Re: Discount Off MSRP For New Boat
I'm the guy the banks sent when dealers failed to meet their obligations--often to close or liquidate the business. I also worked closely with problem businesses to teach them how to analyze their businesses, read financial statements and make the changes required to be successful.
Auto dealers and boat dealers are apples and onions. Auto dealers have 12 month per year businesses, where boat dealers' business is done essentially from March to August--6 months. Both dealers have 12 month expenses: floorplan expenses, employee expenses, occupancy expense, company trucks, salaries, social security/FICA taxes, etc. Auto dealers live by high volume and manufacturers' rebates. Both auto and marine dealerships don't have forever to sell their inventories--they mature and the dealer must pay part of or the full balance on the aging inventory.
Both an auto dealer and a boat dealer must run a profitable business, or they'll be out of business next year. The owners deserve a salary for their time, and a separate profit that's a return on their investment. Working capital to run one of these businesses would scare you--just to pay their day to day expenses.
If a car dealership is not successful, you can go down the street to a different brand, or drive 10 miles to the next franchise. Boat dealers are increasingly few and far between. I don't want to deal with a dealer that's not going to be there to do warranty work and support me.
Simply put: Boat dealers have relatively low sales volumes, and thus cannot sell boats @ $100 over cost and stay in business.
When you decide what kind of boat you would like, don't just narrow it down to one manufacturer and model. Boats are rather generic, and narrow your search down to 3-4 brands and comparable models. Many boat franchise dealers just have one or two dealers in a state, or even in a region. If you'll widen your horizon, there's something out there to suit your needs.
We now have the best tools ever to get the best deals on boats--the internet. Every business is driven by competition, and it's not hard to get into EBaymotors.com, Boattrader.com, Craigslist.com, IBoats.com and other websites to figure out who a dominant dealer is in any area. Also, sometimes it pays a lot to drive a little. Another place to buy boats is at the Boat and RV shows usually in the winter--where again dealers get competitive with each other.
Good luck in your search. Remember: MSRP is a joke. Educate yourself to the retail market, and you'll be in the driving seat to make a deal that's right for you. There are great values out there in a retail market that sucks as badly as it does right.