Not to side with the builders as I am having a boat built right now, but there is a BIG difference between gross profit and net profit. Builders have to make money to get through lean times. Look at GM they have been losing billions per quarter.
I wouldn't bet on a 20 to 30% profit margin. After all costs are factored I would think that most would be lucky to net 5 - 7%
No way. They are operating on way mroe profit margin than that. I know of one builder that will offer as much as a 20% discount and they STILL make money on the boats.
Yes, I definitely think new boat prices are out of hand. As long as the demand is high, the builders will continue to raise their prices. I can tell you that I know overhead for any business nowadays has increased. The higher prices are not just added profit to the builders. California is a very expensive state to do business in.
The thing that blows me away, is the amount of people that are buying these new boats. I'm stunned with the amount of people that sell their boats after one year and move up to something bigger. Do people really have that much disposable income where they can afford to take a big hit on a boat after owning it a year or two?
IMO...I think there is just a lot of people who have the trying to "Keep Up With The Jones" syndrome.
kinda makes you wonder if our kids will be able to afford a new boat...
I would imagine a significant profit.. I am sure of one thing that everyone here can agree with because we know that there are not many. The word boat and the word free do not go together. Nothing is free when it comes to a boat.
I got some free coolie cups and T-Shirts with mine...Hell, you can't beat that.. :crossx:
I got some free coolie cups and T-Shirts with mine...Hell, you can't beat that.. :crossx:
You have Mrs River what more could a Man want or need.
I got some free coolie cups and T-Shirts with mine...Hell, you can't beat that.. :crossx:
You paid for those coolie cups and T-Shirts,trust me....... :crossx:
You paid for those coolie cups and T-Shirts,trust me....... :crossx:
Believe me, I know.........
Ive been out of the Porsche market for some time now (Raised three sons) but I believe you can still get a nice 911 (are they still called that) for that price, AND ITS THE WHOLE CAR and pretty good quality at that. You telling me Mercury is that much higher quality, doubt that!! NSF
Read,,,I DO think Merc stuff is out there, 80k??
Brian
A simple example of how boating prices are inflated.
I was at the LA Boat show looking to upgrade. I was speaking with one of the LHC based builders, had the boat all set up with every option I wanted. Total options/upgrades were in excess of $12k I think; my memory is a little fuzzy.Anyway, the salesman says if I leave him a $500 deposit that day he will throw in the options for FREE! So, if this particular builder can throw in $12k+ of options at no charge how much freaking money you think the builder was making on that boat to begin with?
All that means is that you had cut a deal that was $12K more than he would have cut if you had kept beating on him.
$12K in options is about 6K in cost BTW... The retail vs. wholesale markup on stuff like trailer options, audio systems, swimsteps, aqua ladders, bimini tops etc... is nearly 50% in most cases.
If you ever get more for your used car trade-in than you can sell it for... you are paying that much more for your new car. Money does not come from nowhere... and if you can't sell it for more... neither can they. Any time you get a great deal on a trade... you are likely taking a bath on either financing or the price of your new vehicle. Do the math.
Posting Permissions
Reply With Quote