Yacht Brokering (Fort Myers: sales, real estate, insurance)

[kroeran]

This is pretty much directed at Yachtcare. I am thinking of working into Yacht Brokering as a retirement hobby in the Fort Myers area. I will have a pension so will not be dependant on it for income. I am expecting 5 years until the market turns around. Any observations or advice on the local industry? Which company would be best to try to hook up with?

[Compression]

Originally Posted by kroeran

Any observations or advice on the local industry? Which company would be best to try to hook up with?

Well, I wouldnt say I'm best qualified to answer,as I am not a "broker". There is a term..."Yacht Management"(similar to real estate's property management). This term encompases all facets of the boat sales and service industry. Brokers(the top dog position), and Surveyors are(IMHO) at the top of the food chain there. From that point down it goes to the mechanics(that are broken into specialized sub fields), and the same can be said all the way down the line to electronics, interior systems, cosmetics, and repair and maintenance of all of the above. Thats the brief overview of the industry as a whole.

As mentioned, I am not in the brokerage end, but I have been in a real estate brokering career in the past. I am in the "cosmetics" end of the yacht management game.

There are similarities, and there are wide differences. Sales experience is the same, regardless of what you are selling..houses, boats, cars. Real estate usually has a strong "code of ethics" attached if you are dealing with a Realtor. Yacht brokers, like used car salemen, have no such restraints. Enter the "surveyor", but you can research that yourself, easily enough. Do you have any sales experience, or training? How about your boating knowledge? Know the difference between an express cruiser and a convertible?...start with the basics....seeking a position with one of the larger corporate new boat/brokerage sales outfits like Allied, or Galati might be good learning experience. The guys that have established a name for themselves working for those places, will usually go on to open their own brokerage later, after they have an established clientele, and seek to siphon off several other established salesmen from the big outfits. If you are knowledgeable in the marine field, and have sales experience, one of those might be a place to look at, and compare comission plans, etc. Wilson Yacht sales, Paradigm Yacht, and Cape Yacht Management are the big three locals in the area that come to mind, and there are several smaller ones as well.

This year, has alot of the dealers, and "consignment" lots that deal in the smaller boats (35' and under) struggling for survival. The brokers are concentrating on the larger stuff, that typically already is sitting in it's own slip, being crew maintained by owner arranged contracts,(no overhead to the broker) and are still selling,because the folks that can afford them in the first place, can afford them even easier now, that they are selling for pennies on the dollar. That being said, sales are still VERY slow this year.
I havent done any actual math, but guessing 80% of what I have seen sold this year, in this area, leaves this area, and much of it is leaving the country. Alot going toward Europe, and some toward Austrailia and Asia. With the euro/dollar disparity stabilizing a bit in the past few weeks, things have slowed down again, while buyers try to get a feel for what is next to come. The large boat sales, like everything lately, seem to cycle pretty closely with the stock market.

Sorry for the long post, and if I created more questions than I answered. Happy to help if I can answer more.
Maybe there's another knowledgeable in the field that can join the discussion?.....

[kroeran]

thanks. No sales or boat experience, so I would probably have to find a 100% commission situation with a small boat consignment dealer.

I doubt anyone directly in brokering would help me out at all.

I will be snowbirding from Canada. Maybe I could buy boats cash and trailer and sell them in my home town and learn the business that way, or just switch to importing given conditions.

What would be examples of trailerable small boats that would be most well known, where value could be most easily established?

[Compression]

Originally Posted by kroeran

What would be examples of trailerable small boats that would be most well known, where value could be most easily established?

There's dozens of fairly well known names of manufacturers. Chris Craft, Sea Ray, Crownline, Maxum, Bayliner, so many I cant recall the bulk of them.
Value is (more often) established by general condition, age(under ten years is best)and number of "hours" on the mains and genset, if any.
There are two sources of reference to establish a base line of value, BUC International, publishes the "BUC Book" which is the industry standard, and NADA (same folks that publish the used car value guide) also publishes one for boats.
Typically, if financing is necessary, the lien holder, and sometimes the insurance company, also, will require a "survey" on any vessel over five years of age, before closing the deal, to make certain there are no latent defects or other needed repairs to meet ABYC, and USCG standards. The surveyor will "fine tune" and affix his opinion of the vessel's current value, and estimate of cost of repairs, and a "replacement" cost if an insurance survey is required.
As an aside, what I think may be an emerging market, given the current economic situation, would be to find a clean, older, "FRESHWATER" boat, that you could trailer to FL from your locale in Canada. Small, economical, cash deal type boats will probably have a market here, and having come from a freshwater environment is a big plus, less repair, and corrossion issues with the mechanicals. Cash deal...sold as is...you would avoid the potential pitfalls of the survey experience. Bring one boat per year with you, get some use out of it yourself, while you market it. Just a thought. Hope this helps.

[kroeran]

Originally Posted by yachtcare

There's dozens of fairly well known names of manufacturers. Chris Craft, Sea Ray, Crownline, Maxum, Bayliner, so many I cant recall the bulk of them.
Value is (more often) established by general condition, age(under ten years is best)and number of "hours" on the mains and genset, if any.
There are two sources of reference to establish a base line of value, BUC International, publishes the "BUC Book" which is the industry standard, and NADA (same folks that publish the used car value guide) also publishes one for boats.
Typically, if financing is necessary, the lien holder, and sometimes the insurance company, also, will require a "survey" on any vessel over five years of age, before closing the deal, to make certain there are no latent defects or other needed repairs to meet ABYC, and USCG standards. The surveyor will "fine tune" and affix his opinion of the vessel's current value, and estimate of cost of repairs, and a "replacement" cost if an insurance survey is required.
As an aside, what I think may be an emerging market, given the current economic situation, would be to find a clean, older, "FRESHWATER" boat, that you could trailer to FL from your locale in Canada. Small, economical, cash deal type boats will probably have a market here, and having come from a freshwater environment is a big plus, less repair, and corrossion issues with the mechanicals. Cash deal...sold as is...you would avoid the potential pitfalls of the survey experience. Bring one boat per year with you, get some use out of it yourself, while you market it. Just a thought. Hope this helps.

thanks. very helpful. maybe take small one down, take a bigger one back.