What is the likely gross margin, SAG cost and profit margin for a boat dealer
selling power craft between 14 and 48 feet

10 to 15 % on the top line 5 to 10 on the bottom.
Same as car dealers. 10 on bottom if lucky.
According to Tom West in the 2002 Business guide
Boat Dealers sell for 1x annual adjusted earnings
adding FFE and Inventory
or
2 to 3 x Descretionary cash flow
+ used boat inventory
+ FFE

2002
Avg asking price 1,447,395
Avg Gross income 2,441,108
Avg. Gross inc. multiplier  .61
Mean Gross inc. multiplier  .54

Cash Flow
Avg, Cash flow 204,297
Avg. cash flow multiplier 4.79
Mean cash flow multiplier 2.98

---

Request for Answer Clarification by adubu-ga on 16 May 2003 05:20 PDT

Sorry,

Don't quite understand (my fault probably).

Simple example. If a dealer is selling a boat (new) for $250,000 what
is his likely gross margin i.e. at 50% it would be $125,000 because
the manufacturer would have transferred it at $125,000.

As a percentage of revenue in the business as a whole what would his
likely Sales Admin & General costs be (in that type of business it
might be above 20% but below 30%).

What would he be looking at for PBT as a percentage of revenue.

---

Clarification of Answer by oracledave-ga on 16 May 2003 08:42 PDT

This was taken from MarineMax 10-Q
MarineMax is a recreational boat dealer that, through its 59 retail
locations in 13 states, sells new and used boats and related marine
products including engines, trailers, parts and accessories

(000's)
Revenue		$159,063	
COGS		$124,822	78.47% (as % of revenue)
Gross Profit	$34,241	        21.53%
			
SGA		$27,370	
Interest Exp.	$216	
Net Income	$6,655	        %4.18


Check out the 10-Q here.
http://www.sec.gov/Archives/edgar/data/1057060/000095015303001073/p67856e10vq.htm