Markup on boats - SailNet Community

   Search Sailnet:

 forums  store  


Quick Menu
Forums           
Articles          
Galleries        
Boat Reviews  
Classifieds     
Search SailNet 
Boat Search (new)

Shop the
SailNet Store
Anchor Locker
Boatbuilding & Repair
Charts
Clothing
Electrical
Electronics
Engine
Hatches and Portlights
Interior And Galley
Maintenance
Marine Electronics
Navigation
Other Items
Plumbing and Pumps
Rigging
Safety
Sailing Hardware
Trailer & Watersports
Clearance Items

Advertise Here






Go Back   SailNet Community > On Board > Boat Review and Purchase Forum
 Not a Member? 


Reply
 
LinkBack Thread Tools
  #1  
Old 01-16-2006
Junior Member
 
Join Date: Nov 2005
Posts: 14
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
ricccccc is on a distinguished road
Markup on boats

Just came back from Cleveland boat and was shocked by the prices. Wanted to know if anyone new what the markup was on sailboats, 30'' to 40'' foot range.
Reply With Quote Quick reply to this message Share with Facebook
  #2  
Old 01-16-2006
sailortjk1's Avatar
Senior Member
 
Join Date: Dec 2005
Location: Porter, IN
Posts: 4,647
Thanks: 1
Thanked 1 Time in 1 Post
Rep Power: 11
sailortjk1 has a spectacular aura about sailortjk1 has a spectacular aura about
Markup on boats

I think that information is kept under lock and key. Manufacturers are not going to publish thier markup. After all, they are in the business to make money. To divulge such information would not be a very good selling tool.

Maybe Jeff knows?
Reply With Quote Quick reply to this message Share with Facebook
  #3  
Old 01-16-2006
Junior Member
 
Join Date: Nov 2005
Posts: 14
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
ricccccc is on a distinguished road
Markup on boats

If you have a good idea what the markup is you have a starting point. A $300,000 boat and the m/u of 20% theres room to work with. Everyone has to make money, but i don''t want to pay for 4 years of there kids college. Thanks Rick
Reply With Quote Quick reply to this message Share with Facebook
  #4  
Old 01-16-2006
Senior Nappy Headed Ho
 
Join Date: Feb 2001
Posts: 734
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
Denr is an unknown quantity at this point
Markup on boats

Econ 101, supply and demand
Reply With Quote Quick reply to this message Share with Facebook
  #5  
Old 01-16-2006
Jeff_H's Avatar
Moderator
 
Join Date: Feb 2000
Location: Annapolis, Md
Posts: 6,680
Thanks: 5
Thanked 105 Times in 81 Posts
Rep Power: 10
Jeff_H has a spectacular aura about Jeff_H has a spectacular aura about Jeff_H has a spectacular aura about
Markup on boats

My mother was a boat importer, distributer and broker but she left the industry roughly 10 years ago. Things may have changed since then. In her day there were several types of dealers. The lowest level dealers were obligated to do a certain amount of marketing, and order a minimum number of boats a year. The mark-up over direct expenses and projected overhead costs (marketing, office space and administrative costs) was 10% of the salesprice. The Dealer also had very big mark-ups on dealer installed options (something in the neighborhood of 30-50% depending on the option).

Stocking dealers (dealers who ''floor planned a boat'' were entitled to an additional 5% of the profit, which took them to somewhere in the neighborhood of 15% profit plus they got other incentives. They also had other costs such as splitting the costs of being at boat shows which was the second-largest overhead cost coming right after the cost of research, design, developmentand tooling costs.

The Distributer/importer had roughly 15% to 25% in profit but this also had to cover a lot of overhead such as flying over for inspections, development costs, operating and office marketing costs, the costs of letters of credit and other incidental expenses. While this sounds like a lot of profit, the annual profit for the importer distributer when comparing gross sales to all costs typically was well less than 15%, which is a tiny margin for the risks involved. Most dealers of that era that I had known operated on a similarly tight margin somewhere less than 5%-7% after commissions.

From what I gather of the industry today, since the Afganistan-Iraq wars and the last couple hurricane intensive years has taken a lot of potential boat building labor out of the workforce, labor has gotten very expensive compared to years ago. Similarly all materials, but especially petrochemical and energy dependant materials, have really spiked up as well. Lastly people have come to expect a lot more sophistication out of their boats. Basic ''value oriented models, like Hunter and Beneteau now come stock with vinylester resin barrier laminates below the waterline and kevlar laminate in impact zones. Boats that will never see European waters are still designed around the EU standards and go through the rather expensive certification process because American buyers seem to expect that. Even small and basic boats seem to come equipped standard with self tailing winches, sophisticated electronics, complex furling systems, refrigeration, wheel steering, diesel engines with high output alternators, multiple battery banks, and other fairly expensive details. All of this adds up rather quickly to make boats a lot more expensive than they were even a decade ago.

Jeff
Reply With Quote Quick reply to this message Share with Facebook
  #6  
Old 01-17-2006
Member
 
Join Date: Jan 2001
Posts: 76
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 14
DirtManly is on a distinguished road
Markup on boats

I have worked for two different sailboat dealers covering several manufacturers. At first we were around 20% on larger boats. But as the internet becomes more prevalent the mark up has eroded to around 10%. Mind you that''s on the boat, they still try to get full mark up on the accessories. I have quit selling the new boats because, while it''s a great job, for those of us that actualy still need a bit of income it simply doesn''t pay very well. We do much better on the brokerage than the new boats. With the pressure from the manufacturers and the erosion of mark up from the internet new boat sales are becoming a neccessary evil.
Best of Luck
Dirt
Reply With Quote Quick reply to this message Share with Facebook
Reply

Quick Reply
Message:
Options

By choosing to post the reply above you agree to the rules you agreed to when joining Sailnet.
Click Here to view those rules.

Register Now

In order to be able to post messages on the SailNet Community forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
Please note: After entering 3 characters a list of Usernames already in use will appear and the list will disappear once a valid Username is entered.
User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.
Password:
Confirm Password:
Email Address
Please enter a valid email address for yourself.
Email Address:

Log-in

Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

 
Posting Rules
You may post new threads
You may post replies
You may post attachments
You may edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On


Similar Threads
Thread Thread Starter Forum Replies Last Post
First time sail boat buyer martinojon Boat Review and Purchase Forum 20 05-26-2014 10:16 PM
What would you buy for $100,000? swo104 Boat Review and Purchase Forum 130 08-30-2013 12:51 PM
Cruising Boats KPBaker Boat Review and Purchase Forum 12 12-01-2012 07:35 PM
IOR...CCA... help! sherbet Boat Review and Purchase Forum 7 05-22-2006 10:38 PM
buying first boat jerrycooper14 Boat Review and Purchase Forum 21 04-23-2002 03:15 PM


All times are GMT -4. The time now is 12:58 PM.

Add to My Yahoo!         
Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
SEO by vBSEO 3.6.1
(c) Marine.com LLC 2000-2012

The SailNet.com store is owned and operated by a company independent of the SailNet.com forum. You are now leaving the SailNet forum. Click OK to continue or Cancel to return to the SailNet forum.