Boat Dealers

[-Joe-]

Everyone keeps talking about how bad the market is; I'm just wondering what and where they are selling. I pass by a Sea Hunt/ Grady dealer everyday, and they are moving boats OUT of the dealership like crazy.

A coworker just sold his 15' skiff for $1500 more than he paid for it 5 months ago (from dealer). He sold it in a week with an ad on Craigslist. I'm not sure the market ever changed here in SC.

And the OP said something about 20% unemployment...where do you live? Detroit?

[geronimo]

Joe .. the rust belt states are dieing. be thankful your in a good market..

[Mike Carrigan]

I just read a rant by a boat dealer who says he is tired to death of all the tire kickers and bottom feeders... He had a brokerage boat listed at 27,995 and he got an offer of 23K... He ranted on how he can't feed his kids when he sells a boat for less than the owners price plus his brokerage fee, and that he now has to present the offer to the owner who will beat up on him...

Some of you who have read my postings know that I tend to stick up for dealers and manufacturers... They have a tough road to travel... I have been in business most of my life and I know how hard it is to deal with the public and how hard it is to keep the ink black... But in this case, the dealer is wrong... A boat is only worth what someone will pay - and how much the seller has tied up in it is just not relevant... The boating industry, coming off decades of living off the fat of the land, is not seeing the new reality - though the makers and dealers going bankrupt are having their rose tinted glasses adjusted the hard way... 20% national unemployment is looming.. People do not feel flush and even if they have a stable job for now, they are very careful about taking on new debt...

I have been following one boat that I may make an offer on, a 2008 model just 10 months old with something like 30 hours on the engine... The owner has roughly 160K in it and needs to free up his cash... He started out at 155K and is now down to 125K... The boat is a bargain at the price and is a sharp boat that is economical to operate... It hasn't sold so far, so he has not found the true value in TODAY'S market or it would have sold... And that is the key, TODAY'S market... It does not matter what you have into it, or what it was sold for, or what it would cost to replace, it is only worth what the market will pay for it... As the economy continues to tighten up, and based on what I am seeing with the owner's attempt to get his money out of the boat, I expect the factory will find the buyers for brand new at list price, drying up rapidly...

denny-o

Denny,

"List price"?

Come on....stop.

Who has paid list price for years?

Yes, business is a little tough.

Not immune as to boats.

Regretably a salesperson perhaps let some frustration show.

We are all human, yes? No?

Not a mortal sin, huh?

[Mike F]

There are usually two-sides to the coin... I help sell Judge Yachts as I am a satisfied customer who thought it would an easy sell as they offer a product that I believe in. While I havent been in the marine industry long and only do it part time, I have seen how demanding and unreasonable some potential buyers can be. Case in point, I got yelled at earlier this week for the first time by a customer who claims to be a serious buyer. His beef was that I wouldnt tow my boat from Annapolis MD to the ocean in DE, which is 2 hours a way from me, for him to sea trial my boat in the ocean for him without a signed contract or small refundable deposit. He said that he had never heard of such a thing and would never consider one our boats due to it. I even offered a no obligation sea trial on my boat in the Chesapeake Bay without a contract or deposit (which is where the boat is kept). However for the 4 hours of towing time and expensive involved with that, I want a contract on an agreed price and small deposit to show he was serious. I didnt think that was unreasonable but this person did. In this tight market I know you have to jump through hoops and work extra hard to earn someones business but there are some unreasonable people who can wear on you. Fortunately there are a lot of good people too that do make this type of business enjoyable.

The guy in the inital example should be grateful for the offer and present it to the owner of the boat. Yes things are tight but do your best to move the boat. That is his job.

I have no problem taking a boat to the ocean for a sea trial without a deposit. Most of my customers are only familiar with other brand boats and have never been on a Southport. Even if he does not buy the boat I'm sure he will tell five other people about his experience. Not to mention a dealer needs to do whatever it will take to make a sale.

As far as the market being slow, well it has been slow. But we are seeing sales pick up and far more walk in traffic than earlier this year. Gotta think positive.

[B-Faithful]

I dont think the guy was serious quite frankly. I think he just wanted a boat ride on his terms. Being that our boats are typically made to order, he hadnt fully discussed what he was looking for or seen a completed boat before demanding we take the boat to him. As stated before, I offered him a no obligation sea-trial on the Chesapeake Bay where the boat is kept. Had he seen the boat and confirmed it was what he was looking for, I would accomodated his needs without a refundable deposit or contract pending sea trial. I am confident in my decision to not tow 4 hours chasing what could have been my tail...

I agree sales are picking up. We have sold at least 4 boats in the last couple of weeks alone and I have a couple of more deals pending. (one that I hope comes to terms before the weekend)

Edited August 13, 2009 by B-Faithful

[Mike F]

I dont think the guy was serious quite frankly. I think he just wanted a boat ride on his terms. Being that our boats are typically made to order, he hadnt fully discussed what he was looking for or seen a completed boat before demanding we take the boat to him. As stated before, I offered him a no obligation sea-trial on the Chesapeake Bay where the boat is kept. Had he seen the boat and confirmed it was what he was looking for, I would accomodated his needs without a refundable deposit or contract pending sea trial. I am confident in my decision to not tow 4 hours chasing what could have been my tail...

I agree sales are picking up. We have sold at least 4 boats in the last couple of weeks alone and I have a couple of more deals pending. (one that I hope comes to terms before the weekend)

Good job. Just gotta hang in there.

[Erie Skipper]

It really is the old story of those who choose to do business will do business, rust belt or not, and others will continue to live on the edge of success whether the market is good or shaky.

Is business great? No. Are we doing better than we anticipated this year? Yes and it is because we are doing whatever it takes, within reason of course, to make sales and to be accommodating for the buyers--and yes there are plenty of buyers if you have the right things in stock.

Sure it has been frustrating, but then it was frustrating in the early eighties and the early nineties and we lived through all that. This is just one more test of whether a business is healthy or not; and those that are will survive like always.