Why are high performance boats so expensive!
12-21-2012, 06:41 PM
#51
Gold Member
Gold MemberThread Starter
Another question I guess, everyone keeps saying one off drives price way up, but if it has the same hull as the others, same power and drives as the others how are they considered one offs? Paint and interior design?
I know some have differant power and drives, but I know these guys all run the latest and greatest...
Rick
I know some have differant power and drives, but I know these guys all run the latest and greatest...
Rick
12-21-2012, 08:45 PM
#52
My belief is that some of the smaller boats are priced a little closer to the cost...but the bigger boats....I think the manufacturers just test what the market could bare. There are big wigs that have no problem dropping some serious coin on the latest and greatest boats and have no problem being the one to take the hit on the depreciation.
The makers of the motors, drives and steering are pricing their products high because they can do it and get away with it period. I must say that they were very smart by standing fast and creating a monopoly that no one has been able to meaningfully penetrate.
The makers of the motors, drives and steering are pricing their products high because they can do it and get away with it period. I must say that they were very smart by standing fast and creating a monopoly that no one has been able to meaningfully penetrate.
12-21-2012, 10:23 PM
#53
Gold Member
Gold MemberThread Starter
[QUOTE=turbo rr;3835943]My belief is that some of the smaller boats are priced a little closer to the cost...but the bigger boats....I think the manufacturers just test what the market could bare. There are big wigs that have no problem dropping some serious coin on the latest and greatest boats and have no problem being the one to take the hit on the depreciation.
The makers of the motors, drives and steering are pricing their products high because they can do it and get away with it period. I must say that they were very smart by standing fast and creating a monopoly that no one has been able to meaningfully penetrate.[/
Excellent point! Sure makes It tough on the guys with shallow pockets to enter into the big power boating world!
Seems like there would be more money to be made by selling more for less..
60-70 units per year at lets say 75k would be 5.5 million
5 per year sold at 500k is only 2.5 mill
I know drives and motors are expensive, however, I also know the price we pay is no where near there cost to build!!!
Again, my opinions !
Rick
The makers of the motors, drives and steering are pricing their products high because they can do it and get away with it period. I must say that they were very smart by standing fast and creating a monopoly that no one has been able to meaningfully penetrate.[/
Excellent point! Sure makes It tough on the guys with shallow pockets to enter into the big power boating world!
Seems like there would be more money to be made by selling more for less..
60-70 units per year at lets say 75k would be 5.5 million
5 per year sold at 500k is only 2.5 mill
I know drives and motors are expensive, however, I also know the price we pay is no where near there cost to build!!!
Again, my opinions !
Rick
12-22-2012, 07:01 AM
#54
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[QUOTE=Rwbrew3;3835969]
+1
My belief is that some of the smaller boats are priced a little closer to the cost...but the bigger boats....I think the manufacturers just test what the market could bare. There are big wigs that have no problem dropping some serious coin on the latest and greatest boats and have no problem being the one to take the hit on the depreciation.
The makers of the motors, drives and steering are pricing their products high because they can do it and get away with it period. I must say that they were very smart by standing fast and creating a monopoly that no one has been able to meaningfully penetrate.[/
Excellent point! Sure makes It tough on the guys with shallow pockets to enter into the big power boating world!
Seems like there would be more money to be made by selling more for less..
60-70 units per year at lets say 75k would be 5.5 million
5 per year sold at 500k is only 2.5 mill
I know drives and motors are expensive, however, I also know the price we pay is no where near there cost to build!!!
Again, my opinions !
Rick
The makers of the motors, drives and steering are pricing their products high because they can do it and get away with it period. I must say that they were very smart by standing fast and creating a monopoly that no one has been able to meaningfully penetrate.[/
Excellent point! Sure makes It tough on the guys with shallow pockets to enter into the big power boating world!
Seems like there would be more money to be made by selling more for less..
60-70 units per year at lets say 75k would be 5.5 million
5 per year sold at 500k is only 2.5 mill
I know drives and motors are expensive, however, I also know the price we pay is no where near there cost to build!!!
Again, my opinions !
Rick
12-22-2012, 07:36 AM
#55
Registered
[QUOTE=Rwbrew3;3835969]
70 units per year at 75k, total 5.5 mil REVENUE. Lets say the profit is $15k each. That leaves you 1 million in gross profit, from which you must pay the employees to build those 70 boats, and all overhead. Tight ship
Now, do a small operation and build those 5 boats you mentioned at $500k, and make $100k each giving you a total gross profit of $500k. Sell 10 and you are at the same profit as the guy building the 70 boats at $75k! Also a tight ship, but a lot less stress, warranty risk, and variables.
A smart investor would choose the 5 boat manufacture. Keep in mind also the manufacture that builds the $75k boats relies on the banks to finance their end users, which is not an easy task on a performance boat today. The mfg that makes $500k boats has CASH customers
Do you think Ferrari is upset about the amount of mustangs that Ford sells? No, they just keep building high profit, low volume cars.
My belief is that some of the smaller boats are priced a little closer to the cost...but the bigger boats....I think the manufacturers just test what the market could bare. There are big wigs that have no problem dropping some serious coin on the latest and greatest boats and have no problem being the one to take the hit on the depreciation.
The makers of the motors, drives and steering are pricing their products high because they can do it and get away with it period. I must say that they were very smart by standing fast and creating a monopoly that no one has been able to meaningfully penetrate.[/
Excellent point! Sure makes It tough on the guys with shallow pockets to enter into the big power boating world!
Seems like there would be more money to be made by selling more for less..
60-70 units per year at lets say 75k would be 5.5 million
5 per year sold at 500k is only 2.5 mill
I know drives and motors are expensive, however, I also know the price we pay is no where near there cost to build!!!
Again, my opinions !
Rick
The makers of the motors, drives and steering are pricing their products high because they can do it and get away with it period. I must say that they were very smart by standing fast and creating a monopoly that no one has been able to meaningfully penetrate.[/
Excellent point! Sure makes It tough on the guys with shallow pockets to enter into the big power boating world!
Seems like there would be more money to be made by selling more for less..
60-70 units per year at lets say 75k would be 5.5 million
5 per year sold at 500k is only 2.5 mill
I know drives and motors are expensive, however, I also know the price we pay is no where near there cost to build!!!
Again, my opinions !
Rick
Now, do a small operation and build those 5 boats you mentioned at $500k, and make $100k each giving you a total gross profit of $500k. Sell 10 and you are at the same profit as the guy building the 70 boats at $75k! Also a tight ship, but a lot less stress, warranty risk, and variables.
A smart investor would choose the 5 boat manufacture. Keep in mind also the manufacture that builds the $75k boats relies on the banks to finance their end users, which is not an easy task on a performance boat today. The mfg that makes $500k boats has CASH customers
Do you think Ferrari is upset about the amount of mustangs that Ford sells? No, they just keep building high profit, low volume cars.
12-22-2012, 10:05 AM
#57
Neno the mind boggler
VIP Member
I actually posted this in the other thread but then moved it here as i thought for the thread starter it would be best to help keep that topic on track, its a very good thread. Posted a couple biches over there that were prolly unnecessary to the gathering of info, sorry bout that Smitty
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Throttles- Cleveland Construction 377 Talon
08 OPA Class 1 National Champion
08 Class 1 Geico Triple Crown Champion
08 OPA High Points Champion
10 OPA Class 1 National Champion ( happy now Ed! )
12-22-2012, 10:16 AM
#58
Gold Member
Gold MemberThread Starter
[QUOTE=4bus;3836048]
70 units per year at 75k, total 5.5 mil REVENUE. Lets say the profit is $15k each. That leaves you 1 million in gross profit, from which you must pay the employees to build those 70 boats, and all overhead. Tight ship
Now, do a small operation and build those 5 boats you mentioned at $500k, and make $100k each giving you a total gross profit of $500k. Sell 10 and you are at the same profit as the guy building the 70 boats at $75k! Also a tight ship, but a lot less stress, warranty risk, and variables.
A smart investor would choose the 5 boat manufacture. Keep in mind also the manufacture that builds the $75k boats relies on the banks to finance their end users, which is not an easy task on a performance boat today. The mfg that makes $500k boats has CASH customers
Do you think Ferrari is upset about the amount of mustangs that Ford sells? No, they just keep building high profit, low volume cars.
I get what you are saying, however, if I was an investor, I'm going after sales and profit. Something like this there would be lots of investors, 5 units @ 500k probably wouldnt be worth them throwing in the pot.
Now 75k, And I'm only guessing here, but that's first year would be crazy, I know my lil 25 outlaw would be gone, and the boat that I could never afford would be in my driveway!
I'm sure there would be thousansands of sales!!
Rick
70 units per year at 75k, total 5.5 mil REVENUE. Lets say the profit is $15k each. That leaves you 1 million in gross profit, from which you must pay the employees to build those 70 boats, and all overhead. Tight ship
Now, do a small operation and build those 5 boats you mentioned at $500k, and make $100k each giving you a total gross profit of $500k. Sell 10 and you are at the same profit as the guy building the 70 boats at $75k! Also a tight ship, but a lot less stress, warranty risk, and variables.
A smart investor would choose the 5 boat manufacture. Keep in mind also the manufacture that builds the $75k boats relies on the banks to finance their end users, which is not an easy task on a performance boat today. The mfg that makes $500k boats has CASH customers
Do you think Ferrari is upset about the amount of mustangs that Ford sells? No, they just keep building high profit, low volume cars.
I get what you are saying, however, if I was an investor, I'm going after sales and profit. Something like this there would be lots of investors, 5 units @ 500k probably wouldnt be worth them throwing in the pot.
Now 75k, And I'm only guessing here, but that's first year would be crazy, I know my lil 25 outlaw would be gone, and the boat that I could never afford would be in my driveway!
I'm sure there would be thousansands of sales!!
Rick
Last edited by Rwbrew3; 12-22-2012 at 10:22 AM.
12-22-2012, 11:00 AM
#59
Registered
[QUOTE=Rwbrew3;3836115]
I get what you are saying, however, if I was an investor, I'm going after sales and profit. Something like this there would be lots of investors, 5 units @ 500k probably wouldnt be worth them throwing in the pot.
Now 75k, And I'm only guessing here, but that's first year would be crazy, I know my lil 25 outlaw would be gone, and the boat that I could never afford would be in my driveway!
I'm sure there would be thousansands of sales!!
Rick
If you want to replace your 25 ft boat with a new model at $75k I think checkmate is your answer.
http://checkmatepowerboats.net/Check...incor-260.html
I get what you are saying, however, if I was an investor, I'm going after sales and profit. Something like this there would be lots of investors, 5 units @ 500k probably wouldnt be worth them throwing in the pot.
Now 75k, And I'm only guessing here, but that's first year would be crazy, I know my lil 25 outlaw would be gone, and the boat that I could never afford would be in my driveway!
I'm sure there would be thousansands of sales!!
Rick
http://checkmatepowerboats.net/Check...incor-260.html
12-22-2012, 11:31 AM
#60
Gold Member
Gold MemberThread Starter
[QUOTE=4bus;3836144]
If you want to replace your 25 ft boat with a new model at $75k I think checkmate is your answer.
http://checkmatepowerboats.net/Check...incor-260.html
No, I'm saying the brand new boats that's sales for $500k was to drop to 75k I wold be all over it, long with about a million guys...
We can dream!!
Still don't see where all that money goes !!
Rick
If you want to replace your 25 ft boat with a new model at $75k I think checkmate is your answer.
http://checkmatepowerboats.net/Check...incor-260.html
We can dream!!
Still don't see where all that money goes !!
Rick
