Boatyard mark up

D

Ductboy

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What would you consider a reasdonable mark up for a boatyard to charge for readily available items?

I was just looking over my 2010 yard bills and realized that the yard charged me $711.00 for zincs that I could have purchased on line for $283.00.

I am all for someone making money off of products that are resold (thats part of how I earn a living) but 250%? ...thats just crazy. Its was similar, not quite as bad, for bottom paint.

Dan
 
My marina would be extremely fair

Sorry to hear yours doesn't appreciate your
Business
 
I have been able to negotiate a discount on parts, but not on the labor. They have wiggle room in their parts prices. I got 15% and that also saved me on the amount of the sales tax they had to charge. In Ca, labor is not taxable.

Or you might see if they will be willing to use parts which you supply. then you can buy them online at boatfix and have them install for you.
 
i can understand marinas selling at list price since they dont' have a high turnover on their inventory and they're offering the convenience of having the part in stock right there, plus handle any warranty issue on parts that may require it.
 
Get the Kellogg Marine list price for the zincs and go back to them and demand some money back.
 
The yard gets a delivery daily from Kellog, so there is no issue with inventory carry over unless they ordered the wrong part and had to sit on it).

These are specialized zincs that only fit maybe three boats in the marina, so I am sure they are ordering them the day before they are needed.

Dan
 
That sure is robbery. I delivery for Port Supply, and the prices are anywhere from 30 to 40 per cent off list, and if the order before 3pm they get it by noon the next day. I also pick up returns ( ordered the wrong # etc) and the account gets credit promtly. Kellogs' prices in many products are cheaper than Port.
 
They're in business to make money, and that's one of the ways they do it. They buy at a wholesale, or trade, price, and sell to you at list price. Auto repair shops do the same thing. It's the nature of the beast. Is it fair? I think in some ways it is. They have the right to try to turn a profit every way they can.
I used to be in a boatyard, and they did the same thing with me. I couldn't fault them because its how they make their living and pay the bills. While I was there they had a condition of being there that they had to do all winterizing, and most repairs. If an outside person had to be called in they had to go through them and give them a percentage of the job. They were pretty fair with me in that they were always honest, and allowed me to do smaller repairs and tune-ups myself. Other places I looked in to wouldn't let you do anything on your boat. Not even wax the hull before it goes back in the water in the spring.
It killed me to pay them to do some things because I could do them myself, but I never resented it because it was their business and their property.
Now I dock and winter store my boat on property I own. The dockage and storage are the smaller part of the savings. The bigger part is the money I save by being able to do most maintenance and simple repair chores myself, and by buying the parts online or through other discounted sources for much less money.
 
JVM-

I agree that they are within their right to make a profit, although I am probably biased coming from a construction industry background. In most cases, I am held to certain profit and overhead on all T&M work that I perform. This represent only a small percentage of the work my company does, but It kills me to have to justify the cost of every screw I use at work, and then to turn around and pretty much give the yard carte blanche for EVERYTHING they do. Pretty much nothing I have ever had done to the boat has ever been actually quoted, barely estimated even.

Again, I have to think that a reasonable profit in the real world is about 30%, not 250. Who makes that kind of profit? jewelers?

Dan
 
Everyone makes some good points. But the amount of markup you got hit with is a ripoff. I just had to replace a circulating pump on my boat. Average price on the net was about $179. Defender marine had it for $129. When I got there they accidently rang it up at "the boat yard price", $106.

So boat yards get a discount off even the best price we can get. I agree with Dan - about 30% is fair.
 
Unless you berth at a Brewers I would go to the yard with the invoice you haver and ask them to give you a credit based on the wide discrepancy in price. I have found that my yards mark up is reasonable and in the past I have questioned their prices and they have told me, "if you can get it cheaper then get it and we will install".

And if the yard is Brewers, leave immediately.
 
A wise man once said to me, "You don't get what you deserve, you get what you negotiate."

Rules to live by!
 
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