Re: New Formula FasTech pricing - WTF!?!?
 

How much profit (after costs) do you think a company like Cigarette is making per boat? $10k, $20k, $50k????

Re: New Formula FasTech pricing - WTF!?!?
 

At the end of the day it is all about, "we build it and charge what we do in large-part, because people will pay it", it boils down to price elasticity. Additionally, look at labor in the US vs. say... China. It costs about $10 to make a pair of Nikes, but they need to pay the endorsement money to guys like Tiger, so they charge $100 for a pair of kicks and people pony it up! Your not going to make a pair of those in the US for that kind of dough. Same with a high-end performance boat, I don't imagine that Mike (Fiore) is paying his guys $8.00/hr to build his boats. Is a 42' OL worth close to $1 mil.? - it is if someone is willing to pay it. Something is only worth what someone else is willing to pay for it. However, Formula is a PRODUCTION boat company, building hundreds of units a year - so $190k (list) price for what is really a 25' boat is just CRAZY in my mind! Their 24' bowrider (that was in PB recently) STARTS at $98k w/ a 496HO in it!!! If you want to dial it back a bit, you can get the 496 mag starting at $91k - such a bargain. :rolleyes: LOA is 24' with a generous swim platform hanging off the back. And we wonder how Scott just bought a Hydro team!?!? Right there is your answer...

Re: New Formula FasTech pricing - WTF!?!?
 

It's not the first time they were crazy with a price. My 30 footer with 420's and Kaama drives listed for $148,00, in 1986 dollars! :eek: I would venture that's why it never sold from the dealer, and sat in dry storage until 2001, when it was first titled by the guy that bought it before me. It had 42 hours on it in 15 years.

You can buy the whole boat for less than one new 525 engine alone.

Re: New Formula FasTech pricing - WTF!?!?
 

That pretty much sums it up. You can thank $75 per barrel and the dramatic increase in metal prices for a lot of the increase too. A large portion of materials are petro based, even the foam in the seats. Raw materials have doubled in the past 18 months.
However just building the boat and tacking on a reasonable profit doesn't begin to cover what it takes to make the business profitable.
TS

Re: New Formula FasTech pricing - WTF!?!?
 

While I agree with most of what is being said, it does not cost that much to build a boat, comparing it to a house is actually a good analogy. It is what people are willing to pay, I am not willing to pay it but others are. If boat sales drop to nothing you will see prices come back in line with what it costs to build a boat.

Also make sure Mercury shares the blame here, have you priced what a 525 w/ bravo drive costs, thats the single most expensive part of a boat today.

Don't worry we are heading for a recession, it all cycles, prices will be down in 2 years.

WILL :eek:

Re: New Formula FasTech pricing - WTF!?!?
 

Had a close friend chomping at the bit to by my cig. So I went to a new Cig dlr in Sacramento area to spec out an 06 30', leather, most the bells and wistles and t525s w/ alum myco trailer= $349,000- :eek:
Additionally, this 'new cig' store sublets all the service because no service dept (how does Cig allow a franchise dlr to not have a full service dept?).
Needless to say, I am keeping my ol' cig.

Re: New Formula FasTech pricing - WTF!?!?
 

Ding ding. Rings true as usual.

I think it's "perceived value."

I have said it many times and will again.
Boat values= a boat is worth what someone will pay you for it. No more, no less.

The guy buying my 20 year old boat for 15 grand mentioned the 9 grand NADA value.

I told him if he wanted to go find an average boat to go with that average value it would not look like mine.

He bought mine.

Re: New Formula FasTech pricing - WTF!?!?
 

Yes, but first they had to drive out the competition through exclusive fiduciary agreements with manufacturers and an agressive PR/marketing program.

In a high hp application I would prefer a custom high hp drive system. NOT a bravo.

In a normal hp application I would prefer a Volvo drive.

It's just harder to get T shirts and stickers.

Re: New Formula FasTech pricing - WTF!?!?
 

I went on the Formula factory tour over the winter. And one thing that stuck in my mind was the fact that they build aprox. 800 boats a year.
It's a huge facility, impressive equipment, and they put out a quality product.
They still have molds and patterns for your older boats if you needed to replace something.
But, only 800 boats a year. They have to bring a big dollar to support the R&D, and, because the performance and bowrider market is the most popular, price them high. By doing that, it would allow them enough profit to make the big cruiser's that they probably make very little on due to the extensive labor, detail, and limited market.
But, if you have it in your head that you want to crack the "big cruiser" market, that's how you do it.
Just a thought.

Re: New Formula FasTech pricing - WTF!?!?
 

I would like to hear more from Salesmanship and other builders as I think you couldn't be more wrong.

Re: New Formula FasTech pricing - WTF!?!?
 

Putting up hugely inflated prices on the website seems to me to be somewhat counterproductive. Let's say I'm a potential new boater, or new to the performance market. I hear good things about Formula, so I check out their website - if I price a boat and it specs so high ($200K!), I might just forget about it altogether and never find out that the "real" price is almost half what the website shows. Instant lost sale.

Re: New Formula FasTech pricing - WTF!?!?
 

I agree...but then you look at the anual report of a company like Fountain and some years their profit margin is only fair to decent for all the hard work.

I think the money is in equiptment used to build the boat and good old Union Labor Wages and benefits......solution...build 'em in Taiwan...for probably 1/3 the cost...or better yet China! :D

Re: New Formula FasTech pricing - WTF!?!?
 

Fountain employees are Unionized? They probably figured a "union" was what it was called when you married your sister. :eek: :D

Re: New Formula FasTech pricing - WTF!?!?
 

look at Sea Ray...legit sell prices are 40% off printed MSRP

Re: New Formula FasTech pricing - WTF!?!?
 

most of your production boats are inline with similar markup to SeaRay...go take that printed up MSRP to a Formula dealer and i'll bet if you have an aggressive dealer you can get real close to the $125,000 mark

Re: New Formula FasTech pricing - WTF!?!?
 

I Priced A 271 The Other Day With A 525 With Trailer 143k Out The Door. The 292 Was 3k Cheaper. Kinda Blew Me Away.

Re: New Formula FasTech pricing - WTF!?!?
 

Who is the new Cig dealer in Sacramento?? Do they have anything on the showroom floor?

Thanks

Re: New Formula FasTech pricing - WTF!?!?
 

I had an opportunity to purchase a few good molds and start a business in the manufacturing boat business with an experienced partner, who had building boats for years and had a good following as well as a good product. The objective was to try and get this boat co. to the level of units sold as well as quality of a Nortech, OL, and Cig, or just somewhere close over time. After I looked at all the numbers, and what he paid his employee's, mortg. pmt and so on, there wasnt that much left over. I also used the fair price method like Nortech does not the pricing of OL or Cig. does when selling these boats. I was being realistic and not figuring I was going to get 750K plus for a 1075 motor on a 41-43' boat but somewhere in the low-high 4's. Tough business to be in. Resin prices are out of control, and TS summed it up the best.

I also own a cultured Marble shop, again resin prices are almost 800. per barrel. Im in the most captive market you could be in, KATRINA USA and still find it hard to make a profit and be competive. These oil prices need to come down.

BTW Terry is my boat done yet :p :D Jeff

Re: New Formula FasTech pricing - WTF!?!?
 

Call Magicfloat on Formula pricing. He can get a "real" price on Formulas. He has low overhead and knows the product well.

Re: New Formula FasTech pricing - WTF!?!?
 

I called on that skater durring the beginning of summer to see if it was a typo....said "no, its a custom 28 cut down."