Articles
   
       
Pics/Video
       
Wake 101
   
       
       
Shop
Search
 
 
 
 
 
Home   Articles   Pics/Video   Gear   Wake 101   Events   Community   Forums   Classifieds   Contests   Shop   Search
WakeWorld Home
Email Password
Go Back   WakeWorld > >> Boats, Accessories & Tow Vehicles Archive > Archive through March 15, 2006

Share 
Reply
 
Thread Tools Display Modes
Old     (anodyne)      Join Date: Feb 2006       02-26-2006, 9:09 PM Reply   
For anyone that has ever been in sales (or known something about them)... what percent commission do salesmen make on the sale of a boat? I'm curious about specifically towboats, and more more precisely: Mastercraft, Malibu, Correct Craft, and Centurion. Any input would be greatly appreciated!
Old     (boarditup)      Join Date: Jan 2004       02-27-2006, 6:32 AM Reply   
I varies greatly from dealer to dealer. Some dealers pay salary, some hourly, some commission, others a combo of the above. No way to answer your question with any accuracy. I will say this, towboat salesmen are not becomming rich - it takes big boats for big bucks.

Back in the day - the '80s. I made 30% of the profit margin of the boat. That was a straight commission job. That was considered to be fantastic as a percentage, but the boat, shipping, prep, advertising, admin, etc. was charged against the boat. It really did not leave much. I think on a $20,000 boat I made under $200.

Typically, people ask this question to try to get leverage to beat the dealer down on price. Every dealer has a walk away price. That is the price they will walk away from the deal. If you present yourself as a pain in the butt, knittpicker, high-maintenance, that price moves up. Dealers have to make a good profit on every boat - there are simply not enough sales to have the volume discounts that cars have. Also, the "hold backs" in the auto business do not occur in the boat business. It is an enrirely different business model. Select the boat you really want, offer the price you are willing to pay for it, and if it is accepted, you have a good deal. If not, walk away and offer on another boat. If you want to dicker, consider it a fun activity. You are not going to get the dealer to loose money on you. They have to stay in business. You need them to stay in business to service you later.

Most dealers are in it because they were in the sport first, then got into the business end of it. A decent life can be made in the business, but you won't be Trump.

FYI - I am a dealer.
Old     (sp0tts)      Join Date: Jun 2004       02-27-2006, 6:58 AM Reply   
I haven't been in sales, but had a job offer at a boat dealership when I graduated from college. They said I should make about $50,000, but after doing the math myself I wasn't coming out to the same number. If I remember correctly I was going to be paid salary plus commission. I think the commission per boat was either 1% or 1.5%, but forget the exact number. This job also had a target number for each sale, if I would sell the boat above the target price, I would get a generous portion (20% I think) of the dollar amount above the target price. I think most auto dealerships also have this so called target price commission structure. So basically if you're trying to hammer a salesman down and they're on this target price structure, you're really taking potential money out of his pocket.
Old     (acurtis_ttu)      Join Date: May 2004       02-27-2006, 9:13 AM Reply   
Are the dealers making money on the financing as well?
Old     (boarditup)      Join Date: Jan 2004       02-27-2006, 9:18 AM Reply   
Depends upon the lender. Personally, I don't. I use a broker and he will develop the best deal of the day among the various lender. He makes money on each deal, but I don't. The various offers I got for this were not much - a hundred to two hundred depending upon the amount of the loan. The problem was I could not guarantee a competitive deal every time.
Old     (poser007)      Join Date: Nov 2004       02-27-2006, 11:22 AM Reply   
I to have always wondered how the commisions work for boat saleman. I have sold Rv's and cars and the commisions were just straight 25%. If we made 4000 on a deal I would make 1000<----didnt happen often. I would think that there is more play in a boat only because they sell far fewer boats and the sales guy has got to eat. Looking at a wakeboard boat for 45-60 grand I mean I couldnt imagine a 21-23 foot fiberglass shell with some electronics, plastic an engine for what 6,000 vinyl, foam etc...could possibly cost close to what they are selling them for. I could be wrong but I would really like to know what it cost a manufacturer to produce a new wakeboard boat.
Old     (mjmurphy53711)      Join Date: Mar 2004       02-27-2006, 11:56 AM Reply   
I think more and more dealers are salary with small commission or bonus programs, especially in add ons.

Money is made in the relationship, not the initial sale.
Old     (boarditup)      Join Date: Jan 2004       02-27-2006, 12:33 PM Reply   
I do know that a base engine costs $11k and most popular motors are about $17k plus or minus. Inboard motors are more expensive than IOs - even with the outdrive for most of them. Don't know why, but that is what the case is.

Aside from Cobalt, Fountain, and a few select others, inboards are better made than IOs. It is tradition and we, the consumers, expect.

I do think it is a bit silly to speculate on the per-boat profit margin for a builder. The market dictates how much the boats will cost by what sells and at what price. If price was the key issue, most of us would have a Gekko GTS-20 for $21k. It is not like knowing the actual figures that you can get a better "deal." Here is a question, if you could get the best deal on the planet, but the inboard boat market would cease to exist the day afterward, would you still want the deal for yourself? I know it is absurd. It does make the point. If what you are getting is worth the price you paid for it, it is a good deal for you. As riders, we need the dealer network and the boat manufacturers. As businessmen, they need the riders. It is a relationship that has to survive for the sport to survive.

Remember that the boat mfgrs supply most of the money it takes to run the sport. Dealers supply most of the money it takes on the local and grass roots level. I am not saying don't try to get the best deal you can - it is in your best interest. Just remember that the profit the dealer and boat mfgr makes on your purchase makes a profound positive difference to our sport as a whole. Profit is not a dirty word - it is what makes your paycheck possible.
Old     (poser007)      Join Date: Nov 2004       02-27-2006, 2:14 PM Reply   
Karl, I hear what you are saying. I noticed you are a board shop owner so I know where you are comming from, you have to make a decent profit to keep your doors open. All I am saying is, when I sold RV's I sold the exact same year and model to 2 different people, one guy paid 12,000 more then the other. When he drove off the lot, he felt good about his purchase. About a week later, he called me and threatened to sue yata yata yata (I didnt close the deal my Manager did) In my oppinion, that guy got ripped off, the RV dealership I worked for wanted the biggest profit magin possible like all dealerships. Problem is, if that guy would have been an informed buyer, knowing what was a fair deal he would have left saving alot of money. I would just like to know what it actually cost to make a boat and how much profit is in it. I don't think there is anything silly about it. Thats just me, I like to know that when I make a purchase that I am getting the best deal possible.
Old     (boarditup)      Join Date: Jan 2004       02-28-2006, 6:27 AM Reply   
Here is the deal: The cost to produce the boat is fairly small. The cost of running the business, including marketing, is a substantial expense. Are you asking the raw cost to produce an already engineered boat with all the tooling already paid for OR the cost of the boat with the overhead spread out over the production run for the year. There is a substanital difference. Likewise, there is a vast difference between dealers. I have almost no overhead. I operate out of my home, essentially a barn on my property and I am the only one involved. My closest competitor, Action Watersports, has millions in inventory and a prime location. It takes a lot more to run his operation than mine. He offers a level of service that I cannot even approach. He has to charge more than I do. Do you get the value for it? Heck yes. If you have a problem with your boat on a Saturday afternoon, they will come to the lake to fix the boat.

As for the example of the RV dealer. That was a stupid business decision on his part. Everyone will compare prices after the purchase. Look at the number of posts after the sale on this board. You have to be in the "zone" on pricing for everyone - including the ingnorant walk-in.

As a consumer, doing a little work ahead of time is the only way to make any large purchase. Being uninformed in today's internet economy is baffling. My customers are almost always informed. I have not and never will take advantage of an ignorant customer. A reputation takes years and many customers to build and only one mistake to ruin.
Old     (will5150)      Join Date: Oct 2002       02-28-2006, 4:32 PM Reply   
the thing that most people forget is the size of the boating market. We tend to compare buying a boat to buying a car- NOT EVEN CLOSE. the number of boats sold in any given year TOTAL, doesn't even touch the radar of the big three's car sales in the auto industry. Then when you look at the tow-boat industry, you narrow the field even less and are looking at some of the MOST expensive boats in the business to build. Lots of manual labor- because we the consumer won't buy chop glass and wood ( and that's OK) and tons of overhead in selling these machines. Most dealers sell less than 50 performance boats a year. if your profit isn't significant on each boat- which it's not, then you do this because you love boats and it's a ton of fun.
With that, it's important to be informed and buy the best product you can get- and get it at a fair price. Every buyer is different. Credit worthiness and CASH speak loudly. I purchased both both of my boats with cash- and I got great deals on both of them. There will always be someone who gets the better deal, but timing means a lot too. When I got my Tige, the Matercraft dealer in my area was losing the line- the prices fell like a stone and I was able to leverage that for a better deal on another boat. I would have taken the Mastercraft if the Tige wasn't available though-so remember the power to walk away is always in your hands!

Reply
Share 

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On



All times are GMT -7. The time now is 2:51 PM.

Home   Articles   Pics/Video   Gear   Wake 101   Events   Community   Forums   Classifieds   Contests   Shop   Search
Wake World Home

 

© 2019 eWake, Inc.    
Advertise    |    Contact    |    Terms of Use    |    Privacy Policy    |    Report Abuse    |    Conduct    |    About Us