Friday, January 30, 2009

What is Value?

In these economic times, the conversation of 'value' has never become more important. When you first hear the word 'value', the first thought it conjurs up for most is 'getting a deal'. While there are many of those currently in the sailboat market, to merely focus on that aspect is very short-term thinking. Today's deal, may be tommorrow's headache.

In today's economy, 'value' cuts much deeper than that. The longer-term approach to defining value is based upon a thorough process of looking at the product, the manufacturer (where they've been; where they're going) and most of all the dealer (What services do they provide? What have customers said about their experience with them?).

Boat manufacturers come and go. Recently, there have been more departures than arrivals. In the months to come- the market may see more. In doing your research, You have to look at the legacy of the company, what their market capitalization is and where they are heading. Today, more than anything, these factors truly define the true value of a boat. This effects the residual value of the boat in two, three five or more years down the line should you decide to sell her. That 'hot show boat' may quickly become the white elephant boat that no one will buy at any price down the line. Many european manufacturers have tried to penetrate the US market. Many have come and many have gone. Ultimately, the lack of dealer support, dealer network and fluctuating currency does them in. Come low tide- they too will be gone.

The 'term boat dealer' is loosely defined as well. Many have come and gone in this category too. Some are content with opening shop out of the back of a car or operating virtually. With no inventory to stock, their approach is to pass the savings along to you. While this might represent an immediate transfer of 'savings'. The cost is loaded on the back end. When you have a warranty claim, who will do the work? Will the company stand behind the product? Will the 'dealer'? How do you obtain parts for the boat?

We are proud to say that at Karma Yacht Sales, we represent the best the industry has to offer.
KYS has a legacy of providing top service for our customers and have received the recognition for it. We understand that buying the boat of your dreams is an important decision. That is how we started in this business, as customers. We also recognize that anyone can sell a boat, once. There are however, very few who do it right and can earn a customer's loyalty for a lifetime. That is what we strive to achieve. Just ask our many customers.

As the largest builder of boats worldwide, Beneteau has a legacy of being in business for over 120 years. They have weathered many storms and because they have- they are poised to endure. Designed in France and manufactured with pride in Marion, S.C., they have generously invested in their own success.

Cemented in the principals of quality, innovation, technology and value- it is now more than ever that selecting a Beneteau as your next boat is one of the most important decisions you can make.

I've included the latest financial report for Groupe Beneteau. In reading it, you will see their outlook. A realistic one for the short-term and one that looks toward the future.

A value today, tommorrow and in the years to come.


By IBI Magazine
French boatbuilder the Bénéteau Group says that its solid financial position will allow the group to weather the crisis and predicts recovery with double-digit growth in 2010.

Bénéteau forecasts a drop in marine sales of up to 40 per cent in 2009, but intends to outperform the market. The group predicts its sales will be down 30-40 per cent for 2008-2009.

Sales for 2007-2008 amounted to €1,063.8m and income €150.2m. Bénéteau's high assumption forecast for 2008-2009 is €742m in sales — a drop of 30 per cent — and profits of €29m. The low assumption forecast is €646m in sales — 39 per cent down on 2007-2008 — and €1m income.

The group's 'particularly healthy' financial position of €490m net including €217m net in cash on August 31, 2008 and its high profitability will be key in maintaining investments in preparation for the recovery.

Projections for double-figure growth in 2010 are based on a record new-model plan, including 21 renewals and eight range extensions, the impact of the reduction in stock on the 2009 season, and the effects of the crisis on competitors.

These results and forecasts were released at a meeting yesterday with financial analysts and follows encouraging signs at the recent Paris Boat Show, where Bénéteau noticed a change in behaviour of its French customers following the caution of September, October and November. The show reported 260,000 visitors, a drop of five per cent on last year's levels.

Boats represent 81 per cent of Bénéteau's sales and leisure homes 19 per cent. The group is present in over 50 countries and employs 6,000 people across 24 production sites.
(30 January 2009)