SailNet Community banner
1 - 1 of 1 Posts

· Living the dream
350 Posts
Reaction score
There's a guy I know that has owned a store selling and servicing trailable power boats and outboard motors for many years. He set up a chandlry in the early days but gave it away as a bad idea. as he explained to me, it's the cost of the inventory that's the killer. The problem with boat bits is that there's lots of them and everybody wants what they want to be on the shelf. He also explained that he got sick of people coming into the store clutching someone else's discount catalogue under their arm demanding he sell to them at the same price.

The other issue with Aust pricing is that our traditional marketing model for lowish volume sales is overseas manufacturer or even agent selling to a national distibutor who then onsells to dealers and resellers. Everyone in the chain takes their cut of the margin, which is high because of relatively low turnover to supply chain cost and by the time we buy the bit off the shelf it is twice the price or more than it is from a direct overseas source.

With boat parts, this is where the reach of the internet shines. The Internet works because a whole heap of drop shipping or large turnover volume retailers primarily located in the US can turn over stock fast with corresponding competitive pricing.
1 - 1 of 1 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.