Posts: 32954
Location: Rhinelander, Wisconsin | The margins in the marine industry are no better or worse than those in automotive, big picture. A considerable cost to the builder is advertising and promotions, and the boats with the biggest price tag will be the ones with the largest ad/promo budgets. Literally everything they do that costs anything at all is passed along in increased pricing.
It's that activity that creates the demand and perceived value, coupled with customer loyalty. Is any 21' boat worth nearly $100,000 rigged up with all the new toys?
It is if people will pay that much. If they don't that model will go bye bye and a less fancy ride will appear in it's place, or at the least be offered as a second choice. The cost is not arbitrary. A great example in current news is the Google phone. Over $800 wasn't selling, so they released a very similar functioning phone made with lower cost materials for $399.
|
