Shogren on Used Boats: "Be prepared for reality."
03-25-2011, 08:59 AM
#81
Registered
03-25-2011, 09:14 AM
#83
Registered
Appreciate your comments.
In theory I understand but not true in terms of way we sell consignments.
1) The consumer has to agree to the sell price, we cannot make only suggest what it's worth.
2) We will take trades against consignment boats to help cash seller out of his boat and then we own the trade. This means we are participating and once we take the trade we have financial exposure. 75% of all boats we have sold have had a trade.
3) No one has to accept the offer or sell there boat.
4) We will pick boat up, detail it and not charge customer until the boat sells or 6 months which ever comes first. If it's here for 6 months, most likely not priced where it needs to be.
5) We market it in magazines and websites that we have monthly financial commitments to and do not charge customers, it's part of the comm to sell the boat.
6) We have a staff and facility where every boat we have is indoors and always clean which is the best way to sell a boat. Does not matter what weather or temp is, a consumer can come look at boat with there wife, family, or other without getting dirty or stepping into boat getting feet wet, rained on or other.
7) This all comes at an expense and services should have value when handled properly.
Hope this helps clarify.
www.teamshogren.com
1) The consumer has to agree to the sell price, we cannot make only suggest what it's worth.
2) We will take trades against consignment boats to help cash seller out of his boat and then we own the trade. This means we are participating and once we take the trade we have financial exposure. 75% of all boats we have sold have had a trade.
3) No one has to accept the offer or sell there boat.
4) We will pick boat up, detail it and not charge customer until the boat sells or 6 months which ever comes first. If it's here for 6 months, most likely not priced where it needs to be.
5) We market it in magazines and websites that we have monthly financial commitments to and do not charge customers, it's part of the comm to sell the boat.
6) We have a staff and facility where every boat we have is indoors and always clean which is the best way to sell a boat. Does not matter what weather or temp is, a consumer can come look at boat with there wife, family, or other without getting dirty or stepping into boat getting feet wet, rained on or other.
7) This all comes at an expense and services should have value when handled properly.
Hope this helps clarify.
www.teamshogren.com
I feel that consignment hurts the value of boats.
Shogren or any other dealer dont care about you or your boat or how much you have into it.
they dont want your boat sitting around in there showroom so the cheaper they listed the faster it sells,
on an average dealers charge 10% to sell your boat,if your boat is worth 100k and they list it for that it might sit around for a while and it cost them money and at the end of the sale they make 10k,so if they listed for 75k the boat sells much faster,they collect $7.500 from you and they move on,
they made money while you gave your boat away.
just my 2 cents
Shogren or any other dealer dont care about you or your boat or how much you have into it.
they dont want your boat sitting around in there showroom so the cheaper they listed the faster it sells,
on an average dealers charge 10% to sell your boat,if your boat is worth 100k and they list it for that it might sit around for a while and it cost them money and at the end of the sale they make 10k,so if they listed for 75k the boat sells much faster,they collect $7.500 from you and they move on,
they made money while you gave your boat away.
just my 2 cents
03-25-2011, 09:15 AM
#84
Registered
You're right
You're right but they have not made it accessible to us either and yes, there are alot of people out there outside marine that created this problem.
Regards,
www.teamshogren.com
Regards,
www.teamshogren.com
I doubt that Ive seen nothing that says the current head shead doesnt like boats. They may have attacked certain avenues of getting money but that doesnt mean it was directed towards you. In last 5-6 years there was a lot of idiots in business geting credit and people buying homes that frankly shouldnt have and now we are all paying
03-25-2011, 09:24 AM
#85
Platinum Member
Platinum Member
As a successful businessman for 20 years I have watched our construction business go from well over 1 mill per month in sales to zero in the past several years.We first started laying off employee's in August of 2008 to adjust.
With that being said we have also sold race cars,exotic cars, boats and real-estate throwing the cash back into our business that went fro 30% to 3 % profit in 4 years.This is real and we can hold on to false reality and sink or adjust to the real world as painful as it may seem.
We have one home alone we paid over 1.2mill in 05 sold a few months back at 536k after listed for two+ years.We also sold our Cigarette for 1/2 of what we had in her, thankfully we owned the boat.That took two years as well ,the true rich that I no and I'm not one of them, buy new boats and are a small percentage of enthusiasts in my opinion.This is real and we can hold on to a false reality and continue to sink or adjust to the real world as painful as it may be.
I feel bad that most go fast boat owners are up side down,but I don't feel that Scott is exploiting that in any way.He is telling the truth in my opinion ,its not about the listing its about the sale and in this market you must be ultra aggressive in your pricing.
Great article Scott!
With that being said we have also sold race cars,exotic cars, boats and real-estate throwing the cash back into our business that went fro 30% to 3 % profit in 4 years.This is real and we can hold on to false reality and sink or adjust to the real world as painful as it may seem.
We have one home alone we paid over 1.2mill in 05 sold a few months back at 536k after listed for two+ years.We also sold our Cigarette for 1/2 of what we had in her, thankfully we owned the boat.That took two years as well ,the true rich that I no and I'm not one of them, buy new boats and are a small percentage of enthusiasts in my opinion.This is real and we can hold on to a false reality and continue to sink or adjust to the real world as painful as it may be.
I feel bad that most go fast boat owners are up side down,but I don't feel that Scott is exploiting that in any way.He is telling the truth in my opinion ,its not about the listing its about the sale and in this market you must be ultra aggressive in your pricing.
Great article Scott!
03-25-2011, 09:26 AM
#86
Registered
I completely disagree with this reply.
When I offer 500 to 800 trade in on a 5yr old acrylic hot tub that cost 4500-5500 the people are like "that's a ripoff" offer.
I let them know that Craigslist is available for free and lets just work on the design concept and putting a plan with a quotation together and then dealing with the tub later if it doesn't sell. I'll always check Craigslist to see how much they listed for, which is typically 50% of the purchase price.
9 times out of 10 when we move to a contract they have yet to sell it. I volunteer that my offer still stands if they choose so and if not drop your price down closer to or slightly below 1000. If you don't want to you'll see your hot tub on there the day after we remove it. You'll see me listing it at 900 which reflects my 500 purchase price plus 300 in removal labor and plumbing/electrical disconnection.
This, my internet friend, is a c_nt hair above a 10 percent return in my margin and if you think Scott is padding his pocket giving 50k for a 100k boat and selling it for 55k that he is padding his pockets with the additional profitability that the buyer missed out on your sadly mistaken. He took the deal just as I did to keep money flowing throught the companies kitty, not to hit a grandslam homerun on and retire.
Just my .02.
See ya,
Kelly
When I offer 500 to 800 trade in on a 5yr old acrylic hot tub that cost 4500-5500 the people are like "that's a ripoff" offer.
I let them know that Craigslist is available for free and lets just work on the design concept and putting a plan with a quotation together and then dealing with the tub later if it doesn't sell. I'll always check Craigslist to see how much they listed for, which is typically 50% of the purchase price.
9 times out of 10 when we move to a contract they have yet to sell it. I volunteer that my offer still stands if they choose so and if not drop your price down closer to or slightly below 1000. If you don't want to you'll see your hot tub on there the day after we remove it. You'll see me listing it at 900 which reflects my 500 purchase price plus 300 in removal labor and plumbing/electrical disconnection.
This, my internet friend, is a c_nt hair above a 10 percent return in my margin and if you think Scott is padding his pocket giving 50k for a 100k boat and selling it for 55k that he is padding his pockets with the additional profitability that the buyer missed out on your sadly mistaken. He took the deal just as I did to keep money flowing throught the companies kitty, not to hit a grandslam homerun on and retire.
Just my .02.
See ya,
Kelly
Last edited by TexomaPowerboater; 03-25-2011 at 09:42 AM.
03-25-2011, 09:27 AM
#87
Registered
iTrader: (1)
In theory I understand but not true in terms of way we sell consignments.
1) The consumer has to agree to the sell price, we cannot make only suggest what it's worth.
2) We will take trades against consignment boats to help cash seller out of his boat and then we own the trade. This means we are participating and once we take the trade we have financial exposure. 75% of all boats we have sold have had a trade.
3) No one has to accept the offer or sell there boat.
4) We will pick boat up, detail it and not charge customer until the boat sells or 6 months which ever comes first. If it's here for 6 months, most likely not priced where it needs to be.
5) We market it in magazines and websites that we have monthly financial commitments to and do not charge customers, it's part of the comm to sell the boat.
6) We have a staff and facility where every boat we have is indoors and always clean which is the best way to sell a boat. Does not matter what weather or temp is, a consumer can come look at boat with there wife, family, or other without getting dirty or stepping into boat getting feet wet, rained on or other.
7) This all comes at an expense and services should have value when handled properly.
Hope this helps clarify.
www.teamshogren.com
1) The consumer has to agree to the sell price, we cannot make only suggest what it's worth.
2) We will take trades against consignment boats to help cash seller out of his boat and then we own the trade. This means we are participating and once we take the trade we have financial exposure. 75% of all boats we have sold have had a trade.
3) No one has to accept the offer or sell there boat.
4) We will pick boat up, detail it and not charge customer until the boat sells or 6 months which ever comes first. If it's here for 6 months, most likely not priced where it needs to be.
5) We market it in magazines and websites that we have monthly financial commitments to and do not charge customers, it's part of the comm to sell the boat.
6) We have a staff and facility where every boat we have is indoors and always clean which is the best way to sell a boat. Does not matter what weather or temp is, a consumer can come look at boat with there wife, family, or other without getting dirty or stepping into boat getting feet wet, rained on or other.
7) This all comes at an expense and services should have value when handled properly.
Hope this helps clarify.
www.teamshogren.com
the cheaper you list it the faster it sells the faster you collect your money..
03-25-2011, 09:29 AM
#88
Registered
Back on topic..
I was a passenger for years and then jumped in to buying. I bought 2 used boats over 2 years and then the 3rd year ordered new.
Funny story but for me, it is less expensive being a boat owner than it was being a passenger!!! Granted I have a CC and not a big boy toy like I was riding on but still.
I could have had a lot of boats for what I paid for my ordered by me CC, but it was exactly what I wanted built exactly the way I wanted it, lot of value in that to me. I don't wrench either so new is a good option in my case as well.
I also knew going in I would take it in the pocket whenever I moved on and I also knew I had to keep this boat for 5-6 years for my pockets to be able to absorb the loss. Again, fine with that and knew that going in.
The $130K I paid for my 2007 boat? 150ish hours, out of warranty, has a new GPS (that is a joke since electronics depreciate more than boats do)? I'm guessing retail would be in the $50K's some where.
I'm not a big baller and $20K a year hit is a $20K a year hit no matter how you dice it, but I was, and still am, ok with that.
Next boat- new or used? Depends on if any one has a Nortech 340 CC with Smith Power R4's used for sale by then.
03-25-2011, 11:25 AM
#89
Sounds like you do agree somewhat. You admited that these low prices keep cash flowing through companies. Not sure why I need to be realistic about prices so you and Shogren can make a living...... If ya'll want better margins try getting out of the used market. IMO the relationship that exist between a dealer and a seller is the dealer is supposed to get a higher price on the sale, and in exchange the dealer gets a commission so it should be a wash and thus, no cost to the seller. When a dealer does the opposite and actually lowers the price as shogren is doing, his services are no longer needed because he hasn't really earned his pay. Anybody can dump a boat. I dumped a cadillac the other day in 2 hours. Much faster and less hassle than using a dealer. This is the untold story Trulio has failed to mention. Shogren is trying to have their cake and eat it too. He wants boaters to dump their boat and he expects them to pay a commission for that, but there is no need to pay a dealer to dump your boat. That my friend is realistic. And in my "real world" scenario if I take a boat to Shogren and expect him to sell for $35K, but he tells me it will only sell for $25K; I'll sell the boat myself.
03-25-2011, 11:40 AM
#90
Registered
Selling A Boat
Sounds like maybe you had a bad experience selling or buying a boat in the past and for that I apologize but until you own a boat dealership where you affect the lives of your employees and the risk we take stocking millions of dollars worth of boats or the investments we make in the industry will you ever know or understand what it's really like.
If you have a boat and want to sell it, you can always sell on your own. It's a choice which I/we all respect and we are only here for a suggestion. It's more than just numbers which is why we make a huge investment in this industry through poker run support, web support, sales and service support as well as payroll of employees to support their families and a 50,000 square foot indoor facility to help consumers sell and find their new boats. We are open during business hours not when convenient hours. Sorry you don't see the value in a dealer or what they can do for you and BTW your assumptions are totally in-correct but your opinion is respected.
Being a boat dealer is not easy let alone retail which is why banks closed down more than 1,000 boat dealers in past 18 months in US alone. This is NOT good for our industry, the sport we love or consumers.
This has been a very interesting thread which I have very much enjoyed reading.
Regards,
Scott Shogren
If you have a boat and want to sell it, you can always sell on your own. It's a choice which I/we all respect and we are only here for a suggestion. It's more than just numbers which is why we make a huge investment in this industry through poker run support, web support, sales and service support as well as payroll of employees to support their families and a 50,000 square foot indoor facility to help consumers sell and find their new boats. We are open during business hours not when convenient hours. Sorry you don't see the value in a dealer or what they can do for you and BTW your assumptions are totally in-correct but your opinion is respected.
Being a boat dealer is not easy let alone retail which is why banks closed down more than 1,000 boat dealers in past 18 months in US alone. This is NOT good for our industry, the sport we love or consumers.
This has been a very interesting thread which I have very much enjoyed reading.
Regards,
Scott Shogren
