Why are high performance boats so expensive!
12-20-2012, 05:53 PM
#11
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Limited production, one off stuff, labor intensive. Not many of the pieces are coming out of injection molds or off stamping dies. Long term builds, a cash flow roller coaster for sure. Especially if they build ahead and hope they sell.
Do some research. No, a new boat that sells for 500k has 300k in material. Add 30k for a paint job. Also need to pay some guys to build it. If the builder does make a few bucks he has to give 40% to uncle sam. It's a wonder these boats even exist.
Do some research. No, a new boat that sells for 500k has 300k in material. Add 30k for a paint job. Also need to pay some guys to build it. If the builder does make a few bucks he has to give 40% to uncle sam. It's a wonder these boats even exist.
The terms "automation and/or robotics" do not exist in this industry. There isn't two of these things built the same.
ed
12-20-2012, 05:57 PM
#13
The guys that buy the new boats keep it all moving. For every $500k boat, there's advertising, marketing and Warranty. Don;t forget that a $500 k boat rarely if ever sells for $500k. Look at the prices Merc charges for their engines and drives. But then look at the company, not a huge profit put in proportion.
For normal recreational boats, look at the difference in price for a Cobalt versus many others. But then look at the longevity of the boat. Now add in the huge increases, not to mention fluctuations, in the cost of high-quality resins. Add to that a highly-qualified staff to do all of the labor required. Add in backroom staff, R&D, designers, transportations, etc...
The real killer is Volume, or lack thereof. Most of the industry has determined that they now need XXX dollars to survive, on far less volume. So for an Outerlimits or a Cig or whomever to not only remain in business, but to have current product and keep customers happy, they need margins. Maybe you can get a 30% margin, but after you pur it back into the business and new orders and R&D, it evaporates quickly. I'd guess many are probably returning a 5% to 12% margin overall at most.
For normal recreational boats, look at the difference in price for a Cobalt versus many others. But then look at the longevity of the boat. Now add in the huge increases, not to mention fluctuations, in the cost of high-quality resins. Add to that a highly-qualified staff to do all of the labor required. Add in backroom staff, R&D, designers, transportations, etc...
The real killer is Volume, or lack thereof. Most of the industry has determined that they now need XXX dollars to survive, on far less volume. So for an Outerlimits or a Cig or whomever to not only remain in business, but to have current product and keep customers happy, they need margins. Maybe you can get a 30% margin, but after you pur it back into the business and new orders and R&D, it evaporates quickly. I'd guess many are probably returning a 5% to 12% margin overall at most.
12-20-2012, 06:11 PM
#14
Gold Member
Gold MemberThread Starter
Just imagine your boat. Then make everything way stronger, bigger, and nicer quality. It doesn't sound like you've had the chance to get your hands on a truly hi po boat. Walk around one or and look at the rigging and equipment on these boats. Then you'll understand. The cost to maintain these boats are more then what some boats cost.
I am a huge fan of these boats, so please don't take this thread as me bashing!
12-20-2012, 06:23 PM
#15
Registered
They are only worth what someone will pay for them. You'd have to be stupid to pay MSRP on these types of boats. Realistically (especially in today's economy) I'm sure most can get them for 80% of MSRP, maybe less. I know our Donzi speced out how it is has an MSRP of $910k new and the Formula is close to $600k but you'd be nuts to spend that, or just ridiculously rich
12-20-2012, 06:27 PM
#16
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Gold MemberThread Starter
I think I was looking at it a bit differant... I was thinking, lets use seats... Say they cost 2k to build, they add 5k to the boat price... Then motor, 15k to make, $35k added to cost of boat, so on and so forth, I'm just using made up numbers to present my question. Is this how the cost of a $500k boat gets it price tag...
12-20-2012, 06:32 PM
#17
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Gold MemberThread Starter
They are only worth what someone will pay for them. You'd have to be stupid to pay MSRP on these types of boats. Realistically (especially in today's economy) I'm sure most can get them for 80% of MSRP, maybe less. I know our Donzi speced out how it is has an MSRP of $910k new and the Formula is close to $600k but you'd be nuts to spend that, or just ridiculously rich
12-20-2012, 06:37 PM
#18
21 and 42 footers
Platinum Member
Henry Ford did not invent the automobile, he created a way to build them by the thousands.......cheap. When 40,000 people will pay $60K for a 33ft cigarette boat you just might see an assembly line to build them that cheap. Currently, even the builders that put out "standard" models are actually building a fairly custom product.
Last edited by t500hps; 12-20-2012 at 06:39 PM.
12-20-2012, 06:38 PM
#19
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And their is the sponcership of the race boats to help promote the sales to the consumer to factor in. This is a huge part of the overhead, as well as advertisement. They proberly equal each other. Advertisement is my biggest overhead in my business.
12-20-2012, 06:40 PM
#20
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Gold MemberThread Starter
Thank you sir, that is exactly what I was wondering.
