Drive Pricing
 

As with any consumer product, there is always a markup, but I've been noticing specifically with Merc products the markup is very high. Since I am in the market for new drives, I have been doing a bit of research. Prices are all over the place depending on who you talk to...but the MSRP on a brand new Bravo One is close to $10k. Of course, that's full retail and only the uninformed would pay that. But, I was recently told by a Merc dealer that their COST is $3800. Can this be right ?!?!? A 60% markup ?? That's a pretty hefty profit margin for dealers....makes me wonder what it really costs Merc to build these things....

I don't know the pricing of drives, but from a 3800cost to a 10k selling price is a 263% mark up, and a 62% margin.
And thats some good arse profits!

Not even close to reality, list price is $8726 (standard new style B1) and the margin is far less, we sell them for about $4500 which is less than dealer cost

What about the gimble / housing ?
Soup to nuts to get a bravo on the transom?

You sell them for less than your cost ?? How do you stay in business ?

They lose a little on each drive and make it up in volume:cool-smiley-027:.

look in trailer boating. there is a ad about it. they make lowers with 3 years warranty. the company name is sterndrive i think ,its out of florida, made alphia for years

Yep, volume, exactly.

I didn't say our cost, I said dealer cost. I don't think I'm spilling any secrets here, but we never buy a drive by itself, always as part of an engine package. Only problem is engines have not been selling very well recently.

Marc,
Thanks for the clarification. Last time I dealt with BAM it was amazingly good service. -Jeff

Or, you could buy a used drive and let Mr. Gadgets work his magic! It'll be better than new.

Lots of the bigger merc dealers and re-power centers will break up packages. Usually these dealers , like bam , can sell them this way for much less than ordering just the drive and transom assy. alone. Someone gets a good deal on their engine package and another gets a deal on a transom or drive. Because of this you can really get quite a deal off mercs price sheet and the dealer still makes similar margin.

Have bought a bunch from Donnie Carter @offshore performance in sunny florida in the 3 K range and always had great service w 1 yr warranty ...:cool-smiley-011:
ROCK ON !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Marc, what's the going price on XRs?

Bill Ive bought from Donnie also.Between him and Marc at Bam there want be much price difference on the parts out of the broke up engine packages.They do sell that stuff below dealer cost and prob don't make much off it.Marc is also on the board all the time helping people:D

But the regular Merc parts I buy from a buddy thats a Merc dealer because the others only give around a 20% off retail.

Rob:ernaehrung004: