brands. Namely, the Brunswick line, which is by far the most sold brand in the US and neighbouring regions.
Currently these are priced at a rate which across the models averages to about $148,000 price tag.
The point to be noted here is that this price is higher than its closest competitor by nearly four times. Moreover, Maxine has ensured that it maintains high margins with respect to the maintenance as well as repair, accessories as well storage features.
Despite the main line products being expensive, the effects of the financial crisis continue to grip the company.
MarineMax, Inc. (NYSE:HZO) in the phase before the crisis reported sales of $40 Billion especially in 2006. Close to a decade later, Marine Max continues to struggle, reaching sales figures of $35.6 billion only.
But over the past year, 2012 to 2013, the same-store sales were up to 11% and in its latest quarter reported 22% revenue and same store sales.
The jump in revenue is attributed to the higher prices tags and the move to ‘premium’ branding practices.