Albin Factory Shutdown - Part One

[powerboater56]

I actually had heard last year that Albin could be for sale. Fred Peters is not a spring chicken -- in his 70's? -- and there were hints that he would consider an offer. I wonder if Fred will try to resurrect the company at his age or simply look to sell the tooling and name.

The company has always been marginally profitable as far as I can tell. I asked a company rep at more than one boat show why Albin produced a skimpy, 50-cent brochure to sell boats worth $100,000 or more and he said there was never enough cash flow to develop decent marketing literature. I also heard the company had horrendous quality problems on the 45 Command Bridge and new 40-foot produced in China and had to spend huge amounts of money here fixing the boats when they arrived. One Albin dealer told me he would never sell a 45 Command Bridge given the serious problems with the boat.

I live not far the Albin factory in Rhode Island, and I have been surprised at the size of the operation. The plant seemed from the outside to be too big for a small producer like Albin.

Since Albin has a somewhat unique niche in the business -- no-nonsense, downeast-style powerboats at relatively affordable prices -- there may be interest in acquiring the name and tooling.

Still, a sad time that a long-time builder has to cease operations.

John S.

[Denis]

I for one was very surprised to hear the news. Given the information that I read here, that Albin was just not charging enough to survive it sounds so foolish. Who would undercharge for their product year after year and basically force themselves out of business? Sounds like a no brainer to me but then what do I know. The word around my dock and the places I visited with my boat, most people loved the way it looked and their opinion was that Albin was a quality product. Given those two points, for Gods sake charge enough to stay in business! As you can tell, I am very upset that Albin went out of business, it's an unnecessary business closure putting people out of work and cutting off a product line that was successful. Denis

[JackK]

Albin was certainly prosperous. Otherwise, why would so many new contenders have entered the market. When I saw the BackCove for the first time, I met a manager who asked what I had for a boat. I told him an Albin 28 and he said we hope to sell nearly as well as them. That says something about the niche they had.

As for problems, we can all Monday morning quarterback them but it does nothing for us or Albin's attempts to revive things. The North Sea Cutter, the 26 TE, and the 26 CC are certainly contributors. Quality problems and a lack of sales after such large investments in tooling can certainly take the wind out of any company. The boating industry in general isn't good. Costs are up and available financing for boats is tightening to say the least. Another product of the sub-prime banking crisis that is hurting us all not just the housing markets.

I for one hope that they re-focus on their core line of the 28's, 31's and the 35 Command Bridge. Like most small companies, Fred has family involved in the business besides himself. I wish them all a quick and prosperous return to the glory days. Besides - my next boat was to be a 31

Jack

GO RED SOX !!
2 down 2 to go

[Maye Marie]

it's an unnecessary business closure putting people out of work and cutting off a product line that was successful. Denis

Looks like we have a buyer here.

I am sure if it was that simple their would be a buyer right at the door ready to go. Albin could have sold the no brainier business long ago and retired happy floating on his Albin in Bermuda, since that looks like a good place to float an Albin.

Let’s not speculate to much hear. I can run a long list of things that can affect a business, and all can be out of the owner’s control. A private held company does not have lots of assets sitting around to weather prolong storms that might hit them. If a business did hold some extra assets, the government would have taken it in taxes and bought an illegal his or hers education and medical insurance.

I am sure emotions are running high for all of us including the owners and people at Albin. I am sure no one is second guessing them self’s more than Albin. Keep in mind not one of us paid a dollar more for our boat than what we felt we needed to. That’s the market.

For reason it is a good boat design it does make sense for some one to buy the tooling and make the Albin in the future. If not so this year, in the next few years we could see them comming back.

[SCHUTZEE]

Jack K,

I respectfully disagree. If Albin was profitable, why would they shut down? Just because a market segment get crowded doesn’t mean any one particular player is profitable. Quite the contrary, competition can reduce profits. Look at the auto market for, let’s say, economy cars. There is no lack of players; Toyota, Honda, GM, Ford, Kia, etc. But Ford and GM are not profitable yet Toyota and Honda are.

As a third generation owner of a small family business and an Albin owner, I am rooting for Albin. I hope they survive in some form. My thoughts go out to the workers and owners of Albin.

[JackK]

Jack K,

I respectfully disagree. If Albin was profitable, why would they shut down? Just because a market segment get crowded doesn’t mean any one particular player is profitable. Quite the contrary, competition can reduce profits. Look at the auto market for, let’s say, economy cars. There is no lack of players; Toyota, Honda, GM, Ford, Kia, etc. But Ford and GM are not profitable yet Toyota and Honda are.

As a third generation owner of a small family business and an Albin owner, I am rooting for Albin. I hope they survive in some form. My thoughts go out to the workers and owners of Albin.

Schutzee - The key word in my statement is "WAS".

My comment was directed at the statement that they did not charge enough for their product. When I purchased my 28 new, they were by far not the lowest cost 28 I looked at. As a matter of fact they were the most expensive that I looked at.

The 28, 31 and 35 lines had to be profitable. The engineering and tooling required to build the newer models - 26CC, 26TE, 45CB, and 40 NSC had to be astronomical (and I have no knowledge of the actual costs). That's what is the problem here - again IMHO.

I too own a small electronics related manufacturing company and have been through enough lean times to realize that it doesn't take much to push the little guy under water. The resources (cash) required to bail one's self out of a bad decision just aren't there like they are with a large public company.

Jack

[Cape Codder]

What a good business man MUST do:

This is a private enterprise, with a limited dealer network. Some dealers have been sitting on Albins for a year or more.
No way will they order more from Albin in this dismal boating climate.

Everyday Albin was to remain open would simply be burning cash. Probably much needed cash. Close the doors now with the hopes of re-grouping, instead of holding them open any longer and bleeding to death.

In better times, competition or not, this boat line, particularly the 28 and 31, have VALUE.

I'm hoping a new administration, democrat or republican will stir the economy back into shape.
When housing staightens out, boating will follow.

I sure hope they return ot sell to someone with a passion and dream.

[Mariner]

Jack K,

I respectfully disagree. If Albin was profitable, why would they shut down? Just because a market segment get crowded doesn’t mean any one particular player is profitable. Quite the contrary, competition can reduce profits. Look at the auto market for, let’s say, economy cars. There is no lack of players; Toyota, Honda, GM, Ford, Kia, etc. But Ford and GM are not profitable yet Toyota and Honda are.

As a third generation owner of a small family business and an Albin owner, I am rooting for Albin. I hope they survive in some form. My thoughts go out to the workers and owners of Albin.

Schutzee - The key word in my statement is "WAS".

My comment was directed at the statement that they did not charge enough for their product. When I purchased my 28 new, they were by far not the lowest cost 28 I looked at. As a matter of fact they were the most expensive that I looked at.

The 28, 31 and 35 lines had to be profitable. The engineering and tooling required to build the newer models - 26CC, 26TE, 45CB, and 40 NSC had to be astronomical (and I have no knowledge of the actual costs). That's what is the problem here - again IMHO.

I too own a small electronics related manufacturing company and have been through enough lean times to realize that it doesn't take much to push the little guy under water. The resources (cash) required to bail one's self out of a bad decision just aren't there like they are with a large public company.

Jack

The 28' is a funny boat. In many markets, I suppose it's competing with much cheaper, starker, outboard-powered fishing boats. When compared to those, it probably looks expensive. But when you compare it to other diesel inboard powered cruising boats of the same size, the few competitors that emerge, are likely more expensive. It's a rather unique boat that should really be compared to boats in the 30'-32' range, rather than ones in the 25'-29' range.

[RicM]

The TE series are unique boats that don't really "sell themselves". Most boat buyers are not really interested in a combination fish/cruise boat that cruises at 18knts, and the fuel economy of the design is something you can't really "see" at the boatshow. I looked at a lot of boats in the 28-30ft size range, and there was deal breaker in every design I looked at except the 28TE. In the end we almost sort of backed into the Albin by eliminating other designs. If a buyer primarily fishes, he wants a center console that does 30-35 knts, if it's cruising, he can buy what LOOKS like a lot more boat for the money in a Sea Ray, and Sea Ray has very agressive financing packages.

The Back Cove 29 was the closest in layout and a slicker looking boat but it's $190K, which was the deal breaker there, plus there are not many used ones out there.
I love my Albin, but it took a while to come to the conversion.

[Maye Marie]

Mariner
You are right about the 28 market. We are seeing the beginning of a major market change. If you look at most new boats hitting the market they all seem to be the big outboard boats. When in the past have we seen outboards getting into the 34 to the 38 foot range? But many new models showing up in the market are with outboards are in this large size range. New Outboards with improved liability, fuel efficiencies and speed seem to be driving a new market area. Major boat manufactures are given the new class of boat lots of attention.

The 26 center was a direct contrast to what the trend is at this time. So I would say every one was right about that being a mistake. Although small manufactures seem to look for markets no others are paying attention to. The 28 is a good example of what success could be achieved with that theory. Had it to them self’s until others started to catch on.

Oh the joys of the small business man. God bless ya!

[Mariner]

I agree that the trend is towards the big multi-ouboard boats. However, It think this has more to do with Brunswick's dominance in the market and their ability to force-feed the Mercury line to the consumer.

I do NOT think, even with the improved reliability and efficiency of the the gas powered outboards, that this is the direction that the market SHOULD be going. The 26' CC was a remarkably innovative and practical boat. It is exactly where the market should be heading. Unfortunately, Brunswick's huge marketing campaign has made the inboard diesel an unpopular choice.

The 26' CC was, unfortunately, ahead of it's time.

[RicM]

I wonder how much they spent developing the flush deck 28TE? That seemed to me like changing something for the sake of changing it. I suppose that, once again, it looks better at the boat show, but the Newport edition took a lot the "fishing" out of the 28TE, probably to compete with the Back Cove, which has way too much fancy upholstery to fish seriously. Not to mention those wussy little cocktail tables on the Back Cove.

[Elizabeth Ann]

I agree that the trend is towards the big multi-ouboard boats. However, It think this has more to do with Brunswick's dominance in the market and their ability to force-feed the Mercury line to the consumer.

I do NOT think, even with the improved reliability and efficiency of the the gas powered outboards, that this is the direction that the market SHOULD be going. The 26' CC was a remarkably innovative and practical boat. It is exactly where the market should be heading. Unfortunately, Brunswick's huge marketing campaign has made the inboard diesel an unpopular choice.

The 26' CC was, unfortunately, ahead of it's time.

I agree whole heartedly! Personally, I cant stand these 'big' triple outboard power boats. First I don't need the speed. Second, even with increased efficiency of new outboards they can't compare to a diesel. Longevity.....hands down diesel. The you get to price and accommodation - which to me is important. I think it's crazy to spend 100K+ on a outboard boat when at that time your at similar prices for a diesel (maybe even dual diesels).

Just my 2-cents of course.

Getting back to the matter of this thread, I do think Albin has a competitive product. Hopefully they can weather whatever it is they are up to.

[henry robertson]

VERY INTERESTING-----VERY GOOD BOAT-- GOOD PRICE-- AVERAGE ATTENTION TO DETAIL--BELOW AVERAGE CUSTOMER SUPPORT----NO MARKETING EFFORT---THIN DEALERS----
WONDER WHY THEY CLOSED
LOOKS LIKE A GREAT OPPORTUNITY FOR SOME BRIGHT YOUNG VENTURE CAPITALIST TO STEP IN--I AM SURE THIS GROUP WOULD CHEER THEM ON---I WOULD
HENRY

[jcollins]

Stopic split into two parts