Archive for May, 2013

Cold Spring Warm Market Better Then Warm Spring Cold Market

May 5, 2013

In my travels out to photograph the fresh listings we get in I encounter many a marina owner and people milling about working on their boats. Just this week I had two marina owners say the same thing, “Boats really aren’t selling anymore are they?” Believe it or not I hear this or something similar all the time. To which I always reply “incorrect sir we are selling more boats than last year and far more than the year before that, but the boats have to be priced correct for the market and correct for condition”. A deeper conversation usually reveals they make this comment based on a few languishing boats they have in their marina’s that have been for sale by the owner or another broker for 3-4 years many of which are in the corner and covered in pollen and cobwebs. They are basing what they say on a very narrow scope of view and applying it to what they perceive is the market as a whole.

As a company Knot 10 is up significantly in settled sales over 2012 which was a record year for us. Our YTD settled sales are up 48.4% in units and 25.3% in total dollars Jan-April 2013 vs 2012. For the markets we serve the SOLD boat data for all reporting brokers was:

Mid-Atlantic SOLD:

Diesel Units Settled

Jan 1-Aprl 1, 2013                   2012                            2011

238                                    227                           205

 

Gas Units Settled

Jan 1-Apri 1 2013                    2012                            2011

791                                  941                           920

Florida SOLD:

Diesel Units Settled

Jan 1-Aprl 1, 2013                   2012                            2011

702                                    597                              704

 

Gas Units Settled

Jan 1-Apri 1 2013                    2012                            2011

1125                                1102                             1142

New England Region SOLD:

Diesel Units Settled

Jan 1-Aprl 1, 2013                   2012                            2011

213                                   209                              189

 

Gas Units Settled

Jan 1-Apri 1 2013                    2012                            2011

742                                 961                              825

**interesting that the gas units are down in Mid-Atlantic and New England in almost the same ratio equal to the slow but steady diesel sold rates**

For buyer and sellers its important for you to know Knot 10 is always here and that the only thing all of us earn our income on is selling boats. No part time brokers who bartend at night, no service business or marina operations/gas docks etc. All we do is sell brokerage boats 7 days a week and not one of our salespeople earn a dime in salary or base + commission. Sell a boat earn money, then start at zero and sell another one. With the exception of our office Admin & Closing staff  (who are quite exceptional!), not even our management team have a salary. Personally the last sales/marketing job I had with a salary was when I was 23 years old. I was earning $40k a year doing marketing for a physical therapy multi office practice. I hated it so much that I would usually dump the marketing materiel in the trash so it looked like I called on a bunch of accounts and sit in a parking garage listening to talk radio killing time. Not something I was proud of at all, but the point was I was getting paid regardless and hated what I was doing. Thankfully I quit after 3 months and took a 100% commission opportunity selling for a Nikon medical equipment dealership. It opened my eyes that without a ceiling on earnings coupled with doing something I enjoyed you could have an environment that provided the hardest workers with the greatest income and freedom. It’s a much longer story then many of you want to hear but it formed the basis for how I think all capitol equipment or high end sales teams should be structured to produce the greatest results. Pay people well, strip away the mindless call reports and “who did you see today spreadsheets” that big management companies paying sales bases and salaries brings and you end up with more peak performers pulling in the same direction. Sell a boat and start back at zero every pay period is an environment where if you don’t perform you will starve and eventually realize this is not the work for you. I’m proud of our team and assure you selling is what we do and while its not always easy or as quick as you may want there is no incentive for our team to not want to sell each and every boat we can.

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