If Bass Cat boats limits the amount of boats that each dealership it creates a simple supply and demand marketing plan and allows Bass Cat to control the price of the boats that are sold at their dealerships. I would say that this is fixed pricing and allows very little chance for the dealership to deal on a boat. These dealerships are small like Bass Cat stated and they need to earn every dollar possible to stay in business, so every dollar these dealerships can earn is beneficial to their existence. Over the last 10 years prices on boats have escalated at an alarming rate. In 10 years the price on a boat has almost doubled. I bet you that the workers salary hasnt doubled, so the cost increase of the boats arent because of wages and benefits. Most boat manufacturers are located in one or two states because they can get cheap labor and optimize their profits. The boat manufacturers will say that the reason the price of boats has escalated is because of the price materials and shipping. Most materials used to build a boat are oil based products and the price of oil is less than or the same as it was 5 years ago, but each year the boat market claims that there is a 5% mark ups on boats, because of rising costs. So when the price of oil drops why dont we see a reduction on boat pricing or the price to remain the same for a year? I remember the days when a marina would buy 10 boats and the owner would receive a additional discounts on the boats he purchased and was able to make a deal for the customer. Is there collusion on boat pricing in the boat manufacturing market? If you are going to control the amount of boats sold to each dealership why doesnt Bass Cat own the dealerships and hire the people to run it for them and allow the management bonuses for the number of boats it sells. Want the control take it all. This is directed at all boat manufacturers not just Bass Cat.
