Boats Sales and I/O's down again for the year & Took a beating in July
#11
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Since we are on racecar engines, lol...I race asphalt super late models. When I started the motors were $40-50k, and the sport was dying for a while, then a few of the builders got together and developed a motor that they all sold for 22k and made the same hp as the $40k motor. Now it is all anyone runs, you can't give away the old $40k 9:1 motors. Maybe merc or whoever needs to try to make the same or a little less hp for substantially less money. Maybe rather than spending R&D money to make a bigger better motor, put it into making a more cost effective more efficient motor.
#12
I was posting costs apples to apples for 100 % fully rigged plus freight and tax coming from a full retail dealer . Most boat buyers do not buy a hull and rig with a brand new I/O - trans assembly, outdrive, prop(s) and all controls. Hence same install but using outboards. It was just an example of how high all of it has become including outboards.
Some markets have seen growth inwhich is a good thing
Some markets have seen growth inwhich is a good thing
Last edited by BUP; 08-19-2016 at 11:54 AM.
#13
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I am aware of the late model engine deal and agree that it has helped the class. Unfortunately they have not gotten their act together regards 410 outlaw motors, some of which are turning 9k+ and making 900+ (if the rumors are true)
I also agree that a 500-600 hp motor could be sold cheaper by merc
I also agree that a 500-600 hp motor could be sold cheaper by merc
Last edited by Wobble; 08-17-2016 at 10:46 PM.
#14
Another aspect is that "offshore" boats are really only good at one specific thing. Taking a few friends and zooming around. My kind of boating, for sure, but I can understand why non gear head folks would be attracted to CC's, pontoons and ski boats:
Couple the cost of the buy in, the cost of ownership and the narrow usefulness and there's you have it.
Couple the cost of the buy in, the cost of ownership and the narrow usefulness and there's you have it.
#15
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I have a 22 foot Donzi classic and an 18 Grady CC. Everytime my wife and I go out, be it in one of the boats or dinner on the river, she will always comment on how she wants a pontoon boat.
Ken
Ken
#17
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Merc set their pricing structure with a "what the market will bear" strategy, builders were buying and passing the cost onto customers who were buying boats in droves. With the release of the 520 the price was more market sensitive, not many builders, and sales are relying more on end user purchases than ever before. They have a lot of costs to climb over like EPA, BUT their problem now is how do they back the list prices down and not lose perceived value? My opinion, develop an "end user" line-up of engines that are price sensitive and make hp. Summit Racing is an example.
Last edited by VoodooRob; 08-18-2016 at 07:45 AM.
#18
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There are a select few boat builders anymore, yes they're busy and have backlogs because those who can afford them still want boats. The key phrase is "those that can afford" them. The middle class has been priced out of the game and it will NOT come back. $150 for a 28' CC is asinine, absolutely absurd. Yeah I get it regulations, taxes, buildings, property, labor, escalating raw materials, insurances...blah blah blah, I own a business too...that's not the point, $150 for basic boating is the point. It's not a mystery why sales are down. It'll be a sad day when Merc shutters its plants.
#19
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I don't think the price of manufacturing a hull is the problem It's the power and everything that goes along with it that bumps the price is way up It's almost like the manufacturers have to spec a boat and hope the dealers will purchase or have the money to floor plan. I think if more boats were sitting at dealers You would have more sales. But at this time it's almost like Specking a $500,000 house in at $200,000 neighborhood And nobody wants to take that chance
#20
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I could be off, someone can correct my math.