Radically improving value for buyers and builders of new yachts

I've begun 2010 by steering Truebuild Yachts on a quest to find radical new ways to increase value for both buyers of new yachts and builders of new yachts.

What is value? How can value be increased for all stakeholders? By what process can the answers be determined?

The yacht industry does not have an effective mechanism for listening to buyers, at least one of which I am aware. This blog has been created to enter discussions in pursuit of answers to the above questions and more. I hope many will contribute their thoughts and ideas.

A key step in this process is arriving at the best possible understanding of how value is defined by yacht buyers and yacht builders. Below is the operating definition of Value that Truebuild Yachts currently uses, based on over 35 years of experience in the yacht industry. Clearly, it took me a while to dedicate myself to deeply understanding the value propositions.

Buyer of New Yacht Value Calculation:

Buyer of New Yacht Value = (Purchase/Build Experience + Ownership Experience) - ((Purchase Price + Operating Cost) - Resale Price)

Builder of New Yachts Value Calculation:

Builder of New Yacht Value = (Gross Profit + Brand Enhancement) - (Sales / Service Costs + Buyer Interface Costs)

Obviously, some of the value elements are personal and not readily quantifiable, but they do translate into a "willingness to pay" amount for buyers and a "willingness to build" amount for builders.

I will share more thoughts on the broad and far reaching implications of these value elements in future blogs. Meanwhile, your thoughts and ideas are welcome.