New purchase negotiation rules of thumb

[Sawbonz]

Oh, Scot, and an example that I am familiar with in the RV world. If you go to buy a new "plastic" motorcoach who's asking price is $1M your initial offer really should be about $700k. If you pay the asking price they will dance with joy and celebrate you for a long time!

[Sawbonz]

Originally Posted by Scot McPherson

ah well a verbal boat show quote is not a contract. Did you get a written quote or a verbal estimate? There is no real such thing as a verbal quote, not enforceable most of the time anyway.

Correct, it is not a contract. But when you walk around the show quoting a number for days a reasonable buyer doesn't expect to see a 25% increase within two weeks for the same exact build. When that happens it is hard to get to, much less through, a contract.

[Stumble]

Originally Posted by Sawbonz

Correct, it is not a contract. But when you walk around the show quoting a number for days a reasonable buyer doesn't expect to see a 25% increase within two weeks for the same exact build. When that happens it is hard to get to, much less through, a contract.

For a custom or semi-custom it really isn't. Maybe there was an exchange rate change, maybe they sold an abandoned build slot, maybe it was a boat show special, maybe they had a spare mast and were discounting it but someone else took it, maybe the original quote was a mistake on someone's part..

There are a lot of reasons why the price could change quickly

On the other hand if you get a bad feeling bout things it's always better to walk away early.

[Scot McPherson]

Originally Posted by Sawbonz

Correct, it is not a contract. But when you walk around the show quoting a number for days a reasonable buyer doesn't expect to see a 25% increase within two weeks for the same exact build. When that happens it is hard to get to, much less through, a contract.

Originally Posted by Sawbonz

Oh, Scot, and an example that I am familiar with in the RV world. If you go to buy a new "plastic" motorcoach who's asking price is $1M your initial offer really should be about $700k. If you pay the asking price they will dance with joy and celebrate you for a long time!

Understood, but there is a big difference between having a boat built and buying one off the lot.

On a lot, you can make an offer a few percent below the sticker cost, in fact a low offer is already priced in so they can lower the price and make you feel like you got a good deal.

A builder is different. He is saying it will cost this much to build your boat, it includes his cost of labor as well as the materials. He is not offering to sell you something, he is offering you his services.

not the same.

Same thing in realestate. you can usually get away with offering 90% of the asking price without insulting the seller, you may get it you may not.

But when a house is being built for you, you get a quote for how much it's going to cost and you also better hope they don't have a cost over run because they might bail on you if they do, and good luck going to court...you may win you may not.

So...you don't make an _offer_ to a boat builder...You receive a bid and you can accept the bid or move on.

[Shrew]

Originally Posted by Sawbonz

4. Handled exchange rate fluctuations

I would expect the builder to quote and expect payment in local currency. Any exchange rate costs and fluctuations would be irrelevant to the builder. That is on you. They only care about the price, not how much the money costs you.