Wandering in the water on a boat aimlessly from one place to another is an appealing way to spend some time and have fun. But, the boat’s owning price is stopping you from doing that and thinking why they are expensive (overpriced) and are boats overpriced (expensive) in general or not? Let’s see clearly.
Boats are often overpriced; they are priced more than the actual price it should be selling (at some places). It is mainly due to supply & demand; many wanting a boat and less supply can significantly increase the price (increasing the profit on a single sale), and the reverse decreases the price.
Before diving deep into the reasons why boats are overpriced sometimes (at some places), we will see how the total price of a small bay boat (50,000 dollars boat) is spread across for different manufacturing and other costs. These are just average and approximate values; it will help you understand or get some idea about the costs involved in manufacturing a single boat.
Here we are not mentioning the price breakdown of any specific model (they are average calculations).
- Labors – $3,000.
- Materials used (mold, fiberglass, or other materials and paints) – $8,000.
- Electronics (Chartplotter, Radar, VHF, EPIRB, Wirings, etc) – $6,000.
- Reaserch & Development (mold design and normal boat design) – $4,000.
- For displaying in boat shows, marketing, advertising, and others – $6,000.
- Factory maintenance – depends on the area.
- Motor (outboard or I/O) – $10,000.
- Taxes – $1,000 (it depends on the place where you live).
- Trailer – $3,000
Those are average and approximate values; closely, $5,000 – $10,000 profit on a $50,000 boat is a kind of a good deal. There are other ways to decrease the overall price and increase the profit beyond is by not using top tear (best) materials available, electronics, etc. Wanting a top tear boat (with high-end specs and design) will also increase the boat’s price.
And one more thing to consider here is that the boat manufacturers won’t make numerous boats all the time; they make a limited number of boats because it takes more time (roughly 300 – 500 hours to make one small/medium-sized boat) and requires more human labor to build (less machinery and more human labor is required).
All those things will increase the boat’s price. That’s a quite normal price, and there is one more point that increases the boat’s price from $50,000 to $70,000 or $80,000 or more, which is overpricing (due to more demand). We will now see the main reasons why boats are overpriced, and later on, we will see the best times to buy one.
Before that, check this awesome and helpful video on why boats are overpriced, explained by Gary Fretz, who has nearly 30 years of experience in buying and selling boats, to get some idea behind the overpricing of a boat.
Why are boats overpriced (expensive)?
Here are the main reasons why boats are overpriced (expensive).
The boats are overpriced (expensive) often due to supply & demand; around 30 people looking for the same boat (in a month) will increase the price, and the reverse of that will decrease the price. That’s why during the boating season, the price rises greatly due to more demand than other seasons.
That is one of the main reasons why boats are overpriced (expensive) in the American (pacific northeast and southern regions) and Canadian regions since there are more people (15-30) for a single model (boat) than the rest other places. And take the Caribbean, where there are 20 to 30 boats for a single person (prices are super low out there).
The normal profit of roughly $5,000 to $10,000 is usually fine for a $50,000 boat. Still, if there is more demand and less supply for any particular boat, it will dramatically increase the boat’s price from $50,000 to $70,000 or much more “that’s an overpriced boat.” So, supply and demand are the main reasons why boats are overpriced.
Putting something in the market and getting profit more than 1/3rd of its selling price during peak times (summer) is a jackpot, and that’s kind of what boats are doing out there. Getting 5,000 dollars to 10,000 dollars or more as overall profit on a 50,000 dollars boat is gonna be a solid deal for the owner.
OKAY, let’s be clear on this point; getting more returns as profits on a single sale doesn’t mean that everyone can dive into the boating industry since you will get huge chunks of profit on a single sale. During the writer season, all of that may level up due to low sales (if the demand is low, sales will be less, and we might end up giving more discounts for each sale).
That being said, we will now divide this overpricing of boats into 3 main categories (listed below) to know in a detailed way why boats are overpriced (expensive) in general.
1. Less supply & more demand for a boat will increase the boat’s price significantly
Less supply and more demand are one of the main reasons why boats are overpriced (expensive) because buying a boat when the demand is more and the supply is less will result in overpricing of that boat. For example, 30 people looking for a single boat in a month or so.
They can increase the price of that boat since there is more demand for that boat, which is a common trick used in business to get more revenue from a single sale. If you buy a boat when the demand is less, and the supply is more, the prices will automatically be less (you will get discounts as well). So, supply & demand is crucial in the pricing of boats.
2. Places where you buy the boat also increases the boat’s price
The boat prices also depend on the place where you are buying it. Buying a boat in northern regions (the pacific northwest region specifically) and southern regions (and mostly all over the USA) will be expensive. In those places, demand for a boat is more than in the rest of the regions (so they will increase the price).
And similarly, buying a boat in the places where the demand for the boats are least will be less expensive (you will get discounts as well), where you will see a reverse of that (15-30 people: 1 boat) will become 1 buyer: 15 to 30 boats. So, the place where you will buy the boat also increases the price dramatically.
Related post – Are boats cheaper in Florida? Check this article to know the actual amount you can save while buying a boat in Florida, along with the benefits and drawbacks of buying one in Florida.
3. Seasonality will increase the price
Summer (May to September) is the main season for boating, and the demand will be at peaks, so the more demand for a boat during the boating season will increase the boat’s price. The vise versa is also correct; buying a boat in the offseason will result in saving money.
So, the seasonality will increase the boat’s price due to more demand for a boat. That’s a clear indication of overpriced boats. Keeping all these things in mind will give some exactness on the overall prices of boats across the year and their trends.
4. Other reasons
Some other reasons why boats are expensive (overpriced) are building materials used and labor used. Using top tear materials for construction, top tear electronics, and top tear designers for R&D, extra fittings, looking for luxury will also increase the boat’s price.
But all those costs are kind of tangentially related to the overpricing of boats because here you are getting a top tear boat since all the materials and everything used is the best available in the market. And if the demand increases, the price will increase furthermore “Overpriced boats.“
The same thing applies to a used boat because wanting a classic boat, and if there are few boats available, then the owner can sell it at his own rate, and if you liked the price, you could buy; otherwise, … If there are more used boats available, the price also decreases (since supply is more).
When do boats go on sale? (The perfect time to buy one)
Buying a boat at the correct time may save you a ton of money, and the wrong time may result in paying more. So, do boats go on sale? When can you expect one on sale? Let’s see in a detailed way.
Boats often go on sale during the offseason times (winter and fall ending) and even at the boat shows. However, you can see sales during other days, but the chances are less, and sometimes you may see a small drop in the price compared to in winter & fall ending or at boat shows.
You can expect anywhere between a 5% to 13% decrease in price (discount) in the winter. At boat shows, you can expect a 3% to 8% decrease in price. Those are average and approximate values; sometimes, you may get more, and sometimes you may get less.
We will now see the discounts you may get for a boat in winter (both used and new boat) and at a boat show. NOTE – Those values are average and approximate values; sometimes, you may get more, and sometimes you may get less.
| Boat type | The discount you may get for a new boat in winter | The discount you may get for a used boat in winter | The discount you may get on a boat at boat show |
| Pontoon boat | around 6 – 8 (9)% (approximately 1,500 – 5,000 dollars) | around 9 – 13% (approximately 2,500 – 6,000 dollars) | around 3% (approximately 1,000 – 2,500 dollars) |
| Jet boat | around 6 – 9% (approximately 3,000 – 7,000 dollars) | around 10 – 14% (approximately 4,000 – 9,000 dollars) | around 3 – 5% (approximately 1,500 – 3,000 dollars) |
| Jon boat | around 5 – 10% (approximately 100 – 300 dollars) | around 7 – 11% (approximately 200 – 450 dollars) | around 3 – 7% (approximately 100 – 250 dollars) |
| Bowrider | around 7 – 10% (approximately 2,000 – 5,000 dollars) | around 9 – 13% (approximately 2,500 – 6,500 dollars) | around 4 – 5% (approximately 1,000 – 2,000 dollars) |
| Deck boats | around 10% (approximately 2,500 – 6,000 dollars) | around 10 – 12% (approximately 3,000 – 6,500 dollars) | around 5% (approximately 1,000 – 2,000 dollars) |
| Bass boats | around 7 – 13% (approximately 2,000 – 6,500 dollars) | around 9 – 14% (approximately 2,500 – 7,500 dollars) | around 4 – 7% (approximately 1,000 – 2,000 dollars) |
| Skiff boats | around 6 – 9% (approximately 1,000 – 3,000 dollars) | around 8 – 12% (approximately 2,500 – 4,500 dollars) | around 6% (approximately 1,500 – 2,000 dollars) |
| Bay boats | around 8 – 9% (approximately 4,000 – 8,000 dollars) | around 9 – 13% (approximately 6,000 – 10,000 dollars) | around 4 – 7% (approximately 2,000 – 4,000 dollars) |
| Sailboat | around 5% (approximately 5,000 – 8,000 dollars) | around 8 – 10% (approximately 7,000 – 9,000 dollars) | around 5 – 8% (approximately 3,000 – 5,000 dollars) |
| Personal watercraft | around 5% (approximately 1,000 dollars) | around 6 – 9% (approximately 1,000 – 2,000 dollars) | around 3% (approximately 500 – 1,000 dollars) |
By looking at those values, you may get some idea about the discount you may get if you purchase a boat during any sale.
Related post – When do boats go on sale? Check this article to know more and to see some of the actual amounts you can save while buying some of the popular boats on sales (for both used and new boats).
1. Are boats cheaper in the winter?
Boats are 5% to 13% cheaper in winter than other seasons such as summer, spring, and fall. It still depends on the place where you buy, but often prices will go down a bit by the end of the fall & winter and bounces back to normal (higher) prices in the summer and by the end of spring.
The price drop depends on so many factors, such as seasonality (mainly), a brand, the place where you buy, etc. We will now see some of the popular boat (both new and used boats) discounts you may get in winter or at the end of fall. These values are approximate and average values.
Note – These prices are just average discounts you may get. In some places, you may get more, and in some places, you may get less.
| Boat type | New boat average price | The discount you may get for a new boat in winter | Used boat average price | The discount you may get for a used boat in winter |
| Pontoon boat | $ 40,000.00 | around 6 – 8 (9)% (approximately 1,500 – 5,000 dollars) | $ 25,000.00 | around 9 – 13% (approximately 2,500 – 6,000 dollars) |
| Jet boat | $ 52,000.00 | around 6 – 9% (approximately 3,000 – 7,000 dollars) | $ 30,000.00 | around 10 – 14% (approximately 4,000 – 9,000 dollars) |
| Jon boat | $ 2,000.00 | around 5 – 10% (approximately 100 – 300 dollars) | $ 1,000.00 | around 7 – 11% (approximately 200 – 450 dollars) |
| Bowrider | $ 35,000.00 | around 7 – 10% (approximately 2,000 – 5,000 dollars) | $ 25,000.00 | around 9 – 13% (approximately 2,500 – 6,500 dollars) |
| Deck boats | $ 30,000.00 | around 10% (approximately 2,500 – 6,000 dollars) | $ 20,000.00 | around 10 – 12% (approximately 3,000 – 6,500 dollars) |
| Bass boats | $ 25,000.00 | around 7 – 13% (approximately 2,000 – 6,500 dollars) | $ 15,000.00 | around 9 – 14% (approximately 2,500 – 7,500 dollars) |
| Skiff boats | $ 25,000.00 | around 6 – 9% (approximately 1,000 – 3,000 dollars) | $ 15,000.00 | around 8 – 12% (approximately 2,500 – 4,500 dollars) |
| Bay boats | $ 45,000.00 | around 8 – 9% (approximately 4,000 – 8,000 dollars) | $ 30,000.00 | around 9 – 13% (approximately 6,000 – 10,000 dollars) |
| Sailboat | $ 50,000.00 | around 5% (approximately 5,000 – 8,000 dollars) | $ 30,000.00 | around 8 – 10% (approximately 7,000 – 9,000 dollars) |
| Personal watercraft | $ 15,000.00 | around 5% (approximately 1,000 dollars) | $ 7,000.00 | around 6 – 9% (approximately 1,000 – 2,000 dollars) |
By looking at those values, you may get some idea about the discount you may get if you purchase a boat (new or used boat) in the winter.
Related post – Are boats cheaper in winter? Check this article to know more and to know the actual values you can save while buying a boat in the winter, along with benefits, drawbacks, and things to avoid in a detailed way.
2. Are boats cheaper at boat shows?
Boats are 3% to 8% cheaper at boat shows compared to buying at a dealer. That’s an average discount, and it can vary, and sometimes, you may get extended warranties on a boat and outboard motor instead of discounts. You can expect about 4% or 5% on a boat at a boat show than at the dealer.
Definitely, there will be a drop in price at boat shows than at dealers. How much you will get may depend on so many factors such as type of boat, the brand you are getting from, location, etc. So, the right (correct) answer is, “IT DEPENDS.”
But don’t worry; there will be some form of discounts on a boat either as a discount or extended warranties on a boat or outboard. We will now see some of the popular boat discounts you may get at boat shows.
Note – These are just the boats’ average prices and average discounts you may get on that boat. In some places, you may get more, and in some places, you may get less.
| Boat type | Average price | The discount you may get on the boat at a boat show |
| Pontoon boat | $ 40,000.00 | around 3% (approximately 1,000 – 2,500 dollars) |
| Jet boat | $ 52,000.00 | around 3 – 5% (approximately 1,500 – 3,000 dollars) |
| Bowrider | $ 35,000.00 | around 4 – 5% (approximately 1,000 – 2,000 dollars) |
| Deck boats | $ 30,000.00 | around 5% (approximately 1,000 – 2,000 dollars) |
| Bass boats | $ 25,000.00 | around 4 – 7% (approximately 1,000 – 2,000 dollars) |
| Skiff boats | $ 25,000.00 | around 6% (approximately 1,500 – 2,000 dollars) |
| Bay boats | $ 45,000.00 | around 4 – 7% (approximately 2,000 – 4,000 dollars) |
| Sailboat | $ 50,000.00 | around 5 – 8% (approximately 3,000 – 5,000 dollars) |
| Personal watercraft | $ 15,000.00 | around 3% (approximately 500 – 1,000 dollars) |
By looking at those values, you may get some idea about the discount you may get if you purchase a boat at a boat show.
Related post – Are boats cheaper at boat shows? Check this article to know more and to know the actual values you can save while buying a boat at a boat show, along with benefits, drawbacks, and things to avoid in a detailed way.
Key takeaways
Due to the supply and demand, boats are overpriced (expensive) because if there is more demand for a particular model and supply is less, then the price also increases. The reverse of that will decrease the price since the manufacturers require sales.
That is one of the main reasons why boats are overpriced (expensive) in the American and Canadian regions since there are more people for a single model (boat) than rest other areas in the world. For example, take the Caribbean, where there are 20 to 30 boats for a single person.
So, supply and demand are the main reasons why boats are overpriced (expensive) in some places other than the manufacturing costs.
