JamesT
Active Member
I'm starting a new post due to a couple folks politicizing Sea Ray's difficulties in another post. Many people in that post were saying that Sea Ray's prices are too high and I wanted to take issue with that. First off IMO there is really no such thing as a price for anything being "too high." As they say in real estate, the right sales price is what someone is willing to pay within the seller's desired time frame. And in business you charge as much as your target market will bear. I don't think price alone is Sea Ray's problem. There are brands out there that charge much higher than Sea Ray. Brands like Tiara, Riviera, Viking, Sabre, and (the new) Carver brands. Foot for foot those boats are significantly higher priced new than Sea Rays, yet their production is significantly lower. And because of their limited production, their resale value drops a lot less per year than Sea Ray. I think Sea Ray's problem is they build too high a volume of quality boats that have a timeless look and charge a market competitive price. But because they built so many, the PO market cannibalized their new boat sales. I will also say that SR was too late to the game in their sport yacht design. The 51 & 54 Sundancers' living space pales in comparison to boats like the new Carver C52, the Prestige 500, & the Tiara 50 Coupe. Sea Ray also put queen beds on both staterooms as if two couples cruising together is somehow normal. Even if I wanted to pay the money, I wouldn't/couldn't own a 51DA, 54DA or a 58DA because my kids will not sleep together in the same bed. The other brands out there either provide a 3rd stateroom or scissor split the forward stateroom.
I will add that Marine Max also has much to do with the pricing of Sea Rays. When you buy a new Sea Ray, you don't pay just the cost of the build plus Sea Ray's desired profit margin, you also pay whatever Marine Max looks to make and from what I hear their desired gross profit margin is 40 percent.
I sincerely hope the new owners consider cutting back production to the levels of the brands I mentioned above, and begin making sensible design changes. I also hope they tighten their dealer network and possible part ways with Marine Max.
I will add that Marine Max also has much to do with the pricing of Sea Rays. When you buy a new Sea Ray, you don't pay just the cost of the build plus Sea Ray's desired profit margin, you also pay whatever Marine Max looks to make and from what I hear their desired gross profit margin is 40 percent.
I sincerely hope the new owners consider cutting back production to the levels of the brands I mentioned above, and begin making sensible design changes. I also hope they tighten their dealer network and possible part ways with Marine Max.