Are High-End Prices Hurting The Market?

With the price of fuel continuing to drop at an alarming rate, consumers are now looking around with great anticipation to see what might be next. After all, if you can’t complain about the price of gas these days, what else is there to gripe about? In most areas of the country we’re seeing prices at the pump that we haven’t seen in over 10 years.

In the boating industry as material prices and labor costs have continued to rise, so have the price of boats. Ten years ago $25K could get you a great high-end pontoon with a mid-sized outboard and a trailer to put it on. Today you don’t have to look too hard to find a pontoon in the $150K and beyond price range.

Recently I received a letter from a subscriber who is retired and wanting to buy a pontoon, but was frustrated by the current prices. 

“It appears most nice pontoons are now in the $50,000 plus range and that’s more than we want to spend,” wrote the subscriber. “Prices are hurting the market and it appears our dream is about gone as pontoons are becoming too expensive for the average person’s disposable income.”

I quickly responded and assured her that while luxury high-end pontoons with every bell and whistle imaginable—and with maximum horsepower—have climbed significantly in price, there are still plenty of top-quality pontoon boats being built today that don’t cost more than my first house.

As the performance side of the business has grown, so have the demand as well as the prices on pontoons. As a magazine we cover the industry from top to bottom, which means we do highlight the performance and high-end luxury models with the higher sticker prices. However, we also realize that there are plenty of potential buyers who are either not wanting to pay more or simply can't afford to. That's why we also cover the value and entry-level base models as well.

The bottom line is the demand for better quality and more features has driven the prices more than any cost of material increase or any other potential factor. When I look at some of the entry-level models being offered today it surprises me how "loaded" they are with standard features. A lot of these entry-level pontoons would have been considered high-end 15 years ago. I reminded her that all manufacturers offer both high-end and value-end models and I encouraged her to ask more questions when she’s interacting with dealers.  

I honestly believe you don’t have to pay $50K to find a good family pontoon. I told her to keep in mind that the outboard power is typically a third of the cost and if she’s willing to take a little less horsepower then she should be able to find a great pontoon within her budget.

Pontoons are getting more and more expensive each year, there's no debating that. But they're also being built better. I ended my reply by telling her not to give up on her dream and that I sincerely hope she does find the right boat for her needs. I really do have a passion for the pontoon lifestyle and family boating and I strongly believe it's the ultimate tool in keeping families close these days.