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#1
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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 |
#2
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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. |
#3
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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. |
#4
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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. |
#5
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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. |
#6
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" 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. |
#7
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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. |
#8
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" Tuuk" wrote in message ...
Yes there is such a thing as "Fair Profit" On a boat? Bull****. The guy is entitled to make as much money as he can by selling a boat. He is under no obligation to sell you a boat at less than his asking price any more than you are under any obliagtion to buy the boat at any price. If the next customer through the door is willing to pay a price the dealer will accept, even if it's 25% percent over cost, then it's fair. I understand the terms margins, operating margins, profit margins, etc etc. Tuuk" wrote in . net..."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%..." ....leads me to believe you don't understand at all. A 3% to 5% margin would probably leave a lot of dealers in the red after after expenses are paid. If you can find a dealer with the volume and overhead structure that allows him to sell it to you for 3% over his cost, by all means buy the boat. But don't try to tell me he's making 3% profit on it. Profit is what the business owners get to keep in their pockets as personal enrichment. He'd probably like to keep making his Cadallac payment as much as you want a boat. 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. Both of those sentences are untrue. All parts are not more expensive simply because they are "marine" parts. Certain parts cost more for very good reason. They may be specially built for a specific marine application (less likely to corrode, blow up). Other parts may simply be marked up because people will pay it. Many parts are no more expensive. If you don't want to buy the marine part, go to the auto parts store, or hardware store for you items instead of the local marine dealer or chandelry. The other day, I blew a fuse in my car. Maybe 50 cents at an auto parts store. Because I didn't want to drive an additional 20 minute (round trip) to the closet auto parts store I went to the West Marine that's a block from my office and paid $2 for two fuses. Same fuse as the one that blew - nothing special. Probably made by the same company that makes the one at the auto parts store - just repackaged under a marine brand name. I didn't have to pay the higher price - I chose too. Likewise if I needed that same fuse on the boat, I could have purchased it for 50 cents at the auto store (and I have). Just because someone can afford a boat, doesn't mean everyone can afford a boat. And you're not entitle to a boat. So if you can't afford one, don't get one. 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. So a boat price should be based on the size of the buyer's checkbook? I smell another damned political thread startin here. But for the most part, that is a profit strategy that you boat dealers use overall. What the hell makes you think I am boat dealer. My only connection with the boating industry is as a customer. 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. Yeah. That's fair. And if you felt you needed that bronze impellor you were more than welcome to shop around for it. If you decide that the $25 automotive pump was suitable, then you paid the same price whether it was going in a boat or a car. This individual case you described as nothing to do with profit margin. That marina dealer was probably committing fraud. Trying to sell you something that wasn't was he said it was. 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. Who's crying? Sound like you are. "My boat parts are soooo expensive.... boooo hoooo." "The boat dealer is driving a nice car. He must be ripping me off. Boooo Hooooo. It's not faaaair!" So go buy your boat on the internet. Hey, if you cannot run your business ethically and profitably then why are you in the business. There is nothing unethical about a business making a profit. Nothing unethical about selling boat at 20% margin. I don't think it's ethical to call someone a rapist just because he won't price his products at a loss or break even. Go sell flowers or something. You'd probably bitch about the raping you took at the flower shop too. But do not badmouth the consumer who doesn't want to be raped by you and know it. You gotta a thing about "rape"? Even using it metaphorically, it isn't rape if you can say "no" and walk away. Never heard of a dealer forcing someone to buy a boat. "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. |
#9
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![]() "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 |
#10
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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 |
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