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Location: Manitowoc, WI | The word is that Polar Craft's management team has decided to leave competitive tournament fishing, eliminate their pro staff and leave the FLW. Does anyone have any more information on this? |
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Location: Elgin, Illinois | I have no information... But, I have an opinion... My experience with thbeir Deep V boats were all positive and I felt that they were going to become a successful alternative hull choice. I for one thought their boats were excellent. |
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Location: Waukesha Wisconsin | Jerry,
Sorry to hear this. I'm sure that this puts some great names in tournament fishing like Bill Ortiz, Mark Brumbaugh, and Larry Smith who signed on as a tournament Pro in a bad situation. I hope that all of this works out for them if it is true. |
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Location: Elgin, Illinois | This "rumor" seems to have some basis in fact... I believe there is a post over on another board from a member of their pro staff, Jerry Hein... he at least says he got a letter stating that the pro staff has been eliminated and that the arrangement with the FLW has been cancelled.
Edited by hgmeyer 12/2/2006 4:03 PM
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| I feel for the pro staff members. That was a darn good group they had.
Not to stir any pots here, but I have to question how much the G3/Yamaha positioning with the FLW played into Polar Craft's decision on leaving the fold?
Politics can sure make some strange bedfellows!  |
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| FLW and TRACKER MARINE ????? |
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| Jack Dunn - 12/2/2006 9:10 PM
Not to stir any pots here, but I have to question how much the G3/Yamaha positioning with the FLW played into Polar Craft's decision on leaving the fold?
Absolutely none Jack. Godfrey Marine sold to an investment group who is restructuring things to improve the "bottom line".
Juls |
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| Thanks Juls. |
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| It is true, the new managment team eliminated the pro staff and FLW contracts. I wish them well in the future and enjoyed working with everyone at Polar Kraft. They make a real nice boat and I enjoyed running it last year. I guess I have some work to do this winter.
Jerry Hein
#87
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Location: Elgin, Illinois | Let's see... Comapny has a great tournament class walleye boat that they want to sell to hard core weekend fishermen and to the weekend tournament guy... And, the business model is to reduce the exposure of the boats to that class of customer... I hope the "investor group" get's good marketing advice soon... LOL |
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| http://godfreymarine.com/
It wouldn't surprise me if they eliminated the aluminum boats from their line of 10 product names all together.
They are so much bigger than just the PolarKraft name. If you are not aware of what lines they carry, just click on the link above. Pontoons are their money makers.
Juls |
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| Tough deal for the Pro Staffers. But is it possible they, meaning PolarKraft, just weren't selling any of these boats to the general public, at least not enough to justify the expense of the FLW sponsorship? I certainly haven't seen many except for in the FLW tourneys. You would think that they'd have given it more than one year.
I'm sure the FLW pro's that were in PolarKraft boats lat year will be in something this year, although it may cost them a bit more. Again, this is a tough deal for them. |
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| Juls,
PolarKraft has been around a long time, and they sell a ton of boats. The tournament walleye boat market is a tiny slice of the pie. Although the name is new to you and the tournament walleye scene, it has been a trusted name in the aluminum boat scene forever. I doubt you'll see it disappear just because the tournament walleye market didn't work out for them. |
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| Yep, I know it's been around a long time, BUT that was under the Godfrey family. Now that business belongs to an investment group. Things change a lot when IG's take over. We'll just have to wait and see what happens with their boat lines now that the family is out of it. Now it is no longer a passion, but rather a "bottom line". 
Juls
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| Well said Jul's ... It's a wait and see game now! |
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Location: Elgin, Illinois | A situation like this has one of three down the line goals... (1) Long term growth of the business. (2) Short term stock profit. (3) Sale of the business components for more than was paid.
! and 3 seem unlikely given the recent events and the nature of the boat business. Long term does not fit with dumping the idea of competing in the walleye boat market (just an opinion). This isn't an assset intensive business so I doubt if there is money to be made selling the component lines/companies.
No. 2 seems like the most likely, probably through a public offering. That fits nicely with the slash and burn cost cutting and create the "beautiful" income statement to justify a big return on an IPO. That's my guess. |
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| This is business, they pay the FLW and anglers to use and promote product. If they spend say 100k to do this (I'm sure it was more) Just how many boats would that take to get return on the investment? Say the make 10k a boat, thats 100 boats to just break even on that investment. I'd bet they did'nt sell 100 walleye boats last year (18-20') boats marketed for this market. Just a guess, because they would know the true numbers. the only ones I saw were tour boats, and in business without a better market share you can't throw money at a bad investment and expect to last long. |
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Location: Rhinelander | 'reality' has some valid points, but to break into the market with a newly designed product and new image isn't easy or cheap. If a company wants to create demand and strengthen brand recognition, the investment has to be made.
Lund has done a great job over the years of investing promotional and advertising dollars for maximum impact. So have Ranger, Tracker, and Crestliner. Obviously, success for those companies in large part is due to to exactly the kind of promotional investment Polar Kraft was making, but over a long period of time and invested as part and parcel of a long term marketing plan.
Last year fishing boats were down in sales, by a considerable margin off of a flat year in 2005. Forecasts look for a flat to slightly down year for 2007. Market share will be everything, and that's a fact. It takes a heck of a push to steal market share, by the way, because those who have it earned it well with good product and lots of advertising and promotions, and they are not likely to back off short term and pull over to let a new competitor by.
Every company out there has to determine where their market position IS, and then make the calculation as to how many advertising and promotional dollars can be spent to try to do one or more of the following:
1) Hold position
2) Retreat to what the company knows will give them a return
3) Attack the market aggressively, shoot for increased market share and bet on a strong future once the volatile fuel situation, uncertain interest rate climate, and consumer confidence stats lead the way for a better marine economy.
4) Punt. Literally, punt the ball and regroup while the ball is in the air, deciding on a future plan while in motion. Drop everything until the return is heading down the field while hoping the move will place you in decent defensive position.
Every one of the above has an associated cost.
It's not possible to guess which the new team at Polar Kraft has in mind, except it's obvious they do not accept the working model if they are going for number 3. |
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| Steve, I love your sales analogy to football in the marine economic climate, and well said!
Thank good I'm not starting a business in todays marine industry, my nads aren't THAT big!
Good Luck
Tyee |
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Location: Waukesha Wisconsin | Nice Job Steve. I enjoyed reading your insight.
For now, all of this is speculation. People before your post are making some uneducated guesses. All we know for sure is that the new managment team eliminated the pro staff and FLW contracts.
They could still be doing 1-3 in your scenerio.
Great Insight |
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Location: Jackson, Wisconsin 53037 | Wondering, You will not see Tracker as a sponsor with the flw. Unless, Mercury would join the FLW also. I don't see that happening. Mercury is a major sponsor of the PWT. |
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Location: Elgin, Illinois | Relevant portion of an e-mail I received about this development:
"My name is Kevin Bragg and I am Polar Kraft’s Product Manager. I received your email from Jim Orbik our COO yesterday. Thanks for your kind remarks on our product. It is true that Polar Kraft has discontinued its Pro Staff. The good news is we will continue to support the FLW Walleye Tour and League for 2007. Polar Kraft will still pay out contingency bonuses for the FLW Walleye Tour and League for the 2007 tournament season."
That much was encouraging...
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| hgmeyer - 12/7/2006 3:31 PM
The good news is we will continue to support the FLW Walleye Tour and League for 2007. Polar Kraft will still pay out contingency bonuses for the FLW Walleye Tour and League for the 2007 tournament season."
I'm glad to see that they will be honoring their contract with the FLW for next year. That's cool. 
Juls |
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| Well, that is all fine and dandy. But if nobody is in their boats, then there isn't much of a chance they'll have to pay any contingency money to anyone. Like I said, it's too bad they only gave it one year. |
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Location: Elgin, Illinois | Juls, I am not sure they are continuing as a "sponsor". Their website describes their contingency bonuses for a list of tournaments. So, they may be continuing the bonuses without continuing the "sponsorship". Still, I hope they hang around.
I think the biggest "plus" for everyone in the answer is that Polar Kraft will still have their "toe in the water". They do/did have a very extensive list of supported tournaments both bass and walleye. This means that they have a shorter distance "back" than if they were totally removed. There then still exists a possibility for their return on some level/basis. If I could suggest anything to them, it would be to cooperate with dealers to support a "state team" concept and get guys into their boats at the League level. Much more leverage for their money in terms of exposure to a target audience. Then, with success at that level they could see a return on their investment and a move back into the Tour/PWT level with a Pro Staff. But, I'm not driving the bus...
Edited by hgmeyer 12/7/2006 4:51 PM
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| Shep - 12/7/2006 4:49 PM
Well, that is all fine and dandy. But if nobody is in their boats, then there isn't much of a chance they'll have to pay any contingency money to anyone. Like I said, it's too bad they only gave it one year.
Hey Shep,
Do you think that their sponsor dollars were only paying towards contingencies?
Juls |
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| Isn't this just another company finally realizing their return on investment (in tournament sponsorship) Isn't worth it? How do you take the NEXT step and convince sponsors that they CAN make money if they participate in this growing sport? Or is it just a loosing investment? |
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Location: Elgin, Illinois | Godfrey/PolarKraft... got into the big water walleye boats a few years ago and began sponsoring a team in 2005/2006. They had a very weak dealer network in the geographical area that is the traditional market for these boats. In 2006 they became a premiere boat sponsor for the FLW. At the end of 2006 they dropped their prostaff and stepped away from the sponsorship role with the FLW. So when you posit that they had "finally realized their return on investment...isn't worth it..."; I think you may be right that they didn't see any return. But, and it is a big "but", could you really expect to see a return in one season. Even if their boats were fantastic, great values, unblieveable, and on and on with the superlatives... How could you decide in December of 2006 that there was no return on the investment. Maybe after the 2007 show season around May-June of 2007 you might see how much traction the brand was going to generate in the market. But, in the first days of December of 2006, something else was driving the decision. As I said, my guess is they are dressing the financials up for a big coming out party. Or, we have a management team that does not know the boat business.
Edited by hgmeyer 12/7/2006 8:55 PM
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| Juls,
No I don't, but I'd be willing to bet that any money to FLW Outdoors for sponsorship has already been paid, so it's a moot point. |
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Location: Elgin, Illinois | Shep, Juls....
Possibly already paid... or nice and tightly bundled up in a contract that they can't get out of paying it... Or, they "negotiated" some kind of "buy-out"...
It is probably very likely that after the "end" of Lund and Crestliner the FLW lawyers got busy reworking their sponsorship contract....
Edited by hgmeyer 12/8/2006 8:00 AM
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| Thanks for your thoughts Shep and HG...
I guess the only ones that would know for sure, are the people involved with the contracts.
Juls |
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| Yup.
Hope you're not taking it wrong, Juls. I'm not bashing here. Just saying it's a tough deal for the guys to only have one year on the pro staff. |
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| Nope, didn't take it wrong at all Shep. I know ya better than that.
Juls |
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| Shink:
Mercury as an FLW sponsor?
Anything is possible, but Irwin Jacobs (Genmar & FLW) and Brunswick (owns Mercury) really don't appear to like each other all that much. |
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Location: Rhinelander | BWAHAHAHAHAHAHAHAAAAAAAA!! T Mac, that is funny. Understatement can really carry some humor at times... |
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Polar Craft leaving FLW and tournament fishing