I know, I need to quit my day job and join the Team.
You have no idea how many pool buyers I built for who bought their mortgaged home with pool construction escrowed on just a good credit score and stated income documentation of their financial wellbeing.
I was truly grateful they signed with me to be their builder but could see it coming.
You also wouldn't believe how many I built for that took advantage of the very rapid artificial inflation of their homes value to whip up a HELOC (home equity line of credit) with their local bank on the same manner of qualifying for the loan.
I was grateful for those captures too.
Trust me on this, Scott had an AWESOME 38 Sonic performance cruiser repo that had sat for 6 years and had brand new Merc EFI's with no hours on them. IMO, this was just as good as a new boat for a fraction of the cost.
I came in my britches every time I looked at all his pictures of the unit and came very close to calling on it and using my cash budget as a down payment.
The day I reached for the phone it hit me like a hammer, do you really want to become one of them. That being those who bought on impulse and when they wanted to get out of it would take a beating. I looked for a very long time for a boat that would fit the bill and in the event it didn't, my purchase price wouldn't be much different than my asking price for resell. It wasn't the boat I really wanted but I'm hoping I'll really fall in love with her, and if not I could lose a little jack but I won't lose the farm when I sell.
Thanks again for this thread. It relates to many industries, mine especially, outside the box of the marine industry. Many employers like me, and I feel you have joined the club too, have gone into the "stay in the game mindset at any cost of lost profitabilty" mode of conducting business. Be honest with yourself and your customers and it'll all work itself out with time.
My heart broke for the sellers of those $500 tubs we removed but it was a business decision and I only made a 100 bones.
They could have easily dropped the price to the fair market value and moved them for nearly double what I offered.
The biggest reason me, my kids, and my grandkids have so many toys is because I can't get off of my high horse and list them for what they'd really sell for. They're worth more to me in my stable of fun than they would be taking half of what I feel they're worth in a cash sale.
I never said there is no value in a dealer.,never question your ability to sell boats,or question the size of your shop or the hours you are open.
and I agree you do have to invest alot money into your business but the reward are pretty good as well...
The only thing I said is this,its my opinion that boat consignment hurts the value of a boats,
No problem on your position but let me tell you why I don't agree with your position. When most people buy a boat, they do not care who owns it or what price is, they simply want to make an offer for alot less than the asking price no matter what the price is. We get email offers for 50% less than we are asking for boats that are already below low wholesale daily.
Consignment is a choice and has benefits with a good dealer. If you use your earlier example of price being lower, the one thing you cannot get thru private party is a tax credit. What I mean by that is some people sell there boat through a good dealer so they can get tax credit towards future purchase. Or, if you are a buyer coming to our dealership and you have a trade and live in Illinois, you will only pay tax on difference vs full purchase price. In Illinois alone that would be a 7% value.
The repos are what hurt the used market, not dealers. When the mfg hit tough times and left the banks no position other than reduce cost of inventory to sell it the market went backwards. IE: If a 2009 left over brand x boat had a cost of 300K and the bank let it go for 175K what do you think that did to the same used brand X boat that was a 2004 model? Correct, made it worth that much less. If it was not for the good dealers that worked with the banks it would have been alot worse.
The great thing at the end of the day is you do not have to consign "your" boat with a dealer and you don't have to accept an offer.
What about the guy that walks in the store like a customer did last week because we are retail and open to the public and he saw a boat he liked that was not for sale in our store? You got it, we called the owner and made an offer that was "strong" and he took it when the boat was not even for sale.
Although I respect your position I think you need to put a little more value on yourself and the fact that you can always choose to or not to consign and accept an offer.
On the consignment side we will pick up consumers boats, detail, get customer financed, take a trade and not charge for the transport or detail until boat sells. In this manner we are investing in customer and transaction to help sell. I would like to think that our company investing money into the deal and customer has value.
Keep the faith, I am sure you will make an offer below asking price on your next boat no matter where or who you buy it from?
This has been a great thread that has not gotten off track much which I really appreciate the interaction on.
I see the whole retail vs. wholesale thing being similar to the housing industry.
Loans were easy to get (stated income, small percentage down, low rates) artificially inflated value of boats pushed by the manufacturers, dealers and supply/demand.
Now the new wholesale is retail because retail was overpriced to begin with. No one complained when the money was easy come - easy go but now that things are tight it hurts everyone. It's a huge market correction and unfortunately the boating market is especially hurt because it's pleasure and not a necessity (well for some of us it is).
My perspective, not sure it matches with others.
Alum Metal Fab
Custom Marine Sales
Dave's Custom Boats
Diamond Performance Parts
Double R Performance
Elton Porter Insurance
Fastboats Marine Group
GGB Exhaust Technologies
Grand Sports Center
Ilmor High Performance Marine
Lake Cumberland Marine
Lake Havasu Boat Show
Marine Technology Inc
McLeod Design Group
Performance Boat Center
Performance Marine Trading
Potter Performance Engines
Ron Sporl Performance
Speed and Custom Marine
Total Dollar Insurance
Teague Custom Marine
Wake Zone Marine Insurance
Young Performance Marine