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Need some counseling on price expectations re: potential new 247 order...


jrz1

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I'd like to order a new 2011 247 with the stupid 555 hp supercharged motor (stupid in a superfluous kind of way). Have had some discussions with local dealer and am struggling to reconcile the bid/ask on price. I've seen others post here with various opinions on what a "good" discount from MSRP would be and what my local dealer is offering is at the very low end of the discount range. Heck, I don't think anyone buys a boat these days at anywhere near MSRP and anything less than a double digit percentage discount seems like the dealer got away with one.

I'd appreciate any input I can get on what a reasonably aggressive discount would be for a custom ordered 247 (or any other model but I know mark ups can vary by model). I don't know if I've got unrealistic expectations or if the dealer is simply not as aggressive as others (in which case I probably don't order a new boat). The last boat I purchased was a 2002 Chaparral and I got it for 25% off though I know mark ups can also vary by manufacturer. I understand the dealer needs to make a fair profit but I don't want too much of my hide being scalped. Seems like dealers should be willing to be pretty aggressive given the economy.

Any help you can offer would be much, much appreciated. Really struggling with this one. Feel free to PM me. Give me your thoughts and help Malibu sell a boat! Thanks.

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I'd like to order a new 2011 247 with the stupid 555 hp supercharged motor (stupid in a superfluous kind of way). Have had some discussions with local dealer and am struggling to reconcile the bid/ask on price. I've seen others post here with various opinions on what a "good" discount from MSRP would be and what my local dealer is offering is at the very low end of the discount range. Heck, I don't think anyone buys a boat these days at anywhere near MSRP and anything less than a double digit percentage discount seems like the dealer got away with one.

I'd appreciate any input I can get on what a reasonably aggressive discount would be for a custom ordered 247 (or any other model but I know mark ups can vary by model). I don't know if I've got unrealistic expectations or if the dealer is simply not as aggressive as others (in which case I probably don't order a new boat). The last boat I purchased was a 2002 Chaparral and I got it for 25% off though I know mark ups can also vary by manufacturer. I understand the dealer needs to make a fair profit but I don't want too much of my hide being scalped. Seems like dealers should be willing to be pretty aggressive given the economy.

Any help you can offer would be much, much appreciated. Really struggling with this one. Feel free to PM me. Give me your thoughts and help Malibu sell a boat! Thanks.

I swear sometimes MSRP is a ridiculous pie in the sky number that dealers pull out of a hat. Every boat show I go to There is always huge price reductions on The MSRP. I think the discount will really depend on how desperate the dealer needs to make a sale, I think 10% off would be the minimum discount and you should be able to do better than that.

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Yeah, I won't buy new if I can't do substantially better than that. I figure the sticker of the boat I want to order will be in the $108-112 range. I'd assume dealer cost is around 65-75% of MSRP depending on the model/options etc. I would assume options carry a similar if not higher margin so there is more wiggle room on a well-equipped boat than a bare bones one. If a dealer can make around 5-7% on a custom order with no inventory or carrying risk that seems like a lot of coin to do some paperwork but maybe I'm wrong. It's not like they're using an "allocation" slot up on a low margin sale - at least not in this economy. Malibu has to be operating at well less than full capacity. Then we also have the winter promotion where you get a free power wedge and that alone is around 2.5% of savings off MSRP, so it seems like you should easily be able to get into the 20%+ discount range and still have the dealer make a decent profit. Just trying to figure out if I'm thinking about it wrong.

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MSRP is is not smoke and mirrors. Ask your dealer for the Malibu MSRP price sheet. You will see a separate MSRP price for the boat and all options. Sometimes there are options available that have not made it to the price sheet yet. Be sure to ask. Starting with MSRP and then negotiating the discount is the only way to buy a boat. I am not going to say what the discount should be because it is not fair to the dealers, but if you do a little research you will know what a good deal looks like.

When someone tells you they stole a 247 for 75K that tells you nothing because you don't know the options. Even if they list the options and forget to add in something, like the super charged engine, you are still in the dark. Even worse, you are in the dark and don't even know it. On the other hand, if someone says they got 25% off MSRP, you know that is better than the 24% some other guy got.

Here is another tip. Bring your dealer some customers and you will get a better discount the next time around. Even better, find someone else who wants to buy a Malibu and get a better deal this time around!

What area are you in? Will all 2011 buyers in jrz1's area please help him gang up on a dealer and steal some boats????

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I'm in NC and would love to bring more buyers but I don't know anyone else willing to drop nearly $100K on a boat right now. Will have tough enough time selling my 2002 Chaparral in the mid $20K range. Skyskier - if there's more you'd be willing to share in PM, would appreciate it but understand if not. Particularly interested in data on 247s as I had one person tell me the margins on the 247s are lower than some of the other models.

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MSRP is is not smoke and mirrors. Ask your dealer for the Malibu MSRP price sheet. You will see a separate MSRP price for the boat and all options. Sometimes there are options available that have not made it to the price sheet yet. Be sure to ask. Starting with MSRP and then negotiating the discount is the only way to buy a boat. I am not going to say what the discount should be because it is not fair to the dealers, but if you do a little research you will know what a good deal looks like.

When someone tells you they stole a 247 for 75K that tells you nothing because you don't know the options. Even if they list the options and forget to add in something, like the super charged engine, you are still in the dark. Even worse, you are in the dark and don't even know it. On the other hand, if someone says they got 25% off MSRP, you know that is better than the 24% some other guy got.

Here is another tip. Bring your dealer some customers and you will get a better discount the next time around. Even better, find someone else who wants to buy a Malibu and get a better deal this time around!

What area are you in? Will all 2011 buyers in jrz1's area please help him gang up on a dealer and steal some boats????

You are right about bringing your dealer customers. We have brought a ton of customers to our local dealer over the last 5 years. We have been treated well and rewarded for it 10 times over and will remain loyal to our local dealer in the future.

I'm in NC and would love to bring more buyers but I don't know anyone else willing to drop nearly $100K on a boat right now. Will have tough enough time selling my 2002 Chaparral in the mid $20K range. Skyskier - if there's more you'd be willing to share in PM, would appreciate it but understand if not. Particularly interested in data on 247s as I had one person tell me the margins on the 247s are lower than some of the other models.

The bringing of buyers takes time. We have done it by being on the water for countless hours wakesurfing. We are pretty much a BILLBOARD for Wake Surfing and Malibu Boats. People will come into our local dealer and say I saw that blue boat on the Lake and they were surfing behind the boat. We want a boat that will do that.

As for the pricing. Do this, call multiple dealers around the country and shop them. Do not tell them where you are just tell them what you are looking for and ask how much it will cost. This is a good way to see what the flexibility is in the pricing. But by all means give your local dealer a shot at the deal AFTER you have shopped around. You will need your local dealer for service and will want to maintain a great relationship with them. I do know the big engine is a large add on to the price. The smaller engine will do you fine.

Edited by Stanley Wheelhouse
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Just to add to this what I can. Was at an event at my local dealer last weekend. They had a 2011 247 listed on the floor for 87k. It was fairly loaded, had everything I would think you would need, PW, Malivue, touch panel controls, ect. I was surprised by the rear compartment arrangement. It was interesting. You would loose no storage for extra sacks, but as I see it the rear seats may be troublesome after the boat gets some use, but what do I know really. It did not have the supercharged motor option, I wanna say it had the L96 in it though. It was MSRP'd at somethin rediculous like 114k I think. Here is a link to check it out for comparison if you like.AWS 2011 247

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I have had two 247's with the 400HP Hammerhead 383. Both of those boats did fine. Therefore the monster engine may be something you could opt out on to reduce your cost. You will also find better deals on dealer inventories than on a boat you order.

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If Bawshogg's numbers are right, that is approx 23% discount. That is the kind of research you need to do.

Agree but many dealers will not share a real price with you over phone, especially if you're out of territory. Malibu more than other brands seems to adhere to the policy on out of territory sales which makes research hard. Let me say I WANT to purchase it from my local dealer to extent I order a new boat. I'm not trying to go around them but I want a fair deal. 23% seems like a reasonable deal. This is great feedback. Thanks.

Edited by jrz1
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I have had two 247's with the 400HP Hammerhead 383. Both of those boats did fine. Therefore the monster engine may be something you could opt out on to reduce your cost. You will also find better deals on dealer inventories than on a boat you order.

I don't doubt you're right about the stock motor providing enough power, but I only buy a new boat every long once in a while and I'm a bit of a power junkie. To me the absolute dollars (especially the extra for the motor) are not quite as important as getting a decent deal and minimizing the implied initial depreciation hit.

Everyone says that about the in stock boats but its a very strange phenomenon. You would think a riskless trade (ie ordering a new boat and paying up front) would involve lower required margins than one in which the dealer is taking inventory risk and incurring carrying cost unless there is a limit on the number of boats a dealer can get in a season which I would think is not the case at this point. That said, I know a boat sitting on the floor costs a dealer money so I understand from that perspective.

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Just to add to this what I can. Was at an event at my local dealer last weekend. They had a 2011 247 listed on the floor for 87k. It was fairly loaded, had everything I would think you would need, PW, Malivue, touch panel controls, ect. I was surprised by the rear compartment arrangement. It was interesting. You would loose no storage for extra sacks, but as I see it the rear seats may be troublesome after the boat gets some use, but what do I know really. It did not have the supercharged motor option, I wanna say it had the L96 in it though. It was MSRP'd at somethin rediculous like 114k I think. Here is a link to check it out for comparison if you like.AWS 2011 247

I think that is the picture boat for 2011. I saw it at the Merced Plant back in June. :rockon:

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I don't doubt you're right about the stock motor providing enough power, but I only buy a new boat every long once in a while and I'm a bit of a power junkie. To me the absolute dollars (especially the extra for the motor) are not quite as important as getting a decent deal and minimizing the implied initial depreciation hit.

Everyone says that about the in stock boats but its a very strange phenomenon. You would think a riskless trade (ie ordering a new boat and paying up front) would involve lower required margins than one in which the dealer is taking inventory risk and incurring carrying cost unless there is a limit on the number of boats a dealer can get in a season which I would think is not the case at this point. That said, I know a boat sitting on the floor costs a dealer money so I understand from that perspective.

Think of it as a way to move current inventory and eliminate some of the risk they are carrying. You won't find anyone to play ball with you on a custom order if you are out of territory, in stock boats you could probably do what you want.

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I don't doubt you're right about the stock motor providing enough power, but I only buy a new boat every long once in a while and I'm a bit of a power junkie. To me the absolute dollars (especially the extra for the motor) are not quite as important as getting a decent deal and minimizing the implied initial depreciation hit.

Everyone says that about the in stock boats but its a very strange phenomenon. You would think a riskless trade (ie ordering a new boat and paying up front) would involve lower required margins than one in which the dealer is taking inventory risk and incurring carrying cost unless there is a limit on the number of boats a dealer can get in a season which I would think is not the case at this point. That said, I know a boat sitting on the floor costs a dealer money so I understand from that perspective.

I think it is the holding cost and interest carry that almost forces them to negotiate versus no cost of carry on a new order.

Think of it as a way to move current inventory and eliminate some of the risk they are carrying. You won't find anyone to play ball with you on a custom order if you are out of territory, in stock boats you could probably do what you want.

Plus1.gif

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I think it is the holding cost and interest carry that almost forces them to negotiate versus no cost of carry on a new order.

Plus1.gif

I hear you all and don't disagree but the best business model (but Malibu won't allow it) would be to custom order boats with higher velocity and lower margin. Much higher ROE and some dealers have done a bit of that but Malibu wants dealers to stock inventory, I understand. Only one I would custom order from would be my dealer and he wants to use what I order for the upcoming boat show so you'd think I'd get a deal since. We will see. Thanks for your input.

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Living The Dream - really cool picture/avatar.

Thanks...I stole it from the Avatar choices the crew offers...I could never get any pics small enough to use as my Avatar.

Good luck with the purchase you will LOVE it once its done :crazy:

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I hear you all and don't disagree but the best business model (but Malibu won't allow it) would be to custom order boats with higher velocity and lower margin. Much higher ROE and some dealers have done a bit of that but Malibu wants dealers to stock inventory, I understand. Only one I would custom order from would be my dealer and he wants to use what I order for the upcoming boat show so you'd think I'd get a deal since. We will see. Thanks for your input.

Totally agree with you and Malibu has pulled the line from dealers who did very well doing just that. Malibu wants to put most of the risk on the backs of the dealers, but guess you can't really blame them for wanting it that way.

Edited by 06vlx
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Regarding ordering new vs. on the floor models: I found it ridiculous that sometimes it is cheaper to order the new boat from the factory. Many dealers seem imprudent in considering how much that they have already spent on the flooring for the current boat and then they try to get that much for the boat they already have. They feel like they are already 'into it' that much more and need to get that much to break even. I think that is what JRZ is saying.

If you were serious about minimizing depreciation, you would not get that big motor. Given what Wheelhouse and everyone else says, when I am shopping used boats, the big motor will only mean a bigger gas bill to me. I don't buy this boat to go fast...and I suspect that you won't use it that way either.

Make sure to post some pics when you get the boat!

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Tallred - agree and understand on motor but i cant help myself. All the more reason to make sure i buy it right in first place. Will definitely post pics if and when i get it.

Edited by jrz1
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Tallred - agree and understand on motor but i cant help myself. All the more reason to make sure i buy it right in first place. Will definitely post pics if and when i get it.

That's the attitude! I like it. I always think that when shopping for a new boat, you should probably lay awake at night sometimes.

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In the end getting a good deal is nice. But I would spend millions on the great times we have enjoyed over the last five years. Endless summers wakesurfing behind a Malibu 247 with my best of friends. HellzYeah! The wave is ridiculous and for all to enjoy.

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Stanley - absolutely agree with that as well. In fact my only problem is I've already lived too long! Dad died when he was 35 and I was less than a year old. Have always had the philosophy that you should live for the moment and enjoy cause you never know when the music stops. That said, I was never really counting on having to fund my own retirement and spending on things like stupid overpowered boat engines is going to catch up with me eventually if I don't croak first.... Hah!

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