My Take on the Boating Industry

[wiley]

Salespeople might disagree, but as someone who has been in the boating industry discussion many years I'll offer my Joe Boater take on the state of the boating industry (after my week at the Miami Boat Show).

I feel new boat buyers are finally accepting the realization of which size and price category they belong to. Where once the majority of the offshore fish boat owners used to flock toward the 26-32' size class I am now seeing this size class as a dead zone.

Affordable boats in smaller sizes (18-24') seemly have gained interest as have larger boats 35+' in size. Once a fantasy for most, the costly 40+' center console or express style offshore fishing boats are receiving much attention and could possibly be the next trendy size to buy - even in a down economy.

Boat prices in all sizes have come down allowing entry level buyers into the affordable 18'-24 market, while also bringing down the prices of the 35'+ sizes for those in that bracket. The 26-32' size class is now apparently "too expensive" for one group and "not enough boat" for the other.

Personally I enjoy seeing this divide as a few years back it seemed every manufacturer was "required" to build and push their 28-footer. The selection got stale and overpriced.

Boating is down but no way out! Kudos to the boat builders who continue to pump out the bigger and badder boats as well as those who market an affordable entry level. Both are needed - they don't have to always meet in the middle!

I appreciate contrasting points of view.

[BlueCake]

I agree. However, IMO, I believe that prices overall are still too high. I will use Sailfish as an example since I am familiar with their line of boats. Back in 2003, when I was purchasing my first boat, you could have had a Sailfish 266 for about $49k - $51K. I went with a 22ft Sea Pro for $32k. In 2006, I felt the need to upgrade so again, I looked at and purchased 2006 Sailfish 2660 for $70K out the door. That is a $20K price increase in 3 years. If I am not mistaken, the boat show price at Miami this year was $89k. That is another $20K in 4 years (keep in mind prices fell this year). In 2008, someone took ownership of my 2660 without my consent. Therefore, I was in the market again. Fortunately, I was able to get into a Saifish 2860 for a considerable amount less than the Boat Show special of $110K. In 2008, the 2860 Boat Show price was $120K. That is crazy money for a boat under 30ft. In my opinion, all boats under 30ft should not be priced over $100k.

This year's show had a 24 Intrepid for $120K - $140K, depends on options. The 26 Jupiter was $120K with a single engine. Yes, they are top tier boats but the are also setting the price point for middle tier boats as their lower (high) prices look like bargains when compared.

Edited February 18, 2010 by BlueCake

[wiley]

Wow, quite the jump in prices there Bluecake. Good post

Naturally, price has to do with power and options as well. Which makes me ask, what is happening with outboard engine prices? I haven't really noticed a significant increase or decrease.

Yes, the 26' are still priced too high IMO and again leads to my point where offering a quality lower end line to balance out a high end larger line of boats could be the trend to sell boats. Not so much focus on the 26's and 28's.

A 28' boat size is perfect for our needs however if we were to look for a new boat soon (and had the money to spend) I wouldn't even consider anything under a 32' ... while more likely playing it safe and getting a 22'

[greg]

I wonder how much of that perception is florida specific?

I'm not disagreeing, it's just that up here, CC's aren't nearly as popular as they are down there. I don't see the 22-28 foot cuddy market dying out that quickly here. 25-28 feet is just way too practical a size for the types of inshore fishing and boating most people do.

[wiley]

Good point greg.

I can only conclude on what I see... and I haven't been out of the state for quite a while.

Based on what I saw in Miami, the much larger CC's are holding their own in the sales.

[Chisox]

Good point greg.I can only conclude on what I see... and I haven't been out of the state for quite a while. Based on what I saw in Miami, the much larger CC's are holding their own in the sales.

Wiley,

This is most likely indicative to the market that the big CCs go after, guys/gals with serious bucks, the one's who are least affected by this economy. Whereas the 22 or 24 owner is looking to step up to a 28, they most likely will have to finance their purchase, which right now is not a very easy, nor very wise thing to do, due to the state of the economy and most people's unwillingness to take on further debt.

The big CCs are in a whole other ballgame, price wise, and are typically purchased on a cash basis. The owners of these boats are not worrying whether their jobs are secure enough to ensure they will have steady income and job security to "make the payments"...let's face it, when it takes a grand to fill a 300 gal. tank to go out for a day chasing billfish in the G'Stream, and it's NOT a charter, well, not a lot of average boaters can afford that...

[wiley]

Thanks Osprey... and the divide continues...

[team oldschool]

Well, I bought one of those 35' CC and I love it. Unfortunately, I am a contractor and the economy hurt pretty good. I can't really afford to get rid of her due to the depreciation.

Oh, it does hurt to fill her up. Everybody chips in for the fuel. We will be back on the tournament trail soon.

[FMI]

I agree. However, IMO, I believe that prices overall are still too high. I will use Sailfish as an example since I am familiar with their line of boats. Back in 2003, when I was purchasing my first boat, you could have had a Sailfish 266 for about $49k - $51K. I went with a 22ft Sea Pro for $32k. In 2006, I felt the need to upgrade so again, I looked at and purchased 2006 Sailfish 2660 for $70K out the door. That is a $20K price increase in 3 years. If I am not mistaken, the boat show price at Miami this year was $89k. That is another $20K in 4 years (keep in mind prices fell this year).

One thing that is often over looked (not calling anyone out) is how much costs have risen for builders. During the price run on oil material prices jumped nearly weekly from 5-20% in some extreme cases even more, distributors that offered free freight added a fuel surcharge. Resins are a petroleum based product so when oil tripled, well resin was right with it. I know what some of you are thinking... Oil is not as high as it was. True, but prices in the composite industry seem to never go back after an increase. Even with the stat of the economy there is enough business in the various sectors of composite business that the material companies can hold their prices.

As for engine prices it is brand to brand and even hp to hp with in that. Some held 2009 pricing, the rest there was a 1-2% increase.

In 2008, someone took ownership of my 2660 without my consent. Therefore, I was in the market again. Fortunately, I was able to get into a Saifish 2860 for a considerable amount less than the Boat Show special of $110K. In 2008, the 2860 Boat Show price was $120K. That is crazy money for a boat under 30ft. In my opinion, all boats under 30ft should not be priced over $100k.

As for this it is really up to the buyer. I will say this... With boats there is no limit to how much you can spend. It is really easy to over look how much time can go into various aspects of a project. A 30' boat with twins 200's you are looking at what, 30k worth of motors in the box. That is not factoring components, labor, or the hull.

[FMI]

Wiley,

From what I personally have witnessed your assessment is spot on. In my area (Big Bend) things are even worse large boat sales are DEAD due to the restrictions on snapper & grouper fishing. It's not so bad once you hit Apalachicola as they have deep water and a more diverse offshore fishery.

Here it is now 24' Bay boats and smaller. The Kayak and canoe market that had received a huge boost from fuel prices gained even more steam.