Why are Mercs motors so expensive ?
 

This came up in another thread and has likely been discussed but some of us werent here so.........how does Merc justify the price of their V8 boat engines?

I dont except warranty covereage as an acceptable answer as its a short warranty and you could build several motors during the warranty period and still be ahead.

I dont buy the resale issue either. It doesnt effect the manufacturers cost of providing a product.

Some will say its the cost of R&D. I do accept this in regards to their drives and maybe outboards. But the engines are car/truck engines with a couple changes.

So what do you think?

HUGE PROFITS!

That was easy, any other questions?

Yeah. Why do we pay it and why dont more manufacturers offer their own engine programs ?

I think there are quite a few really good engine mfg's that have alot to offer over merc.....this comming from a guy with a merc outboard :rolleyes:

The manufactures need MerCruiser drives and MerCruiser will tie the 2 together. Fountain the largest user of MC perf engines tried to use his own engines and MC squeezed him on the drives and basically forced him to use their engines to get the drives. It cost him over 1 million for his defunct engine program.

Really--upgrade from 500EFI/ Bravo XR to 500EFI/ with #6 SSM and your talking $39,000 MORE! That is one hell of a high priced outdrive!

I wish Volvo was still involved in performance mkt. Also I think it would be great if ford/Honda/Dodge.... would pair up with say IMCO Extreme drive and offer a package.

Just a thought.??

A friend of mine built a 1100hp blower motor a few years ago. He spared no expense on it.
He used a Bowtie block , Callies crank , Carrilo rods, Brodix heads, you name it. I think the total cost was around 38,000, including dynoing it. Now how much is a
Merc 1000sc ? 100K ? Isn't that a little
ridiculous !
My own (675hp)540 I built for around $8500, granted it does not have a top of the line short block. Add another $3500 to upgrade the short and your still way shy of a Merc 575sc.

Yup David, thats what I'm talking about.

With the current economy and the need to reduce the overall price of a boat, I hope we see some attempts to make this sport more feasable for the average family.

I'm thinking you could probably buy a new boat, pull the engine and put in a GM crate motor, sell the new Merc motor, and come out ahead on price, performance, and warranty.

I know that HTM has their own engine program and given the disaster that has struck that company, I hate to inquire as to how it has worked for them.

If I were lookiing for a boat right now, I would be looking for a newer used boat with a broken motor at a great price.

That's why manufactures are looking into other drive systems- Arneson, Weismann, etc.

Damn, 200 posts and I dont know **** about this sport. I need a life :rolleyes:

My boat is a 78... granted the engines are new, but the tranny, outdrives, and other connected parts are original.

I can go down to my local merc dealer and get any part i need... from a 22 year old boat.

try that with a ford motor that needs a marine version transmission interconnector discombombulator...

:eek: :eek: :eek:

....Because....oh , never mind, I dont want to bash anybody elses stuff...but it seems that they just work well...until someone else gets their fingers in there...this could come back to haunt me after this winters rebuild ???? I'm not justifying the high prices but it seems most of the good "other guys" are pretty expensive too! So far... all of my merc motors (12 so far) have been very trouble free...some others guy's have had problems ????? Maybe I should just stick with ....I dont want to bash anyone elses stuff !! :D

Why do they charge so much for a Merc Motor? Because they can! Try buying just a new Merc drive without the engine. The cost of the drive is not proportional to the cost of buying the package. It's much higher. The same with Merc replacment parts. There is no reason why they should be that expensive, but they have this market cornered and they are going to keep it that way. I wish someone out there could keep them honest.

Nickslick, I understand what your saying but thats a hell of a price for product support. My boats a 93 and has an OMC engine/drive. I can go to my local NAPA auto parts store and buy most anything from their marine catalog.

The real answer here is that companies will charge whatever the consumer is willing to pay. Very similar to Harley Davidsons approach. Both companies have had a niche that they have exploited. I think that is now coming to an end.

Whitenuckle...you typed what I was thinking

[ 01-15-2002: Message edited by: Intolerant1 ]

I wont even make the Microsoft analogy. Not like Merc ever forced any of its competitors out of business :rolleyes:

Easy, it's a production engine. Every sport has the production manufacturer. People need this, it makes everything easier. Cars/Boats etc. You want an easy setup, merc 500s and Bravo(whatever XR,etc). Just remember, every sport needs a production product, merc just happens to slap everything together with warranty and you pay a hefty premium. Heh, just look at the 900SC....

I think the comments about the drive requirement and merc having you by the short hairs are close to the mark. If you look at ski boats with inboards and v-drives as well as production jet boats there are a variety of other engine manufactures and in house brands- in these markets there is likely a higher percentage of "other" than there is Merc.

On the other hand I like my 454 Mag- once Mr. Whipple came thru. The price to upgrade to a HP and higher is ludicrous. :eek:

So now with the BPM drives now available and seemingly working well, why not ship the boat manufacturer the engines of your choice and let them rig the drives?

I think the problem is that the name Mercury sells to the novice and these are the type of people that want to write a check and get a boat with little to no hassle. I bet any manufacturer would work with any engine and drive package you sent to them.

because people pay it!

because there are distributors, dealers, OEM'S that all are entitled to make a small profit from the pie. You, the enduser are not entitled to any profit, you are the buyer. Can you imagine what would happen if you were able to buy your new car direct from Detroit? Talk about screwing up the economy!
This subject could really get nasty...

easy answer one people pay the price , two they have no competition in the race market and can lay claim to all the onwater testing they do in the harsh enviroment of racing. simply put they put a monopoly on the market.
but dont take this wrong that is what business is all about controling the market.
but it leaves no real choices either. thats why those that build the better mouse trap such as imco, bravo shop, weisman and so on need to continue in thier ways and give the average performance boater options.

It's the Mercruiser mafia ! :cool:

You pay what they say !

Ford is looking to get into the Marine engine business soon. We all will see a huge jump in price when the EPA starts to mandate catalytic converters on boats. (That will suck)

I was just at my engine builders on Friday and he was doing a rebuild on a pair of 900SC Mercs. To my suprise everything in those motors was the very best, no expence spared. Even cleaned up the blocks of all the imperfections and burrs that are a result of casting. I have never been a fan of merc engines but you are getting what you pay for.

When you build a motor for xxx dollars that is different than building them and selling them!! Where's the cost of the equipment to do the work and the cost of marketing it. That's not to justify a cost from Mercury. What is the cost of a Mercury to a Cheif engine or some other high performance engine builder all things being equal?? Is there a huge cost difference?

Good question!
Can anybody post similar engine packages from Merc and another source with prices for comparison?

Someone with a big name and very deep pockets would need to enter the picture. Merc has the advantage, they have the manufactures by the nards, they have the dealer network in place, they make a reliable product and they have never gone away (at least in my life time) ala OMC or like Volvo is doing now on the bigger engines.

It will be very hard to unseat them based on their huge head start. If Bill Gates bought OMC and comitted the resources hired well know names and gave a kick butt warranty until the product was proven, then you might have a chance. Maybe a Honda, now that they have a lot of years with outboards, small engines, cars and an overall good reputation. Or someone needs to build a better mouse trap such as a hi-performance fuel cell like the current concept for cars.

I don't know the right answer to how, but I think we all agree that competition is a good thing. Look at all the 4-cycle and 2-cycle marine engines, Honda, Merc, Suzuki, Bombardier/OMC, Tohatsu, Yamaha or diesel's, Cat, Detroit, John Deere, Yanmar, Cummings, Detroit, Faribanks. With out these competitors, do you think Merc outboards would be a little higher priced?

And at least Reggie tried, he takes a lot of crap and may lose his company someday but I respect people who take a shot. I also think that average boater or entry level boater is swayed by the advertising. Just like computers, if you don't know anything about AMD you assume it's inferior because it doesn't have the Intel stamp and the swanky commercial on TV or Linx vs Windows.

KE600 Engine Keith Eickert
Engine Specifications

Complete engine with exhaust to be coupled to Mercury Bravo Drive
540 Cubic Inch / 4.5 Bore / 4.25 Stroke
J.E. Pistons
4340 Forged Steel Rods
4340 Forged Steel Crankshaft
Roller Hydraulic Camshaft
Iron Dart Cylinder Heads
Iron Dart Tall Deck Block
Holley Throttle Body - Programmable E.F.I.
Holley Ignition (programmable)
Keith Eickert Power Products Accessory Package
Includes:

Cast Aluminum High Capacity Oil Pan
Belt Drive System
Oil Temperature Control
Raw Water Pump
Engine Mounts
Etc.

1 Year Warranty
$29,500.00

525 HP Blue Lightning

World Products Cyl. Block (509 cu.in.)
World Products Cyl. Heads
Steel Crankshaft
Manley H-Beam Rods
Weisco Pistons
Eickert Oil Pan 10 Qt.
Professionally balanced
Edelbrock Intake Manifold
Custom Tuned Holley 800 cfm Carburetor
Flame Arrestor, Linkage, Fuel Lines
Crane Roller Rockers
Premium Valve Springs
Roller Timing Chain Set
Stainless Crossover kit & Cooling Hoses
Custom Hyd. Camshaft
Oil Cooler, Lines, Adapters
Alternator, Sea Water Pump & Brackets
Pulleys & Belts
Mercruiser Thunderbolt Ignition system
Stainless Marine Exhaust System
$15,500 Complete


Upgrade Options:
550 HP: Cylinder head modifications, Holley 950 Pro-Series carburetor.
$16,800 Complete
600 HP: Ported cylinder heads, hyd. roller camshaft, holley 950 Pro-Series carburetor.
$19,000 Complete

Completely dyno tested before shipping.
Engines do not include: Coupler, bell housing, engine mounts, p/s parts.

All of our Sport Boat series engines are smooth running at idle and include a 1 year limited warranty.

[ 01-15-2002: Message edited by: Vonbongo ]

I was just talking about this with my friend/engine builder. He is a former Cosworth employee, building the Bush Grand National motors. He will be building my next engine, BBF, he is estimating he will have approximately 100-150 hours in complete assembly, pan to manifold. From duburing the block, blueprinting oiling system, assembling-measuring, disassembling and re-assembling and measuring again. All the way up to matching chamber size in the heads, etc. This is still not costing me anywhere near what Merc charges for their stuff. I'm not exactly sure what Mercruiser does inside their engines, or how many hours they have in the assembly. It does seem like they charge an arm and a leg though. Who knows? :cool:

I usally just got the 7.4 put Edlebrock oval port ported heads on it then went through the bottom end and replaced everything with forged parts after the warranty ran out. This was cheeper than the magnum up grade from most manufactures. The parts were closer to bulldog standards studded everything and pushed more hp and torque than most modified 502's. The 454's also had full water jacketing which I like better.