My Take on the Boating Industry

[Hollywood9s]

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.

It's even worse up here in the northern areas. I went to a local show last weekend, and the dealers seem to be predominantly pushing the smaller boats. In years past the niche was for mid-size boats in the 22'-26' range, but this year there was very little of those sizes and the majority fell in the 18'-22' category.

I think in our area the smaller boats are the only thing keeping some of the dealers afloat.

[Slingnbait]

Hey Wiley, it was good to see you at the Canyon Bay Booth at the show. At Canyon Bay we are seeing alot of people come from bigger center consoles and coming into our 23 and 24 foot bay boats. Since we have bought the old Sportcraft facility in Perry, Fl we are now working on coming out with low, middle and upper priced boats. We want to cover all the bases when it comes to buying a boat. Our smallest boat will be a 18' traditional flats boat and we will offer offshore models (Strike Yachts) from 29 to 44'. Plus the bay boats we have to offer. They are some signs of things getting better. But I think most of you have the idea about what the boating industry is going through. People seem to complain about the pricing of boats and yes I believe that there are alot of boats that are overpriced. It all goes into the detail and fit and finish in a boat and the cost of the materials. Like someone said, the materials keep rising in cost. Our Vinyl ester resin and gel coat have risen another .06 cents a pound!

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.

It's even worse up here in the northern areas. I went to a local show last weekend, and the dealers seem to be predominantly pushing the smaller boats. In years past the niche was for mid-size boats in the 22'-26' range, but this year there was very little of those sizes and the majority fell in the 18'-22' category.

I think in our area the smaller boats are the only thing keeping some of the dealers afloat.

[greg]

Fwiw, both the atlantic city and the new england boat shows both had/have "Affordability Pavilions". They aren't anywhere near the size of Miami, but they are the big shows in the northeast. Overall, there was a lack of big sportfishing boats, and even any large cc's.

Almost all the outboards were single engine, at least at the AC show. I'm going to the boston show tomorrow but don't expect a lot of high end models.

But remember, people still like to climb aboard and even talk to dealers about prices and financing, yet most probably won't buy a thing. What the dealers show up with isn't necessarily what people want to buy, and what they look at isn't necessaily what they will spend any money on.

Well, at least I'll see some shiny plastic tomorrow. I'd like to smell some fresh fiberglass, but most of the boats are 2008's and some 2009's. The new smell has long since faded away.

[TVBX]

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.

NYBS 26' Sailfish about $73m out the door, 2x150hp. They sold a lot of them.

[sgawiser]

We spent our time at Miami on Sabre boats so we had a different segment of the market. The South Florida dealer sold off all his existing inventory by the end of the show and they were taking orders for new boats at a rate much better than it has been for several years. We helped by buying a 2009 38 IPS express.

I really think that there were signs of improvement at least in that segement of the market.