Why so Expencive?

[ThePartsMan]

What make outboard motors cost so much compared to other motors?

I understand that 4 cycle, EFI and emissions make them higher than before but.

The prices I have been quoted have been as much as a WHOLE car or motorcycle of the same HP.

 

[Frank Acampora]

Re: Why so Expencive?

When you are buying an outboard engine, you are not buying just an engine. You are buying an engine, transmission and body so it is like buying a car. They use special alloys and paints and 2 cycle engines have all roller and ball bearings. The blocks use a more expensive casting technique.

Besides, people WANT them and they can command extra money

 

[robert graham]

Re: Why so Expencive?

Maybe because outboards are designed to operate in the wet, corrosive marine environment and many parts are stainless steel and others with extensive corrosion protective coatings and finishes. Many of the screws, bolts and fasteners are stainless steel, several sub-assemblies like the tilt and trim, lower unit gear box, oil injection systems, fuel injection and electronics are pretty sophisticated and expensive to manufacture. But I agree with you, they are expensive. Just a darn good reason to stay on top of preventive maintenance. Good Luck!

 

[ThePartsMan]

Re: Why so Expencive?

Besides, people WANT them and they can command extra money

This one I agree with.


A pair of forward and reverse gears in the lower hardly compares to a modern automatic transmission.

Nether does an engine cover compare to a crash test certified car body.

 

[Silvertip]

Re: Why so Expencive?

It is economy of scale in making these comparisons. Car manufacturers have many different models -- many with the same engine. Once tooled, millions of those engines and trannys are built. Outboards are not made in anywhere near those numbers yet the same engineering and tooling costs are incurred. The same holds true for replacement parts. A gazillion small block Chevy and Ford engines have been built over the years and there are nearly as many aftermarket parts manufacturers for those engines. Therefore the engines and parts are simply cheaper because there are more of them. It is called "supply and demand".

 

[robert graham]

Re: Why so Expencive?

I agree with Silvertip, read somwhere there have been over 20 million small block Chevy V-8's built since first intoduced in 1955, maybe they've got their return on tooling costs by now?

 

[WIMUSKY]

Re: Why so Expencive?

One more reason, because it's "recreational". Most everything dealing with recreational activities is expensive. Why? Because when it comes to fun, people are willing to pay big bucks.

 

[ThePartsMan]

Re: Why so Expencive?

You guys are all making good points but I still feel that someone is making a lot of profit.

 

[dwco5051]

Re: Why so Expencive?

You guys are all making good points but I still feel that someone is making a lot of profit.

If there was a lot of profit to be made more people would be making them. Look at how many companies are building boats and motors today and compare it to the number of builders that have closed shop.

 

[Silvertip]

Re: Why so Expencive?

Companies salivate if they have a profit margin that averages 50% and there simply are few of those -- and the marine industry is not one of them. Profit is what's left after all the bills are paid. I'm guessing, but I would suspect profit margin on an outboard engine is in the 15 - 20% range. a At a 20% margin, a $15,000 engine represents $3,000 in profit that can be taken to the bank. Out of that profit a company reinvests in reasearch and development and all the other stuff that goes on trying to stay on top of our government regulations and out of the clutches of attorneys and those who they represent who were injured though no fault of the company. In the case of a Mercruiser package, consider that the engine is basically a GM automotive engine that has some Mercruiser-specific external parts bolted to it. It is those parts (again low volume compared to the engine) that drives up the cost. The outdrive is Mercruiser so it too falls in the same category as the outboard. If you really think you are being ripped, I suggest you look into building outboards. I think you will learn in a hurry how competitive this and like industries really are and what it takes to stay afloat.

 

[robert graham]

Re: Why so Expencive?

I believe outboard motor manufacturers are also making a fortune on repair/replacement parts. I mean a lower unit drain plug for my 90C Yamaha is $12.50! Check the price of gaskets, etc. Best you can do is buy the best motor you can afford, keep it and take great care of it,do your own maintenance as much as possible, and every year your costs per year will go down. My 1999 90C was about $5500 when I bought it new, but after running it for 12 years my cost per year is around $458, assuming no major repairs. Same with a car or truck, or most anything. Good Luck!

 

[ThePartsMan]

Re: Why so Expencive?

The problem with parts is that nobody makes them anymore.
I know first hand that tractor parts are that way.
The Case dealer I work for is at best the 5th hand a part changes.

Maybe that's the trouble with the whole outboard too. By the time I buy it I am the Nth owner of some of the individual parts.

The Briggs outboard opened my eyes too. Here is a 5hp boat motor for half the cost of a Mercury. Granted it is cruder and simpler.
But even it is a $200 engine at best on top of a very simple lower unit. Somehow that adds up to $700.

 

[MTboatguy]

Re: Why so Expencive?

Simple answer....

Because people continue to pay it..

 

[dlngr]

Re: Why so Expencive?

Maybe I don't understand the question? ?? If they are so expensive,don't buy one....

 

[ondarvr]

Re: Why so Expencive?

Like Silvertip said, the OB companies aren't raking in the cash, they are likely in the same situation as any other manufacturer of "toys", just barely making it and hoping for better times.

 

[Florida]

Re: Why so Expencive?

My motor is rock solid, American quality. The engineers built something that would last and could be repaired. They built something without having to take shortcuts to make it cheaper.

 

[Silvertip]

Re: Why so Expencive?

OK -- lets take that Briggs outboard. Someone -- and I mean someone other than Briggs is making the lower unit for that engine so they need to make a profit. Briggs buys that lower unit and they also need to make a profit. Briggs also needs to stock the replacement parts for that lower unit since they are the re-seller. so Briggs AND the lower unit Mfgr both need to make a profit. Briggs builds the engine so again at a 20% profit margin, that 700 buck motor returns a whopping $140 bucks. And don't forget that a manufacturer has a huge marketing situation to deal with. The best products in the world do not get sold unless people know about them. And unless there is an efficient distribution system the product won't get sold because folks can't get them or because we are impatient Americans, we refuse to wait for delivery of anything.

 

[ThePartsMan]

Re: Why so Expencive?

Maybe I don't understand the question? ?? If they are so expensive,don't buy one....

Just a discussion after my sticker shock.

 

[8hygro]

Re: Why so Expencive?

Price is set by supply and demand...simple. Campanies are in business to maximize thier R.O.I. Production cost have little to do with parts prices. Marketing budgets by the big oems would blow many peoples minds.

8hygro

 

[DJ]

Re: Why so Expencive?

It is economy of scale in making these comparisons. Car manufacturers have many different models -- many with the same engine.

That nailed it, plus the "special" alloys, etc.

Not to mention, MOST outboards have issues from NEGLECT, not product failure.