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It seems like a simple
proposition to calculate the
price of a pontoon trailer.
600+ lbs. of steel, two or
four tires, some
fabrication, wood and carpet
for bunks, etc. Steel and
tires are commodities, the
largest manufacturers only
receive a small discount for
volume. It seems that
trailers of similar size
ought to be priced about the
same. They are not,
20’ trailers range in price
from $2500 to $3000. In many
cases the price of the
trailer has little to do
with the quality of
components or labor. It has
a lot to do with things that
add no value to the
consumer. Here are a few of
them.
Sales Commission -
Adds about 10%+, the
manufacturers sales rep
usually works on commission.
Salesman at bigger
dealerships work on a
percentage. A $2500 trailer
pays the manufacturers rep
$75-$100. The retailer pays
his salesman on the retail
price and it’s often $150+.
Your new trailer might be
$200-$250
higher because of salesmen's
commissions.
Please note: I was a
salesman for many years. I’m
not saying anything bad
against them (us). Some
dealers need a salesman to
help them figure out what
trailers to buy. The retail
salesman deserves his
commission if he provides
you with valuable
information about the
trailer, accessories and
options. If he doesn’t,
you’re still paying for it.
Freight - In the
modern internet era, many
people believe freight to be
free. But it’s not. Some
trailer manufacturers offer
“free” freight. One company
builds trailers in Iowa,
ships them to Cleveland, OH
and then deliverers them
into Michigan and Indiana
freight free. No one
believes those semis run
hundreds of miles for
nothing. If you’re in
northern Wisconsin or
Michigan there will be
freight cost to get a
trailer to you, even if it’s
made in state. Either added
by the manufacturer or paid
to the transportation
company there will be
freight costs in the price,
you’ll pay for it.
How the Seller Calculates
Profit -
Sellers calculate profit
differently and profit
margins vary from 15% to
40+%. Dealers who promote
winter storage are often
reluctant to sell a trailer,
which is reflected in their
price. A trailer that costs
a dealer $2500 with a 15%
profit will sell for $2875
($375 profit). The same
trailer at 40% profit will
be $3500 ($1000 profit).
Business must have a profit.
Consider, as much as a
couple hundred dollars for
sales commission. $100+
freight and maybe an
additional $300 (the
difference between $300 and
$600) profit. That’s
potentially $600 and it has
nothing to do with the
quality of the trailer:
steel, tires, lights or
finish.
Trailers with real features
like LED lights, radial
tires, powder coat paint,
and disc brakes cost more
than trailers with outdated
components; incandescent
lights, bias ply, spray
paint, and old fashioned
drum brakes. But often the
improved components only add
10%-15% to the cost of the
trailer. When shopping for a
trailer spend you money on
features that will return a
benefit to you.
The key phrase in business
is Value Added.
You can buy trailers a lot
of places. From a used car
or implement dealer, on
e-bay or at a boat dealer.
You won’t get much value
added from the car/implement
dealer or e-bay, seller.
Their price should be lower,
but you’ll have to make sure
you’re buying something that
will work for you, there
will be no returns. You may
have to put air in the tires
and adjust the trailer. The
marine dealer’s price might
be higher but you should get
some value added. He’ll make
sure the trailer fits, maybe
even loading, and adjusting
it to your boat. The dealer
should check the air in the
tires, make sure the wheel
bearings have grease,
inspect the lights, and give
you good instructions on how
to use and care for the
trailer. You’ll have
to decide how much that
value added is worth to you.
The worse case scenario is
paying a high price and
getting a poorly built,
badly fitting trailer that
bucks and vibrates as you
travel. The whole point of
our web site is to help you
recognize and prevent that.
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