DOES YOUR BOAT ATTRACT MICE?
The values of brokerage boats are seeing a slight stabilization as the U.S. pulls out of its most recent economic meltdown. However, when looking at values, it is important to remember that these pleasurable toys are not appreciating assets. In fact, they have a steeper depreciation in their first year than cars.
When buyers choose to shop the brokerage market versus the new boat market, it is most likely for economic reasons. They logically say, “Why pay $400k for a new 35′ boat when I can buy an older one for 50% less. I’ll go find a clean, well maintained, used boat and save some major $.” In addition, brokerage boats have added value due to the increasing cost to build today’s new boats. Their costs are accelerating due to technology, oil cost and supply and demand equations. The ever increasing price differential between new vessels and your slightly loved boat is driving more and more buyers, who would have purchased new in the past, to steer in our direction.
DOES YOUR BOAT ATTRACT MICE is meant to grab your attention. It refers to the listing price of your brokerage boat which is especially relevant when it comes to brokerage buyers who are shopping value. An attractive price is equivalent to cheese in a mousetrap. Customers or “mice” are drawn to the boats that are well priced. In order for someone to buy your boat, they have to notice it. When we list an incredibly clean boat, we know it’s going to sell if we can get an average of three buyers aboard. If you price high, it’s like having a mousetrap without any cheese and customers will not notice it. On the flipside, if a customer is drawn to a boat due to pricing (cheese) and they find it in good condition, they are in the trap.
Regarding condition, in today’s market a vessel that is just average or below average in condition equates to having cheese that a mouse might sniff at but won’t like enough to nibble on. This is why paying attention to your broker’s suggestions is important and can save you money. Making improvements to condition prior to coming on the market is far less costly than having your boat grow stagnant on the market. Ultimately, you will drop your price tremendously because your boat’s condition does not compare to its competition. No one wants to wait around incurring marina, insurance, and numerous upkeep fees longer than necessary and still have to reduce their price.
When the exposure and immense marketing package that we offer combine with your realistic listing price, the cheese attracts the most mice. The more mice we’ve drawn to the trap, the greater your likelihood of success.
If you’ve been on the market for more than six months give us a call. However, before doing so, take a look and see if your boat has the right cheese to attract that one mouse.