Q3 2021 Update from Tommy Hancock

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Q3 2021 Update from Tommy Hancock

It is undeniable that we are navigating through rough waters. On one hand, record-breaking demand on our product and on the other hand, crippling supply chain constraints. We pride ourselves in being transparent with our customers and we owe it to you to stand by that.

October 8, 2021
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Dear valued Sportsman customer,

At this point, it is undeniable that we are navigating through rough waters. As a brand, we are weathering a storm unlike any we’ve ever been through. On one hand, there has never been a larger influx of customers looking to purchase a boat. We’ve received record-breaking demand on our product and we can’t wait to welcome all of you to the ever-growing family of dedicated Sportsman Owners and brand ambassadors. On the other hand, we are dealing with crippling supply chain constraints, inflated cost of goods and many other factors that have caused significant delays and inventory product shortages throughout the world. We pride ourselves in being transparent every step of the way with our customers and we owe it to you to stand by that.

From a national perspective, retail registrations in the center console and bay boat market from 20’-35’, have hit a soft ceiling as all boat builders have struggled to supply product. The latest data shows a plateau in retail registrations over the previous rolling 12 months. However, the persistency of the Sportsman team has paid off tremendously as we see an impressive 12.18% growth compounded over the 21.13% growth the previous rolling 12 months. I want to personally thank all of you for the continued support and for trusting Sportsman as the brand that delivers a top-quality boat for you and your family.

We understand your frustrations. Our entire team is working around the clock to alleviate part shortages and can report that overall, we have had as much success as anyone. This has led to increasingly higher overhead as we continue to incur price increases from every angle and increased costs for shipping/expediting parts that keep the production floor moving. This has also led to increased labor costs as boats are partially completed to await parts. Additional labor must then be sent to the boat after hours to be completed as parts arrive. This has hindered our ability to accurately predict when boats will get completed. Despite these very difficult times, our team has prevailed and I am extremely proud of their accomplishments.

As part of our continued commitment to innovation, we introduced 6 new models this year. At this time, we are happy to announce that the Open 282, Open 282TE, Heritage 261, Masters 247 and Masters 247OE are in full production. The Open 262 is expected to be in full production in the next 30 days. The first Open 262 will be showcased at the Fort Lauderdale International Boat Show, October 27th – 31st. We are excited to start delivering these new models to your docks.

This brings us to the main topic for this letter. Due to the amount of uncertainty with future supply chain constraints, unpredictable price increases and unreliable delivery estimations, we are implementing changes on how pricing is determined and the frequency of possible price changes.

We are announcing a 5% increase on all boats and options. This price increase goes into effect on boats shipped after January 1st, 2022. Additionally, we will need to reevaluate pricing quarterly to determine if any further adjustments are necessary. As a manufacturer, we don’t currently have enough visibility to guarantee pricing beyond March 31st, 2022. We deliver top-quality boats and our pricing structure is designed to be competitive. Our pricing must be adjusted when impacted greatly by inflationary measures outside of our control. We’ve incurred many double-digit price increases since releasing our last pricing revision back in July 2021.

Our website prices have been adjusted to reflect the January 1st, 2022, pricing. If you have a boat on order or have any further questions, we ask that you contact your dealer at your earliest convenience. We value every single one of you and simply said, we couldn’t do what we do without your support and dedication.

Thank you for your time,

Tommy Hancock
President of Sportsman Boats