Winnipesaukee Forum - View Single Post - Did I miss a memo with the price of boats?

MAXUM · 10-19-2014, 11:05 AM

Ya know folks there is a very logical explanation for this that everyone doesn't seem to be aware of.

The reason why boats are so expensive can be summed up in 4 basic areas.

1: The cost of fiberglass manufacturing is in line with the cost of oil since oil is used in the manufacture of the fiberglass reins. The cost of oil at face value has gone up considerably in the past 10-15 years. Along with that EPA regulations on manufacturers requires expensive permits and logistical handling/disposal practices which of course are passed off to the consumer. Aluminum is no better the cost of the raw material is what's driving that price. Add to that - just the cost to operate a business and employ people.

2: EPA regulations on emissions has required very expensive changes the manufacture of marine engines. The latest brilliant regulation has forced the use of catalysts on all stern drives. This added on average about 4K to the cost of the powerplant. In fact stern drives used to be cheaper than outboards, not any more. Of course those regulations haven't hit the outboards yet but I'm sure eventually they will. This coupled with the fact you can not longer buy a carburetored engine has added cost too. Fuel injection is expensive versus a carburetor and adds to the cost never mind needless complication.

3: Boats are no longer simply outfitted. People want amenities that add to the cost as well even though I've noticed the more important thing, build quality hasn't really improved if anything it's slipped across all brands. Fancy trimmings don't come cheap and if you notice trying to buy a simple boat these days is impossible. They may look nice, and eye candy doo dads aren't "free".

4: Erosion in the value of the dollar. The feds continue to print money like it's going out of style, the markets are flooded with cheap dollars, interest rates are low and that comes at a cost. The dollar doesn't have the value it used to thus it takes more to buy things. That is across the board, not just boats.

The bottom line here is that boats are a luxury item. The markup on them is big because there is not as much volume and for those in the market many are discriminating and not your average Joe. So the manufacturers are building what is likely to sell. Unfortunately those that are buying these days for the most part don't seem to be troubled by the current prices so the bar at the entry level of the market is well beyond what most people can reasonably afford. It is what it is. I continue to be astonished any of these new boats sell, but they do. Those that are buying them seem to be immune from what the economy is doing, or they simply don't care so long as a payment is low enough for them to make it regardless of the bottom line.

Same can be said of cars, but that is an entirely different subject.

10-19-2014, 11:05 AM	#22
MAXUM Senior Member Join Date: Apr 2004 Location: Kuna ID Posts: 2,755 Thanks: 244 Thanked 1,942 Times in 802 Posts	Ya know folks there is a very logical explanation for this that everyone doesn't seem to be aware of. The reason why boats are so expensive can be summed up in 4 basic areas. 1: The cost of fiberglass manufacturing is in line with the cost of oil since oil is used in the manufacture of the fiberglass reins. The cost of oil at face value has gone up considerably in the past 10-15 years. Along with that EPA regulations on manufacturers requires expensive permits and logistical handling/disposal practices which of course are passed off to the consumer. Aluminum is no better the cost of the raw material is what's driving that price. Add to that - just the cost to operate a business and employ people. 2: EPA regulations on emissions has required very expensive changes the manufacture of marine engines. The latest brilliant regulation has forced the use of catalysts on all stern drives. This added on average about 4K to the cost of the powerplant. In fact stern drives used to be cheaper than outboards, not any more. Of course those regulations haven't hit the outboards yet but I'm sure eventually they will. This coupled with the fact you can not longer buy a carburetored engine has added cost too. Fuel injection is expensive versus a carburetor and adds to the cost never mind needless complication. 3: Boats are no longer simply outfitted. People want amenities that add to the cost as well even though I've noticed the more important thing, build quality hasn't really improved if anything it's slipped across all brands. Fancy trimmings don't come cheap and if you notice trying to buy a simple boat these days is impossible. They may look nice, and eye candy doo dads aren't "free". 4: Erosion in the value of the dollar. The feds continue to print money like it's going out of style, the markets are flooded with cheap dollars, interest rates are low and that comes at a cost. The dollar doesn't have the value it used to thus it takes more to buy things. That is across the board, not just boats. The bottom line here is that boats are a luxury item. The markup on them is big because there is not as much volume and for those in the market many are discriminating and not your average Joe. So the manufacturers are building what is likely to sell. Unfortunately those that are buying these days for the most part don't seem to be troubled by the current prices so the bar at the entry level of the market is well beyond what most people can reasonably afford. It is what it is. I continue to be astonished any of these new boats sell, but they do. Those that are buying them seem to be immune from what the economy is doing, or they simply don't care so long as a payment is low enough for them to make it regardless of the bottom line. Same can be said of cars, but that is an entirely different subject.