What is a dealer's mark up on a new boat?

[DaCostaGreene]

Re: dealer\'s mark up on a new boat?

On a larger boat, say 30ft upwards, the mark up is around 15%. On RIBs, the mark up is around 20-25%, but you also have to bear in mind, which manufacturer and which dealer. I had a customer (who shall be nameless) who was competing against another dealer, the only winner is the customer, cos my customer sold the boat at cost (although his customer didn't know this) just to spite the other dealer. The same goes for cars, that's how I got mine cheap, played one dealer off against another,

 

[Nautical]

Re: dealer\'s mark up on a new boat?

But what happens when you need urgent service or parts in a hurry, is that dealer going to kill himself to provide you with exceptional service when he has'nt made a penny?. Technically of course he should but human nature being what it is more likely the chap who paid him a fair price is the one that gets the better service. Not saying he would not provide service but he is unlikely to be out to you on a Sunday morning to fix your boat so that you can enjoy the rest of the day.

My view 'fair price for a fair deal' and everyone is happy.

I have never screwed a deal down to the bare bones its a false economy, if my customer does'nt value my business to provide proper back up by maintaining a healthy margin then he's likely to be trouble in the future so I politely intimate he would be better going to one of the supermarkets.

Others will disagree and take pride in hammering the price down to such a level that the dealer is left with nothing then rant and rave when he's gone under and there's no local dealer to service him.

 

[DaCostaGreene]

Re: dealer\'s mark up on a new boat?

I agree, but some peeps like to screw us for as much as they can, I offer a set price, no deviation unless bulk. Depends on what business ur in aswell, the quality of the product, etc,etc,etc...

 

[Nautorius]

Re: dealer\'s mark up on a new boat?

Nautical,

Fair point. if you want the service level of a dealer be prepared to pay for it. If you want to screw down the price go 2nd hand and find someone desperate for the money! I would expect some discount.....and if you talk to princess about a V42 you get a huge one so they must be knocking them out at cost. Also know of a dealer in Denia who had one on order and was desperate to sell it before it arrived. It was the one at Excell! /forums/images/graemlins/laugh.gif

Paul

 

[Nautical]

Re: dealer\'s mark up on a new boat?

I agree, I would expect a discount if I was buying secondhand, in many cases secondhand stuff with dealers are trade ins and they are looking to get their money out of them as the profit was in the new boat, but depends on the boat itself. If you've taken in a really nice clean boat and they are in demand then you expect to make something on it, also you as a dealer are liable for a period of time if the thing goes belly up so you have factor in something for warranty.

With new stuff, if its limited supply and selling well then the dealer is less likely to hack lumps out of the price, if he is then there is something wrong, either he is in the doo doo for money and not likely to last the distance hence no service later or the boat itself has something wrong with it and is not selling.

Personally if I can screw the price down to near trade reasonably quickly alarms bells start going off, its just not common sense to sell something at cost if its sound and the dealer is solid, smacks of desperation.

If you are buying privately different story, your not getting any back up and no come backs, once you've parted with your cash its cheerio don't call us we'll call you.

I don't detract from anyone who prefers to haggle to the last and there is nothing left, I would just say be wary that the aftersales is not going to be a shining light of customer satisfaction but if your happy with that and can accept so then crack on just don't go bezerk when things might get a bit sticky.

I think it is quite indicative of todays pile em high and sell em cheap society in that we have almost come to expect huge discounts off everything yet we complain and run to the consumer affairs board the minute we don't get the service we think we deserve. Many people spesh those new to boating really don't appreciate the value of good service and the back up that comes with it. A new boat is a very complex bit of kit and if it goes wrong then its major bucks. A banjaxed engine can cost many thousands these days but if the dealer has'nt performed the required PDi and commissioning properly cus he lashed it out the door at cost, the engine manufacturer will just walk away and you are left with a major battle on your hands.

Happy dealer = happy customer......screwed dealer = screwed customer

 

[Nautorius]

Re: dealer\'s mark up on a new boat?

Nautical,

Got to say you talk a lot of sense compared to most in this trade. Mind you, your range of boats gives you a head start! I will pay for service if I know it will be good. If I think it will be suspect I will screw down the price.

The key for good hagling on second hand is, as you say, that you are personnaly underwiting the deal. If something goes wrong you have a lot of plastic and metal that you can not give away on Ebay.

Mind you the way to make money as a dealer is to set yourself up in a Tax haven and reap the benefits that way /forums/images/graemlins/wink.gif

Paul

 

[Nautical]

Re: dealer\'s mark up on a new boat?

For fear of industrial espionage I can't tell you why we are based in a tax haven.......... well I could but then I would have to kill you! /forums/images/graemlins/grin.gif

 

[Nautorius]

Re: dealer\'s mark up on a new boat?

So,

That is where the Government has put you, Commander Nautical!

Paul

 

[Nautical]

Re: dealer\'s mark up on a new boat?

'Absolutely!'......... Q is working on a new H/T sports cruiser around mid 50' that goes faster than anything else, burns 40% less fuel and has 20% more interior volume than the enemy, has new propulsion system designed by his Swedish counterpart 'Erik' that out manouvres anything Gold Finger can build and amazingly costs 15% less.

Further details available at....www.007-bloodyfastboat.com

Yours,

Pearce

 

[Coupe]

Re: dealer\'s mark up on a new boat?

Pearse,
I thought I told you - YOU'RE FIRED.

 

[Nautical]

Re: dealer\'s mark up on a new boat?

Oh Bu99er! .......that's why the gas has been turned off ! /forums/images/graemlins/frown.gif no MI6 salary cheque anymore......guess I'll just have to raid a few of them there diamonds I'd stashed from one of my last capers.