Drop the Sabre and sell the Pantera Classic w/150 sub 30K and you will shred the competition in that size class.
I expect a dealer to make 20-25% to offer long term success.
My feelings are from 15-20% should be enough to offer e level of service I expect.
My dealership thoughts are 12-16% depending on how.
If I made 10-13% I would think I could manage the business well.
Expectations for my business would be from 8-12%
I would think single digits between 7-10% would be sufficient to operate a boat dealership.
Drop the Sabre and sell the Pantera Classic w/150 sub 30K and you will shred the competition in that size class.
Well golly gee-whiz I "feel" everything is too expensive... Dan
Being a business owner they would need to make 35-45% gross profit on every item to keep the lights on and pay the staff a GOOD wage.Every item has to be profitable or your profit margins drop quickly.Now if we cut the employees and building out just do a internet sales than you could survive on that 10 -15 % gross.If Iam not making 35-40% on every thing we do it was a looser.If you add up the cost you will be shocked at what it take to run a business.Rent/loan payment,floor plan,electric,heat/gas,phone,internet,Payroll taxes,and payroll, property tax ,upkeep on everything.As the old saying goes it's always greener on the other side.
I bought my 2nd new bass boat in Kingsport, Tn. 1977 Skeeter Wrangler with 175hp Evinrude and custom trailer for $6100.00 My present Sterling 2012 boat with 250 hp and trailer cost $80,000
If you walk into a dealer, make an offer on a Boat, Car or Truck and they don't take it. You leave your number, if they haven't called in a few days, there isn't enough profit.
I have done this many times, Told them what I would pay and ended up leaving. After a month of phone calls from them, They would finally call back and sell it to me at my price. This was on cars and trucks.
On a boat, if you don't get a call back, your no where close. If they call back and give a price, up yours a little, and meet where you meet.
They aren't keeping the doors open with boat sells, its service and parts.
Before you have them upgrade units and accessory, price them on the internet and see what you can buy them for on there, and see what they are charging you for the same item.
I would buy bare bones stock and add what I wanted and wire it myself. But I understand if you are financing it, you want it all included, thus you are probably paying more!!!!
Problem is with vehicle is folks going in not knowing how much they are paying for the item, but how much the can pay each month!!!
JMHO---Boats and nice jewelry have about the same profit margin. Right up there with furniture. And ,unlike mattresses they are never on sale !
My experiences with boat dealers has not been good over all.
I remember when Clintons luxury tax put 2/3rd of the boat dealers into bankruptcy. They need to make enough to hold them through the rough time, which are cyclical. I don't think we can put a number on that. If they charge too much, they won't get business. Good and reasonable service goes a long ways to keep regular customers, which are the life blood through lean economic times.
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Last edited by Snickers89; 05-30-2017 at 11:49 AM.
I am good with 25%. As long as they provide the level of service that meets MY expectations. So far BASS CAT and my dealer have exceeded them!
I'd expect a marina or repair/sales business to make less than 10% mark up on a high end boat such as Bass Cat.
what percentage should manufacturers make?
THERE is the magic question. I'm sure they're just barely making enough to keep the lights on, right?Originally Posted by HeadHunter9
This ^^^^^
I have worked from a P&L all my life and if you break it down to it's simplest form selling a product with 25% profit you get the following: (quick math)
Sell Widget "A" for $1.00 gross sale
Subtract invoice (.75) Balance .25
Inventory carrying cost (.06) Balance .19
Overhead (.10) Balance .09
Marketing (.04)
Net .05
Yes that's 1 nickel net from a $1.00 sale.
.5 cents Iam sitting at home !
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