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Author Topic:   Dealer Markup
JFM posted 07-13-2001 09:20 AM ET (US)   Profile for JFM   Send Email to JFM  
Does anyone know what the dealer markup is on a new boat? The local (cincinnati) whaler dealer wants list price. I am going to northern Ohio in early August, does anyone know who would the best dealer to visit? I have heard thar Portage Entry was good. Thanks in advance.
yankee posted 07-13-2001 09:27 AM ET (US)     Profile for yankee  Send Email to yankee     
I'm not sure about power boats, but I worked in sales for sailboats in the early 80s. Companies such as Irwin, Ericson, S2, Compact etc. would vary from 12% to 20%. The higher end boats had a little lower markup. Sailboats NEVER sell as high as list price.
Cruiser posted 07-13-2001 10:00 AM ET (US)     Profile for Cruiser    
Hey Jay,
I see that you are a "small business" owner. What is your markup on your products or services? What kind of business is it?
Bigshot posted 07-13-2001 10:03 AM ET (US)     Profile for Bigshot  Send Email to Bigshot     
Read somewhere years ago that it ROUGHLY goes like this: 1/3 manufacturing cost,1/3 dealer cost, 1/3 MSRP. So a $60,000 boat would cost 20 to build, dealer pays 40 from manufacturer, MSRP is 60 but that boat can sell anywhere from $40-60. You saw it with the 26 Conquest post. List of $138, buy for $98K. Manufacturer pays $47 to build it, dealer pays 94, can sell it but will still make a $4k profit plus whatever he trades which most people buying a $100k boat will trade or buy ridiculously priced options and electronics, service contracts, etc. Play around with this and you will see it fits and kinda gives you an edge when they say they are selling at cost, call their bluff. Selling at MSRP is BS but supply and demand sets the price.
JFM posted 07-13-2001 10:23 AM ET (US)     Profile for JFM  Send Email to JFM     
Cruiser, I distribute industrial controls and software. My markup ranges low ens 5% to high end 25%. By the way I notice your profile is blank. What do you do?
Translation posted 07-13-2001 10:41 AM ET (US)     Profile for Translation    
I was in the boat bus in the late 80's early 90's.....

Markup on engines and electronics is around 100%......yes, that means that an outboard with a retail of $18,000 costs that dealer about $9,000. That is often where the gravy is for the dealer.

The industry is more sophisticated these days, more like the car business with "silent rebates" from manuf to dealer, and bonuses based on retail volume at end of model year, and rebates for boats and motors that are in-water demonstrators.

Like the car business, many people think that boat dealers should not be allowed to make a profit....but consumers in business for themselves should recognize whats reasonable to expect and not expect in terms of movement on retail. Bottom line, there is alot of room for negotiation and you should pursue the best price on the combination that you are seeking.

I would go to Portage Entry and get a price, and decide if you want to give the local dealer a chance to match it.

I am shocked they would quote you full retail for any product this late in the selling season....he must have sized you up as someone who hasnt done his homework or someone for whom $$$$ is not an issue....which would be a dealer I would avoid in the future.

Good luck - what are you buying?

Bigshot posted 07-13-2001 10:53 AM ET (US)     Profile for Bigshot  Send Email to Bigshot     
Translation. That is very good and sounnd advice. Thank you! my father always said:1) If you buy with emotion, you pay too much. 2)You always get your best deal when you are not looking. 3)If you by something right, it is already half sold. If you look back at your aquisitions, you will see this is usually the case. PS He also said, " If you paint a room at night you will laugh at your work in the morning. He must have had 25 watt bulbs, because i paint fine at night.
JFM posted 07-13-2001 10:54 AM ET (US)     Profile for JFM  Send Email to JFM     
Traslation, Looking for a Montauk with 90 or 100HP with galv. trailer.
JFM posted 07-13-2001 11:06 AM ET (US)     Profile for JFM  Send Email to JFM     
Cruiser, I still have not heard from you. I notice you use hotmail. Isn't that free. Were you being sarcastic when you asked what my mark up was or were you serious? I thought you might be a Whaler dealer. But I don't think a Whaler dealer would use hotmail.

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