Dealer Mark Up

pennel

Active Member
Started this thread yesterday but it has since disappeared from this forum, so I'll give it another go.
Looking into buying a new ( or newish secondhand ) boat around the 26 foot mark.
Have looked at different brands-ThunderJet, North River,Osprey,Silver Streak, etc.
Was wondering as a generalization what kind of mark up dealers have on engines and boats.
It would be nice to know from negotiating a final price point of view.
I can't seem to find much info. on the internet and any input from you guys would be helpful.
Thanks.
 
Who cares what the dealer mark-up is? Be an educated consumer and know exactly what you want. Write it down. Then find 2 or 3 reputable dealers that you can work with and negotiate the bottom line price with them.
 
Who cares what the dealer mark-up is? Be an educated consumer and know exactly what you want. Write it down. Then find 2 or 3 reputable dealers that you can work with and negotiate the bottom line price with them.
How are you supposed to negotiate the bottom line price if you don't know what margin is available?
Remember all salesmen, regardless of business, are there to maximise their profits.
 
For what it's worth.
Keep in mind you the consumer is always in charge until he or she signs on the dotted line. Know your product, if new, shop around at multiple dealers except your preferred or convenient dealer, decide on a estimated price range this is palatable and meets your budget.
When you are ready, head to your preferred dealer, bring your check book along with a pen, say you are here to buy that boat today and watch your salesmen decide whether he wants to move a boat or not and make a quick commission. Don't be shy on your offered price, maybe 20% and see where this leads. If not satisfied move on to a dealer who is willing.
 
I would take a look around at year-old clearance models. Any make and model will work, just have to identify the percentages they’re discounted to get a baseline. My guess would be 15% markup on most new boats. They make the majority of their money on accessories (electronics, safety, fishing gear ect) and servicing.
 
https://www.thehulltruth.com/boating-forum/396869-dealer-markup-new-boats.html

Maybe you’ve seen this already off THT. Good read and some intel.
Thanks, good read, and I am sure that a lot of that still applies today.
Still,the numbers are all over the place-not easy.
Don't buy into the philosophy of it's a toy, so just enjoy and forget about the price.
Just looking for some middle ground (these guys have to eat as well) ,not looking to squeeze every dime out of them
but don't want to be taken for a ride either.
 
How are you supposed to negotiate the bottom line price if you don't know what margin is available?
Remember all salesmen, regardless of business, are there to maximise their profits.
You don't need to know or care what the dealer cost is. The "dealer invoice cost" ploy comes from the car trade where secret manufacturer incentives and rebates provided the profit. The boat industry is different. Have the dealers quote you a bottom line, all-in purchase price - no financing, no trades. You either like it, negotiate or move on. Apparently boat sales are good right now so you may not have any negotiating advantage.
 
FWIW, in my opinion it would be difficult to give such a broad generalization of a "markup" on new/ nearly new, production aluminum/ fiberglass and custom built boats. Way to many variables to consider between them. Would be like trying to compare production costs/profit margins of an Audi 8L to a Pinto without knowing what options/trim levels were selected.
I would suspect that to even to get in the "ballpark" wrt "mark up" you need to compare apples to apples. When I had mine built I compared the base hull, construction material, thicknesses, prices, design, build quality, standard options, etc., etc., of the model/s I was interested in and added similiar options to each. Was still not an easy task. What I found at the time was that the base price of the hulls of the different manufacturers that I was interested in were fairly evenly priced based on my observations. Not saying that were all the same as that would be far from it, but once I factored in build quality, similiar hull design, longevity, re-sale value, etc. I felt I was able to make a fairly informed decision. It allowed me to sharpen my pencil a bit but I wouldn't expect any huge discounts from a manufacturer of a custom built boat. From my experience there was very little room on the price of the "base hull." The upgrades were all pretty much at a fixed price across the board, (cleats are cleats and down rigger mounts are just that and, although not the same price, are similiar across all manufactures and fairly easy to compare) but the discounts did increase with the type and amount of options added and those were quite different across the board in quality and price. The electronics....and installation.. well that's something else and can add up very, very quickly and about as easy to compare as snowflakes. Engines, don't expect much if anything. In the end it will come down to condition, quality and demand of the product you or the next person that's waiting for it feels its worth. A waiting list definitely = an added premium and less of a negotiating position.
Good luck hope it works out.
 
FWIW, in my opinion it would be difficult to give such a broad generalization of a "markup" on new/ nearly new, production aluminum/ fiberglass and custom built boats. Way to many variables to consider between them. Would be like trying to compare production costs/profit margins of an Audi 8L to a Pinto without knowing what options/trim levels were selected.
I would suspect that to even to get in the "ballpark" wrt "mark up" you need to compare apples to apples. When I had mine built I compared the base hull, construction material, thicknesses, prices, design, build quality, standard options, etc., etc., of the model/s I was interested in and added similiar options to each. Was still not an easy task. What I found at the time was that the base price of the hulls of the different manufacturers that I was interested in were fairly evenly priced based on my observations. Not saying that were all the same as that would be far from it, but once I factored in build quality, similiar hull design, longevity, re-sale value, etc. I felt I was able to make a fairly informed decision. It allowed me to sharpen my pencil a bit but I wouldn't expect any huge discounts from a manufacturer of a custom built boat. From my experience there was very little room on the price of the "base hull." The upgrades were all pretty much at a fixed price across the board, (cleats are cleats and down rigger mounts are just that and, although not the same price, are similiar across all manufactures and fairly easy to compare) but the discounts did increase with the type and amount of options added and those were quite different across the board in quality and price. The electronics....and installation.. well that's something else and can add up very, very quickly and about as easy to compare as snowflakes. Engines, don't expect much if anything. In the end it will come down to condition, quality and demand of the product you or the next person that's waiting for it feels its worth. A waiting list definitely = an added premium and less of a negotiating position.
Good luck hope it works out.
Nice post.Well ,I am not there yet and have started looking around.
Reason for the boat is that we were confronted with closures of marinas in the Sound due to Covid.
That meant anchoring and our boat ,a 22 sea runner,is just a bit too small side for my better half to stay on without getting a chance to stretch her legs.
Could always leave her behind ,I suppose.
 
they dont have dealers for the large stuff so no mark up. each boat is semi custom in the 26 foot and above range. they do have dealers for their smaller just below 26 feet but thats a different animal and probably does have dealer mark up.
reviews from myself - their welds are excellent quality. ive done a bunch of work with them and i looked at their completed hulls. have not seen their finished boat in the 26 foot and above range but the hulls and welding is as good as anything ive seen. for their smaller boats the welds were excellent but the wiring/paint etc was average at best not the stylish wiring you see on other more expensive boats like lifeproofboats.
 
Nice post.Well ,I am not there yet and have started looking around.
Reason for the boat is that we were confronted with closures of marinas in the Sound due to Covid.
That meant anchoring and our boat ,a 22 sea runner,is just a bit too small side for my better half to stay on without getting a chance to stretch her legs.
Could always leave her behind ,I suppose.

Leaving her behind could get expensive as well!

Have you looked at Chartering a boat in that size range to see what you like? 26 feet, I'm in a 25.5 which is the second boat featured here and is still a little small for momma. If I was considering buying new or building custom I would try out one of these loaded ones and see which features we liked. Loved my old Searunner and although we have caught lots in the new bigger boat I felt like the searunner was the stiletto of fishing boats. Miss the quick run to swiftsure and easy launching. Good luck, keep us informed on what you buy and thanks for keeping the economy going! http://www.desolationsoundyachtcharters.com/fleet/power/
 
Are you buying one of these? I look forward to seeing pics of one all rigged up ready for fishing

when my current one is sold in a few years, yes. the 26 footer would work nicely with the extended fuel tank. i dont think you can find a cheaper boat new either which is equally well built.
 
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