Little man dressed in gold suit saying "Chaa Ching" Aluminium trailers and there cost

[gazza2006au]

I have rounded up most parts to build a eighteen foot alloy trailer and it comes out around twenty five hundred bucks, single axle, 2 ton, hydraulic disc brakes, bunks, no keel rollers simple drive on drive off trailer

where is the extra money in buying one built on the market? surely a aluminium trailer is cheaper to build than a galvanized steel trailer there is no gal cost that's a grand or fifteen hundred bucks there saved there extra aluminium cost probably half if not even that of the gal cost

lets take a look at some trailers on ebay

over 4 grand https://www.ebay.com.au/itm/SeaTrail...frcectupt=true

side rails $300 each, cross members 1 length of seventy six square six mm thick $380, axle kit five hundred, bunks hundred bucks, wheels $100 each, trailer hitch kit $200, nuts and bolts fifty bucks, drawbar fifty bucks

$2080 total cost

who's taking the micky in there prices? and these maybe made in China

[Cobbo1]

That add is from Nowra Power Boats, now think of it this way, there are dealer licensing fees, overheads (rent, staff, labour etc) if they are from China there will be a fair amount of money in freight, container fees etc. but it appears these are from another manufacturer being Seatrail trailers, which will have their own markup on the manufacturing costs to the dealer, and of course the dealer needs to make money somewhere. Also you will find a lot of their sales will come from boat and fishing shows in which the organisers charge a premium for site fees.
When you break it down like that I think you’ll find that they’re not making near as much as you think they are.
Think of it the same as a taxi ride, you sit in the taxi for 15 minutes, they charge you $50, you know full well they didn’t use $50 of fuel, but then there’s servicing costs, registration, insurance and so on. If you don’t want to pay what they want that’s fine you can build your own but dont knock them for trying to make a dollar.

[Steeler]

Whats your Labour worth Gazza ?, And start from there with all the associated costs of running a business.

[brett62]

Start a business up and that will answer your questions.

[fishizzle]

As well as buying all the parts they have to buy and maintain tools and equipment as well as workshop consumables. Their staff don’t work for free and i’m sure they’re paying rent or a mortgage on the facility they’re using. Then there’s things like advertising, accounts and what not. Oh and most businesses exist to make a profit.

[Steeler]

Whats your Labour worth Gazza ?, And start from there with all the associated costs of running a business. I wouldn't even try and list them all because no matter how comprehensive the list i would think was i would still overlook some.

[gazza2006au]

Cobbo they are charging double what it cost general Joe to build the trailer. These shops are getting massive discounts on there materials what cost us $1000 they are probably buying for $200 in bulk so they are still making a ton of cash if they were struggling there would not be many manufacturers around.... i believe they are sinking there teeth in nice and deep

[Andy56]

Whats your Labour worth Gazza ?, And start from there with all the associated costs of running a business. I wouldn't even try and list them all because no matter how comprehensive the list i would think was i would still overlook some.

yes, GST

The principle of the free market, you CHARGE WHAT THE MARKET WILL BARE.

No doubt there is money to save on DIY, but there are other considerations. How do you register the trailer and who will insure it? This aint Thailand gazza.

[gazza2006au]

After all the businesses cost they are still making a fortune the shops don't charge what a product will sell for they charge on demand, higher demand higher price just because people are going to pay it otherwise why would u sell something next to nothing if there is a demand

there is no point bringing out aluminium trailers cheaper than steel galvanized trailer if in fact they are cheaper to build because the demand for aluminium trailers is much higher so shops see it as why charge less if people are willing to pay ransom money

[Steeler]

Australia is and will remain for some to come a two to three stage distribution country. The margins and GP's you think exist just simply don't Gazza.

Most business owners would chew an arm off to achieve anything near the example you use citing 80% Gross Profit.

[gazza2006au]

Steeler wat i don't get is that trailer i mentioned in post 1 came out to $2080 thats RRP price that is for a customer to build it, now shops don't pay RRP or anything near it on all the parts so they are getting it for less than $2080 minus labour they are smashing out trailer after trailer one following the next ,now how long do u think it would take to build a bolt together trailer? your probably thinking hours but in reality theyare smacking the rails in jigs drilling them in a few minutes than jigging up another rail, how long to assemble a whole trailer? they use equipment like rattle guns to do up the bolts 1-2 hours a trailer is built that there is only $100 an hour labour per person

they are charging more than double RRP prices than when u get your trailer delivered to the dealer u front the cost of dealer delivery

they are absolutely killing it

[stevej]

the guy making it in china needs a profit
the guy importing it here needs a profit
the guy reselling it here needs a profit

if your not making at least 50% markup ie 33%gross margin you will go broke, that $1000 cost turns into $5000 pretty quick

add in payroll tax
gst on each sale
any import levies
freight from china to the port the port to the reseller maybe another freight charge to a second reseller
add engineering and public liability into the mix both things you dont have.

sorry but to say we are being ripped is wrong, should people sell them for less then costs of getting to their door ?


not sure you understand how business works no ones buying mansions from just selling Chinese or Australian boat trailers

[rtp1984]

Sounds like you have found a market mate.
Knock half a dozen up and sell them.

Should make a killing.

[gazza2006au]

Steve i very highly doubt they are paying AUD$2080 for each trailer in Chinese dollars mate than they have to pay all there fee's on top of that and make a profit remember

if u look at it from these businesses buying in China they are probably buying a trailer for $200 $300 a piece just the other day i looked into buying a welder from China they wanted $490 they later returned a email and said they'll take $390 that welder sells here for $1399, China to Au shipping was only $1 five zero this is for personal use for one piece u have no leverage on buying power, when your talking buying from China Aussie dealers have a lot of leverage over what they buy for when your buying bulk in China u get everything for next to nothing, ship over a shipping container for $3000 than pay GST and your left with a very wealthy profit margin to sell the product on the Au market

My price in post one was Local RRP prices that we the customer pay, no importing so we are paying top dollar for all those products, all those products have the 3 hand dipping if u wish to call it that, now lets minus those 3 hands dipping in, lets minus the general public purchase and apply a business purchase where does that leave us?

[Dignity]

I'm pretty sure your costing model is a little flawed as mentioned. First of all, ally ain't ally, here is a site which gi es you a good laymans explanation.
https://www.metalsupermarkets.com/wh...should-i-use/B

and there is a huge price difference in price. Machining/welding costs adds significant costs. Mud guards weren't included in your costs, nor mention of winch post, winch, trailer lights and wiring. wheels (tyres and rims) at $100 each is way too cheap, here in qld any trailer sold is supposed to have rated rims otherwise you won't get it passed for registration (often this is included in the retail purchase)and your insurance would be void. There is a cost in getting a certifier to sign all the paperwork before you can submit the trailer for registration. Not sure what brake kit you are using but a single axle hydrastar would be around $1400 plus. And of course as mentioned how much is your labour worth.

I did look at going down this path but when I added up all the bits and pieces from beginning to end the savings was not significant enough for me to pursue doing it myself.