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james2b 05-29-2002 10:22 AM

Dealer margins on New Boats
 
Considering purchase of a new or used Jeanneau45.2 or Beneteau 473. I need some guidance on how much dealers typically have to play with on a boat of this type to make the decision between new or used. Should I expect 5% to 10% off list for a fully loaded boat? In the Lake Michigan area. Also, any advice on which boat is preferable would be appreciated.

Sailmc 05-30-2002 04:26 AM

Dealer margins on New Boats
 
I just purchased a new Jeanneau 43DS from a dealer in Detroit. They tend to want a 15% markup for themselves. Expect them to make little money on the boat but make a ton on the accesories and electronics.

james2b 05-30-2002 07:03 AM

Dealer margins on New Boats
 
Thanks. What would the 15% translate into as a discount from the list price on a fully-loaded boat? That is, what percent of list price should I expect to pay on an ordered boat? I''ve seen discounts on spec boats as high as 25% but I''m uncertain what the discount should be on an ordered boat.

Bluesmoods 05-30-2002 10:29 AM

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.


james2b 05-31-2002 07:57 AM

Dealer margins on New Boats
 
Very useful. Thanks.

halyardz 06-01-2002 01:51 AM

Dealer margins on New Boats
 
Frank...good insights. But a question. Let''s say you didn''t order a VHF with the boat. Would that mean that the factory would not run wires in the bundles to the usual location? I only bought one new boat and it was a small Beneteau and was relatively spartan. Older boats, in some cases, tend to be more user friendly for "add-ons". I hear plenty of horror stories from yard guys about the larger powerboats. Real headache to add things. Builders know the importance of having that extra wine rack even if it means you can''t get to the wiring leads.

Bluesmoods 06-01-2002 08:13 PM

Dealer margins on New Boats
 
Hi again.
Regarding VHF. Just as an example. Catalina and Beneteau may charge $640 for the installation of the RayMarine 45 VHF.

This is the smallest most afforable VHF that RayMarine sells. You can buy it aftermarket for $129.00. Wow, what a difference. So, ask the dealer to order the boat with the necessarry wiring for your VHF, but you go ahead and buy a better unit. (The RayMarine 45 is great, just doesn''t have some of the modern day options) The standard Horizon Ecipse might cost you $195.00 or there bouts''. The wiring by the manufcaturere migt cpst you $500.00 so you are about the same place with a more versitile VHF that includes the optional RAM mic.

So there we go. I know people who order their new boat with very basic options. They get all their Navigation, commuication and radar equipment after-market and have the dealer install it all when the boat arrives. You save thousands and in fact can get upgraded equipment for less than the dealer quoted you for the asic "stuff".


All the best,

Frank

bporter 06-02-2002 04:00 PM

Dealer margins on New Boats
 
I was quite surprised to find the Beneteau dealer I spoke with last fall to be completely unwilling to budge an inch on the boat price. I was looking at a used 2000 First 40.7 (which I later bought) vs. buying a new one - I was talking to the Dealer about the latter.

They would not move on the boat price itself, which they said was passed on to them from Beneteau and an inviolate policy. However they did have a lot of "specials" on the electronics packages. These were supposedly specials tied to the Annapolis Boat show and were time limited.

I made the call to buy the used boat, so I never actually went to Beneteau with deposit & financing in hand for the yacht - they may have moved more then when they saw firm $$$ and me talking to the Carroll Marine guys about a Farr 395.

Although I was a serious buyer for the boat at the time I did not start to seriously put the screws to them for negotiation. Of course, had they been willing to move some on the overall price earlier then perhaps I''d be sailing a 2002 boat instead of a 2000.


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