Why do outboards cost so much?$$$$$

Bozo

Seaman
Joined
Aug 22, 2002
Messages
59
Re: Why do outboards cost so much?$$$$$

I think it mainly has to do with advertising and sponsorships.<br /><br />Almost every fishing pro gets a free engine/boat every year. Neat deal if you are on the receiving end. <br /><br />Sucks when your on the paying end though. <br /><br />I wouldn't be surprised it they give away a motor for every 4 or 5 that they sell. Hence the 20-25% unjustified markup.
 

flatsman

Petty Officer 2nd Class
Joined
Aug 18, 2001
Messages
109
Re: Why do outboards cost so much?$$$$$

Hey , overpayed ceo's and the like , extreme profit margins , ya know when one of the larger countries (overseas ) gets into the act seriously, we are going to get a better deal on engines. Heck ya can buy a honda car for the same price as one of the outboards cost ----and a better warranty.. I love american products, but the outboard business , just has a name anymore. Overpriced parts , greedy dealers all will eventually catch up , besides it keeps us poorer class folks off the water unless we can do our own engine work. Take trip to china and get something started over there. That is the country I am referring to , the one that will cause melt down to us in the USA . One might could see the high price if the engines were lasting all that much longer or the fuel useage were 10 times better. The value just isn't there and most likely will never. Remember Greed will kill the need !!!
 

NMplayer

Petty Officer 2nd Class
Joined
Oct 29, 2002
Messages
170
Re: Why do outboards cost so much?$$$$$

As long as there are people who buy boats and motors, keep them for several years , and then decide they are not using them, I'll never consider buying a new motor. There are too many used motors on the market with very little hours on them. <br /><br />There are many motors that are even 20-30 years old that just haven't been used much. I can't afford to buy new and I probably wouldn't if I could. Target seems to make some good points that are hard to argue.
 

Bradster941

Petty Officer 1st Class
Joined
Mar 4, 2003
Messages
203
Re: Why do outboards cost so much?$$$$$

Flatsman, I see your point in cars, ( Imports = lower prices, etc. ). But in O.Bs, Yamaha is right up there on price and the cost of parts even higher. Grinnnn. Hopefully your right and this too, in time will change...<br /><br />Moving Target: Boy did you open a can of worms.<br />And I don't disagree with you on the price being crazy.<br />All I know for sure is that when I'm ready to by a bike, I'm calling you for some expert advice!! :) :D :)
 

chris in va

Chief Petty Officer
Joined
May 4, 2003
Messages
410
Re: Why do outboards cost so much?$$$$$

I'd love to see the profit margin on outboards. It's gotta be huge. $1200 for a 9.9? C'mon.
 

tscott

Petty Officer 3rd Class
Joined
May 2, 2003
Messages
92
Re: Why do outboards cost so much?$$$$$

Hi Target. <br /><br />That price for 115hp carb.2 stroke right?(Don't know that they make 4-stroke carb)<br /><br />Anyway, I was in Bass Pro in St. Charles,Missouri.(St. Louis) and they have a brand new,2003, 200hp Mercury XR6(2-stroke carb) for $9100. I think that is only because everyone is buying the Optimax or any other O/B that meets the 2006 Epa laws. You buy a 2-stroke carb, it won't be worth squat after 2006 because no dealer in the U.S. will be able to sell it because it won't meet EPA regulations and there is no way to make it meet them. There is not a kit you can bolt on the make it direct injection or the like. I'm willing to bet that in 2004 or 2005, if you can find a new 2-stroke carb,(probably merc) you can pick it up just above dealer invoice. The o/b's that meet EPA Reg's will be astronomical in price because you won't have a choice if you need a new o/b.<br /><br />Just like a HD. If you want it, you are going to pay what they ask, not what the MSRP is.(And the MSRP on a HD is about $5000 less than what the dealer wants for it.I know this for a fact!)<br /><br />Tom
 

FlyBoyMark

Ensign
Joined
Apr 14, 2002
Messages
934
Re: Why do outboards cost so much?$$$$$

There is one quite outboard manufacturer that has cutting edge technology but only limited to 140 HP. And the real sale prices are 30% or more off list and they ARE A QUALITY outboard...Tohatsu.....included is choice of prop, throttle/shift control and on some models a unitized tach and engine instrument panel.
 

bigben

Cadet
Joined
Mar 21, 2002
Messages
16
Re: Why do outboards cost so much?$$$$$

hey.im not the best on info about boat motors.unlike some of the replys, i think they cost way too much no matter what .this i do know everything about ob cost but try florida- they are cheaper on work and cost the furthur south the cheaper .they are even cheaper on new ones and used ones.remember im a plumber not a boat mech.just spent 1400.00 on mine now ive got to rebuild my water pump, it never ends when you want to have fun.
 

John Reynolds

Petty Officer 1st Class
Joined
Mar 18, 2003
Messages
212
Re: Why do outboards cost so much?$$$$$

It's a fact well proven: competition raises quality and lowers prices. <br /><br />Say ledgefinder, you mentioned Cruise & Carry. Do you know much about these?
 

ledgefinder

Ensign
Joined
May 2, 2002
Messages
916
Re: Why do outboards cost so much?$$$$$

Hi John - yeah I posted in your earlier thread on them. I bought one for my dad 10-15 years ago, the small one. Served it's intended purpose well, which was to be less heavy to hump a mile and a half into a backwoods cabin he had on a pond in Maine.
 

ob1jeeper

Petty Officer 2nd Class
Joined
Feb 24, 2002
Messages
167
Re: Why do outboards cost so much?$$$$$

Target...<br />The simple answer to your rethorical question is... Because they can... It's what the traffic will bear, so that's what they charge...<br /><br />As far as I can see from the research I've done, most of the replies you've gotten regarding "why they cost so much" are simply excuses, with NO supporting data to back up the claims being made.<br /><br />I have seen no buisness case data presented, which supports the reason for an outboard to cost DOUBLE what an I/O does.<br /><br />Cheers, ob1jeeper...
 

speed29668

Seaman
Joined
Apr 30, 2002
Messages
74
Re: Why do outboards cost so much?$$$$$

I want a few people on this topic to answer this: Why such a defensive attitude to a valid question? Moving target is right. Outboards are ridiculously over-priced. Need corrosion protection on an outboard? Is some expensive technological metal used? No, its called aluminum. It's not expensive. Is stainless steel hardware expensive? No, it is bought in huge quantities, so the costs for that are negligible. The rednecks who have a big problem with this question shouldn't act like someone is questioning their manhood. Probably the greatest contributor to such a high price is that these are recreational items. Probably fewer than 10% of the market is for commercial use, so the rest of us buy these solely for fun. I can understand having to recoup development costs on the more advanced outboards, but the development costs on carburated outboards were recouped 30 years ago. WildeOne is correct when he speaks about volume and standardization. Yet many of the standard 2-stroke carburated outboards use many of the same designs and parts since the early seventies. I think one thing is for certain, that these are way overpriced. Are they worth it? You decide. But as long as the majority of the market is willing to pay the high price for these, prices are not coming down anytime soon.
 

Moving Target

Seaman
Joined
Apr 22, 2003
Messages
61
Re: Why do outboards cost so much?$$$$$

Because they can... It's what the traffic will bear, so that's what they charge...
And that's probably the closest thing to the truth :mad: <br /><br />And someone mentioned China. This will only make it worse. Tool, molds, castings, plastic parts and things like that will be made in China. So the Quality will go WAY down, the supply and manufacturing cost will go down a good deal, but our final cost will bo down only slightly when we go to buy an OB. Many Molding and Tool shops will loose business and lay people off in the US. And the only one's making more money will be the CEO's and the China's Gov. But what will they do when everyone is filp'in burgers at McDonalds, who will beable to afford their motors then?
 

JasonJ

Rear Admiral
Joined
Aug 20, 2001
Messages
4,163
Re: Why do outboards cost so much?$$$$$

I love this topic, it makes my butt pucker every time I think about it. They are charging us for all that "new" technology. Honda is the worst example. When you go and buy a $17,000 high horsepower 4 stroke Honda, you are buying a marinized Accord engine plopped on top of a drivetrain that isn't any more special than my old 1970 125 horse Merc. The only R&D Honda did was to see how well those automotive V6 and 4 cylinders fair in marine environments. I am not impressed. You can buy an entire Honda Civic for the cost of the outboard with the same motor in it.<br /><br />Outboards should only cost a third of what they currently cost, but we will never see that happen. They might sell a few more if they brought the price down a bit, but they are making tons or cash on all those suckers out there with fat wallets and are dilluded into thinking they need that new spiffy shiny thing. Outboard motors are like SUVs. High profit, cheap to make, do the math. Thats okay, there are plenty of older motors out there that do the same thing for a lot less, even if they do smoke a litle more. In the end, if the boat moves forward, thats all you really need. <br /><br />The other laughable statement is the fuel economy of the new outboards. You would never offset the cost of the motor with the fuel savings. Why on earth would anyone spend $10,000 to save a few buck a trip on gas? Environment? Give me a break. Yeah, the new outboards runner cleaner, but they are still on a boat that is being towed by a truck that is helping to pollute the environment. Its like the tree huggers that whine about the environment and climb into their rusty smoking 1972 Chevy Suburban encrusted in "save the trees" stickers and go home to their log home that has enough trees in it to build ten conventional homes and is heated by, you guessed it, wood. They have us by the hairy boys, because eventually we will have to buy these motors to comply with pollution regs, and they can charge whatever they want. If you wanna play, you gotta pay. Thank God I live on a lake that you can use whatever you want. Here, the shiny spiffy motors are uncommon. Other that a rich boys twin Honda rig now and then or a bunch of 9.9 horse kickers, you mainly see motors made in the 80s and early 90s, or inboards. A $10,000 motor is more than what most boaters here make in a year, so the Hondas sit on the showroom floor, dusty and unbought. I weep for the future of boating....
 

jim dozier

Lieutenant Commander
Joined
Jan 8, 2003
Messages
1,970
Re: Why do outboards cost so much?$$$$$

There is an element of truth to the "because they can". That is probably why the bigger HP OB are even more expensive. They realize that anybody who can afford a boat that needs a 200 hp OB probably has the bucks to pay a premium for the motor.
 

dkondelik

Chief Petty Officer
Joined
Sep 10, 2002
Messages
643
Re: Why do outboards cost so much?$$$$$

China?<br /><br />Yup. initially, quality will be "fer-crap"! But guys, do you remember the "Japanese Transistor Radio"? When Japan first started the post WWII exporting of finished goods to the USA, it was all CRAP. As time went by, THEY figured out that to be competative, you've got to improve quality. Heck, look at some of the posts in this thread. Their cars, electronics arenow considered to be "second-to-none".<br />If memory serves, it took Japan 20+ years to go from producing junk to making decent, then good, quality stuff.<br /><br />I PREDICT a similar senario for China. Initially (recent years thru present day) mostly junk. But within a decade or so the quality will be there.<br /><br />By the way, not unlike Japan, as the economy of China affords more people jobs and thus entry into the middle class, wages WILL increase as will finished goods prices (just like in Japan). It is inevitable.<br /><br />Another issue mentioned in this thread. Plastics! Just my opinion but I think a polymer leg is a super idea. immune to salt & corrosion, light weight, easy to maufacture AND there are plenty of really strong plastics availble now (look at the polymers in a Glock for example).<br /><br />Cost/Price of an outboard? Supply & demand. It's that simple. If folks won't/can't pay the cost + margin, the product doesn't sell. I'd love too see prices come down, A BUNCH, but I wouldn't bet on it any time soon.
 

G DANE

Commander
Joined
Nov 24, 2001
Messages
2,476
Re: Why do outboards cost so much?$$$$$

I guess the prices on outboards seems high, because we all dream off and want something we really doesnt have the funds for. As far as I´ve heard, most of the large manufacturere have experienced decades with bad economy. Not exactly a sign of too high prices. Guess the prices comes from the production quantityes and that dealers need to make money on each motor they sell, considering they have a long lowactivity season too. I guess if it could be diffferent, it would bee, there are several good manufacturers to choose between.
 

dkondelik

Chief Petty Officer
Joined
Sep 10, 2002
Messages
643
Re: Why do outboards cost so much?$$$$$

Yup, lots of good motors are being made. I holding on to hope for omc/bomb(here i go dreaming off for things i can't afford ;) ).<br /><br />My economy is a wreck (wont go into that here) but when it turns, i'm hoping that the omc/bomb thing is settled. i'm all emotional on Rude's and that's where i want to get too (for a new motor) in the future IF they can figure out who and IF they will "be"
 

spike440

Seaman
Joined
Apr 11, 2003
Messages
68
Re: Why do outboards cost so much?$$$$$

Boats, and the things that go with them, are luxury items. They are priced accordingly. The folks that sell them cater to people that have the cash for such thngs. Me not being one of them. That is why my boat and motor are vintage 1971:)<br />-Spiker
 

Motown

Cadet
Joined
Apr 18, 2003
Messages
18
Re: Why do outboards cost so much?$$$$$

I totally agree that outboards are way too pricey. I just got my first real (not a rowboat with holes in it or 3" long cracks that leak profusely) boat. A 1972 runabout and just purchased (for me anyway) a high tech top of the line space aged, speed racin, water churnin, 1958 Evinrude 35 horse big twin. (that needs lots of help) And I too buy into the because they can theory. Besides, if I was some big shot fat cat exec. somewhere eating (for me it would be a big fat steak) caviar and whatever goes with that I'd be telling poor bums like me to quit whining about piddly boat motor prices and get a REAL job that pays at least 70,000 a year and I could move up in life, say a 1967 or something like that. But definitely the because they can thing is what I think too.
 
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