Posts: 32880
Location: Rhinelander, Wisconsin | 'Rake' in profits? 8% to 15% isn't even close to that. When it's good out there, it is volume that allows dealers to do well, not huge margins. As I explained, the margins on fishing boats are not very good. Dealers are not 'taking a beating' because the asking price includes unreasonable profit margins, they are taking a beating because very few folks are buying boats. What are they to do...take the tiny margin they DO make on a sale and give it to you; making nothing? No one there very soon to service your boat. Ask the folks who bought boats from the hundreds of dealers who have gone out of business in the last couple years in the US.
The recession didn't drop dealer margins, they HAVE to make the described margins or they are no loner in business. Pricing has held the line and even dropped in some cases as factories take a hit. Layoffs have been huge, consolidation is now a common theme in brands...etc.
By the way, 'profit' isn't a dirty word. Without it, the economy stalls and businesses go out, leaving unemployed in the wake of it all.
One thing though..ask the dealer for a cash price and let them know you do not have a trade in. Best to buy cash and sell your current boat yourself. Dealers frequently have to take 20% of their COST and invest it into a used boat PLUS their margin, and if that rig doesn't sell quickly...another contributing factor that put dealers under recently. So most will place the sticker at trade in price, and give the customer a lower price for a cash deal. |
