I hope not to turn this into a brand bashing thread. But does anybody know why if given the option the Volvo 8.1 Gi DP is about 2K less than the Merc 496 BIII in the same boat? In fact the the equivalent motor and drive package is always cheaper with the Volvo option.

This is true of the Chapparral and Rinker Build a boat sites.

I don't have any real brand loyalty except that I currently have a Merc package and am comfortable with routine service and maintenance. Hoewever if I were to order new I think I would go for the Volvo option for a 2K savings.

Anybody have any inside info on the price difference?

According to Trailer Boats Magazine's Marine Power 2008 issue, the list price of a VP 8.1Gi DPS is $23540. Mercruiser's 496MAG B3 is $24090.
So there is only a $550 dollar difference in actual price. The manufacturers are either buying more VPs and thus getting them for a lot less than they are Mercs, or they are discounting them more and making less profit.

Volvo's international sales are booming, so they can pass along some savings to builders. Several builders' that have exclusive Merc packages have excess inventory of unsold boats, Merc is laying off employees left and right. Merc needs to re-coup where they can, and their priceing is one way to do it.

That is my 2 cents anyway.

Your thinking is a more detailed, most likely highly accurate, explanation of my guess.

So from your explanation Capn, one possibility is that engine upgrades from Merc might cost more in the near future. And Volvo prices will hold steady.

That is possible. The plot may thicken even more, when Volvo releases their version of the Merc Axius system, soon.

What about taking less on each unit while selling more units overall to increase profits?

That gets more into marketshare than new customers.

I'm not sure Merc is in a good position for a price-war.

Also have to remember that the Merc 496 engines come standard with closed cooling, where the VP engines it's an option.

Ah yes, forgot about that CFMN, excellent reminder!

Alright to confuse things a bit more... The Merc power packages are about 2k cheaper on the Four Winns site. I am sure it has to do with deals and kickbacks. But it seems backwards to me. I see more Four Winns with Volvo packages than with Merc. I think that Chap and Rinker are close to equal but I tend to observe more Merc power than Volvo.

So one would think that with a higher volume of one particular motor that it should be cheaper. Or if some one is trying to get more motors in a particular brand boat they would try to undercut the competition. The current pricing doesn't make sense to me.

Don't know if your observations are for just late-model Four Winns, but prior to 2001, you could not buy a Four Winns with a Merc engine as they were owned by OMC. OMC had a joint-venture at the time with Volvo.

I am sure it all has to do with market share, competition, and incentives.

Hard to say tennja. My dad says that in Florida, Volvo is Way more popular in Chaparrals than Merc. So maybe it's a nationwide thing, as much as a local dealer getting a deal?

While I understand what you are saying, it goes against all the laws of supply and demand. When there is excess inventory prices will ALWAYS go down. Consequently, when product is flying off the shelf, prices will remain high or even increase. You don't have to look any further than Auto Manufacturers to see this in action. Rebates are never offered on the high demand, like some of the Japanese Hybrids and the New Shelby Mustang. Remember when people were paying OVER the sticker price for a PT Cruiser?

On the other hand, look at the deals being given out to buyers for Ford/Chevy/Dodge Pick-up trucks. The rebates are huge. While these trucks are still among the best sellers, my point is about the demand vs. the supply. There a rows of leftover trucks (and Mercruisers) sitting on lots.

I think the difference in the price has to do with Brand Recognition. Ask 10 first-time boat shoppers which one they've heard of and most would certainly say Mercruiser. On the other hand, recently I've seen a survey (maybe it was on this forum) and the vast majority of CURRENT boaters prefer the Volvo-Penta line. I was a bit suprised by this. My guess is Mercruiser has been surprised too, hence the layoffs and poor pricing strategy. They felt their name could command a premium price. With first time buyers, this is likely true. But I believe that repeat buyers will not pay the premium since the surveys I have seen, along with folks I talk to, would often not pick the Mercruiser if it were priced the same as a Volvo-Penta.

You can also flip it around and say that Volvo-Penta is pricing their product lower in order to penetrate the market that years ago was completely dominated by Mercruiser. I suspect there will be some pricing adjustments in tne next few years. Mercruiser will come down, Volvo-Penta will go up.