You Snooze, You Lose (again)!

I. More Mayday

My last posting, Mayday – A Cautionary Tale, was the most widely read (and shared) post in the ten years I’ve been doing this. I am thrilled to report that readership of The Fog Warning has now climbed past 10,000 readers. For what this can mean to you and your yachts, please see below.  But for a refresher, here’s the original posting:

II. You Snooze, You Lose…

Go ahead, punch The Fog Warning sales button:

 

Truant, my Vicem 70 listing (and one of my most-inquired about yachts) is now under contract! Her new owner has owned some truly remarkable yachts (including the most stunning Lyman Morse ever) and knew exactly what he was looking for. His successful search says a tremendous amount about his taste and values, about the enduring brilliance of Vicem yachts, and the “blank check” stewardship of her seller.

But fear not, fellow yachtsmen! I present you with other compelling choices. I have spent the last few weeks moving up and down the east coast showing these fine offerings (click on the vessel name for the full listing):

The Baron, my Vicem 72 listing in Miami:

The Baron

Mahogany Rose, my Vicem 67 listing in Charleston:

 

Mahogany Rose

Essence, my Vicem 85 listing in Palm Beach:

 

Essence

And, the superb custom Viking 82 Skylounge  – Untethered: 

Untethered

If you are looking for a fine yacht for this season, now is your time. Anyone who worked the Palm Beach Boat Show last month would tell you that quality yachts are trading hands right now. Sales velocity has picked up, and inventory is dropping.

I looked at the data last night, and found that older listings are [finally] finding new owners. Stated another way, older listings have really been the norm for the last few years, but they are now attriting out.

Almost 400 powerboats in the 65 to 85 foot range sold in the US over the last twelve months. I did the (very tedious) math very carefully and found the average time-to-sale was 13 months.

By price, it breaks down like this:

Under $1,000,000 11 months
$2,000,000 to $3,000,000 13 months
$2,000,000 to $3,000,000 12 months
$3,000,000 to $4,000,000 10 months
Over $4,000,000 13 months

But note that these numbers mostly relate to production boats. Classic, custom and otherwise unique yachts are averaging 28 months. Large sailboats? An incredible 31 months.

III. All about the Velocity

It doesn’t have to take this long to find or sell the right yacht. I’ve both broadened and sharpened The Fog Warning’s approach to help you add velocity to your deals.

  • If you are looking to buy, and feel Baron, Mahogany Rose,  Essence or Untethered could shake up your life I suspect you may soon miss out. All have had showings in the last few weeks. If you don’t want to be on the wrong side of one of my snoozeagrams, launch a flare today.
  • If you are shopping more broadly than these offerings, please consider letting me help you find your next yacht, no matter where she swims.  I am currently helping one client find his ideal Fleming, and another find her ideal Marlow. With all significant projects, I can now provide a signifiant “real dollar” cost savings. Please call for details.
  • If you are considering selling your current yacht, let me put the full power and reach of The Fog Warning behind you. As mentioned above, we are now at over 10,000 readers. And all indications are that they are exactly the right kind of readers.  What’s more, Constant Contact, the email system that regularly connects you to The Fog Warning, just awarded me its 2017 All-Star award:All Star Award 2016 WinnerThe reason? 94% of my recipients choose to click and read every Fog Warning posting. I am honored by your allegiance. Clearly you value what I deliver. Which is why I am investing considerable time, effort and money on moving The Fog Warning to an exciting and more powerful platform – a [free] Interactive Digital Magazine, with app versions for all devices. My goal is to add even greater reach and value for you, my loyal clients, finding or selling your yachts more quickly. I aim to put The Fog Warning’s award winning content in front of as many qualified boat shoppers as possible. Simply stated:

Let me put your yacht in front of their eyes! 

  • Even if your special yacht is currently listed with another broker, The Fog Warning can add velocity to that listing at no additional cost to you. Just launch a flare to hear the benefits to you of this groundbreaking initiative. At the very least, I promise you an eye-opening conversation about the state of marketing in our industry.

In short, loyal readers, let’s push The Fog Warning button together and sell or buy your fine yacht:

 

IV. Your Mayday Comments

Yes, my cautionary tale is the most read (and most widely shared) posting ever. To all who took the time to pass on their “glad you survived” comments, my profound thanks. And, I’ll add this thought: ME TOO!

I found the substantive comments of great value, and I believe you will too. Here are a few, along with my answers:

  • Wow, Dave. An incredible story. Thanks for sharing. I’ll admit I always considered myself a “safe” captain. Always had more than the required number of flares, pfds, etc. and close at hand. When you said “I always wear my mini-ditch kit” my first reaction was that it sounded like overkill. I was shocked, however, by how quickly the smoke overtook you.

Well, no one was more surprised than me. One reason is that the boat had an enclosed helm. There was no helm-side door, and the windows were fixed. The aft end was mostly enclosed by eisenglass. There was no simply no place for the smoke to go (except my lungs).

  • Dave, I’m curious about the salvage team that tried to intercept your tow. I’ve had some experiences with those pirates. Or are they vultures? Looking forward to your coverage on the applicable laws and practices.

Stand by for that, Batman. The deeper I dig into this, the more fascinating the details.

  •  I think being alone on that delivery may have been a huge advantage for you. You only had to worry about yourself and the vessel. There were no children, inexperienced passengers, non-swimmers and such to distract you. They would very likely interfered with your the mission critical tasks.

Well said, and this hadn’t occurred to me. It argues toward a forceful approach with guests. When it comes to guests at sea, maybe there is a time and place for volume and authority?

  • It sounds to me that even if you had a life raft, you wouldn’t have had time to deploy it.

True, that. And hydrostatic releases for rafts are irrelevant to fire situations.

  • Dave, you said a few times that you wasted precious seconds. What would you have done if you hadn’t? 

Great question! The answer is something that never occurred to me in the heat (sic) of battle. There was a hatch right over my head. I never thought to open it. Duh! Smoke would have cleared more quickly, allowing me to both see and think more clearly.

V. Blank Check

I mentioned at the top of this posting that Truant’s quick sale proved the value of an uncompromising maintenance schedule. Recently I had the opportunity to review over 200 pages of maintenance records for one of my listings. They representing six years of “blank check” ownership, and it was a little like reading a great autobiography!

I invested the time in putting together a spreadsheet of it all, hoping for a “big picture” view of how maintenance dollars are spent.

She is a New England boat, stored indoors in a heated shed each winter. Here’s how her expenses break down:

 

I was surprised about how significant commissioning/decommissioning expenses can be. So I backed them out, presenting a picture of a southern boat, or perhaps a north/south boat:

One interesting dynamic that jumps out at me is upgrade costs. Almost by definition, upgrades are optional. But they do make a brokerage yacht stand out among the competition. I’m looking now at how upgrade projects pay for themselves, and/or affect sales velocity, at final sale. As usual, I look forward to your comments on this, that, and anything else.

Ciao for now, loyal readers. I hope you enjoyed reading this post as much as I did writing it.

Enjoy!

Big Wave Dave

 

About Dave Mallach

It amazes me to say that this now my twentieth year as a yacht broker. I'm lucky enough split my time between Manhattan and Westhampton Beach, but in season you are most likely to find me on my trawler “Gypsy” at mooring #44 in Coecles Harbor, Shelter Island. Or, of course, you can just call me at 516-816-1703. I do look forward to it.