Rwbrew3

I've have always wondered why hp boats are so expensive, what is it that drives the prices up so high? I know motors, drives, hull are not cheap, but dang !! Once you get over 30ft and within a few years of when the boat was built it sky rockets out of most peoples reach!

Are the boats that cost anywhere from $100k up to $650k because people are willing to pay it, or is there really that much money put in them?

Hypotheticaly, if someone could do everything from ground up, I mean everything from building the motor, not putting together or buying parts,, I mean just like they do say at mercury, then fiberglassing and or whatever material to mold a hull, gauges, drives, paint and whatever else goes into it to have a completed hp boat. Would the coast be anywhere near what they sale for.


I'm just curious is all, I know, if you have to ask!! But I just really was curious, I have no clue what goes into the building of one of these boats so I figured I would Ask.


Rick

Perlmudder

I would guess that R&D and overhead play a big role in the cost of boat/engine production. Also from reading about people doing re-rigs it seems that all those little parts that you forget about, every nut and bolt, and retaining clip all add up to a lot of money.

Rwbrew3

Yeah i know i left out lots of what goes on to complete, but those nuts and bolts are in the cent ranges.. I've seen huge beautiful homes for less than some of these boats cost and you get so much more ! I'm not bashing them at all, again just wondering..

Rick

Indy

Don't forget you're paying for the facilities and all that goes along with that...those fixed costs are a big chunk of money since square footage is needed to product these products. Add in labor, materials, all the variable costs and you get a high priced item.

I know high quality home builders that work out of their garages, basically they just move their equipment from one job to the next and don't have to incur much overhead like the boat builders do.

Interceptor

I think it's because we're all drug importers and have bales of money to spend on Rolex watches, breast implants, Italian cars and cigar boats.

Rwbrew3

Does the few people that can and are willing to fork over that kind of money keep those prices up? If no one wanted to spend that kind of money would the prices drop? That has to be one heck of a profit, guessing around 150k to 200k.. Again guessing!!!

If no one was to make a penny in the build, would a boat that sales for 500k cost 100k to build?

professor_speed

Well there has to be profit built in. It would be nowhere near 400k on 500k boat. look at the price of power and drives and that eats up a big chunk of the budget. At the rate companies are going out of business they are can't be turning much profit. Many of the companies that are still areound are running staffs far less than what they used to. Many companies are in survival mode. There are companies that can't sell hulls for the cost of glass and resin I inquired about a hull form one manufacturer and the quote they gave me was the same as they would have sold for in 1993.

Now some companies are doing well considering. I remember reading an article on Outerlimits and how they had to look at everything they do in order to become a more efficient builder. They went as far looking at using lean manufacturing techniques. (for a custom builder that has to be interesting. OL has also diversified there business by consulting, re-power, storage, etc. rather waiting for the market to come back they went out grabbed different parts of the market.

I here what you are saying about building a boat start to finish and offering your own power etc. (I believe that OL sells there own power plants as well with the connections to Whipple they have) But that is big R&D that nobody is willing to spend right now even if they wanted to build that way.

Also the custom nature drives the price up. Many of there boats have many custom set ups, that takes man power which is expensive. Also Raw material cost are up across the board. And lets not forget economies of scale These guys are not selling many boats. Again not to keep bringing up OL but they slotted to sell something like 8 29's for the year! and sold out production and said that was their most popular product launch. MTI, Skater, OL,DCB,Nortech, combined put out what maybe 100 boats? (I could be way off)

Dan Adams

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.

redbud35

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.

POWERPLAY J

Posts 7 and 8 nailed it.