NC FACTORY VISIT

[Big Po 1]

Duffy is onto something here! If prices do go up, then you can almost get what you paid for your boat a few years down the line. So if the Avy goes up to say $120K five years from now at the rate it is going now, I could very easy sell my boat for $60K and make money! Perfect dream!

I've been saying this for the past 3 months......If you own a V-Drive on my lake, you can just about ask whatever you want for it, and folks will buy it.

 

It's a simple case of supply and demand. As the new boat prices rise to even more rediculous amounts that only rich people can afford.....The used boats will become the more desired since the price will be much less than that of the new boat. Which means you can pretty much bet that if you paid less than your boat is worth, then you will be in the positive, or at least break even on your investment.

Edited September 24, 2010 by Big Po

[enzo101mo 98]

Big PO: You are exactly right your used boat valve will hold and make more affordable to buyers instead of new, thersfore boat builders will run themself a ground and out of the market. This is why a boat builder today needs to think before raisng prices or they will be shut down.

 

I am a General contractor that builds custom homes, The market in housing is dead because the market prices went threw the roof and bankers handing out home loans like it was candy. All I am saying boat companies need to look at there market before raising the price.

[Big Po 1]

You're exactly right! I don't want to see Centurion out of the game, I love my boat, and after owning it only 1.5 months, I can tell it is a quality product. But most manufacturers with quality products eventually get greedy, and raise their prices to where either A.) they run themselves out of business B.) they raise their prices to where only the wealthy can afford their product, which limits their market, and they eventually become a low-production product, which means they feel it necessary to make more money per boat, than more boats per capita.

 

Which, personally...If I were to own Centurion, I would prefer to sell more quality boats for less profit per unit (which would be more, or equal profits to the same as less boats for more profit per unit) and get my name out there and become as household as MasterCraft & Nautique, than I would to sell less boats and make more money per boat.

[Kevin Baugh 78]

in the past the my used boat is worth more because the new ones went way up in price was how things worked. The problem now is all of the dealers going out of business and blowing out there new inventory, and the repo boats. The used market is still screwed up!!!

I can tell you how many low ball offers I have had on my boat!!

[boatdr 1]

no one is getting rich in the boat bussines these days, as the numbers drop it costs even more to produce each boat, plus the 2011 engines all are required to have catalist at a average cost of $3000.00 per engine on ALL BOATS to met emissions specs( not the best time to phase this in) so new boat price will be a shock for a while.

[Colombian Surfer 2]

All of that may be true, however the prices of raw material is going up, therefore raising the prices of boats. All about supply and demand.

 

Enzo101 - If the prices of lumber go up I am sure the cost of your houses will go up too? Am I correct in stating this?

[LakeSurfer 10]

in the past the my used boat is worth more because the new ones went way up in price was how things worked. The problem now is all of the dealers going out of business and blowing out there new inventory, and the repo boats. The used market is still screwed up!!!

I can tell you how many low ball offers I have had on my boat!!

 

 

Exactly. If you pay for a new boat at these prices you will be screwed when you go to sell it. There are just to many repo/left over boats now (because demand is down and prices are so high). Unless you have a lot of money, it makes no sense to order a boat. You are MUCH better off buying a left over or used boat at the end of the season because the prices are so much less. At these prices, you can count on your boat depreciating atleast $20K YR1, $15k YR 2, $10K YR3 and $5K YR 4-5. So after 5 years, your $85K boat will go for about $30K.

[Kevin Baugh 78]

none of that would stop me from ordering a boat except not being able to sell it for a reasonable price

[rawinnin 73]

You're exactly right! I don't want to see Centurion out of the game, I love my boat, and after owning it only 1.5 months, I can tell it is a quality product. But most manufacturers with quality products eventually get greedy, and raise their prices to where either A.) they run themselves out of business B.) they raise their prices to where only the wealthy can afford their product, which limits their market, and they eventually become a low-production product, which means they feel it necessary to make more money per boat, than more boats per capita.

 

Which, personally...If I were to own Centurion, I would prefer to sell more quality boats for less profit per unit (which would be more, or equal profits to the same as less boats for more profit per unit) and get my name out there and become as household as MasterCraft & Nautique, than I would to sell less boats and make more money per boat.

 

Never thought I would say this but I agree with PO 100%.

 

It is all about getting the numbers. The more people you have buy your product the better off your business will be at the end of the year. In the end if you have 1000 customers that buy your product vs 100 your profit should be larger, even if this means you lower your price and make less per boat. I do understand that companies have material prices to contend with but not at the rate of raising the price of a boat 8 to 10% per year.

[Kevin Baugh 78]

Ahh the old I lose money on every sale but I make it up in volume routine.

[enzo101mo 98]

Colombain: Your right; when things are selling the products & materials go up in price but when there not prices come down. For example 2000 I was paying $ 2.45 for 2x4 stud, at the peck of the housing market in 2006 I was paying $ 3.96 for a 2x4 stud and today between 2.25 to 2.45 for a stud.

 

I just got to my lake house a couple hours and stopped by the only boat dealer in my area left (sells Bayliner, Four Winns, Tige and now got the dealership for Malibu) They Just became a dealer for Malibu and I check out the 2011 Malibu Wakesetter VLX and they'er asking $67,995.00 for it. I should have checked out the other boats but didn't want them to think I was looking I only went in for a patch for my tube. Asked a sale man about prices and he said; there going up because of that stupid catalic converter.

 

Boat companies made pretty go profit in the past 10 years and I feel Centurion needs to invest there monies into more advetizing. People looking and are new to boating mostly see Malibu,nati. Mastercraft, Tige and Supra. Have you all looked at any boating Mag lately? Because that's all you see are them and Malibu is heavy into ads.

[rawinnin 73]

Ahh the old I lose money on every sale but I make it up in volume routine.

 

No not I lose money on every sale, I make less money on every sale but I sell 10 times more than the others.

Any good salesman will have the same attitude, the more you people you sell to the more money you make vs the sales guy that tries to make more per sale!

[Kevin Baugh 78]

'No not I lose money on every sale'

 

thats just an old joke

 

There is a argumnet for both sides of the volume issue

[rawinnin 73]

There is a argumnet for both sides of the volume issue

 

I do agree with you there! Some companies seem to forget the reason they try the sell more program, and they compromise on the quality of their product.

[duramat 462]

Maybe next time I'll inquire about a "Do it yourself" Enzo kit. Save me and them some coin, eh? LOL

[boatdr 1]

Problem is that there is no volume for anyone, and there are deals out there.You can find almost any boat you want now somewhere below dealer cost

[Kevin Baugh 78]

yep dealers are going out every where I just found out our local Nautique/Supra/Moomba dealer is closing up shop the are blowing out the Nautiques and Supras they have left... the boat business SUCKS right now

[LakeSurfer 10]

yep dealers are going out every where I just found out our local Nautique/Supra/Moomba dealer is closing up shop the are blowing out the Nautiques and Supras they have left... the boat business SUCKS right now

 

This is why these new boat prices dont make sense. Unless you just have deep pockets and dont have to worry about resale value, it will be hard to buy anything but a used/left over boat.

 

Reality is that very few people can actually afford a $85K boat and the boat industry is finding this out. The only reason they could sell these boats historically is because anybody with a pulse could buy one with 5% down and get a 15 year loan. Now you actually have to put down 20% and can only finance them for max 7 years. The other compounding issue is that people are actually trying to save money, so boats really are turning into a fringe benefit.

[Kevin Baugh 78]

I agree that prices are very high but the 80k+ msrp prices that people keep posting are not in reallity what the boats will sell for. My dealer would start the conversation on a basic 230+ for under 70k

[LakeSurfer 10]

I agree that prices are very high but the 80k+ msrp prices that people keep posting are not in reallity what the boats will sell for. My dealer would start the conversation on a basic 230+ for under 70k

 

I always take $10K off of most advertised prices, so you are right about what an actual deal would get done at. But my real point is that even $70K is a lot of money for 99% of the people.