How much markup in new outboards?

Troy_from _Oz

Petty Officer 2nd Class
Joined
Sep 29, 2002
Messages
126
Here's a question that will probably stir up a bees nest.<br /><br />Background: have a very old merc (1971) engine that has got the odd problem with it. Current repairs will cost me about $700 in parts to solve the problems that i know of at the moment... (in fact theres a rattle i know of but dont want to go there just yet ;) ). So im wondering if its better to put my money into a newer 2ndhand or new engine... (wife permitting that is). secondhand engines are looking like about $2700 for a 10-12 yr old engine and $1700 for a 20 yr old engine from dealers. These are AUD, not US, but youll get the idea. a new 40hp Yam is $5200 for an over-the-phone price and $5800 for merc.<br /><br />So, a 10yr old engine is going to be about half (48%) the price of a new one. Obviously if i could barter the new yam down to say 4000, its then down to about 32% cheaper and so on. (notwithstanding that i could also barter the 2ndhnd down too)<br /><br />I guess my question is, how much could someone expect to squeeze out of the price you get over the phone? I know this will be greatly variable based on dealer size, market size and any other number of factors, Ig uess if someone out there thinks they got a great deal...how good was it? did you beat the guy down from 10000 to 7000, or from 10000 to 9500? just after general stuff like that.<br /><br />I guess the reason i ask is that here in australia, there's a huge mark up on cars eg. Dealers selling new cars (but last years stock) for like $17000. new price on current model is maybe $26000 - lots of profit for the dealer if you bought it full price last year. presumably the car dealer wouldnt sell it if he still wasnt making profit. This makes his profit at least 34% of the list price...Does the same happen with outboards?<br /><br />I hope i dont step on too many toes by asking this question, as it may not be PC to ask this??? If it isnt, i apologise in advance. :) <br /><br />Many thanks<br />Troy
 

P.V.

Chief Petty Officer
Joined
Mar 14, 2002
Messages
452
Re: How much markup in new outboards?

I'm not aware of any dealers who "mark up" the prices above what "regular dealer net" is. Those who do probably don't move much product OR those customers don't shop around very much!!! Most dealers get a percentage off below dealer net. Could be 3,5 12 or possibly more off depending on the programs in effect, quanity order'd, etc... I know I can usually get motors cheaper if I order it for my boatbuilder than if I order it directly from the motor guys.....
 
D

DJ

Guest
Re: How much markup in new outboards?

Troy_from _Oz ,<br /><br />Troy, <br /><br />I do not believe there is anywhere near 25% mark up in loose engine sales. You're not going to get the best price on the phone.<br /><br />Go to the dealers in person, make an offer and see if they let you walk. If they do, you're below their cost.<br /><br />A dealer may sell you an engine at cost if he can get a few labor dollars for installation, or visa versa.
 

BillP

Captain
Joined
Aug 10, 2002
Messages
3,290
Re: How much markup in new outboards?

I don't know what the mark ups are today but 5 yrs ago franchise OMC & Merc was dealer cost = retail - 25%.
 
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