New boat... what's the % mark up?

FishnhuntOR · Feb 2, 2019

I've been looking at boats off and on for years. Sometime it seems like the used market isn't really all that great vs new. I've seen some good deals, but those are usually gone in a hurry.
My Q. what is the mark up on a new aluminum boat. Let's say alumaweld, north west, weldcraft, boulton, typical NW boats. Walk through windshield. 18-20'. OS bracket. soft top. are they marked up 10%, 15%, 20% or more?
Thanks.

Stomper · Feb 2, 2019

Any business needs to make a minimum of 30% gross profit to pay their taxes, payroll, and overhead in order to make a moderate profit to keep the lights on.... all those "free" social programs and entitlements that everyone thinks are a great idea don't pay for themselves.

FishnhuntOR · Feb 2, 2019

Thanks. SO, what's the percentage?
RV trailers are marked up about 20%.. Bought my Rv at the show. MSRP is 45, got it for 32.
what are boats?

Stomper · Feb 2, 2019

Depending on market demand for any given item.... you can expect 20%-50% markup which also leaves room for "adjustment" (up or down) because of competition in a given market, however the more expensive an item is doesn't always equate to a "linear" percentage of markup.

If something cost $1M (net) to produce/acquire, it doesn't necessarily mean you'll pay $1.2-$1.5M for it. Market demand, upfront expenditures, overhead (ie taxes) and competition will generally drive the final figure.

Tarawa86 · Feb 2, 2019

FishnhuntOR said:
I've been looking at boats off and on for years. Sometime it seems like the used market isn't really all that great vs new. I've seen some good deals, but those are usually gone in a hurry.
My Q. what is the mark up on a new aluminum boat. Let's say alumaweld, north west, weldcraft, boulton, typical NW boats. Walk through windshield. 18-20'. OS bracket. soft top. are they marked up 10%, 15%, 20% or more?
Thanks.

For some reason, Oregon used boat prices seem unreasonable high. I waited it out and pounced on a good used trade-in I found at Cascade Marine, but I was sorely tempted to go out of state. Sometimes I think it would be worth it to buy somewhere like Florida and have it shipped out.

This doesn't answer your mark-up question but I thought I'd throw it out there.

FishnhuntOR · Feb 2, 2019

Thanks. I don't mind driving 12 hours if I have to. But I don't like the idea of buying un seen, used aluminum boats that sees lots of salt.

osprey · Feb 3, 2019

New boat cost is often dictated by supply and demand but I would say in the NW, markup is closer to 50% than 20% these days. Even though aluminum boats tend to maintain their value better than glass I would recommend a well taken care of used model as the occasional deal can be found. Get your finances in order and do all the research ahead of time. You need be able to react fast because as you said yourself the good ones go fast. You must be patient and wait for the right deal though. Good luck.

Caveman Jim · Feb 7, 2019

I've owned 4 boats in 30 years & never had a brand new one since I couldn't afford them. They are great if you have limited ability to store & maintain.
Boat value in the PNW is what someone is willing to pay.

I was in the market for an 18-20' fishing boat, mostly Kokanee, steelhead & Coho. I searched for two months everywhere & being frusterated then I placed a WTB thread here & not long after a member contacted me.... I drove to Southerlin Oregon the next day (300 mile round trip) & bought it from his dad paying asking price of $12,500 cash. Easy peasy.

Moral to the story is to not buy the first or third thing you see and when you find what your looking for don't Dally.

Good luck.

FishnhuntOR · Feb 7, 2019

The used market is stupid. As is new.
Every year new bots are thousands of $ more. Not hundreds. But hey, people pay it .
5 year old boats only little cheaper than new?
I remember what there boats were 5 or 6 years ago, And almost looks like people are trying to brake even.
I understand supply and demand, but it's a little crazy.

KKG · Feb 7, 2019

As Stomped said any Retailer needs to make a 30+% markup or they are going out of business. That one of the reasons so many LBS businesses are going down the tube and it's why so many Indoor Ranges are going the way of the Dodo Bird. Customers come in you and play with the new Toys and then go out and but said gun either places like here or on the Internet from somebody here(I know that doesn't apply to everybody but does apply to some) who all they have to do is have a big warehouse someplace.

Tarawa86 · Feb 7, 2019

FishnhuntOR said:
Every year new boats are thousands of $ more. Not hundreds. But hey, people pay it .

I find it crazy that people are willing to finance boats for 10-15 years. The amount of interest that entails is just insane for something that isn't a house.

No_Regerts · Feb 7, 2019

Another thing to think about is if you really need a welded hull. I bought an Alumaweld Stryker 20 that was just boat/motor/trailer at $30,000 new (haggled down from $35k). After tax and equipment like downriggers, kicker, sonar, I was at 45k.

I sold it a few years later and bought a fully loaded 18 foot Lund for 27k. It fits my style of fishing better. Figured as popular as they are on the great lakes, they could handle anything around here.

Tarawa86 · Feb 7, 2019

osprey said:
Even though aluminum boats tend to maintain their value better than glass I would recommend a well taken care of used model as the occasional deal can be found.

I was thinking of moving over to a glass boat. With the way fishing is declining in the Northwest I want something that can be easily used for both fishing and recreation (tubing/skiing, boat camping, etc)

No_Regerts · Feb 7, 2019

Tarawa86 said:
I was thinking of moving over to a glass boat. With the way fishing is declining in the Northwest I want something that can be easily used for both fishing and recreation (tubing/skiing, boat camping, etc)

I was tired of having a 45k lawn ornament when the salmon and sturgeon seasons got chopped. Went back to fishing for bass and walleyes and decreased my payment by half. I fish a lot more now.

FishnhuntOR · Feb 7, 2019

I don't expect the dealer ship to come down 30%. I get it ...we all need to make something. But If i want to know that I can at least have 10% off. After talking to some dealers, they don't really care to come down.
I can buy the boat I want for cash, but I don't want to blow a big chunk out of savings so I rather finance 20k and have payments for few years and still have some cushion. unfortunatelly 20k doesn't buy what I want.
And just like No regrets, I don't want to have 45k boat, that at best I will use 2 weekends out of a month.

CoastRange57 · Feb 7, 2019

Like others have said, minimum markup over cost is going to be at least 30% and closer to 40% seems reasonable. 25 years ago I sold new commercial turf equipment and excavation equipment. We tried to hold 35% gross margin, and never under 27%. Of course sometimes to get the deal the sales manager would sell it at 22% and f me on my commission.

In today's market, I would think not a dime less than 35% gross margin. In my sports turf and golf construction business 10 years ago, we had our costs nailed down hard and solid and when we bid a job we had a complete hard all in cost of the job, and then added on net profit to that. Never less than 25% net net. 35% was better.

B5Ben · Feb 7, 2019

I think timing is everything. I always buy big ticket items "off season". Bought my last motorcycle in October last year and it was a smokin deal. I also agree that OR prices can be crazy for the aluminum hull boats. I would look in ID, MT, NV, etc. they really are well suited to the NW and command a premium there. Other places they are a bit out of their element and might be able to find a late model but lesser used specimen at a discount.