Percentage of price increase in new boats?

[Matt Garcia]

I was thinking, what is the general price increase of new boats each year? I always assumed it was around a 10% increase each year. Is that close? Any thoughts on the subject.

[ChrisBarnes05-12-84]

I wouldn't think it's that much. If you know what a z1 cost last year I could help you out on that

[WakerideN]

my dealer says around 5-6% go figure?

[Matt Garcia]

10% does seem high. I wonder if the manufacture of "brand x" is 2-3% each year and then the dealer adds another 2-3%.

[jbort]

I think 4-6% seems ok as rough guideline but very dependent each yr on economic climate, competing boats and pricepoints, material costs, labor costs balanced on whether product refresh is major or minor as tied to R&D outlays. Lots of factors there and each boat company operates in different culture too. Also this year a big bugaboo is cost impact of new federal health care program (trying to stay non-political). I would not be surprised to see 6-8% or higher depending.

[trent]

Any of you used this site: http://www.seedealercost.com/
Not really sure how/where they get their data but I know when I was looking last year it appeared to be accurate. Of course the 2012 prices are no longer displayed but they do have 2013

oops I lied 2012 are under archive

[talltigeguy]

It varies from year to year. But 4-9% seems to be the range depending on the climate. I think there is a significant difference from dealer to dealer as well. But that quickly leads us into the quagmire discussion of buying out of territory, which has been beaten to death.

[ChrisBarnes05-12-84]

I just checked that dealer cost site. and if that includes the trailer its about right. If not its wrong

[tnvolgrad]

Using the law of 72 - 10% increase would mean boat prices would double every 7.2 years. 6% would be every 12 years. With that being said, I remember not too long ago boats were $40K and now they are pushing $100K so pricing has been closer to 10% growth. Clearly this is not a sustainable path, but that's my take.


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[boardman74]

I totally agree. 10% isn't sustainable. I really think at 6 digit tow boat costs the market has maxed itself out(or close). Nearly every manufacturer now has its flag ship priced over 100K! Many people have been priced out of the market and more will be if the prices continue to rise. As sales drop off Manufacturers will have to do something to bring people back. I just can't believe that there are that many G23/G25/Xstars going out the door at $125K plus.

Wonder how close that dealer cost site is? Looks like invoice is right at 75% of MSRP. I know with cars "published invoice"(what you find on the internet) isn't always the "factory invoice" the dealer pays.

[Stingreye]

I think some of this might also be volume / credit related. Volume has to be down pretty good from the 2000-2006 years. I have to believe that there are alot less boats sold. Credit I would assume is also tighter (for those financing). I doubt many are pulling equity out of their homes for a boat purchase like they were during the real estate boom.

I know the average age of a car in the road has gone up dramatically since 2006-2007. I have to believe the same is true for boats as people react to the recession and lack of confidence in the economy. They worry about losing income or job (after seeing neighbors lose jobs) and they wait longer to buy a new boat than they would otherwise.

If you factor in fixed costs for the plants and gross margins needing to cover overheads, if they are selling allot less boats they need to make more per boat to survive. I think all the manufactures cut back supply of boats and raised prices to survive.

[talltigeguy]

It is sort of unrelated, but I was at Lake Powell last week. I saw a load of G23's. I bet most were from the Salt Lake dealer. I can't beleive that anyone buys them either, but they seem to be selling.

I didn't see any Z3's. That is not very scientific at all, but someone is buying new boats and I bet the numbers have rebounded nicely. Quite a few newer Malibus as well. One RZ4 that was likely a 2010. I do know that the MC dealer in Salt Lake sold all of the boats that MC would give them and wish they could have had more. It sucks as a business to not have enough product to sell.

Does anyone have 2012 sales numbers handy and other years to compare year by year?

[evil0ne]

The increase in new boat prices has helped keep the used market strong. When I told my girlfriends dad that I would be able to sell an eight year old boat that didn't have a bathroom or a sleeper for over $30,000 he couldn't believe it. Has the sterndrive market kept the same pace?

[boardman74]

Stern drives are not nearly as expensive as tow boats. But they are rising in price also. Used stuff is pretty stable. I lloked into it some as my father is getting ready to sell his 1990 18 foot Four Winns. That boat with a 5.7 V-8 is only worth about $4500 with the trailer in very good shape. Where say a 1990 MC prostar 190(19 foot entry level tow boat) is worth probably close to 10K. Towboat prices start higher and for the most part stay higher.

[What she said]

I was told about 6-7%