The profit metric used in this video is gross margin, and since companies have operating expenses, taxes, and interest on top of this figure, it's easy to see why the gross margin has to be what it is. 50% gross margin on a few boats a month only pays for a handful of staff on top of the factory workers, without any ultimate profit for the owners to be had (free cash flow). History is littered with the bones of bankrupt small boat companies.
@@alecmartin4779 I recently watched a video on why to be critical of a to good to be true low asking prices of some used boats. These are as I extrapolated from this are boats from small manufacturers. They don't have the deep pockets like the big manufacturers when it comes to correcting major design problems. According to the gentleman who made the video he used to own a large brokerage for new boats SVs mostly. He said that wealthy people who have owned several over the years don't want a low numbered hull due to design problems that will inevitably be revealed. So yes Overhead such as loans for building a factory or rental of needed facilities, and all other expenses incl designing the craft, engineering the molds, parts, materials and equipment for them and the dearth of qualified buyers. These are considered *Luxury Items* after all.
That's a well thought out break down you came up with. I was involved in a boat building business in the late 1980's / early 1990's. I provided engineering prints / plans, design specs, and production methodizing to build deep V offshore USCG certified vessels for carrying passengers for hire. Basically big center consoles with custom seating arrangements. It really is surprising how all the "little stuff" adds up quickly when building a quality boat. Things you don't think about like rub rails, stainless cleats, 300 series stainless hardware, aluminum fuel tanks (ours had to be CG passenger vessels made with 50 series aluminum and certified to hold 11 ft. pounds of liquid pressure with baffles no more than 29" apart, .... etc.), nav lights, and the list goes on and on. Best bet is to find a old boat, built by a name builder, with a design you like, that is well maintained, preferably from somewhere up North, where it's stored in a barn 3/4 of the year, and repower it if necessary. I started looking and ended up finding a lot of them. Ended up finding a really nice 1988 30' SCARAB SPORT center console with a Pipewelders buggy top with radar arch. It came with an aluminum "I" beam , tri-axle trailer. The two Yamaha , two stroke 200 hp counter rotating outboards have run well for a few years. Decks, transom, and stringers are solid . Huge live well under the deck ahead of the console. I bought the whole thing boat, engines, trailer, and gear for $10,000.00. Later I found a pair of virtually brand new Yamaha 250 hp late model fuel injected , two stroke , counter rotating engines that the owner wanted off his boat so he could repower with twin 350 Yamaha four strokes. Got both virtually new 250's, with all the rigging, for $5,500.00. Just have to find the time to swap on my new power. Already have a buyer for the two 200's. Sorry for the long comment, but I got on a roll. Just wanted to share another purchase option that worked out for me with a little searching, and leg work. Good video.
I thought the same for a while until I realized that in order to find a good one I really should have some experience as a boat owner, which ... I have none. What seems an easy maintenance job may turn into a nightmare, both time and moneywise, if experience is very little. So I decided to buy a new one, but I waited until the end of season, end of september to be more precise, and I've gotten a nice discount, dealers must clear their inventory, don`t they? Now, what I had to do was to trim down a little my expectations: instead of 20' I'd go with 17", instead of 150 HP I choose 90HP (still plenty of power) and so on. Yet, the boat is new, outfitted with everything: GPS, echosounder, VHF and whatnot, trailer, etc. and, still, I can comfortably afford to pay it. So, to make it short, if the dealer sees you're there to buy it, he may drop the price to make it like a win-win for everybody. My opinion.
@@calin7017 The reason I bought my boat is it's Aluminum I NEVER would have bought a fiberglass boat so old. I might fiberglass a rust hole in a car fender.But no way on a boat
@@alabamasmokeywilson6818 Sorry Bud.... I wouldn't touch an aluminum boat unless it was always operated on fresh water. You also have to go over an alum boat's electrical system really well because of the stray current issue that causes corrosion.
@@JoeKubinec My boat came from an estate sale the old gent passed away. It was registered in Wisconsin. I'm 55 and not in great shape. I figure it will outlast me😆
A long list of items have been left out but for me the biggest miss estimation is labor cost & cost of doing business. Actual labor cost is 3 times what the employees make. Payroll tax, Worker's Comp, etc.. That being said, I totally agree. New boats are expensive.
Have you looked into Glasstream boats? We just purchased a Glasstream 240ccx with a 200hp Suzuki four stroke!!! Single step hull, $62,500out the door!!! Great boat so far!! We got it in July and have about 40 to 50 hours on it!! Love it!!! We have been out 20 miles on Gulf in 3 to 5 foot seas. Also we go out 6 to 10 miles in 6 to 8 footers!! It handles great!!! Yes, with a 24 foot boat!! We have to go slow with the bow up!! After learning the boat, it really does well in rough water!!!
I would think that $15 an hour is probably low today. These people are skilled Craftsmen. Also alot of these small sport fishing boats are sold through dealerships, who have to make a profit too. This is a very interesting subject and I really enjoyed the video. Good work
I work in this industry and it’s common for most of the workers to be immigrants who make less than 10 an hour. I’m on the custom paint side and I’m not in a manufacture so my pay differs from that but most people who lay the boats up don’t make a lot.
Well done. Most people who don't own businesses have NO idea how much the fixed costs are for a business....salaries, taxes, real estate costs, heat, light and electricity etc. Plus add the hand built factor of most boats and it's not surprising how much they cost at the full retail end of it.
Hey my friend, I don’t know where you getting your numbers at but you were way off on the cost of the motor you’re way off on the labor and you’re unbelievably off on the electronics! I’ve seen that same boat was $70,000 with electronics on it. I’ve seen people order $60,000 worth of extras on a boat. I live in northern Michigan by the way a little town called Manistee. You might’ve heard of it before it’s for the century boat company was based for the majority of its life. It actually started in Wisconsin and then moved to Michigan and then eventually moved to Florida where they took a nose dive. That said I appreciate your video but your numbers are way off on several options. Just had to throw that out there. And I wasn’t trying to slaughter you in the comments just letting you know that your numbers were where the hell off there is far less margin far less margin between the cost of building that boat and the cost of payroll and taxes and all that shit goes in as an owner of the company versus what the company profits off each boat you’ll find is greatly reduced from your numbers. Just saying
Boating, target shooting, camping, hunting, fishing, flying...the generations coming up just don’t have the same interests as the greatest generation, some boomers, and some Gen X. The outdoor sports are declining at a rapid rate.😥
@@BackyardBeeKeepingNuevo I disagree. Due to things like youtube these are increasing. Shooting, try to buy ammo and look up how many new gun owners now. Better yet hit the gun range on weekend without appt. Boating as well. Boaters with family. Forward seating now a big deal. More kids out growing up boating.
If money were no object, a 40 foot trawler yacht with small twin diesels. I'd spend my summers cruising the fabulous Trent/Severn waterway in Ontario, Canada. You can travel hundreds of miles through lakes, rivers and locks.
Having worked in the boating industry Briefly years ago, your estimates are close.. Having said that they’re making boats fast and turning out much more then a few a month (depending on manufacturer) They’ve jumped in price because of the Pandemic-Shutdown, low inventory.. Are they overpriced? YES!!!!
Unlike Automotive sales, boat sales sucks, there isn’t a lot of room to haggle. Most manufacturers sell a national no hassle price. Dealers make 20-30% of sales. I too have been in the market for a boat and it’s kinda sad and depressing how dealerships won’t work to make a sale. “ if you want it, buy it, they can budge only if manufacturers cut them slack”.
Yep... concur. All semi-skilled and skilled labor is in demand. The other aspect is that the commentator only identified direct (hourly) labor cost. There's taxes and benefits costs that can add 25% easy to each employees hourly wages.
You forgot the partner who doesn't do anything. The tax man. state, property and federal taxes. Along with insurance on the building, workman comp and liability. also shipping the product and warranty work.
My late brother had a 34 foot cruiser with twin stern drives. He got rid of it within three years. Why? Cost of gas, (marinas ALWAYS charge a lot more for fuel), insurance, covered slip, having it put in at springtime and taken out in the fall. He was warned before he bought it but he didn't listen.
What a great video! Clear presentation of all the physical components and processes involved in building a boat. And yes, lack of automation and hands on manual fabrication is a primary reason why new boats are so expensive 👍 and don't forget all the other costs of doing business.
If you work for a company and make $15 an hour, the company is paying WAY more than that for you to be there. They pay for insurance and your benefits and more. You can double what you’re getting paid and that’s what the company is actually paying.
some fiberglass boats are getting picked up and restored. the old makos are hot right now. if i were in the market for an inshor/offshore boat id be looking for a 70s era one.
great video ! i was looking to change to a new boat but the price was so high so i re powered it i think the pay roll you estimated is way off , more then one person work on the boat and some of the expert that are working on it are a lot more then 15$ , im sure they have other overhead we dont think about ... it became way to expensive either way
Your prices are just about right I bought same boat 26ft 2 years old new for 72k cash most dealer sit on new boats that they don’t sell sometimes for a year or 2 so to me that is the best way to buy a boat I saved 20k and the warranty on engines start on the day boat is registered even though the engines were 2 years old you still get the same warranty as new 👍🏻👍🏻👍🏻👊🏻👊🏻👊🏻
That seemed like a pretty good breakdown of the costs to build a boat but I would also think the manufacturers get a better price on things because they buy in volume. You can also usually talk down the MSRP price on a new boat. It is amazing how much the prices have gone up though. In 1995 my brother and me bought a new Bayliner 2352 Trophy walk around. It came with a 5.7 liter Mercury, Alpha 1 I/O drive and a galvanized roller trailer for $29,000. It didn’t come with any electronics but I thought it was a decent boat for the price.
Yeah man- !! In My past I bought two brand New boats at boat shows. One was a 24 ft. Sea Ray with all the options they had including elec. fridge , full camper top , trim tabs , full teak swim platform , full standup head, on and on. Today it would be impossible to buy that boat. So sad So Mad.
This is something I’m looking into, so thanks for the video. My take-away though, all the things sited as costs to build are applicable to a $100,000 car. But this isn’t a top of the line boat, the car. A basic $30,000 car has all these same costs but sell in bulk. If boat yards mass produced, automated and passed on the savings, including less profit per boat, they would sell more. The reason they don’t, $40,000-$50,000 profit on a small boat like this ! (Greed)
I build boats for 36 years in Miami. Mostly 18-30 footers. You can build a $100k boat for about $18-22K. The rest is profit. Boat building is an incredible business.
The big problem is the dealership. They want to make a big profit. We should skip them same how’s. Don’t know why the factory doesn’t like to buy directly from them ?
For sure I was looking at 21 tidewater with 150 mercury and trailer in October of 2019. It was almost 48 grand. Today same package same dealer over 59 grand. Demand up prices up. Remember the factory’s were closed when COVID-19 hit.
Check out some companies that are smaller and trying to break into the market and compete with these bigger manufacturers. Much cheaper but still get expensive. Companies like Hanson or Latitude... excellent boats.
I was considering replacing my 1990 Sea Ray BR160 with a new SPX230. However, it’s tough to justify the $85K price tag for a boat that would sit on the trailer most of the year. I’ll continue to put gas and money into the boat I have and keep it running for many more years.
Boats haven't started to price their way out of the market because people are still willing to pay those prices. If I had to guess which boat segment will fail first? I would say Wakeboard boats? Whats your guess?
They are not expensive, you just have cadillac tastes on a kia budget if you think they are expensive. Your estimates are way off. Sure show state of the art new boats and then say they are overpriced. By the way, moulds don’t last forever and need to be remade after so many hulls, powder coating, stereos, high end electronics etc are all upgrades as well as many other options. Recommend you do a review of jon boats, maybe you can get a bit better on your activity based costing.
They have to spend 10% on overhead. There’s probably a lot of money to pay for government mandates. If they could make 1 a day or finish 1 a day, they would be a lot cheaper. That building or factory you showed, probably cost $20k a month to keep open. If they’re doing 1 boat a month, that’s a huge chunk. While there may be 200 hours in a boat, that $15 is really $19 an hour with taxes and workers comp insurance plus any benefits but you also have office workers and other workers that don’t factor in that 200 hours. They need to build and sell more than 1 or 2 a month to split up the overhead or that $40k gross profit will get eaten up.
You forgot the dealer has to make a pile of money. I bought a boat that was 1 year old put everything I wanted. On it and was still under list price with no options
Don't forget about the dealers cut as well. I ended up buying a Dusky. And guess what it was still not a cheap boat at $50K but it was nowhere close to a contender or Bluewater.
Sorry but this video is awfully incorrect. MSRP on any boat today, is marked up anywhere from 50 to 100% of the wholesale price. So your 100k boat probably cost the manufacturer about 25k in material, labor and all the rest. Then they double the price to get the wholesale price to charge the dealer. The dealer then tries to get as close to the MSRP at possible. My wife’s cousin owns a boat dealership on the east coast., we bought our boat from him because he was charging us half what MarineMax wanted for the same boat. Go make a offer at 70k for that boat, the dealer will probably accept. Unlike the automobile industry where dealers are allocated vehicles, boat dealers have to order their inventory and pay for it. BTW that 18k retail price of Suzuki engine probably cost about 6to 9k to the manufacturer.
There's around 18 - 20 percent and sometimes higher mark up on actual boat hulls. So manufacturers profit is probly 60% of that 50k. Still crazy. Also some manufacturers like sea hunt advertise MSRP in brochures n stuff others that do not dealers get to take advantage of supply n demand therefore prices go up. Still on fence bout these zoo zukis but great info thanks
In a free market, where there is a slow market, something will happen to the marketplace. Rentals, Leasing, Discounts, sell less boats at a higher margin, et al. The last thing the manufactures and resellers want is not to sell boats. When people stop buying new boats, the prices will go down. That is the bottom line.
It’s not good to buy a boat right now the demand is too high and Interest rate is too high for a boat so I’ll wait for two more years to see if the interest go down and the price.
It's a oil product and a luxury item and a lot of political interest from coast guard police department of fish and game and epa and minimum wage also bumped up the price then area codes
Yes I want to see a cheaper boat, there’s no way that boat should be 100K. My grandpa bought a 20’ Robalo with twin engines for 14K you can’t tell me boats are worth 6 or 7 times now.
None of this works. I bought a new nuaticstar 22xs for 61k. Loaded out with fiberglass t-top. 7 grand for the t-top by the way. When you look at high end boats you will pay high end pricing
Definition of a boat? A hole in the water into which you pour money. Believe it or not, when I was a child at my parent's cottage on Rice Lake, Ontario, Canada, I had a LOT of fun with our 12 foot Springbok aluminum boat and 5.5 h.p. Johnson
When I was working on my MBA we studied BMW motors in the USA. Take a 7 series for example- at the time, those cars were basically starting at around $90k. It was estimated that BMW could actually build that car for about $30k given all the discounts that come along with volume buying. So there it was simple- greed. Boats have been very frustrating for me because like you, I'm in the market. You used to be able to tell folks that the majority of the purchase price on any boat (not yacht) was due to the cost of the engine(s). And most of the time, you were right. Now? IDK man it's a struggle to figure out where these prices are coming from. I have to believe that some of it comes from just how easy it is to get yourself into a boat you really can't afford due to all of the available financing mechanisms. I could buy a really nice boat tomorrow using my available cash as a down payment and by financing the rest for 20+ years.
Some of the mark up in the industry is venturing into crackhead territory. For instance I have been looking at a Contender 28 CC, which has a dealer cost of 98k but a MSRP of 128k. Those types of mark ups shouldn't exist for the middle man and only exists because of shady behavior from the overall industry. I swear if a company came out and just offered to sell all boats at a fixed mark up of like 2k-5k over cost, it would drastically change the industry as it is today. The high mark ups actually skew the realistic value of boats and needlessly increases the cost of insurance policies across the board. The other thing I have noticed is accessories are marked up at even a higher rate. I don't know if its because of the installation, though if a manufacturer did it right, they would install the parts as the boat is being built which shouldn't cost that much extra. Installing things after the boat is together can be a nightmare and is time consuming.
1. Because people are buying them like crazy and they are literally all out of stock reason our boat literally went up 20k in value and sold it 20k over normal value
You really missed the biggest part. Demand is what drives price, not costs. Costs decide if the company can stay in business. People went covid crazy in 2020 and bought all the 2020s and even 2021s out.. So no discounts this year.. This is pushing 2021 prices up which is pushing up prices on used boats
nice analysis. a cheaper alternative?....some manufactures will allow you to buy a hull and all the rigging ONLY. Buy the engines, electronics and any other options you want separately.....then DIY installation.
if youre going that route, then why not buy a used boat that is also a fixer upper for way cheaper. Or buy a used boat in good condition for the same price or cheaper.
@@blewyd Both options you mentioned can be good IF you know exactly what you are doing when buying a used boat, AND you are good enough mechanically to do the work yourself. RUclipsr 'Brook Chris Outdoors' has a video titled "EXPENSIVE TRUTH of owning a BOAT!... you may find it informative.
Most of the aluminium cheaper end are purchased from China and then there is the -importer, - fabricator who rebrands the whole thing, the retailer... and they are all greedy SOBs. The industry needs urgent disrupting. compare a suzuki motorcycle to an outboard.. You get so much more in the motorcycle but the outboard is more expensive. The quicker we get electric outboards the better.
No - It’s interest rates. Borrowing rates are so cheap, so people are looking at lower monthly payments with more expensive boats. Same thing with housing. Additionally, no one’s able to travel - so they’re spending vacation money on toys.
They need high profits so they can survive! They can Only make a few boats a month.
Bennington makes 60 pontoons a day.
@@wadesundeen7719 amazing people are buying that many new boats.
@Swiftus Maximus Don't bet on China Biden.lol
The profit metric used in this video is gross margin, and since companies have operating expenses, taxes, and interest on top of this figure, it's easy to see why the gross margin has to be what it is. 50% gross margin on a few boats a month only pays for a handful of staff on top of the factory workers, without any ultimate profit for the owners to be had (free cash flow). History is littered with the bones of bankrupt small boat companies.
@@alecmartin4779
I recently watched a video on why to be critical of a to good to be true low asking prices of some used boats.
These are as I extrapolated from this are boats from small manufacturers. They don't have the deep pockets like the big manufacturers when it comes to correcting major design problems. According to the gentleman who made the video he used to own a large brokerage for new boats SVs mostly.
He said that wealthy people who have owned several over the years don't want a low numbered hull due to design problems that will inevitably be revealed.
So yes
Overhead such as loans for building a factory or rental of needed facilities, and all other expenses incl designing the craft, engineering the molds, parts, materials and equipment for them and the dearth of qualified buyers. These are considered *Luxury Items* after all.
I just can’t justify paying this much for a boat when there are so many good used boats on the market you can pay CASH for and OWN!
That's a well thought out break down you came up with.
I was involved in a boat building business in the late 1980's / early 1990's.
I provided engineering prints / plans, design specs, and production methodizing to build deep V offshore USCG certified vessels for carrying passengers for hire. Basically big center consoles with custom seating arrangements.
It really is surprising how all the "little stuff" adds up quickly when building a quality boat.
Things you don't think about like rub rails, stainless cleats, 300 series stainless hardware, aluminum fuel tanks (ours had to be CG passenger vessels made with 50 series aluminum and certified to hold 11 ft. pounds of liquid pressure with baffles no more than 29" apart, .... etc.), nav lights, and the list goes on and on.
Best bet is to find a old boat, built by a name builder, with a design you like, that is well maintained, preferably from somewhere up North, where it's stored in a barn 3/4 of the year, and repower it if necessary.
I started looking and ended up finding a lot of them.
Ended up finding a really nice 1988 30' SCARAB SPORT center console with a Pipewelders buggy top with radar arch.
It came with an aluminum "I" beam , tri-axle trailer.
The two Yamaha , two stroke 200 hp counter rotating outboards have run well for a few years.
Decks, transom, and stringers are solid .
Huge live well under the deck ahead of the console.
I bought the whole thing boat, engines, trailer, and gear for $10,000.00.
Later I found a pair of virtually brand new Yamaha 250 hp late model fuel injected , two stroke , counter rotating engines that the owner wanted off his boat so he could repower with twin 350 Yamaha four strokes.
Got both virtually new 250's, with all the rigging, for $5,500.00.
Just have to find the time to swap on my new power. Already have a buyer for the two 200's.
Sorry for the long comment, but I got on a roll.
Just wanted to share another purchase option that worked out for me with a little searching, and leg work.
Good video.
That's what I am doing got a 69 Starcraft Offshore from Wisconsin. It's in good shape needs a late model engine and a little bit of work is all
I thought the same for a while until I realized that in order to find a good one I really should have some experience as a boat owner, which ... I have none. What seems an easy maintenance job may turn into a nightmare, both time and moneywise, if experience is very little. So I decided to buy a new one, but I waited until the end of season, end of september to be more precise, and I've gotten a nice discount, dealers must clear their inventory, don`t they? Now, what I had to do was to trim down a little my expectations: instead of 20' I'd go with 17", instead of 150 HP I choose 90HP (still plenty of power) and so on. Yet, the boat is new, outfitted with everything: GPS, echosounder, VHF and whatnot, trailer, etc. and, still, I can comfortably afford to pay it. So, to make it short, if the dealer sees you're there to buy it, he may drop the price to make it like a win-win for everybody. My opinion.
@@calin7017 The reason I bought my boat is it's Aluminum I NEVER would have bought a fiberglass boat so old. I might fiberglass a rust hole in a car fender.But no way on a boat
@@alabamasmokeywilson6818 Sorry Bud.... I wouldn't touch an aluminum boat unless it was always operated on fresh water. You also have to go over an alum boat's electrical system really well because of the stray current issue that causes corrosion.
@@JoeKubinec My boat came from an estate sale the old gent passed away. It was registered in Wisconsin. I'm 55 and not in great shape. I figure it will outlast me😆
A long list of items have been left out but for me the biggest miss estimation is labor cost & cost of doing business. Actual labor cost is 3 times what the employees make. Payroll tax, Worker's Comp, etc..
That being said, I totally agree. New boats are expensive.
Have you looked into Glasstream boats? We just purchased a Glasstream 240ccx with a 200hp Suzuki four stroke!!! Single step hull, $62,500out the door!!! Great boat so far!! We got it in July and have about 40 to 50 hours on it!! Love it!!! We have been out 20 miles on Gulf in 3 to 5 foot seas. Also we go out 6 to 10 miles in 6 to 8 footers!! It handles great!!! Yes, with a 24 foot boat!! We have to go slow with the bow up!! After learning the boat, it really does well in rough water!!!
With the stepped hull!! You dont need a bigger outboard!! Our 200 Suzuki gets to a easy cruise at 30 to 35 mph. Flat out 45 to 46 mph!
I would think that $15 an hour is probably low today. These people are skilled Craftsmen. Also alot of these small sport fishing boats are sold through dealerships, who have to make a profit too. This is a very interesting subject and I really enjoyed the video. Good work
I agree--$25 an hour seems more likely.
I work in this industry and it’s common for most of the workers to be immigrants who make less than 10 an hour. I’m on the custom paint side and I’m not in a manufacture so my pay differs from that but most people who lay the boats up don’t make a lot.
Well done. Most people who don't own businesses have NO idea how much the fixed costs are for a business....salaries, taxes, real estate costs, heat, light and electricity etc. Plus add the hand built factor of most boats and it's not surprising how much they cost at the full retail end of it.
Hey my friend, I don’t know where you getting your numbers at but you were way off on the cost of the motor you’re way off on the labor and you’re unbelievably off on the electronics! I’ve seen that same boat was $70,000 with electronics on it. I’ve seen people order $60,000 worth of extras on a boat. I live in northern Michigan by the way a little town called Manistee. You might’ve heard of it before it’s for the century boat company was based for the majority of its life. It actually started in Wisconsin and then moved to Michigan and then eventually moved to Florida where they took a nose dive. That said I appreciate your video but your numbers are way off on several options. Just had to throw that out there. And I wasn’t trying to slaughter you in the comments just letting you know that your numbers were where the hell off there is far less margin far less margin between the cost of building that boat and the cost of payroll and taxes and all that shit goes in as an owner of the company versus what the company profits off each boat you’ll find is greatly reduced from your numbers. Just saying
So why don't You state the correct prices for the rest of Us reading Your comment ??
back in 1996 Sea Ray was building the 540DA it cost $347,000 to build but the base price was $900,000
😮😬😮😬
I read that boat sales were up 30-50% in a lot of states. It's a sellers market right now.
Covid gave the bicycle and boat markets a 100 % boost. Out of work consumer is now the victim - - - Again - - >>
Negative Ghost Rider you left off the part where the dealer makes his profit ...Dealer being the middle man !!!
Boating is going the way of flying.
Boating, target shooting, camping, hunting, fishing, flying...the generations coming up just don’t have the same interests as the greatest generation, some boomers, and some Gen X. The outdoor sports are declining at a rapid rate.😥
@@BackyardBeeKeepingNuevo I disagree. Due to things like youtube these are increasing. Shooting, try to buy ammo and look up how many new gun owners now. Better yet hit the gun range on weekend without appt. Boating as well. Boaters with family. Forward seating now a big deal. More kids out growing up boating.
If money were no object, a 40 foot trawler yacht with small twin diesels. I'd spend my summers cruising the fabulous Trent/Severn waterway in Ontario, Canada. You can travel hundreds of miles through lakes, rivers and locks.
Having worked in the boating industry Briefly years ago, your estimates are close.. Having said that they’re making boats fast and turning out much more then a few a month (depending on manufacturer) They’ve jumped in price because of the Pandemic-Shutdown, low inventory.. Are they overpriced? YES!!!!
Unlike Automotive sales, boat sales sucks, there isn’t a lot of room to haggle. Most manufacturers sell a national no hassle price. Dealers make 20-30% of sales. I too have been in the market for a boat and it’s kinda sad and depressing how dealerships won’t work to make a sale. “ if you want it, buy it, they can budge only if manufacturers cut them slack”.
At a minimum double your labor estimate. Almost every job in building a boat requires moderate to high skill not getting that for $15
Yep... concur. All semi-skilled and skilled labor is in demand. The other aspect is that the commentator only identified direct (hourly) labor cost. There's taxes and benefits costs that can add 25% easy to each employees hourly wages.
Another huge cost not cited is business insurance. It's horrendous for any business in the power sports equipment industry.
You forgot the partner who doesn't do anything. The tax man. state, property and federal taxes. Along with insurance on the building, workman comp and liability. also shipping the product and warranty work.
My late brother had a 34 foot cruiser with twin stern drives. He got rid of it within three years. Why? Cost of gas, (marinas ALWAYS charge a lot more for fuel), insurance, covered slip, having it put in at springtime and taken out in the fall. He was warned before he bought it but he didn't listen.
What a great video! Clear presentation of all the physical components and processes involved in building a boat. And yes, lack of automation and hands on manual fabrication is a primary reason why new boats are so expensive 👍 and don't forget all the other costs of doing business.
I’d like to see more content like this. I worked for and sold Boats in the 80’s.
Ive been subscribed to you for a while now, this video has has made me hit the ALL notifications bell.. ding 🛎 ding 🛎 👍
This was really interesting to watch! Thank you!
If you work for a company and make $15 an hour, the company is paying WAY more than that for you to be there. They pay for insurance and your benefits and more. You can double what you’re getting paid and that’s what the company is actually paying.
some fiberglass boats are getting picked up and restored. the old makos are hot right now. if i were in the market for an inshor/offshore boat id be looking for a 70s era one.
Where do they sell Suzuki 300 outboards for 18K? I'm guessing that's the boat company price.
great video ! i was looking to change to a new boat but the price was so high so i re powered it
i think the pay roll you estimated is way off , more then one person work on the boat and some of the expert that are working on it are a lot more then 15$ , im sure they have other overhead we dont think about ...
it became way to expensive either way
Your prices are just about right I bought same boat 26ft 2 years old new for 72k cash most dealer sit on new boats that they don’t sell sometimes for a year or 2 so to me that is the best way to buy a boat I saved 20k and the warranty on engines start on the day boat is registered even though the engines were 2 years old you still get the same warranty as new 👍🏻👍🏻👍🏻👊🏻👊🏻👊🏻
That seemed like a pretty good breakdown of the costs to build a boat but I would also think the manufacturers get a better price on things because they buy in volume. You can also usually talk down the MSRP price on a new boat. It is amazing how much the prices have gone up though. In 1995 my brother and me bought a new Bayliner 2352 Trophy walk around. It came with a 5.7 liter Mercury, Alpha 1 I/O drive and a galvanized roller trailer for $29,000.
It didn’t come with any electronics but I thought it was a decent boat for the price.
Yeah man- !! In My past I bought two brand New boats at boat shows. One was a 24 ft. Sea Ray with all the options they had including elec. fridge , full camper top , trim tabs , full teak swim platform , full standup head, on and on. Today it would be impossible to buy that boat. So sad So Mad.
You’re the OG for makin this.
Os the question is: Which New boat in the 20-40 foot range is the best bang for the buck?
This is something I’m looking into, so thanks for the video. My take-away though, all the things sited as costs to build are applicable to a $100,000 car. But this isn’t a top of the line boat, the car. A basic $30,000 car has all these same costs but sell in bulk. If boat yards mass produced, automated and passed on the savings, including less profit per boat, they would sell more.
The reason they don’t, $40,000-$50,000 profit on a small boat like this ! (Greed)
Excellent video. You are dead on with the time it takes to build a lot of the boats.
Good estimate...outboard engines prices have gone out of control.
I have been looking at low to mid size 20ft boats offshore models and it’s crazy how expensive they can get.
I would like to see a video on how much cheaper the boat cost could be. I am assuming that will be based on using alternative materials.
I build boats for 36 years in Miami. Mostly 18-30 footers. You can build a $100k boat for about $18-22K. The rest is profit. Boat building is an incredible business.
The big problem is the dealership. They want to make a big profit. We should skip them same how’s. Don’t know why the factory doesn’t like to buy directly from them ?
For sure I was looking at 21 tidewater with 150 mercury and trailer in October of 2019. It was almost 48 grand. Today same package same dealer over 59 grand. Demand up prices up. Remember the factory’s were closed when COVID-19 hit.
Great video. Love that gamefish!
Check out some companies that are smaller and trying to break into the market and compete with these bigger manufacturers. Much cheaper but still get expensive. Companies like Hanson or Latitude... excellent boats.
I was considering replacing my 1990 Sea Ray BR160 with a new SPX230. However, it’s tough to justify the $85K price tag for a boat that would sit on the trailer most of the year. I’ll continue to put gas and money into the boat I have and keep it running for many more years.
Great video. Love the channel.
Boats haven't started to price their way out of the market because people are still willing to pay those prices. If I had to guess which boat segment will fail first? I would say Wakeboard boats? Whats your guess?
Melbourne Beach Florida 🌴 That's why I believe Iam not over pricing my 27 Magnum Sport at $ 21,700.
The price of keeping up with the Jones's!
They are not expensive, you just have cadillac tastes on a kia budget if you think they are expensive. Your estimates are way off. Sure show state of the art new boats and then say they are overpriced. By the way, moulds don’t last forever and need to be remade after so many hulls, powder coating, stereos, high end electronics etc are all upgrades as well as many other options. Recommend you do a review of jon boats, maybe you can get a bit better on your activity based costing.
They have to spend 10% on overhead. There’s probably a lot of money to pay for government mandates. If they could make 1 a day or finish 1 a day, they would be a lot cheaper. That building or factory you showed, probably cost $20k a month to keep open. If they’re doing 1 boat a month, that’s a huge chunk. While there may be 200 hours in a boat, that $15 is really $19 an hour with taxes and workers comp insurance plus any benefits but you also have office workers and other workers that don’t factor in that 200 hours. They need to build and sell more than 1 or 2 a month to split up the overhead or that $40k gross profit will get eaten up.
High demand, low supply. Inflation of the dollar. High regulations, and high labor costs.
Nailed it.
You forgot the dealer has to make a pile of money. I bought a boat that was 1 year old put everything I wanted. On it and was still under list price with no options
That’s why I bought a key largo 235 it does the job
I’m scared to buy a new boat I’ve been in the market for over a year can’t decide which boat to purchase without it being over priced
I bought a 12 year old Grady White 265 Express in 2013 - could sell it now for a good bit more than I paid...
Don't forget about the dealers cut as well. I ended up buying a Dusky. And guess what it was still not a cheap boat at $50K but it was nowhere close to a contender or Bluewater.
Sorry but this video is awfully incorrect. MSRP on any boat today, is marked up anywhere from 50 to 100% of the wholesale price. So your 100k boat probably cost the manufacturer about 25k in material, labor and all the rest. Then they double the price to get the wholesale price to charge the dealer. The dealer then tries to get as close to the MSRP at possible. My wife’s cousin owns a boat dealership on the east coast., we bought our boat from him because he was charging us half what MarineMax wanted for the same boat. Go make a offer at 70k for that boat, the dealer will probably accept. Unlike the automobile industry where dealers are allocated vehicles, boat dealers have to order their inventory and pay for it.
BTW that 18k retail price of Suzuki engine probably cost about 6to 9k to the manufacturer.
There's around 18 - 20 percent and sometimes higher mark up on actual boat hulls. So manufacturers profit is probly 60% of that 50k. Still crazy. Also some manufacturers like sea hunt advertise MSRP in brochures n stuff others that do not dealers get to take advantage of supply n demand therefore prices go up. Still on fence bout these zoo zukis but great info thanks
In a free market, where there is a slow market, something will happen to the marketplace. Rentals, Leasing, Discounts, sell less boats at a higher margin, et al. The last thing the manufactures and resellers want is not to sell boats. When people stop buying new boats, the prices will go down. That is the bottom line.
Good video ! Very well explained. Waiting for the next one👌
It’s not good to buy a boat right now the demand is too high and Interest rate is too high for a boat so I’ll wait for two more years to see if the interest go down and the price.
Remember this !!!! Anything that is fun costs big money. lol
I live up north and I use my boat for four months and I spent about 15,000 a year in maintenance insurance gas docking is expensive sport
Put a 627 seven marine on there 100k plus
It's a oil product and a luxury item and a lot of political interest from coast guard police department of fish and game and epa and minimum wage also bumped up the price then area codes
Yep ended up building my own boat this year I guess it doesn't matter because all the Outboards are on backorder wtf!!!!
Used boats are also very expensive because of the demand. There is no doubt that it is a sellers market.
Good Job !
Yes I want to see a cheaper boat, there’s no way that boat should be 100K. My grandpa bought a 20’ Robalo with twin engines for 14K you can’t tell me boats are worth 6 or 7 times now.
well how long ago did he buy it...
fire video LOS!
Tough to make huge profits in the boating industry ... so many competitors driving prices down.
Boats are lawn ornaments. If you should ever want to go out on one, just rent it.
3:20 what kind of boat is that?
None of this works. I bought a new nuaticstar 22xs for 61k. Loaded out with fiberglass t-top. 7 grand for the t-top by the way. When you look at high end boats you will pay high end pricing
How do you like it im in the market right now
@@colbyhoward4731 we love it. I’ve had it in 6’ seas. It’s good for the river and the gulf.
Very good
Definition of a boat? A hole in the water into which you pour money. Believe it or not, when I was a child at my parent's cottage on Rice Lake, Ontario, Canada, I had a LOT of fun with our 12 foot Springbok aluminum boat and 5.5 h.p. Johnson
Solid videos. Keep them coming.
When I was working on my MBA we studied BMW motors in the USA. Take a 7 series for example- at the time, those cars were basically starting at around $90k. It was estimated that BMW could actually build that car for about $30k given all the discounts that come along with volume buying. So there it was simple- greed. Boats have been very frustrating for me because like you, I'm in the market. You used to be able to tell folks that the majority of the purchase price on any boat (not yacht) was due to the cost of the engine(s). And most of the time, you were right. Now? IDK man it's a struggle to figure out where these prices are coming from. I have to believe that some of it comes from just how easy it is to get yourself into a boat you really can't afford due to all of the available financing mechanisms. I could buy a really nice boat tomorrow using my available cash as a down payment and by financing the rest for 20+ years.
sales are coming! Be patient
my dads suzuki blew the gear case after we spent a whole day braking it in
Sounds like the gearbox was a lemon, warranty should cover that, other than that suzuki are as good as they come.
"Cheap skate" us bro!!! Lol
Great Videos. That's why I'm redoing my 69 Star Craft offshore
If you're going to go fishing for leisure or full time, get an aluminum boat. it's cheaper and lasts forever.
Really love your channel.
good info, I think some of the power cats are marking up much much more! a 28ft cat for 240K?
Eventually the technology to 3d print boats will be available for general use and the prices will plummet.
I've been wondering the same thing why are boats so expensive. There's a market for a less expensive boats someone should pick up on it.
Great work.Thanks😀.Also the dollar has tanked a tad. Enjoyed vid.
Some of the mark up in the industry is venturing into crackhead territory. For instance I have been looking at a Contender 28 CC, which has a dealer cost of 98k but a MSRP of 128k. Those types of mark ups shouldn't exist for the middle man and only exists because of shady behavior from the overall industry. I swear if a company came out and just offered to sell all boats at a fixed mark up of like 2k-5k over cost, it would drastically change the industry as it is today. The high mark ups actually skew the realistic value of boats and needlessly increases the cost of insurance policies across the board. The other thing I have noticed is accessories are marked up at even a higher rate. I don't know if its because of the installation, though if a manufacturer did it right, they would install the parts as the boat is being built which shouldn't cost that much extra. Installing things after the boat is together can be a nightmare and is time consuming.
Everybody has to get their taste as the mob guys say.
or, you can go buy a "wrecked" boat at copart for 2 grand, spend a bit fixing a dinged up trailer, and your good to go.
1. Because people are buying them like crazy and they are literally all out of stock reason our boat literally went up 20k in value and sold it 20k over normal value
I wanna buy a new boat but I cannot afford it :(
then buy used, there is no point in buying a new boat at this point.
You really missed the biggest part. Demand is what drives price, not costs. Costs decide if the company can stay in business. People went covid crazy in 2020 and bought all the 2020s and even 2021s out.. So no discounts this year.. This is pushing 2021 prices up which is pushing up prices on used boats
A million bucks for a Whaler at the Miami boat show.
nice analysis. a cheaper alternative?....some manufactures will allow you to buy a hull and all the rigging ONLY. Buy the engines, electronics and any other options you want separately.....then DIY installation.
if youre going that route, then why not buy a used boat that is also a fixer upper for way cheaper. Or buy a used boat in good condition for the same price or cheaper.
@@blewyd Both options you mentioned can be good IF you know exactly what you are doing when buying a used boat, AND you are good enough mechanically to do the work yourself. RUclipsr 'Brook Chris Outdoors' has a video titled "EXPENSIVE TRUTH of owning a BOAT!... you may find it informative.
All I can say. Is build your own boat factory or boat And see how much it cost and how much you make on each boat Simple !
Aaa and....they don't sell as many as cars so they have to rise proffit margin off each unit
You don’t like the price of a 25 foot sea hunt? Go check out the price of a 25 foot regulator. That will sober you up. 😂😉
Most of the aluminium cheaper end are purchased from China and then there is the -importer, - fabricator who rebrands the whole thing, the retailer... and they are all greedy SOBs. The industry needs urgent disrupting. compare a suzuki motorcycle to an outboard.. You get so much more in the motorcycle but the outboard is more expensive. The quicker we get electric outboards the better.
Так рождаются лодки:)... Спасибо за видео!:)
No - It’s interest rates. Borrowing rates are so cheap, so people are looking at lower monthly payments with more expensive boats. Same thing with housing. Additionally, no one’s able to travel - so they’re spending vacation money on toys.
Excellent