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Konnie December 15th 03 06:07 PM

NEW Boat Profit Margins
 
My mate and I are considering purchasing a 22' or 23' Chaparral runabout. I
was just on a business trip on the east coast and priced the SSi220 and it
was $5,000 less than in Arizona where we live.

So I get back home and the local dealer tell me the profit margin on the
boat is only 20% and he has discounted 15% and can't go any lower.

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





Gould 0738 December 15th 03 08:17 PM

NEW Boat Profit Margins
 
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.



Tuuk December 16th 03 12:13 AM

NEW Boat Profit Margins
 
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.




"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.





Harry Krause December 16th 03 12:35 AM

NEW Boat Profit Margins
 
Tuuk wrote:

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.



Another right-winger speaks out against the American system of selling
big-ticket items.

--
Email sent to is never read.

Gould 0738 December 16th 03 01:44 AM

NEW Boat Profit Margins
 
I think a fair profit
margin would be 3 to 5%.


3 to 5%?

Find a likely tree.
Break out fire and chisel.
Make your own dugout canoe.
That's all that would be left of the boat business at a true 3-5% margin.

The boat business is *not* the automobile business. One of the major missing
factors is volume. When I was in the car business,
it wasn't unusual for my single, medium size dealership to crank out 1000 new
cars in a year. There are a lot of manufacturers that don't sell 1000 boats in
a year, nationwide. Probably most.

When comparison shopping, it is well to remember that there is a value
associated with being considered a preferred customer- rather than the cheap
screw who beat the last $50 out of the deal and even *then* bought a boat 200
miles away.

It's important to weigh all factors when deciding on the best price. Some
dealers can offer more value than others, even while selling the exact same
product and options.




John Gaquin December 16th 03 05:38 AM

NEW Boat Profit Margins
 

"Konnie" wrote in message

My mate and I are considering purchasing a 22' or 23' Chaparral runabout.


At whatever price, arrange to take delivery 'launch ready' at least 60 to 90
days before you anticipate your true boating season to begin. Based on my
reading of this and other boating fora, it will take at least that long to
resolve warranty claims with a new boat.

JG




Eric H December 16th 03 07:14 AM

NEW Boat Profit Margins
 
You've been reading some bad fora. Early problems are usually due to
dealer set-up and rigging and are easily remedied. Warranty issues become
apparent over the first couple of boating seasons and require more extensive
solutions.
My 2001 model suffered a shift problem that under went several reasonable
"fixes". This summer I decided I had reached the end of my rope. I now have
a new 2004 outboard with a full 3 year warranty.

"John Gaquin" wrote in message
...

"Konnie" wrote in message

My mate and I are considering purchasing a 22' or 23' Chaparral runabout.


At whatever price, arrange to take delivery 'launch ready' at least 60 to 90
days before you anticipate your true boating season to begin. Based on my
reading of this and other boating fora, it will take at least that long to
resolve warranty claims with a new boat.

JG






John Gaquin December 16th 03 04:33 PM

NEW Boat Profit Margins
 

I go only by what I read in 5 different places online. Your post supports
my position. We're not talking about rocket science, brain surgery, or
long-term corrosion control. Dealer prep, fit & finish, etc., should be
zero-defect. Mounting an engine to a vehicle such that it works in a
reliable fashion is 100 year old technology.

JG



Clams Canino December 16th 03 05:06 PM

NEW Boat Profit Margins
 
Oh yes.....

It *should be* simple. But there's so many little sytems interacting, that
rigging out a new boat can be "challanging". I did my own this year and had
a few "teething problems" and Cod knows I was motivated to get everything
right the *1st* time.

Bolting the engine on is the easy part, you have to get the throttle /
shifter, ignition harness, gauages and harness, and charging system all
"intigrated" to the boats pre-rigged electrics. I still need to screw with
the "hot-horn" sender to be at 100% perfect.

My local dealership has "kids" doing a lot of the setup stuff. Now, I know
what *I* went through and I'm kind of a savvant when it comes to this
automotive crap, I can just imagine what a kid with a manual goes through.
Zero defect my ass, expect teething problems and allow time to sort them
out.

-W

(Oh - specify 3M 5200 as the sealant where the outboard bolts on. I've seen
bastiches using clear silicone seal!!)



"Gene Kearns" wrote in message
...

Bear in mind that during the busiest part of the season most repair
facilities are overloaded with work and for the most part understaffed
(which tend to be under trained if they are seasonal hires). If they
have made a sale and rigging the boat is a prerequisite to getting
paid, all warranty claims and repairs will go to the back of the
line.... and pretty much stay there as long as "sold-boats" are
waiting to be rigged. Warranty claims and repairs are worked in
"stand-by" between sales.

60-90 days is about right.

PS
This scenario also describes why there are so many problems with
rigging. Dealership practice is to "get 'em on the water" ASAP,
collect the sales amount, and deal with the returns and "other issues"
later... at their convenience.

It is just the nature of the beast and is the source of most of the
frustrations with dealers.

--



Grady-White Gulfstream, out of Southport, NC.

http://myworkshop.idleplay.net/cavern/

Homepage
http://www.southharbourvillage.com/directions.asp Where

Southport,NC is located.
http://www.southharbourvillage.com/autoupdater.htm Real Time

Pictures at My Marina
http://www.thebayguide.com/rec.boats Rec.boats

at Lee Yeaton's Bayguide




Clams Canino December 16th 03 05:42 PM

NEW Boat Profit Margins
 

Hmmmmm

Well "that type of motor" is about all I work with so at least one of my
mistakes was inexcusable. (undertightened the shift cable retainer thigie)

I honestly don't know how often the same combo's come up again and again.
But, throw in inexperienced and seasonal help, and I can see where the
mistakes come from. I'm not saying I like them, but to plan ahead for the
time lost seems like a good reality.

-W


"Gene Kearns" wrote in message

Point is, you aren't a dealership.

If this was your 25th install of that type of motor on that type of
hull, do you think you'd have any fewer problems?

--



Grady-White Gulfstream, out of Southport, NC.

http://myworkshop.idleplay.net/cavern/

Homepage
http://www.southharbourvillage.com/directions.asp Where

Southport,NC is located.
http://www.southharbourvillage.com/autoupdater.htm Real Time

Pictures at My Marina
http://www.thebayguide.com/rec.boats Rec.boats

at Lee Yeaton's Bayguide





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