Cheaper Boats in the Credit Crunch

Crickey if they are making more profit than that I am selling the wrong product /forums/images/graemlins/frown.gif

Seriously doubt any dealer anywhere is getting 35% discount off retail, at those prices they are loosing money or are being supported by the yard with rebates or such like.

Doubt after these are gone they will be offering those discounts again, more than likely they will have severely reduced their orders for stock next season maybe even only delivered to order.

all IMHO of course.
 
But the price of a product, is what the customer will pay, nothing to do with the cost of building it. Even the super rich will find that the Goliath is just a monstrosity, as has happened many times before.
 
And factor in the current pound/euro exchange rate and the drop for the dealer is nearer 50%! Unless they have recently had price increases to cover that.
 
Most tent boats are flight of fantasy purchases which will always be the first to suffer when any financial reality kicks in,normally after six months of typical british weather.All the dramatic price drops mentioned on the forum seem to involve,wether new or used, the type of boat which puts style before practicality.
Can we now look forward to plethora of "I use my tent boat throughout winter" posts" by peeps whos avaturs mainly feature chestwig boats doing 30knots complete with the ensuing wash. /forums/images/graemlins/grin.gif
 
>Most tent boats are flight of fantasy purchases which will always be the first to suffer when any financial reality kicks in,normally after six months of typical british weather.

Huh?

Equally daft statement would be that "Most Hardtop or Flybridge boat buyers imagine that they will regularly go out in the pouring rain or an F7 until reality kicks in and they reaslise that they would rather be outdoors"
 
I'd be very surprised too if the dealer could give a 35% discount and still sell at a profit but what exactly is a 35% discount? Possibly these stock boats were paid for with forward bought currency at a rate of €1.40-1.45/£; you could have bought Euros at this rate about 12 months ago. The €/£ rate has deteriorated about 15% since then so this 35% discount could well be a notional discount against today's list price at today's €/£ rate and not a 35% discount against the list price calculated at the exchange rate at which the boats were bought
My guess is that these boats are being sold at around actual cost price and, possibly, the manufacturer is giving additional dealer discount for 2009 stock to encourage dealers to get rid of 2008 stock. Also I guess the finance charges are beginning to hurt as well
 
[ QUOTE ]
At those prices will they be there next year ?


[/ QUOTE ]
Well, I guess if they (the manufacturers) cut right back on new model development and reconstruction budgets, which could easily be 20-30% of the budget, then a profit at those prices may still be attainable.(assuming the savings are passed onto the dealers)
 
Agree - except I believe the margins for dealers/distributors is much higher than suggested here so far..

Sure there are serious expenses to be covered but there is lots of meat normally to off set these.

I know the demise of Offshore marine, Marine Sales and Peters does not support this view but in these cases there were biz faults involved.
 
They were not previously "overpriced". The market decides the price. If they could previously sell their boats at a higher price it is because people would pay it.

Likewise their recent action is an adjustment for current market conditions.
 
I doubt it very much. My guess is that most dealers operate with a maximum dealer margin of 15-20% and most manufacturers operate a RRP pricelist so there is little scope for increasing that margin except with currency fluctuations. Most manufacturers believe that their dealers are a necessary evil (sometimes they believe they are unnecessary too) and generally they are not over generous with dealer margins
 
It says You can save up to 35% on the retail price of a new Cranchi, and Premier will throw in a year's free berthing, a year's free insurance and a free motorboat lesson.

It doesn't say "we're knocking 35% off all Cranchi boats".

My guess would be that they'll have one of those really ugly hardtop ones (probably an ex boatshow boat/demo boat) at 35% off, and others at maybe say 10% off perhaps, discounts you could have achieved anyway probably, especially off of stock at the end of the year.

I'd guess the plan is that it'll get the phone ringing, get rid of an old munter that's been kicking around for months with no profit but old stock out/cash in, and get a few sales at sensible discounts.

Having said that, announcements like this aren't exactly going to do Cranchi residuals a lot of favours.
 
I dont understand why people want to know the actual dealer margin as if all this changes ones life
if the price is well discounted from the listing and am getting a good deal, hell I dont care he can even make 100% on that boat...
 
[ QUOTE ]
I dont understand why people want to know the actual dealer margin as if all this changes ones life
if the price is well discounted from the listing and am getting a good deal, hell I dont care he can even make 100% on that boat...

[/ QUOTE ]
hmmmm! I'm all for a win-win (I think!) but it's handy to have some idea of margins in negotiation. I might be happy with a good deal but even happier if I can get another 5% (or more!) through knowledge of the dealers margin sensitivity.
 
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