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Old 24-04-2023, 08:30   #1
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Battery Price Markup by Shipyard - 60%?

Am looking at an invoice for a bank of 8 Lifeline GPL-4CT (6V 220AH) batteries at $757 before tax.

A quick google search shows these at much lower prices, including retailers where I could purchase locally and transport to the shipyard.

Is it possible that I'm missing something or is it normal for such huge markups on prices by a shipyard?
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Old 24-04-2023, 08:52   #2
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Re: Battery Price Markup by Shipyard - 60%?

That’s why you get quotes before work.
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Old 24-04-2023, 08:55   #3
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Re: Battery Price Markup by Shipyard - 60%?

Quote:
Originally Posted by smac999 View Post
That’s why you get quotes before work.
Are you saying that it would not be unusual for a large and well known chain of shipyards to charge more than 50% over retail for parts?

Ugh.

It's not been my experience at other shipyards. Usually, it's the number of hours for work, where I've felt squeezed but not usually on parts, or not to this degree.
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Old 24-04-2023, 09:03   #4
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Re: Battery Price Markup by Shipyard - 60%?

You could ask them about the price, politely mentioning that it is too high, and maybe they'll bring it down (a little).


Also, was this the "installed price" or were there labor fees on top?
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Old 24-04-2023, 09:05   #5
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Re: Battery Price Markup by Shipyard - 60%?

Not installed.

I have gently asked them to check the prices.
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Old 24-04-2023, 10:15   #6
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Re: Battery Price Markup by Shipyard - 60%?

Batteries are a pain to ship and move around. It might be worth a couple of hundred to avoid the hassle of having to pay shipping, or getting them yourself (gas, effort). Depends on the dollar value you put on your time, and how much Voltarin you have available.

Also, small-volume dealers like marinas probably don't get the same low wholesale prices that high-volume outlets get, so I would bet that the marina isn't getting quite as much of a markup as you suspect.
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Old 24-04-2023, 10:19   #7
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Re: Battery Price Markup by Shipyard - 60%?

Quote:
Originally Posted by Student_Driver View Post
Are you saying that it would not be unusual for a large and well known chain of shipyards to charge more than 50% over retail for parts?

Ugh.

It's not been my experience at other shipyards. Usually, it's the number of hours for work, where I've felt squeezed but not usually on parts, or not to this degree.
I think it is likely that they are charging a 25% markup, which is not unusual (though I agree, it is distasteful) but unless you negotiated a deal on parts (or provide them yourself) this is how it works.

I think your 50% number (which I agree would be over the top) assumes that the yard is buying the batteries at the lowest price you found on the internet. Most likely they buy them from another reseller who is also adding a margin.

I make it a practice to always provide the parts/equipment if I want a yard to install something. I have never had a yard refuse to install something I have already purchased.
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Old 24-04-2023, 10:22   #8
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Re: Battery Price Markup by Shipyard - 60%?

Amazon shows these at $474 (from battery guys) with free shipping to be delivered April 28 to May 2. (757/475)=159%

Defenders is at 592. or a 28% markup.

8 of these and two others for a total ten batteries.

And I may need several more..

it's between $1600 and $2800 for just the difference in just the parts...
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Old 24-04-2023, 10:35   #9
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Re: Battery Price Markup by Shipyard - 60%?

I had a chat with the shipyard manager. He tells me that's what he pays from a supplier who delivers to him and will handle warranty issues etc. I won't dispute it further this time, but I will consider doing my own purchasing going forward for lumpy items.
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Old 24-04-2023, 11:40   #10
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Re: Battery Price Markup by Shipyard - 60%?

Quote:
Originally Posted by Student_Driver View Post
Are you saying that it would not be unusual for a large and well known chain of shipyards to charge more than 50% over retail for parts?

Ugh.

It's not been my experience at other shipyards. Usually, it's the number of hours for work, where I've felt squeezed but not usually on parts, or not to this degree.
Lol, sorry but how long have you owned a boat?
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Old 24-04-2023, 11:42   #11
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Re: Battery Price Markup by Shipyard - 60%?

Quote:
Originally Posted by Student_Driver View Post
I had a chat with the shipyard manager. He tells me that's what he pays from a supplier who delivers to him and will handle warranty issues etc. I won't dispute it further this time, but I will consider doing my own purchasing going forward for lumpy items.
A lot will depend on where your boatyard is sourcing the batteries. If they are getting them from West Marine (as an example), then they have a markup on an already large markup!

If you've found the batteries you want at a much lower price, just buy them from the other source.
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Old 24-04-2023, 12:12   #12
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Re: Battery Price Markup by Shipyard - 60%?

Quote:
Originally Posted by Student_Driver View Post
Is it possible that I'm missing something or is it normal for such huge markups on prices by a shipyard?

Depends. I always get multiple quotes on things like that. Recently the boatyard quoted me around 60% more for anchor chain than what I ultimately paid. Like batteries, chain is a hassle to ship and handle.


I don't like their pricing, but on the other hand, running a boatyard is a hard way to make money.
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Old 24-04-2023, 12:42   #13
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Re: Battery Price Markup by Shipyard - 60%?

In many trades such as electrician, plumber, pool service and the like - if a part is installed it is double whatever we paid for it wholesale. Plus labor.
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Old 24-04-2023, 13:51   #14
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Re: Battery Price Markup by Shipyard - 60%?

OMM — Yep. At least double. When I was in high school, I worked part-time in a big electronics store. We posted the list prices for vacuum tubes, but most were sold to "technicians" at a discount of 50% then 10% then 2%. I got good at figuring percentages.
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Old 24-04-2023, 15:35   #15
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Re: Battery Price Markup by Shipyard - 60%?

Most small volume retailers work on a 1/3 (33 1/3 %) discount off the Manufacturers Suggested Retail Price.-msrp
If msrp is $150,then the retailer buys at 1/3 off ($50) or $100.

Looking at this from a mark-up view,the retailer marks up his $100 cost by 50% ($50) to a retail price of $150. This is normal.
If a large volume "discounter" wants to profit,he by-passes & becomes the wholesaler. He buys a large volume of each item at a time,often direct from the mfgr at approx 50% of msrp. $150msrp minus 50%= $75 cost.
He can then "retail" it for anywhere between (75 + 50%=$37.50)=$112.50
& full msrp= $150. He still makes the same "margin" (50%),but not as many $$ ($37.50 vs $50),so he has to sell more volume.
He probably has other costs such as shipping,larger warehouse,more $$%% tied up,etc.
As small,one shot, retail buyers,we must get competitive quotes,negotiate & shop around.
Also,if we expect local small businesses to stay around for our future convenience,we must support them ,within reason.
This is even a larger consideration when you live in small and/or remote communities.

Cheers/Len
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