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Bump's World - September 2010
September 28, 2010
Fall has just begun here in New England and us yachts brokers turn our thoughts to boat shows. I just completed my 30th Newport Boat Show. Like all shows the weather has a lot to do with the attendance, however I'm not sure it affects to number of boats sold, since that is what I care about. I'm really looking for only 1 or 2 quality real buyers.
Fortunately the weather cooperated with only light showers late Friday afternoon. Everyone commented on the traffic being really good. When they say traffic is really good it can mean the numbers of people on the docks or the quality of the people they are talking too. I would say this year it was more the quality of the people. I can remember days when the docks would begin to sink because of the numbers of people. There were also crowd control issues getting on the boats and always the time it takes me to get to the bathrooms and back.
This year there were little or no lines to get on the boats, even on Saturday, and with little trouble I could get to the bathrooms and back. The docks did not sink. I'm sure when the industry reports on the show they will rave about the big attendance and the up beat buying attitude of everyone.
I do think the buyer's attitude was better than last year. The manufacturers are offering incentives that reflect their motivation to try and move some product. There has been deflation in the over all industry as everyone from supplier, to builder, to dealer is working for less to try and keep prices down and create business. Buyers want to take advantage of the economic situation and they want good deals. The days of trying to convince a buyer that the deal is that he might get a boat next season if he orders it now, are long gone. Long lists of free options are becoming the norm. Manufacturers like options because that is their highest profit margin and it is above the price of the boat so they at least make money on the boat. I always tell my fellow New Wave brokers, do not treat your customers like they do not know what is going on in the world. Treat them with respect and point out why this economic situation is a good time to be a buyer.
There are still a few old school brokers who talk about how the biggest problem in the industry right now is a lack of dealer inventory boats. All the dealers that went out of business in the last 2 years did so because they had too much inventory. You can only liquidate so much inventory before you liquidate. Manufacturers who have stayed in business have done so by cuts in production and any other costs they can. They have not relied on forcing inventory down their dealer's throats.
Healthy dealers do not have much inventory and healthy builders will survive with way less production than 2 years ago.
The lack of price increases and show incentives did produce sales. The used boats are getting older and older. Many buyers are frustrated trying to find a boat that will pass survey. The entry level new boats are becoming very attractive.
Next week the Annapolis Show begins. Many buyers, even from around here, travel to that show before making a decision. People seem to want to put more effort into their decision. NWYs will have brokers on the Sabres and Hanse in Annapolis, so maybe we'll see you there.
I am on an industry committee to work with the New England Boat Show in February. I am already making plans for that show. Time flies.
Yes 30 Newport Shows.
Bump's World - September 2010
September 28, 2010
Fall has just begun here in New England and us yachts brokers turn our thoughts to boat shows. I just completed my 30th Newport Boat Show. Like all shows the weather has a lot to do with the attendance, however I'm not sure it affects to number of boats sold, since that is what I care about. I'm really looking for only 1 or 2 quality real buyers.
Fortunately the weather cooperated with only light showers late Friday afternoon. Everyone commented on the traffic being really good. When they say traffic is really good it can mean the numbers of people on the docks or the quality of the people they are talking too. I would say this year it was more the quality of the people. I can remember days when the docks would begin to sink because of the numbers of people. There were also crowd control issues getting on the boats and always the time it takes me to get to the bathrooms and back.
This year there were little or no lines to get on the boats, even on Saturday, and with little trouble I could get to the bathrooms and back. The docks did not sink. I'm sure when the industry reports on the show they will rave about the big attendance and the up beat buying attitude of everyone.
I do think the buyer's attitude was better than last year. The manufacturers are offering incentives that reflect their motivation to try and move some product. There has been deflation in the over all industry as everyone from supplier, to builder, to dealer is working for less to try and keep prices down and create business. Buyers want to take advantage of the economic situation and they want good deals. The days of trying to convince a buyer that the deal is that he might get a boat next season if he orders it now, are long gone. Long lists of free options are becoming the norm. Manufacturers like options because that is their highest profit margin and it is above the price of the boat so they at least make money on the boat. I always tell my fellow New Wave brokers, do not treat your customers like they do not know what is going on in the world. Treat them with respect and point out why this economic situation is a good time to be a buyer.
There are still a few old school brokers who talk about how the biggest problem in the industry right now is a lack of dealer inventory boats. All the dealers that went out of business in the last 2 years did so because they had too much inventory. You can only liquidate so much inventory before you liquidate. Manufacturers who have stayed in business have done so by cuts in production and any other costs they can. They have not relied on forcing inventory down their dealer's throats.
Healthy dealers do not have much inventory and healthy builders will survive with way less production than 2 years ago.
The lack of price increases and show incentives did produce sales. The used boats are getting older and older. Many buyers are frustrated trying to find a boat that will pass survey. The entry level new boats are becoming very attractive.
Next week the Annapolis Show begins. Many buyers, even from around here, travel to that show before making a decision. People seem to want to put more effort into their decision. NWYs will have brokers on the Sabres and Hanse in Annapolis, so maybe we'll see you there.
I am on an industry committee to work with the New England Boat Show in February. I am already making plans for that show. Time flies.
Yes 30 Newport Shows.
Please mail comments to me at Bump@newwaveyachts.com
Bump Wilcox