View Single Post
  #7   Report Post  
Tuuk
 
Posts: n/a
Default NEW Boat Profit Margins

Yes there is such a thing as "Fair Profit" , I understand the terms margins,
operating margins, profit margins, etc etc. But it has been known since the
beginning of time that once you own a boat, all parts, simply because they
are "marine" parts are priced way out of wack. So I do not understand why
you defend such a gouging practice. Just because someone can afford a boat,
doesn't mean everyone can afford a boat. I understand you targeting that
corporate executive who keeps his/her boat down there at the yacht club and
calls ahead for the marina guy to have his boat all fueled up and ready for
turn key and go. All cleaned up and maintained. Yes, you can rape that
person. But for the most part, that is a profit strategy that you boat
dealers use overall. I had to once buy a water pump for an old OMC 165hp
I/O. Now the marina told me it was 300 dollars because it had a bronze
impeller, the automotive dealer told me he could supply me with an exact
pump as my sample which was cast iron impeller for 25 dollars with swap. I
chose the marina because I am always in salt water. I picked it up at the
marina and it had a cast iron impeller, the marina purchased it from the
same auto guy I spoke to and turned around and charged me the OMC 300 dollar
price. Of course I told him what he could do with the pump, he sent it back
to the auto parts guy where I purchased it for 25 dollars, same price he
purchased it for, or he probably got a discount, that is fair.
You dealers are doing this steady, your margins are high, and due to
globalization and internet shopping, your forced to be more efficient and
add more value. Now you don't like it so you cry the blues. Hey, if you
cannot run your business ethically and profitably then why are you in the
business. Go sell flowers or something. But do not badmouth the consumer who
doesn't want to be raped by you and know it.







"Curtis CCR" wrote in message
m...
" Tuuk" wrote in message

...
Be very careful what the dealers tell you. I can only speak from

experience
from the dealers in my area. I wouldn't trust any of them. They are

salesmen
and will maximize their profits. Find the boat you like, model number,
engine and all that comes with it including the covers, life jackets,
paddles, trailer etc etc. Call all the other dealers, get a quote on

exact
same deal. Go online and email all the dealers. Let them know you are
quoting from here to Moscow and the hungry one will give you a price,

then
take that price to your nearest dealer, ask them to beat it by 10%. They
will cry a bit, but will realize they will deliver it, service it, and

let
them have the honor of selling you your boat. But stand behind your

guns,
they will say this and that and cry broke as they drive off their

property
in their Cadillac, but just stand behind your gun. I am guessing the

profit
margins on a boat are around 20% if not a little more. I think a fair

profit
margin would be 3 to 5%. Don't forget by you buying a boat, the end

user,
there will be a long line in the supply chain of that boat that have a

lot
of hungry hands out. If you squeeze the dealer, he squeezes his agent,

who
squeezes the next guy who squeezes on your behalf the manufacture. Those
manufactured suggested retail prices are just that, suggested and there

are
a lot of suckers who pay full pop. They make enough margins, your right.


For Christ's sake. Just make your best deal.

You are displaying the same ingnorance that I hear, even from some
people that work for me, over what profit is. Seem to think that
anything over what the dealer pays is "profit". That's my favorite
line about mark-ups being *PURE*PROFIT*

No. It's margin. We refer to it where I work as operating margin. I
would be out of business in a heartbeat if I only had a 3%-5%
operating margin on what I sell. You think the difference between
what the dealer pays and what he sells for is just going into his
swiss bank acount?

So what if the guy if the guy drives a Caddilac? Doesn't a boat
dealer (even a boat salesman) have a right to make a good living -
just like you?

"Hey! You could give me a better deal on this boat if you were
driving a Yugo. I'll take my business elsewhere!"

I am not saying that you have an obligation to pay more than you want
to. You can walk away from any deal YOU THINK is unfair. Make your
best deal. Find the guy that will sell you the boat at the cheapest
price and give you the service you want/need. But spare us any
definition of "fair" profit - there is no such thing - Especially on
luxury items like boats.

"Gould 0738" wrote in message
...
I don't mind paying anyone in business a fair profit but I would like

the
truth - does any one know how much profit are in these boats?

Konnie

Not enough.

My suggestion: Forget all about trying to
buy a boat like an automobile. Don't worry about whether the dealer is

making
$1, $100, $1000, or $10000. Shop around enough to get the *best price*

(all
factors considered) that will lift the minimal number of dollars from

your
wallet and then just simply enjoy the boat. Why be peeved because the

gross
profit might have been more than you (surely missing some important

factors in
the equation) considered "fair"? The consumers objective is to find

the
lowest
price, not the smallest profit. :-)

Good luck. Hope you enjoy your boat.