Dealer cost on a new 37?
03-06-2007 | 09:10 AM
#31
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Joined: Feb 2004
Posts: 145
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From: Monclova, Ohio
First, this is all theoretical. I'm not saying that AT should do this. I'm just throwing ideas out there for the purpose of conversation.
In my idea, this wouldn't be "menu pricing". The price would change on a day to day basis as the cost of doing business changes.
i'm simply saying that it would be interesting to see someone come out with a pricing model that had their profit built in without asking the huge msrp as an initial haggle starting point. It would be a no haggle price and could be shown to the buyer. "We are paying this to build your boat, We tack on X% to cover our expenses and make a fair profit. This IS the price, non-negotiable".
And yes, i think that a lot of people buying 200-300k boats are making 150-200ish a year...upper middle class.
obviously, i don't know that by any study. but i've lived on the water for 28 years and have known probably hundreds of people with these boats. Very very few have been multimillionaires.
In my idea, this wouldn't be "menu pricing". The price would change on a day to day basis as the cost of doing business changes.
i'm simply saying that it would be interesting to see someone come out with a pricing model that had their profit built in without asking the huge msrp as an initial haggle starting point. It would be a no haggle price and could be shown to the buyer. "We are paying this to build your boat, We tack on X% to cover our expenses and make a fair profit. This IS the price, non-negotiable".
And yes, i think that a lot of people buying 200-300k boats are making 150-200ish a year...upper middle class.
obviously, i don't know that by any study. but i've lived on the water for 28 years and have known probably hundreds of people with these boats. Very very few have been multimillionaires.
I see what you are trying to say
03-06-2007 | 09:21 AM
#32
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Joined: Feb 2004
Posts: 1,211
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From: Hollywood, MD
[QUOTE=Stormrider;2048201]
Housing prices may range all over the country, but I just can't see how someone who makes $150k a year affords a 200+ boat.
Owning a 350k house and a 250k boat? I just dont see it.
That doesn't seem to make sense or be a good financial plan.
QUOTE]
I didn't say it was the wisest financial decision. But it happens all the time. thats why there are 10 and 20 year loans for boats. Most people making 150k plus a year are also living in houses much more expensive the 350k. Debt, its the american way!
But like i said, this is all theoretical and easy for me to just type out here. In reality there would be a LOT of details that would have to be worked out and researched prior to even considering a price model like this.
Just because something has yet to flesh itself out in the market place doesn't mean it can't work. In my job we do business process improvement for naval aviation (has nothing to do with price models, just business and maintenance processes). But when we walk into an F-18 squadron, 90% of the time they feel that the way they are doing business is the best way. Afterall they have been doing it for the last 50 years. In reality, they are too close to the situation, and when you step back you are able to see alternatives that make good business sense.
remember, im not saying it would work. i'm saying it would be interesting to look into.
Housing prices may range all over the country, but I just can't see how someone who makes $150k a year affords a 200+ boat.
Owning a 350k house and a 250k boat? I just dont see it.
That doesn't seem to make sense or be a good financial plan.
QUOTE]
I didn't say it was the wisest financial decision. But it happens all the time. thats why there are 10 and 20 year loans for boats. Most people making 150k plus a year are also living in houses much more expensive the 350k. Debt, its the american way!
But like i said, this is all theoretical and easy for me to just type out here. In reality there would be a LOT of details that would have to be worked out and researched prior to even considering a price model like this.
Just because something has yet to flesh itself out in the market place doesn't mean it can't work. In my job we do business process improvement for naval aviation (has nothing to do with price models, just business and maintenance processes). But when we walk into an F-18 squadron, 90% of the time they feel that the way they are doing business is the best way. Afterall they have been doing it for the last 50 years. In reality, they are too close to the situation, and when you step back you are able to see alternatives that make good business sense.
remember, im not saying it would work. i'm saying it would be interesting to look into.
03-06-2007 | 10:27 AM
#34
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Joined: Feb 2004
Posts: 1,211
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From: Hollywood, MD
I feel your pain man, everytime you turn around there's another bill. Had to build a new engine because my mercruiser sh!t the bed last september when one of my gils corroded and let some water leak in.
03-06-2007 | 12:51 PM
#35
Rough Seas Lie Ahead
Joined: Feb 2002
Posts: 2,465
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From: Virginia Beach, VA
Boat sales is very much like auto sales whereas the dealer makes his money off the margin on options sold such as difference in actual motor/drive cost and MSRP; AC; vacu-flsuh; generators; etc. etc. There in lies the wiggle room. Also building in the accessorial costs of shipping, admin fees processing paperwork, kind of like the BS a mortgage company gouges you on. Dealer wise floor plan plays big in terms of overhead compared to sales volume (aka debt to income ratio) which determines how much off a MSRP the dealer can afford. Good volume w/ low overhead equates to coming off stout prices on accessories.
I'm sure AT has very little overhead invested in materials or man hours as reflected by their low annual build numbers which equates to straight from the factory decent numbers on the price tags as it should be. Other mfr's are getting a little to proud of their products price-wise. If you didn't know better at some prices you'd think they were selling space shuttles...
I'm sure AT has very little overhead invested in materials or man hours as reflected by their low annual build numbers which equates to straight from the factory decent numbers on the price tags as it should be. Other mfr's are getting a little to proud of their products price-wise. If you didn't know better at some prices you'd think they were selling space shuttles...
03-06-2007 | 02:17 PM
#39
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Joined: May 2001
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