Why Are Boat Motors So Expensive?

[flyfisher]

On 3/1/2015 at 9:15 PM, zachb34 said:

My 15 horsepower 4 stroke mercury is more expensive than a brand new motor for my jeep. That has just hit me...

you aren't going to find a brand new motor for a jeep for cheaper than a 15HP 4 stroke motor.

[Deleted account]

So $3k for a motor made up of hundreds (or is it thousands) of parts, several different manufacturing processes, a computer board or two, and precise tolerances is a lot, but $400-$600 for 4 oz of graphite is what?....

[J Francho]

Fourscore and four years ago...

 

Check out the prices on organic no stir peanut butter. Store brand is $20 for two jars. Think about that. Saw some “cold pressed” organic OJ that was $16 for a quart. 

[WRB]

Today's outboard engines are as sophisticated as automobile engines in an effort to increase hp per lb and decrease emissions improving fuel burned per hour. Your auto engine doesn't include a transmission and drive train, the outboard also includes a transmission and drive train as one integral assembly and prop.

My 1970 Evinrude 9.5 hp OB cost $700, small OB's weren't inexpensive back then, it cost as much as the boat and trailer. You could buy an inexpensive air cooled noisy Eska OB back then and still can today, can't operate it in California however, doesn't meet out emissions standards.

Tom

[S Hovanec]

I didn't read through all of the replies, so if this was mentioned, I apologise.  You're also buying a transmission.  Gearing isn't cheap.

 

Also, unlike a car motor, marine motors are designed to turn high rpms for extended periods of time.  I have never run my truck at 5k+ rpms for a half hour at a clip.

[BigRed1977]

Outboards are pricey because you get a starter, alternator, engine, fuel injection, transmission,and "wheels" all in one package. It's basically everything under the hood of a car and under the car. Inboard motors are much cheaper by comparison. Also there is a phrase in business that says "what the market will bear." I had issues with this. So, I gave up my AC business because I felt like I was robbing people if I charged what I SHOULD have been charging. If a business cannot be profitable there is no point in being in business. I hate it but if I followed the "what the market will bear" rule, I'd still be in business and a lot richer. In the end it really does all balance out if everyone tries to make as much money as possible. Try being the "nice guy" and you will go broke and pull your hair out in the process. 

[Further North]

On 3/1/2015 at 9:14 PM, Long Mike said:

Krappiehog hit the nail on the head.  Add that to a much lower sales volume when compared to cars, and you have your answer.

Yes.

 

Economies of scale.

 

Few are sold relative to numbes on cars/trucks, but it costs just as much to develop and refine the product. 

 

We have a Ford Edge.  Ford has sold 1,340,065 of them, since 2006....and they use engines and transmissions and lot's of other parts that are common to other models (The Edge is built on the same platform as the Ford Fusion, Mazda CX-9, first and second generation Mazda 6 and Lincoln MKX, among others.)

 

Mercury can't even come close to those kinds of numbers...

On 3/1/2015 at 5:09 PM, Smokinal said:

Anything "Marine" related is twice as much as it should be. "Marine" cleaner wax = $16...Maguires cleaner wax "for a car" = $4.99...and the list goes on and on. The marine industry rapes us every day. There is absolutely no reason these motors should cost this much.

Again economies of scale.  How many boats are there in the US?  How many car/trucks?

On 4/25/2015 at 8:26 AM, Emdexpress said:

Mark up at the retail level is 40%. As noted, volume is low compared to cars and trucks. Extreme engineering is very expensive. Even though the cost makes your eyes pop out, the modern outboard is an awesome engine. Efficient, clean, quite and powerful plus way more durable than past models. And now in four cycle. Yes,

That's true...but many people think that "mark up" = profit.

 

It doesn't.  That markup has to help support the costs of running the dealership.  Salaries, benefits, power, paying for the building, water/sewer, taxes...

 

It's very much not a 1:1 return.

[MickD]

One thing not mentioned yet, but that is important, is that the duty cycle of marine engines is really heavy duty compared to cars.  They operate at wide open throttle much more than auto engines.  It takes very little HP to move a car down the road at 70 mph, and wide open throttle accelerations are rare compared with marine.  What this means is major  money for heavy duty components.  

 

Also, as has been mentioned, the emissions requirements require a lot of sophisticated electronics, sensors, etc.  That is similar to cars, which have gotten very expensive, too.

 

The good news is that with proper care, most will last a very long time.  My 20 year old 4 stroke Suzuki ran like it was new when I sold it.  I sold for a better boat, not for a better engine.

[Basseditor]

I know it applies to boat manufacturers and I assume engine manufacturers — can you imagine what liability insurance costs a manufacturer?

[Breakwater Bouy]

Well, IMHO-- I think it's a Luxury item...so prices are higher...and it's complicated to get a boat loan because of it being a Luxury item...lender know that at some point when financial times get tough and you have a loan on a boat..they know mostly likely the boat will be repossessed vs being sold 

[Elkins45]

I paid $600 for a silencer for my 30 caliber rifle. It’s basically just a fancy steel tube. How many silencers would a manufacturer have to move per day to make a decent living? You figure even a one man shop needs a couple hundred in clear profit per unit just to stay afloat. How many motors does a boat dealer sell in a day?

[Fishing Rhino]

When I was a kid, candy bars were a nickel, a loaf of bread was 12 cents.  Popsicles were a nickel and ice cream bars and sandwiches were a dime.

 

The cheapest price for gas that I purchased was fifteen cents per gallon. In 1966 we bought a new Pontiac GTO convertible with four speed standard shift transmission, three two barrel carbs, positraction rear end and an am/fm radio.  Bottom line on the sticker was a cool 2700 dollars give or take a few bucks.

 

Why do cars cost so much today?

[Loochy88]

Build (and sell) a cheaper one then.