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Drive Pricing

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Old 02-28-2008, 01:55 PM
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Default 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....
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Old 02-28-2008, 01:59 PM
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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!
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Old 02-28-2008, 02:41 PM
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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
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Old 02-28-2008, 03:31 PM
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Originally Posted by Mbam View Post
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?
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Old 02-28-2008, 04:36 PM
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Quote:
Originally Posted by Mbam View Post
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
You sell them for less than your cost ?? How do you stay in business ?
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Old 02-28-2008, 05:45 PM
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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.
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Old 02-28-2008, 06:53 PM
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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
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Old 02-28-2008, 07:47 PM
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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.
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Old 02-28-2008, 09:40 PM
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Marc,
Thanks for the clarification. Last time I dealt with BAM it was amazingly good service. -Jeff
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Old 02-28-2008, 11:56 PM
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Or, you could buy a used drive and let Mr. Gadgets work his magic! It'll be better than new.
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