LPA2106

...Fountain is in debt to be sure...18 milliion in loans to keep them afloat...and it's industry wide except for the fortunate few...in examining the Wallstreet analysis posted ...if his average boat sells for say $200,000.00 and he took in like what was it 20 million in sales or less? It means they sold like 60 boats...is my math right?They are not selling boats and we are not in them becasue they cost too much.



At the Detroit boat show I was told Formula planned on selling less than 30 performance boats this year....dealers won't floor plan them so special order only at full cost...

...so it's a really small niche' market... at the boat show I talked to a manager at Brunswick who showed me some cost figures...a Searay 35' er costs them 80% of what they sell them for to build...so they split the profit between the manufacturer and the dealers....and interestingly enough the price of the boat depreciates about 20% the first year....and then levels off and is wonderful after that...for many years to come...and Searays come with those 502's now ...so not much different power or expense that can be explained off...So far 75 Searays have been ordered at the show..

...offshore powerboats are smaller and really a lot easier to make.. yet the mark-ups are huge... he had figures to show that searay can make a 28' offshore type boat that used to be called the Pachanga for their cost of like around 30k....plus 30k for power equals 60k....


....he had this spread sheet...

a boat with an 8' beam and their total costs without power...remembering they own Merc of course...


....they analyzed making Pachanga's in 5 sizes at one time..and he corrected this for 2004 costs...it woudl currently cost them to build the following...


.....26' 22k

....30' 25k

.....35' 35k

....42' 46k


....47' 60k


add 30k for twin 496's to each except the 26' is single...


so his point is that Searay can build a production offshore in theory that is a 42'er for 76k with t-496's


....he said that any production manufacturer or small company with low overhead can easilly build a quality 42'er with t-500efi's for 100k out the door and both the manufacturer and dealer would get greased about 10% in profits...cabins would be about the same...a few less expense gauges...but a quality product....


he showed me that they had an analyst show that the list price of most performance boats is 3 times thier cost...

....and a Searay has a 20% total margin...

...that's why a performance boat looses 1/3 of it's value when you take it out of the showroom...that's dealer profits...

....Searay may reintroduce a line of true offshore boats...and if they do I would buy the 42'er for 100k....any day of the week...

....we are paying for outrageous advertising....huge racing programs...and all kinds of crazy stuff...and loose in every angle of the process....

.....he said they may just build the 2 boats they think will bring a good market in...

....a 35'er with t-496's for 80k loaded...

....and the 42'er with t-500efi's for 100k

now a guy with 20% down gets a 42'er for under $400/mo over 10 yrs with a small balloon....they said market analysts said if they have a nice design...some custom paint available and add steps so they are fast they can sell 200-500 boats per year...and they will loose the name Pachanga and go with something like Rayspeed perf boats....

interesting....

Audiofn

I will believe it when I see it. Only problem is just like Jet Blue, Hyundi, and all the others that come in low they eventually figure out that they are loosing profits by undercutting everyone else by so much and will raise their prices. I mean it is just good business for them to do so.....

Jon

taba

if they don't, expect yamaha or toyota to.

mcollinstn

I honestly don't think a hardcore offshore mfr can build a boat for what it costs Sea Ray to build a Pachanga.

A rough-duty offshore hull will be fully glassed at every joint, full bulkheads with full glassing, deck joint glassed, and deck glassed to every bulkhead from underneath. The cabin interiors will be added later, and at higher cost.

Sea Ray will make the hull, add stringers and drop in a complete interior before sandwiching the deck on. MUCH less expensive.

For many that is good enough. For others it is not.

If Sea Ray renews the Pachanga line it will be a good seller, but it won't replace the big dollar offshores.

Payton

200,000 x 60 is 12 mil not 20. That would be 100 boats at 200,000 to be 20 mil.

A sea Ray dealer a few years ago told me Sea Ray quit building the Pachanga because it was to expensive to build.
I would love to see a new Pachanga. I also thing the should leave the name alone.

Griff

Sounds like a bunch of BS from a used car salesman. If they could build um at prices so much lower than the competition, then why don't they????

100k for a new 42' with 500's will never happen. I doubt they could build one for 200k.

If they could, why does a 420 express cruiser sell for 400k+. I really doubt there is 300k worth of stuff in the interior and cabin options.

Sounds like this guy was blowin a lotta smoke.