Freight and Dealer Prep Cost

[Pikester]

I am in the process of buying a 2004 Sea Ray 185 OB sport Fish and Ski with a 115 4-stroke Merc.<br /> http://www.searay.com/index.asp?display=brochure&tab=5&modelid=34815&reqtype=1,9,19,24 <br /><br />The quote from the dealer included:<br />Freight: 1,127<br />PDI: 1,089 (dealer prep)<br /><br />I was wondering if these numbers were high (and thus had room for negotiation). Thanks.

 

[bluewater19]

Re: Freight and Dealer Prep Cost

I think my prep and freight was like 450-500 for my glastron.

 

[rodbolt]

Re: Freight and Dealer Prep Cost

hello<br /> I pdi motrors and rigs all the time.<br /> all it means is a final inspection before delivery.ask what it entails and if it includes a comprehensive water test with you onboard., over a grand pdi on a pre-rigged package seems a bit high but then i only fix them <br />good luck and keep posting

 

[Pikester]

Re: Freight and Dealer Prep Cost

Thanks for the feedback. <br /><br />The dealer said the PDI was the basic dealer prep. <br />They told me when I pick up the boat they will spend how ever long it takes on the water showing me all about the boat. They also said if it takes multiple days, they will take all the time necessary.

 

[PAkev]

Re: Freight and Dealer Prep Cost

My dealer didn't charge prep but I am sure it got built into the deal somewhere. Since, I indicated I wasn't in a hurry, he ordered my boat along with his other spring inventory so I am sure it cost less than having one boat shipped. Although it does cost the dealer money for freight and pay a good tech's salary to get the boat up to snuff, a grand sounds a little above and beyond usual, customary, and reasonable charges. I've noticed several advertisements with a lowbal package price such as $10,999 which then indicates in smaller writing "Plus Dealer Freight and Prep." If I were choosing between a good boat at a sweetheart deal of $10,999 plus PDI compared to a better boat without a sweetheat deal for $13,999 including PDI it may indeed compell me to buy the better boat BUT it is all in the marketing as some folks only see what they want to see.<br /><br />With this in mind, I would like to know how folks would respond if the cashier at SEARS would respond by saying "Mrs Jones your refrigerator only cost $799 but we must also charge you for our overhead costs of selling your refrigerator" Granted, everyone needs to live and therefore make a FAIR profit along the way, BUT this does not make a level playing field and should be given serious consideration when purchasing anything from anyone trying to make you pay for their cost of doing business.

 

[RatFish]

Re: Freight and Dealer Prep Cost

Seems a little high to me for a boat that size.<br /><br />The highest freight charges I've seen so far for a boat in your size range has been a little over $1000 for the Bayliners (175 & 185 models) shipped from Mexico.<br /><br />Dealer prep has usually been in the $350 to $500 range.<br /><br />Your dealer may be building in a little extra profit. I'd ask them to back up those numbers with some cold hard facts. You may also want to check some other Sea Ray dealers on their freight and prep costs. You could probably do it over the phone if you are savvy enough.<br /><br />It definitely should not take days to show you everything about the boat unless they are giving you some "one on one" seamanship classes on piloting your new boat. If that's the case, it may be worth it if you need the training but get a firm commitment from the dealer. I've heard plenty of stories where dealers just hand over the keys and say "have fun" regardless of you boating experience.

 

[jerzshaw]

Re: Freight and Dealer Prep Cost

On a Boston Whaler Ventura 160 that I bought this summer past, the salesman included $500 in freight, and $500 in dealer prep. The freight was from the factory in florida to NJ. It was a boat that sat on his lot for over 9 months when I bought it. I told him repsectfully to remove the freight and he did. I asked him what the dealer prep was for and he said it was the charge for putting it in the water, prepping the engine, and shining it up... I said fair enough, although I supsect I could have gotten him to remove that charge as well as throw in 3 bags of chips 6 beers and a stock tip.

 

[Boatin Bob]

Re: Freight and Dealer Prep Cost

Last summer I bought a 16ft Cutter (Canadian boat) with 115 Merc. The dealer quoted me $1200 CDN for freight and prep, this included them installing the motor and control plus the cost of the battery and prop

 

[RC Marine]

Re: Freight and Dealer Prep Cost

I can't speak about what other dealers do, but I will tell you how we do it, and how it SHOULD be done.<br /><br />First, each dealer is charged freight for the boat to be delivered to their dealership. Sometimes we use the boat manufatureres for delivery, other times, we use a contractor. The freight rate depends on how far the boat is coming from the factory. For example, when I order a Pro Line from Crystal River, FL, I pay X amount for freight, a dealer in Georgia for example would pay less and a maryland dealer would pay more than me! That is the tricky part. If I have a customer that wants to go to Florida to by a Pro Line from a dealer their, I have to take less proffit to compete with the freight difference. <br /><br />So, to answer you question, the frieght, you quoted does seem a little high, BUT that does not mean that it is not accurate. As fuel prices go up so does the cost of hauling a boat.<br /><br />The dealer prep, is different, there are certain things that have to be done to a boat before delivery. Maybe a 100 dollars worth maybe more. This depends totally on how the boat is ordered.<br /><br />Finally, as a dealer, when I quote a price it is all inclusive, I would never give a price and then say by the way, blah blah blah. That is not good business. <br />Now, to confuse you a little more there is an exception to this. If the boat manufacturer advertises a national campagn price that does not include these costs we as a dealer have to add it to the price. This makes us look like the used car salesman.<br />Last year Anger Powerboats offered a 204 CC with a 150HP Johnson for $18,995.00 ( I think) this didnt include a trailer, freight, prep, NOTHING. So we had a time trying to explain this. We as a dealer don't like it anymore that the customers and we let Angler know this. So this year we have a 204 with a 150 MERC, T-top, graphics, colored hull, aluminum I beam trailer with freight and prep for $23,995.00 I think customers will appreciate this much more, I know we do!<br />I hope I have given you some insight!<br />Paul Pruitt

 

[PAkev]

Re: Freight and Dealer Prep Cost

Paul,<br /><br />Your explaination is very informative!<br />However, I do have one question about freight.<br /><br />We don't pay tax on stamps to send a letter, we don't pay tax on UPS shipping to get a package, so therefore are commercial freight charges taxable or should freight be added to the sale price after tax ?<br /><br />Kevin

 

[RC Marine]

Re: Freight and Dealer Prep Cost

Well, good question. I think we should consult a lawyer on that. Really, I don't think it works like that. For example, when you buy a gallon of milk at the grocery store there was some freight involved in getting it there, but it is all part of the price. Does that make sense?<br />Paul

 

[DJ]

Re: Freight and Dealer Prep Cost

Most, not all, interstate commerce is not taxed. Freight would most likely be interstate. <br /><br />There would be taxes (FET, fuel, etc.) that a freight company would pay, however those are most typically included in the delivery charges.

 

[cobra 3.0]

Re: Freight and Dealer Prep Cost

Dealer prep is another way to sock it to you for more money. Once you have negociated the best price from the dealer, he then can manoever into making a few extra bucks that he may or may not have lost in your negociating.<br /><br />In boats, as in cars, verbal quoted prices are never what you really end up paying. Once he's got you sitting down and ready to sign, he can then usually wangle you for a few more bucks and call it dealer freight and prep or whatever other terms they may use.

 

[DJ]

Re: Freight and Dealer Prep Cost

Cobra,<br /><br />I disagree. As mentioned above, dealer prep is more than necessary in many instances. Some rigs more than others.<br /><br />One cannot expect to make a boat "ready" for free. The labor has to be paid by someone.<br /><br />The automobile industry pays the dealers upfront for prep. It then becomes a non issue.<br /><br />I would agree that an auto dealer charging you prep is a rip off. Not a boat dealer though.

 

[rodbolt]

Re: Freight and Dealer Prep Cost

hello<br /> dealer prep is a nessasary evil. most boats wont work right from the factory. most are rigged by minimum wage sometimes non-english speaking riggers that have never been on a boat much less know how to rig and test the systems. I will lay a bet everyboat we get from prosports,the ones we used to get from shanrock and scout and proline and a lot of others I spend 2 to 4 hours rerigging and rewiring just to make the systems work correctly. in my humble opinion most new boats except some grady whites are rigged with substandard practices. high dollar heat shrink butt connectors that are either crimped with the 5 dollar a pair crimpers that cut the heat shrink or never heated. fuel valves that dont work because they were installed wrong many many things. the worst that a customer gets is a boat that the first day out he gets towed in.<br />we have a customer that just slammed us in a yammi survey. we have done everything he asks in a more than timely fashion but he is so pissed at procat boats he is blaming us for all his problems. and it all goes back to poor rigging. the F225's have eaten impellers due to cavitaion burn cause the engines are to high. the man complains it cavitates so bad that sometimes he has to back down and try again. I have told them since the day the factory guys showed up with the boat that the motors were 2-3 inches to high. a college boy laughed and told me he was an engineer and I laughed and asked how many boxes of cracker jacks did he open to get his degree. anyway the boat is still not right and we get blamed not the pre-rigg factory. well enough rant but pay a reasonable dealer prep and insist on a water test. if any problems are noted DO NOT let them say its cause it is running on pre-mix. <br /> good luck and keep posting

 

[cobra 3.0]

Re: Freight and Dealer Prep Cost

rodbolt, that's horrible! What kind of sh*t is this manufacturer pumping out? What happened to Made with pride in the USA? What a sorry state of affairs! Do we need the Japanese to come in and start building boats for us too? <br /><br />Dj, I know actual time goes in to prepping the boats to ensure all is ok. But who decides how much to charge for this? My point is once you are seated and ready to buy, this item is brought up and the rep tries to just slip it by you. Another dealer's price on the same boat may have been higher with the prep lower and would have still costed less in the end. I'm saying, you need to look at the very bottom price when you buy.

 

[P.V.]

Re: Freight and Dealer Prep Cost

My 2 cents! First, as pointed out by others, freight is determin'd by distance from factory to dealer, costs of fuel (which can vary from day to day, week to week or month to month)or how ever much the dealer may have been charged vs. how much he actually tells you it cost, and by possibly if he order'd your boat on a full truckload vs. only one boat on a truck! Freight companies may add surcharges to a bill if they believed that fuel was going to be $1.45 per gallon (and based their projected revenues on this price)but now find that the govt raised the cost to $1.99 per two months later! So perhaps they built in additional $'s to cover increases! They never lower those prices you may note!!! Most dealers don't attempt to make any profit on freight but some may take advantage by, for example, telling you that he has a full truckload leaving the factory next week and you should order you boat now!! Versus waiting a few more weeks 'till another truck gets full! Most factorys don't want to have a truck leave only half full! Anyway!!!<br />As to dealer prep, again, remember, some boat have a very minimal amount of "prep" or rigging while another may have hours and hours!! Most sterndrive hulls do not have the outdrive install'd, Having said that, many do, so there's a difference of at least one hour plus adjustments of cables, fluids etc... Most dealers do lake test your boat prior to you coming for the demo, another hour?? cleaning? Install depth finders? Kicker motors??? You will pay one way or another! You may not notice that some of these costs are hidden or laid out for you to see. It's the bottom line that really matters! If the dealer trys to hit you up for $1000. "prep" ask him why?? I consider the fuel, prop, labor, rigging items, etc... part of prep. If you think I can afford to "give" these items away, well, ... I can't BUT I can charge you more and "hide" the costs inside the final amount and not tell you, if you like! I often am ask'd what my "best price" on a boat is, give it and then am ask'd to reduce it further.... I then ask, "Oh, you wanted me to start high and then come down.....Let's start over!!!" They usually laugh and we come to another price good for them and me! I can't tell you how much is too much but I will tell you this, I've had plenty of boats that had over $1000 worth of "prep/rigging" to include fuel, labor, "stuff" etc... and yes, it may scare an owner but it's something you may be able to go over with the dealer and negotiate... or not! <br />As to a Sea-ray outboard, if the boat came with the motor already on it and a prop, the ski-tow bar already install'd, no depth finder, etc....Ie: he does'nt have to do much... then the dealer is trying to screw you!!! How's that?? BTW, He's *****ing you on the freight also!! Make him justify the $2200.

 

[cobra 3.0]

Re: Freight and Dealer Prep Cost

Thanks P.V. That clarifies things!

 

[DJ]

Re: Freight and Dealer Prep Cost

Cobra,<br /><br />Where a rig is made has absolutely nothing to do with how much prep time is needed. As a matter of fact, the Asian car companies are notorious for adding things into prep. such as: rustproofing, paint sealant, interior Scotchguard, etc. It's called: "Dealer Pack". Noone seems to complain.<br /><br />Boats are a VERY custom item. You may have the choice of five or more powerplants on one hull. Each one of those has to be set up for maximum performance. That is just for starters.<br /><br />Now you want: a compass, a VHF, a depthsounder, water pressure guage, another bilge pump. The list goes on and and on and on.<br /><br />When shopping ask: What is your BASIC prep? Then ask: what do these items add to that?

 

[cobra 3.0]

Re: Freight and Dealer Prep Cost

DJ, rodbolt's comments on poor workmanship from the manufacturer inspired me to talk about the Japanese, not the extras they want to sell you at the end. I bought a Honda Civic 2002 and told them to spare me the scotchguard, polycoat, rustproofing, etc. That's not prepping. That's selling you extras where they make over 100% profit on a bunch of rubbish after they have sold you the car!<br /><br />I'm not trying to argue with the fact that there is more prepping or not on a boat. I know there is. I'm saying that prepping and delivery costs are a vague/grey area where they can make up lost money and profit on you. Delivery and prepping is a more difficult item to negotiate on because at the point of signing you really have little to compare it to. Hence, the initial question from Pikester, "is this too high?"