third price increase

nickevans10

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I was at one of my local dealers yesterday, and he confirmed two things.

1. Bennington has a 7% price increase effective January 1.
2. Bennington will NOT lock in the price of a custom ordered boat. The price you pay is the one it's at when the boat hits the dealer lot. And it's not just Bennington either. Same for others.

This particular dealer has a couple dozen Bennys on order and has none yet. Nada.
That's different than what my dealer said. I guess we'll find out mid year.

I'm not paying an increase. I'll wait for the supply to catch up and people dumping boats if asked to pay more.
 

Jack M

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With the shortage going into its second year, there won't be any dumping. Used boats are still selling for for more than the original owner paid .
 

Jack M

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There will be a few more price increases by then too . They increased a couple times a year before the supply chain interruptions .
 

nickevans10

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There will be a few more price increases by then too . They increased a couple times a year before the supply chain interruptions .
I appreciate their is currently price increases. At some point when supply picks back up they won't be able to have demand at at 20% premium. Maybe I'm wrong and on a go forward basis pontoons will be 20% higher than before. I doubt that will happen, as salaried are not increasing anywhere close to that.
 

Jack M

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I ordered my first Bennington in December of 2012 ,the motor on the 2022 I ordered in August lists for as much as I paid for a 2013 ,22 SLX . The 2020 QCW I had was about 20 k less than the 2022 . Basically same options 2 years newer with a 250 instead of a 200
 

SEMPERFI8387

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I appreciate their is currently price increases. At some point when supply picks back up they won't be able to have demand at at 20% premium. Maybe I'm wrong and on a go forward basis pontoons will be 20% higher than before. I doubt that will happen, as salaried are not increasing anywhere close to that.
Being boats are not market based variable costing such as lumber and gas, I highly doubt you’ll see pricing decrease. Best case, you’ll see pricing hold without increases. This is the theory in our industry (non-lumber building materials) as many cost increases are not just materials based, but labor based. No more $10/hour starting wage (where I live). Gonna have to pay to play.
 
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SEMPERFI8387

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Funny thing is I paid $900 for a 55” TV in 2012, I just replaced it, same size, much better technology and paid $400. Crazy.
 

DiamondDave952

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There has to be some middle ground/protection for the buyer so their budget doesn't get blown up. Now, it feels like the salesperson can low ball the price (knowing they are not going to be held responsible) to get the sale only to have Bennington change the price once it reaches the dealership leaving the buyer in a predicament; to accept the new price (hopefully without buyer's remorse) or start over and look elsewhere. I am glad I bought my pontoon in 2020 when the agreed upon price was the price and everybody wins.
 

Greg23LSB

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I don't have mine yet, but I would not have gone through with the purchase if I wasn't locked on the price. This will be the third new boat we have purchased from this dealer so I know he is being honest with me when he said the price is locked. He is straight forward and no pressure on the sale side.
 

Vikingstaff

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It is challenging times for any of these sorts of purchases. I don’t see prices dropping at all on new. Perhaps with time one will get “more” for the money, but actual price drops? Nah.

However, as supply and demand eventually balances, I can see the new prices flattening at some point.

Used is where I can see there being a big “dump” on the market sometime between late 2023-26 as people tire of their big expensive toys that require annual upkeep and storage. Particularly if they don’t use it and move on to other interested or start traveling for vacations again. Might be some great opportunties in that time range for pre-owned boats, snowmobiles, SxS, PWC, etc…

I also think negotiated price (% off) could certainly be on the table during purchase and something one could lock into writing in their purchase agreement. I can appreciate that if the manufacturer price goes up, the dealership cannot take a loss and stay in business. That said, if they are willing to sell at X % off now, then that seems to be something to try to lock in, in writing. However, I am not a business person, so I don’t pretend to know the intricacies of it all.
 

Mozekian

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Many people have been building new homes in our neighborhood. They sign a deal for the house and upgrades and they waited for their house to be built. As building supplies increased, the builder started to require more money to close on these homes. People were told a few weeks before close they would need to come up with the extra cash, sometimes 6 figures, to close or they dont get the house.

Builders almost wanted these buyers to bail because the builder(s) would just sell the completed home on the MLS as a "move in ready" for top dollar and take advantage of the housing supply fiasco.

All legal, all the contracts from builders have boiler plate "weasel" clause language to request more money Ethical, no. Happening nonetheless.

I imagine boat contracts for purchase are the same and figure there are some dealers that would like the buyer to bail so they can put a big sticker price on that boat and have someone buy it off the showroom floor. If any dealer says they will honor the original agreed price, its most likely because they pride themselves on operating on a higher ethical level than what we see from most businesses these days

We are doing a small addition on our house and while we wait months for the city permit, I had the choice to put 35% down and lock the price in or 15% down and not lock the price in. I did 35% because I did not want to play any games come build time.
 

Black Betty

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My dealer gave me a quote when we were looking. There was a price increase before we pulled the trigger, but he honored his original quote. There was at least one more price increase before it came in, but the price stayed the same. Ordered end of august and came in beginning of november.
 

SEMPERFI8387

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My dealer gave me a quote when we were looking. There was a price increase before we pulled the trigger, but he honored his original quote. There was at least one more price increase before it came in, but the price stayed the same. Ordered end of august and came in beginning of november.
My dealer did the same with our camper, but I also knew what was happening and made sure my contract protected me when we signed it.
 

big shooter

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Many people have been building new homes in our neighborhood. They sign a deal for the house and upgrades and they waited for their house to be built. As building supplies increased, the builder started to require more money to close on these homes. People were told a few weeks before close they would need to come up with the extra cash, sometimes 6 figures, to close or they dont get the house.

Builders almost wanted these buyers to bail because the builder(s) would just sell the completed home on the MLS as a "move in ready" for top dollar and take advantage of the housing supply fiasco.

All legal, all the contracts from builders have boiler plate "weasel" clause language to request more money Ethical, no. Happening nonetheless.

I imagine boat contracts for purchase are the same and figure there are some dealers that would like the buyer to bail so they can put a big sticker price on that boat and have someone buy it off the showroom floor. If any dealer says they will honor the original agreed price, its most likely because they pride themselves on operating on a higher ethical level than what we see from most businesses these days

We are doing a small addition on our house and while we wait months for the city permit, I had the choice to put 35% down and lock the price in or 15% down and not lock the price in. I did 35% because I did not want to play any games come build time.
I cannot imagine being in the construction industry and locking in a price. Lock in Labor sure, but materials no way. We saw lumber cost go up 400% last year, eventually came back down some. We priced out materials to build a small camp, in 8 months the materials went from $11,000 to $17,000. Builders are not making enough to eat that. I think you were very smart to lock in with 35% down. Hopefully this year the market is more stable and the builder can absorb any fluctuations.

Boats are the same, I don't think most dealers make enough on a boat to absorb major increases without passing that on. Bennington most likely cannot absorb major material increases and stay in business. It is a crazy time for sure.

However I received my boat in June 2021. In the 7 months since I have paid my dealer $1,700 for service, storage, transportation. So a smart dealer will probably eat some costs to keep a good customer.
 

Mozekian

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I cannot imagine being in the construction industry and locking in a price. Lock in Labor sure, but materials no way. We saw lumber cost go up 400% last year, eventually came back down some. We priced out materials to build a small camp, in 8 months the materials went from $11,000 to $17,000. Builders are not making enough to eat that. I think you were very smart to lock in with 35% down. Hopefully this year the market is more stable and the builder can absorb any fluctuations.

Boats are the same, I don't think most dealers make enough on a boat to absorb major increases without passing that on. Bennington most likely cannot absorb major material increases and stay in business. It is a crazy time for sure.

However I received my boat in June 2021. In the 7 months since I have paid my dealer $1,700 for service, storage, transportation. So a smart dealer will probably eat some costs to keep a good customer.
Ive noticed something during the last year when it comes to car dealers. Even though there are few cars on the lots, the service centers are full, showing how they really do make their money on the service side and not so much the sales side. So I think you have a great point about the dealer knowing he can recoup his costs in service side with the boat owner.
 

CapKaz

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This is happening in all manufacturing industries. Good luck to those that think you can order an item that will be built in the future and have a guaranteed price. What you should have is a negotiated cancel order that insures you any down payment be returned if you decide to cancel your order. We ordered a four season 5th wheel travel trailer that we had to wait for it to be manufactured this last fall. Just weeks before delivery we were informed of a price adjustment. We had a choice buy it or cancel. I don’t believe the prices for these trailers will ever go down. That’s just the way it works. So my thought was if we really want it you just have go with it. Same with our watercraft. The good thing is you will probably be able to get more for your present toy if you want to buy new. Good luck
 

Vikingstaff

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I really think CapKaz is spot on above. If you can negotiate a deposit back clause due to price uncertainty, then go for it. OR perhaps the ordering a purchase approach needs to shift to the “what’s available on the lot at a known price” purchase instead.

I read an article on pontoons recently. It’s true. I can read. :D Market projections have current gross sales (in dollars) for pontoons DOUBLING from their 2021 HIGH between now and 2028. 2028!!! o_O

If someone is waiting for pre-2020 “normalization”, I don’t believe you’ll find it. That pontoon has sailed. With everything I’ve been reading, I think what we are seeing now is our new “normal”. At least for a decent number of projected years. The longer one waits, the more expensive it will be.

I don’t say that to muddy the waters when people are considering buying one. I say it so people realistically evaluate perspective boat (or any other big ticket item these days) ownership.

Like many things, even if the price seems distasteful now, it is projected to be worse for the next 5-6 years. :oops:

Thus, do you really want it?

If YES, just bite the bullet now and buy it.

If NO because the price is too much now, then it will only get worse in the foreseeable future. In this later case, this sort of purchase is probably not the right move for you.
 
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