OB Motor Allocation

PAkev

Senior Chief Petty Officer
Joined
Sep 9, 2002
Messages
665
I was at a dealer that indicated OB motors (Particularly 4 stroke and DFI technology) are first being allocated to boat manufacturers for a given model year. Then the surplus inventory and production is made available to dealers which have to work with prevailing market demands (supply/demand economics) of the boating industry. Meaning: as the season gets going, power options can be limited on a new boat purchase. Dealer indicates they can commit to a purchase price and availability with a mutual purchase agreement within 30days but may not be able to commit to the same purchase price and/or availability as summer boating season approaches.<br /><br />Is there indeed any validity to this statement or is this dealer just trying to turn a tire kicker into a new boat owner?<br />Does a person who wants to repower an older boat with a new OB (in a new model year) usually end up paying a few extra sheckles than if the motor came on a new boat?<br />Although most transactions end up being negotiated, is it legal for manufacturers and/or dealers to command a higher price on a nice sunny day than when the snow is falling?<br /><br />Helpful thoughts appreciated.<br />Kevin
 

jtexas

Fleet Admiral
Joined
Oct 13, 2003
Messages
8,646
Re: OB Motor Allocation

Regarding the legality of seasonal prices for outboards, I'm not a lawyer, but aren't "price gouging" laws aimed at essential products & services? Demand-based pricing is one of the great benefits of a market-based economy (just a hint of sarcasm). Just ask anyone in the airline business.<br /><br />As far as production allocations, a manufacturer will usually try and satisfy its core customers, the customer in this case not being us, the consumers, but the boat dealers.<br /><br />Maybe a dealer will chime in with some insight on package pricing vs. a la carte? <br /><br />jtw
 
Joined
Sep 23, 2002
Messages
73
Re: OB Motor Allocation

As far as I know there is no law against selling based on demand or season. You will pay alot more for christmas cards on Dec 15 than you will on Dec 26.<br />It is illeagal to charge more based on race or gender of the purchaser, but that is even tough to enforce on items that are negotiated (cars, boats, etc...) because you can just say one person drove a harder bargain than the other.<br />A fair price is a price upon which both buyer and seller agree.
 
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