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  Mercury Adds Incentives to L6 Verado Re-Power

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Author Topic:   Mercury Adds Incentives to L6 Verado Re-Power
glen e posted 05-19-2008 12:00 PM ET (US)   Profile for glen e   Send Email to glen e  
Got a call over the weekend from one of our dealer friends about [Mercury incentives for L6 Verado motors]. Some have said that if you re-power with a verado, you have to buy too much other stuff like steering, guages, or DTS. Mercury has gone ahead and helped solve that problem. Here are the details:

--Six-cylinder Verado 200, 225, 250, 275, and 300-HP models
--Purchase to re-power an existing boat
--$2,000 per engine cash rebate at the time of sale
--Engines sold May 1, 2008 through June 28, 2008
--Warranty registered by July 15, 2008
--Contact your participating Verado Dealer for additional details

And the 5 year [warranty] also extended.

Yiddil posted 05-19-2008 09:44 PM ET (US)     Profile for Yiddil  Send Email to Yiddil     
You mean no 150's in that offer, glen? Shucks
jimh posted 05-19-2008 11:58 PM ET (US)     Profile for jimh  Send Email to jimh     
Thanks for the information on the sales incentives for the Mercury Verado six-cylinder motors. I thought the motors were already aggressively priced with respect to the competition considering the advanced features that the Verado motor offers. This new incentive really makes them attractive. It will be interesting to see if buyers respond.
David1877 posted 05-20-2008 01:11 AM ET (US)     Profile for David1877  Send Email to David1877     
I have a 200 Optimax. Generally, I like the motor. But it is a noisy devil. I would apprecaite a quieter 4 stroke.

I dont know how good the market is for a used Optimax (2 seasons). I talked to a Yamaha/Merc dealer about this once. They dont want it.

If I were compelled to repower today, I would take a pretty good look at Yamaha. Cost of conversion may not be worth the brand.

Whalerdog posted 05-21-2008 06:01 PM ET (US)     Profile for Whalerdog  Send Email to Whalerdog     
133 a barrel they will be giving them away. No end in sight for fuel increases.
L H G posted 05-21-2008 07:17 PM ET (US)     Profile for L H G    
In many respects the outboard engine manufacturers may not find themselves in as bad a postion as you would think. Fortunately, they have new high mileage 4-strokes and DFI 2-strokes to sell. These engines will see increasing re-power demand as fuel costs go up. Just like getting rid of gas hog SUV's and Pickups, many will want to get rid of their gas hog 2-stroke. Look for more "re-power" deals from the manufacturers.

If you have an older Whaler that is gas hog, you can repower it and make it EXTREMELY attractive. But if you have gas hog I/O or inboard, any size, you are still stuck with a dog.

This new fuel economy push, I think, is also going to make the earlier Whalers, like the 1971-1979 "banana" Outrage/Revenge hull (19 & 21) even more valuable, as they get the best fuel economy of any Whalers ever made. Put a 4-stroke on one, none of which really need much more than a 115, and you are looking at some great, economical boating in the range of 6-7 MPG. That's hard to beat. All later generation Whalers use more fuel with their deeper vee hulls.

If you look closely, you will see Whaler's latest Montauk models, 15-19, all have a similar hull to these earlier ones. They too, are very economical to run, a sales plus for BW.

sosmerc posted 05-21-2008 10:12 PM ET (US)     Profile for sosmerc  Send Email to sosmerc     
I highly agree. Better fuel economy is going to become more important...and outboard hulls, especially Whalers offer alot of options with today's modern outboards.
Also, the idea of running portable plastic fuel tanks may become more popular as they are easy to maintain and refill. I'd be more than happy to have an open access to store portable tanks where my current permanent fuel tank resides in my 18 Ventura. I never require more than 20 gallons for my "trips". I really believe in the "keep it simple" strategy and older, smaller Whalers fit this to a tee. (sure wish my wife would let me sell the 18 and get a 15 !!) 15 Whaler with a 115 Opti.....my current dream machine!!
jimh posted 05-22-2008 12:36 AM ET (US)     Profile for jimh  Send Email to jimh     
Despite the arguments presented that high gasoline costs in conjunction with improved fuel economy will sell new motors, the fact that Mercury has put a substantial sales incentive of $2,000 on their top-of-the-line Verado motor is prima facie evidence that these engines are not selling well.

If high gasoline prices and the good gas mileage were having the effect described, it probably would not be necessary for Mercury to offer a $2,000 incentive on the Verado.

glen e posted 05-22-2008 09:21 AM ET (US)     Profile for glen e  Send Email to glen e     
actually jim - not true - but I'm sure many here won't beleive me - the repower incentive is one that has been in the hopper at merc for over 2 years...it stems from focus groups that just said they would not repower with merc becasue so mant things they have now won't work (steering, throttles) and they need new stuff to make the change. So the repower incentive was approved. Certainlt all outboard sales are down but they are actually doing well with sales trending this year to be one of the front runners for 08. If verado was hurting they would have put the incentive on new motors as well....it is a very specific incentive targeted to eliminite a buyer's objection in a specific situation (repower)
sosmerc posted 05-23-2008 12:35 AM ET (US)     Profile for sosmerc  Send Email to sosmerc     
It's actually a VERY smart move on Merc's part, because many problems can crop up down the road from trying to adapt 10 to 15 year old rigging to a brand new, expensive outboard. With todays modern engines it is more important than ever to have wiring and electrical systems in tip top shape. So indeed, not only is the outboard expensive when repowering, but all of the required ancillary rigging also is expensive. $2000 cash back on a repower should cover the cost of the majority of required and recommended new rigging.
I can remember when I first started working in the marine business back in 1979, new Merc outboards came shipped with EVERYTHING necessary for the installation such as fuel tank and line, remote control, mounting hardware and even some guages on the large engines. But now there are so many possible rigging options it only makes sense to sell all the rigging seperately as needed, required, or desired by the customer. Just the process of trying to prepare a sales quote can be quite challenging when faced with so many rigging options avaiable to meet the customers needs and desires.
jimh posted 05-23-2008 01:00 AM ET (US)     Profile for jimh  Send Email to jimh     
Well, prima facie means "at first look" and now that Glen has proffered an additional rationale for the incentive, it could provide more insight into the motivation for it. But I think it is safe to say that any price reduction--which is what this really amounts to--is reasonably interpreted as an attempt to boost sales.

Frankly, I think it is an amazing offer. If there were ever anything that would get someone who was thinking about installing a Verado on a Boston Whaler as a re-power project to take action, this $2,000 reduction in the price ought to nudge a few people off their butts and on their feet to the nearest Mercury dealer who is certified and qualified to sell, install, and repair the L6 Verado.

I've been searching for several years for details about the additional rigging costs of the Verado, and I have not really found much information. From what I recall, the rigging kit is about $2,700 retail, and then there is labor on top of that. Apparently with the Verado there won't be any customer-installed motors, and a certified dealer will have to do all the work. I am guessing that will probably be at least $500 in rigging labor. So I am estimating that a Verado rigging for a re-power will be at least $3,200. That $2,000 incentive will take a big portion of that away.

Peter posted 05-23-2008 10:01 AM ET (US)     Profile for Peter  Send Email to Peter     
The way I see it, the $2,000 rebate essentially covers the additional cost of the required power steering components and some or all of the labor to install. Repowers with all other equivalent motors don't require power steering to be operational so a repower with those is less of an ordeal.

In other words, now you don't have to bear the cost of modify your steering system to accomodate a Verado repower. Mercury is temporarily picking up the tab for that.

sosmerc posted 05-23-2008 10:44 AM ET (US)     Profile for sosmerc  Send Email to sosmerc     
As the price of new outboards approach that of a new vehicle...how long is it going to be before they start offering 0-down, 72 month zero interest loans to qualified buyers??
When I purchased my 02 Ford F-150 King Ranch SuperCrew the government had some kind of tax incentive for businesses.
(I thought is was pretty crazy because it actually encouraged folks to buy larger rigs) Even so, I took advantage of it. Now maybe the government will "give" us a tax break if we rush out and buy an L6 Verado by the end of the year??? :)
myakka posted 05-24-2008 08:57 AM ET (US)     Profile for myakka  Send Email to myakka     
Merc. must be pricing aggressively. Most of the transoms ( both new and re-power) in my area of Florida are Merc. This area was dominated by Yamaha until recently.
seabob4 posted 05-24-2008 09:08 PM ET (US)     Profile for seabob4  Send Email to seabob4     
There is a reason for that rebate. We can still get 2006 Verado L6 225 and 250 motors. [Unrecognized acronym]. Now what does that tell you? Mercury over produced, and the economy went south. Trust me, we, on occasion, install brand new 2006 Verado motors on new boats. Of course, you need to have an 2005 DTS rigging kit, including proper ECM and binnacle. But I bet there is a ton of savings!

The economy sucks, my friends. $6 a gallon by the end of summer. Anybody ready for a change?

Whalerdog posted 05-25-2008 04:25 PM ET (US)     Profile for Whalerdog  Send Email to Whalerdog     
hopefully weak dollar makes foreign motors more expensive and fuel. Marine business is toast with the fuel prices along with most everything else we have become used to. Like to see what is left in 3 more years of this.
SJUAE posted 05-25-2008 05:18 PM ET (US)     Profile for SJUAE    
Shame these incentives are not available outside the US otherwise I may of considered a Mercury Verado.

Having said that, the export ETEC’s already come shipped with gauges (not I-command ones)/harness/binnacle/ S/S prop, I guess this is around 1K’s worth.

Don’t know if the Merc’s do

You would have hoped for non dollar linked countries they would be buying more US goods with the weak dollar to compensate the current declining home market.

Regards
Steve

seabob4 posted 05-25-2008 09:53 PM ET (US)     Profile for seabob4  Send Email to seabob4     
You know any Chinese buying boats?
jimh posted 05-25-2008 11:19 PM ET (US)     Profile for jimh  Send Email to jimh     
Bob--I don't want to rock your world, but every time one-tenth of one-percent of the population of China moves up the economic ladder a little higher, that is one million people. So to generate a new customer base for outboard motors in China with a million new customers, only one-tenth of one-percent of the population has to move up to that economic level with enough disposable income to buy an outboard.

However, as soon as there is an appreciable market for outboard motors in China, you can just about bet that local Chinese brands will appear on the market to provide them--they won't be importing them from Wisconsin.

From a business point of view it must be tough for Mercury to throw these incentives onto the Verado. Mercury has already been wearing through year after year of declining margins on engine production. The Verado and OptiMax are expensive engines to build compared with the bygone days of classic two-cycle motors. Margins are very thin already. If they have to put $2,000 incentives on the table, well, there goes the margins--even lower.

It must be difficult to see all the work that Mercury and Brunswick have been doing to try to reduce costs rendered ineffective with a big sales incentive. They've moved engine production to Asia, laid off workers in Wisconsin, tried to improve manufacturing efficiency here--all tough steps to cut costs. When Mercury puts a $2,000 incentive on the table, their cost just jumped $2,000.

The only winner in this is the buyer who will get a Verado under this re-power incentive deal. He is getting an engine that was already very aggressively priced. Even without the incentive the Verado doesn't really sell at a premium compared to other motors with fewer features. Now with the incentive the Verado price has really become an attraction. We'll know if the incentive is working as soon as someone posts an article to this thread announcing that they've bought one.

seabob4 posted 05-25-2008 11:45 PM ET (US)     Profile for seabob4  Send Email to seabob4     
Jim,
You are absolutely right about the Chinese, or whomever population, moving up the socio-economic ladder of this world. But have you taken a look lately under a Verado/Opti cowling? Merc is happy to leave the tags on the components to let you know where they're built/assembled. So does BRP. All China. I wonder what that worker in Wisconsin, or Illinois, or Georgia, or even Mexico, is doing, now that they don't have a job anymore because their's was sent to China?

My apologies about this evident political diatribe. But when are we going to realize that the strength of this country, the manufacturing jobs, aren't here anymore? When will we wake up?

SJUAE posted 05-26-2008 05:36 PM ET (US)     Profile for SJUAE    
Sorry Chaps to digress slightly

The average middle class Indian earning 15-20K a year running his own business with a car and a driver, plus his own apartment, as shown on recent TV documentary.

He needs to earn a little more before he becomes a new whaler owner.

Fortunately for most Indians and Chinese they have not become the full fledge members of the consumer market we in the west have indulged in for the last +30 years.

Of course many are heading this way but they still hold close to family values, saving for their family and retirement over high end consumer goods that are ridiculously over taxed.

India does have the richest man and most new millionaires, but the bulk of the new up and coming middle class doesn’t quite have the same aspirations as the west, yet.

There is more chance of Europeans and new rich Russian taking advantage of the low dollar IMO.

Someone needs to be buying Merc’s/Evinrudes as it’s in all our best interests, it’s probably never been better to buy a new Verado or a house for that matter.

Regards
Steve

jimh posted 06-01-2008 05:14 PM ET (US)     Profile for jimh  Send Email to jimh     
Details of the Verado sales incentive are now available at

http://www.mercurymarine.com/promotions/

The incentive on the Verado L6 runs until June 28, 2008, so there are only a few weeks left. If anyone purchases an L6 Verado due to this incentive, please let us know.

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