Who pays for manufacturer advertised discounts?

RatFish

Chief Petty Officer
Joined
Jul 29, 2003
Messages
647
Four Winns lists their "Winter Promotion Savings" on their web site. The web page states that "Offer valid only at participating Four Winns professional marine retailers throughout Canada and the United States." That line did not make it clear to me who was actually paying for the discount, the manufacturer or the dealer. <br /><br />I called Four Winns customer service and was transferred to their sales department. I asked the "nice" woman (yea right!) whether the manufacturer or dealer paid for the discount savings. At first she said, that the manufacturer and dealer both participate in the promotion. I asked what portion of the discount was paid by the manufacturer and she immediately told me that it was none of my business and retail customers are not entitled to that information. She was pi$$ed off! She said, I had a lot of nerve to ask for proprietary company information. <br /><br />What a pompous a-hole!!! Anyway, does anybody out there know who pays for these discounts (all manufacturers inluding Four Winns); Manufacturer, dealer or both? This is great information to have when going into negotiations with a dealer.
 

cobra 3.0

Lieutenant Commander
Joined
Jul 31, 2003
Messages
1,797
Re: Who pays for manufacturer advertised discounts?

It's a secret! :p :D
 

RatFish

Chief Petty Officer
Joined
Jul 29, 2003
Messages
647
Re: Who pays for manufacturer advertised discounts?

That's it? <br /><br />I know there are many people in the boating industry that frequent these forums. Do boat manufacturers have so much power that people are afraid to comment? What gives?
 

cobra 3.0

Lieutenant Commander
Joined
Jul 31, 2003
Messages
1,797
Re: Who pays for manufacturer advertised discounts?

If they gave you that info, they would be letting you know what the dealer markup or profit is. <br /><br />For instance, $ 1000 off is comprised of the actual manufacturer's discount plus the profit that the dealer would normally have charged for that amount of money. <br /><br />(It may also just be a pile of bull to get you to buy now.) Maybe your negociated price one way or another would be the same. In other words, always compare prices to make sure you are paying a fair net price for what you are buying.
 

RatFish

Chief Petty Officer
Joined
Jul 29, 2003
Messages
647
Re: Who pays for manufacturer advertised discounts?

Thanks Cobra 3.0,<br /><br />You bring up a very good point. I completely understand what you are saying. I'll bet that's the information the Four Winns representative thought I was trying to figure out... dealer markup. Your post may also explain why the sales representative said both the manufacturer and dealer participate. The manufacturer takes a loss of profit on the boat and the dealer takes a loss of profit on the marked down boat.<br /><br />What I really meant was if there is $1000 rebate on a boat, who is taking the $1000 loss. The manufacturer, dealer or both. I was not referring to lost dealer profit. For example. If I go buy a car with a $1000 rebate, I know that the manufacturer is the one discounting the car not the dealer. I would use this knowledge in negotiations for the car and not let the dealer lead me to believe that they are the ones dropping the price by $1000. This is a common ploy in the auto industry.
 

crazy charlie

Vice Admiral
Joined
May 22, 2003
Messages
5,383
Re: Who pays for manufacturer advertised discounts?

If the rebate was listed on a manufactureres add or website,then it is a manu rebate.If the ad were for a particular dealer then its anyones guess.Dealer participation is usually part of any manu rebate.So your example of the car manufacturer is incorrect.Havent you ever listened to an advertisment on the radio or tv or read an ad in the paper.Its hard not to hear the part "dealer participation may effect final price"Charlie
 

RatFish

Chief Petty Officer
Joined
Jul 29, 2003
Messages
647
Re: Who pays for manufacturer advertised discounts?

Charlie, I'm not sure I understand what you are trying to say? Is this it... Even though the manufacturer is advertising a nationwide rebate, the "participating" dealer must bear a portion of the cost of that rebate? <br /><br />And yes, I have heard "dealer participation may effect final price" but IMHO that is an open ended statement. It could be interpreted a couple of different ways.
 

Solittle

Fleet Admiral
Joined
Apr 28, 2002
Messages
7,518
Re: Who pays for manufacturer advertised discounts?

I think Cobra had it nailed when he wrote:<br /><br />"(It may also just be a pile of bull to get you to buy now.) Maybe your negociated price one way or another would be the same. In other words, always compare prices to make sure you are paying a fair net price for what you are buying."<br /><br />Dealers & manufacturers pull this promotion fluff to get you in the door. For cars this is based on MSRP and if boats are marketed like cars the MSRP is meaningless.
 

RatFish

Chief Petty Officer
Joined
Jul 29, 2003
Messages
647
Re: Who pays for manufacturer advertised discounts?

SoLittle,<br /><br />These days not many people pay MSRP for cars or boats but there are still a few that do pay MSRP. <br /><br />It surprises me that more people don't try to get a better deal on a new boat. People walk into a boat dealer get $1000 off the price of a $20000 boat and think they got a great deal! I don't think $1000 off the $20000 MSRP is a good deal considering boats are on average marked up 30%.
 

imported_Mike_M2

Petty Officer 2nd Class
Joined
Jan 17, 2004
Messages
174
Re: Who pays for manufacturer advertised discounts?

There's a guy on another board, he saw a great deal on a Cruisers at a boatshow. Problem was, they wanted over $15,000 for destination and dealer prep! Watch the ENTIRE bottom line...
 

crazy charlie

Vice Admiral
Joined
May 22, 2003
Messages
5,383
Re: Who pays for manufacturer advertised discounts?

What dealer participation means is that the dealer must contribute to the rebate.the usual split is 25% dealer and 75% manuf.Not all rebates have dealer participation but many do_Other dealer participation is when there is a Manufacturer advertisment for the rebate.The dealers pay for the manufacturers advertising cost by having their cost per unit increased by the manufacturer during that program period.The dealer association agrees to this when the manufacturer calls a meeting and wants to have a rebate program,so all dealers participate the same levels.Charlie
 

RatFish

Chief Petty Officer
Joined
Jul 29, 2003
Messages
647
Re: Who pays for manufacturer advertised discounts?

Thanks charlie, <br /><br />That was the type of answer I was looking for. My initial question should have been clearer.
 
Top