Boats and marketing DIY and save!!!

QUOTE(KnockedDown @ Jul 20 2008, 10:49 AM)
Rough numbers and I may be way off but here goes. $30k for a Viper (which includes sails, trailer and shipping) + a guessed at $3k royalty payment + 15% on 30k ($4.5k) for dealer mark-up nets you 37.5k which is most of the way towards $40k. Of course if the dealer mark up is any higher (say 20%) you're pretty much there. Still unaccounted for is the carbon vs. aluminum rig and better build of the Viper vs. the SB3.


Brian's royalty is not a significant number.
The raw build cost of the Viper is actualy higher than the other smaller sportsboats. Its a longer hull. It has some high end components (carbon mast, orbit blocks etc). Its a technical lightweight hull requiring more hours than a simple layup. Its built by craftsmen in the UK rather than a production line in Asia. Out of the factory door, a Viper is more expensive than the other 20' boats.

The big difference in the economic model of the Viper is that you are buying it straight out of the factory door.

The cost of the traditional business model of promoting, marketing and distributing a 20' sportsboat is a great deal more than 50% of the build cost.

Guestimate of traditional (eg Melges) Model:-
1.The builder of the Melges 20 is McConaghy Boats . McConaghy Boats sells the M20 to Melges for a profit. (I doubt less than 15%)
2. Melges who has invested in the design, the molds and the promotion expense also wants a substantial margin (I would doubt the margin is less than 30% on their cost)
3. Melges has appointed some dealers and will not undercut their dealers. The Dealer will typicaly expect a 20% margin on a boat this size (no less than 15).
4. R/P either collects a small royalty per boat or got paid up front, or a combination. Lets combine royalty and dealer at 20.
1.15 * 1.3* 1.20 = an approx 80% mark up on build cost.

The Viper class association looked at all these options when we wanted boats built. Trust me, we were shown plenty of well thought out plans that had the Viper selling for well over $40,000. We opted for something different.
1.We opted for a slightly more expensive build option where we knew we would have an involved, highly qualified builder who has the engineering expertise to keep the boat leading edge.
2. Grass roots, word of mouth promotion.
Rondar is a builder pure and simple. They are not a marketing organization. The US sailor is buying a Viper straight from the builder , the equivalent of buying a Melges straight from McConaghy.

Someone coined the phrase, the "wikinomics of the Viper". They are not far off the truth.

Traditional Distribution model = X (builder) + Y (Brand owner and promoter eg Melges) + Z ( Dealer or distributor or sales force). Price = $X+Y+Z.
Wikinomics Viper Model = $X.

Full disclosure. This will change. As the Viper class grows. As the volume of boats being produced by Rondar grows, and the volume of boats sailing that want spare parts and service grows, it is inevitable that there will have to be a US based service and distribution capability. As always, everything about the Viper will be transparent and you will read about it here first. In the meantime, despite the decline of the dollar and the increase in the coast of epoxy and carbon, you can still buy a heck of a sportsboat , ready to race for $30k.