My Boat Dealer's
on Easy St....NOT
Special Thanks To:
David H. Gwaltney, Certified Sea Ray Sales Executive with Browning's Marine in Virginia Beach, Virginia for his experienced insight into the business of selling new boats.
You can visit David's Website right here and get a good deal on a new Sea Ray.
Sorry dealer invoice prices on new boats do not exist. Boat manufacturers do not produce the volume of boats like automoble manufacturers produce cars(millions). Most manufacturers may only produce in their entire product line a couple hundred boats a year. MRSP on a boat can be anywhere from 25 to 60% over dealer cost, depending on model and quantity.
What you have to take in account is that the dealer has overhead cost of anywhere on average of 18 to 22% .
If a dealer only sells his product at his cost he makes no profit and will shortly go out of business. You lose because you now have no one to service or provide warranty work for you. Dealers do not get 100% of there hourly labor rate on warranty work and most lose money because trying to figure out what the problem is takes more time than it does to fix it.
Also take in account that many buyers also have trades(preowned boats).
These used boats may not be a desirable in the particular market(ie: an offshore center console fishing boat at a dealer located on a freshwater lake or inboard freshwater ski boat at a dealer that sell saltwater fishing boats)
Also you have to take into account that there isn't a wholesale network with boats such as there is with automobiles.
A dealer takes a boat in trade it is his until he sell it.
If it is a boat that no longer being sold in the market place it may take a long time to sell.
For pricing, the dealer has to look at current market conditions.
Is the season coming to a close.
How many of these boats does he have in stock.
What can he sell if for and still make a fair profit and be able to provide you with a high level of service.
I find that people make their buying decisions based on four criteria.
1. Trust of the saleperson. Is he knowledgable? Answer questions directly vs skitting around and being evasive.
I have sold boats for many years, and with 80% of my yearly sales to repeat customers (some have bought 3 or 4 boats).
2. The Dealership. How long have they been it business.
Do they own the location or do they rent.
Do they have on site service and parts.
Talk to other boaters.
3. The product(boat). How reliable.
Look at Resale values.
Repeat: LOOK AT RESALE. Buy something that someone else will want. I have always said the best guide to looking at a new boat is to look at as many preowned of the brand you are looking at.
All new boats look good on the showroom floor, it's what they look like 3 to 5 years from now that counts.
4. The price. The value of the product.
What are you getting for your dollar.
I've seen it time and again, anytime a customer focuses only on what he paid for it, he generally will be an unhappy boat owner.
He ends up buying the wrong product that doesn't fit his needs. My suggestion is to develop a good relationship with the salesman.
If you do not trust this salesperson ask to speak with the owner or another salesperson.
Talk to other customers that he has sold boats to (ask for references).
Walk the docks (ask other boaters about their service experiences).
Ask for the best price with all the conditions laid out and be prepared to buy.
If you have to think about it you.... are not sold and most likely will not purchase the boat.
I hope this is of some help. Good luck and safe boating...David
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