Radical new ways to improve the value of new yachts are needed owing to escalating sales prices, cost of maintenance and complexity of operation of new yachts excluding potential buyers or causing many to buy less yacht than they desire. For the purposes of this discussion, the term “yacht” primarily refers to boats, sail or power, between 35 feet and 100 feet in length, built on a production or semi-custom basis.
Yacht builders which have been in business for a number of years and are still in business today are very good at what they do. These yacht builders are among the best ever, having survived many competitive and economic challenges. If the assumptions of the first paragraph are valid, the value of new yachts is declining for both buyers and builders. Profits of builders of new yachts are severely depressed in the current economic environment. Even in good times, builder’s profits are less than many buyers of new yachts expect.
In my previous post I offered the calculation of value used at Truebuild Yachts to guide its process of enhancing value for all stakeholders. Even when acting as advocate for a yacht buyer, Truebuild Yachts increases value for the builder by reducing the buyer interface costs for the builder, enhancing the builder’s brand and increasing the builder’s gross profit by facilitating achievement of the buyer’s desired outcome in the most cost effective professional manner (Think Lean). Truebuild Yachts lubricates the process.
There are a number of value reducing trends in the yacht building / buying process now. Among the enemies of value are:
1) Evolution of brands
2) Emulation of successful brands by new yacht builders entering the market
3) Increasing buyer interface costs
Truebuild Yachts can currently increase value for all, but Truebuild Yachts is also aggressively pursuing how to radically increase the value for both buyers and builders of new yachts so all comments are welcome on this, past and future posts.
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