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post #4 of Old 05-30-2002
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Dealer margins on New Boats

Hi folks:

I am a fomer dealer/broker and might be able to shed some light on this topic. It has been a number of years so I don''t know if things have changed much.

First of all, There was a 20% discount off list to the dealer form the boat builder. On the much more expensive boats, this discount was adjusted downward. The Yacht Broker, (salesman) was paid 20% of that 20% discount.

So if there was a $10,000 margin on the final "deal", the Broker was paid $2000 for the sale.

There was as much as 40% mark up on dealer options and electronics. So, Navigation, safety, prop, communications etc. is a better way to go for the dealer if those options can be added once the boat arrives. This is why in many cases there is a lot of play in options as the dealer has a lot more room to play with than on the boat itself.

Some options as much as it seems can be purchased after market, let''s say at West Marine, can in fact be installed a lot more efficiently while the boat is under construction. You can also in this manner take advantage of the entire vessel being serviced and maintianed by the dealer dutring the period that the warranty is in effect instead of one thing being fixed by supplier A and another at supplier B.

Hope I was helpful. Again it has been a number of years since I was in the business (was very good business, just built my career into ther areas of the industry).

Frank M.

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