I think part of the problem boats are so high is because outsourcing of parts. If you buy a ______ the motors probably come from Merc the drives definatly do. If you are a small builder the seats come from somewhere, gauges somehwere else, etc. You have to figure these other guys (people outsourced to) are getting it at a price and then adding profit. If you could have all that profit yourself you could either cut costs and sell more or try to sell one.
Now the 1 to 10 theory is great but when you build one instead of 10 and you go BR no one comes to save you when you build 10 and everybody and there brother who has even seen a boat knows someone with your brand than people come in to help you out. You have percieved market value which you cannot put an exact price on. Obviously think fountain.
Now obviously this plan would require capital and lots of it but if you said I am going to build boats a year 2 models 40-25 singles and 30-35 twins 100 power units 500hp each.
First start with engines I go to dart and say I need 100 engines and 200 heads. Then I go to JE and say 100 sets etc.etc.. I cut costs way down for the record I know what dart blocks and heads cost 100 at a time and its a deal.
Then instead of a mercury drive I go to Konrad and buy 100 drives I get a deal.
Then interior I have guys that that is all they do all day same style seats maybe 4 different accent colors (I mean seriously how many differnt colors are boats blue, red, orange and silver.)
Then onto gauges and rigging.
Then onto the hull this is the biggest thing because this is where you stand to lose the most money and this process you can automate more than any other. Everyone does bagging for there hulls which does have some labor but If you wanted a more automated process you could do RTM or RTM Lite these process reqire a back to the mold but you do not have to tape the bag and watch the resin and hope no leaks etc. Downside your mold requires 2 sides bad for 10 different boats in lineup good for 2. Bad for 1 boat a year good for 50. Then you go buy your glass at a decent cost in volume of course.
So lets break down the cost 25 ft
Hull 1200 sq ft cost $3.00 per ft labor and materials. 2 guys could do the whole hull rtm. Note: I would do white gel and then add graphics later. No painting except graphics. 2 days.
Motors dart parts with some type of already exisitng FI like a holley. $6400 (yes it can be done in volume)
Drive $2000. I do not know this can be done but I'm sure no one has ever ordered 100 drives so probably could.
Rigging easy reverse enginered wiring (did one and then copied x amount of times being done in a small room buy one guy. Throw in dash with gauges installed and throttles lay wires put in a fiberglass tube to back and then glassed to the hull saves hangers. Install motors drives etc. 2 guys 2-3 days I know riggin allegadly takes forever but we streamline the process Lets say $3000 total
Trailer $1000
Total cost $16000 in materials and labor
Asking price $25,000 Selling price $22,500 30% gross profit 40 units
Lets say the 35 cost $30,000 to build ask $50,000 and sell for $45,000 30% also.
$260,000 gp 25ft
$450,000 gp 35 ft
$710,000 gp
Rent $1.00 sq ft 30,000 sq ft $30,000
Utilities $15000
Misc labor (office etc $100,000)
equipment cost (over 5 years) $100,000
misc $65,000 shows etc.
Net profit $400,000.
All materials bought up front no terms cash for best deal.
Or you could make $400,000 one boat a year and you have a chief.
I think its possible and I know the costs of glass materials and engines. Don't know drives and rigging but can figure based on markup in other products.
First year costs
$1.6 materials
$310,000 overhead
$500,000 eqipment (borrowed money)
$90,000 misc
$2mil investment $400,000 return 20% in the boat business.
Also definatly not a bayliner.
Now the 1 to 10 theory is great but when you build one instead of 10 and you go BR no one comes to save you when you build 10 and everybody and there brother who has even seen a boat knows someone with your brand than people come in to help you out. You have percieved market value which you cannot put an exact price on. Obviously think fountain.
Now obviously this plan would require capital and lots of it but if you said I am going to build boats a year 2 models 40-25 singles and 30-35 twins 100 power units 500hp each.
First start with engines I go to dart and say I need 100 engines and 200 heads. Then I go to JE and say 100 sets etc.etc.. I cut costs way down for the record I know what dart blocks and heads cost 100 at a time and its a deal.
Then instead of a mercury drive I go to Konrad and buy 100 drives I get a deal.
Then interior I have guys that that is all they do all day same style seats maybe 4 different accent colors (I mean seriously how many differnt colors are boats blue, red, orange and silver.)
Then onto gauges and rigging.
Then onto the hull this is the biggest thing because this is where you stand to lose the most money and this process you can automate more than any other. Everyone does bagging for there hulls which does have some labor but If you wanted a more automated process you could do RTM or RTM Lite these process reqire a back to the mold but you do not have to tape the bag and watch the resin and hope no leaks etc. Downside your mold requires 2 sides bad for 10 different boats in lineup good for 2. Bad for 1 boat a year good for 50. Then you go buy your glass at a decent cost in volume of course.
So lets break down the cost 25 ft
Hull 1200 sq ft cost $3.00 per ft labor and materials. 2 guys could do the whole hull rtm. Note: I would do white gel and then add graphics later. No painting except graphics. 2 days.
Motors dart parts with some type of already exisitng FI like a holley. $6400 (yes it can be done in volume)
Drive $2000. I do not know this can be done but I'm sure no one has ever ordered 100 drives so probably could.
Rigging easy reverse enginered wiring (did one and then copied x amount of times being done in a small room buy one guy. Throw in dash with gauges installed and throttles lay wires put in a fiberglass tube to back and then glassed to the hull saves hangers. Install motors drives etc. 2 guys 2-3 days I know riggin allegadly takes forever but we streamline the process Lets say $3000 total
Trailer $1000
Total cost $16000 in materials and labor
Asking price $25,000 Selling price $22,500 30% gross profit 40 units
Lets say the 35 cost $30,000 to build ask $50,000 and sell for $45,000 30% also.
$260,000 gp 25ft
$450,000 gp 35 ft
$710,000 gp
Rent $1.00 sq ft 30,000 sq ft $30,000
Utilities $15000
Misc labor (office etc $100,000)
equipment cost (over 5 years) $100,000
misc $65,000 shows etc.
Net profit $400,000.
All materials bought up front no terms cash for best deal.
Or you could make $400,000 one boat a year and you have a chief.
I think its possible and I know the costs of glass materials and engines. Don't know drives and rigging but can figure based on markup in other products.
First year costs
$1.6 materials
$310,000 overhead
$500,000 eqipment (borrowed money)
$90,000 misc
$2mil investment $400,000 return 20% in the boat business.
Also definatly not a bayliner.
