1.  Coastal Cat 34 -- outboard-powered catamaran
   (Bruce.D.Graham@jci.com)

Dear Bruce, As regards your query (below) about the Coastal Cat 34. I've checked in each month this year with Jennings Yachts, located in Anacortes, WA, and the builder of the North American version of the Coastal Cat 34. The good news is that, unlike many of the other builders of cats in this size range, Jennings has remained in business. However, due to the severe recession of this year, the backer of this project (a Hawaiian-based entrepreneur) cut back on his monthly financing, so Jennings has kept a smaller crew on this particular project. Thus, the tooling -- which initially was to have been completed summer of '09 -- is just now nearing completion: it's looks like that will occur just about the end of December. The work on the complex and multi-pieced tooling has been proceeding steadily, but with fewer craftsmen it's simply proceeding more slowly. (However, the quality of the tooling is some of the best I've seen for a power cat in this size range. Jennings and his people do GOOD work! But this isn't surprising: Jennings used to be involved with Tollycraft for several years . . .then was the head of production for the Livingston 8' to 22' fiberglass dinghy/runabouts. And he was an official at Northstar, builders along the Columbia River of 80 to 120' mega-yachts.) In short, Mr. Linn Jennings knows how to build fiberglass boats! Frankly, given the huge reduction in boat sales during 2009, the CC-34's backer turns out to have made a shrewd decision. Based on my view of virtually all other cruising cats, debuting the CC-34 during the Summer of '09 would NOT have been a good time to introduce a new power-cat in this size/price range. Of course, I don't think it would have been a "great" time for ANY size/price model. But there's "good" catamaran news out there, too. Lagoon, for example, began taking orders for their new 40' sail-cat-with-twin-diesel-engines as of January [a TERRIBLE sales month in '09 for boat sales] . . .and their order book is now up to around forty-five sold, with hull #36 leaving the factory in another week. That's not bad, not bad at all, for a boat that, equipped-and-delivered, runs about $400K-to $450K. Then again, that's less than one boat per dealer for their 50, world-wide dealers. Had this boat debuted in, say, the beginning of '06, by November it's likely that Lagoon would have been up to hull #100 or so by November. But again, the company's doors are open, the lights are on . . . and during last week's Ft. Lauderdale show they took [another] order for their new, $2M, 62' sail-cat-with-twin-110HP-diesel-engines. So it appears that Lagoon's going to do just fine. And that's true for Fountaine Pajot, BOTH it's sailing and power [35', 40', 46' & 55'] models.) With the Coastal Cat 34's tooling completed by year's end, Jennings Yachts hopes to debut their first Coastal Cat 34 as of about April, '10. Just as with Lagoon and F.P., the earliest buyers of the CC-34 can probably negotiate a really appealing price (in exchange for making their new cat available for boat-show exhibition, etc.) In fact, let me share a few ways in which you can get the BEST savings for yourself when acquiring a new cat. People often think that the "best" price for a cat (all things being equal), is best achieved by buying a 1-or-2-year old model. But in my long-term experience, acquiring a cat during its initial "introductory price" phase usually offers an even better deal. (I should explain my own bias . . .and that of most broker/dealers: used sales are generally easier than new-boat sales. A used-boat sale is a consignment procedure. The boat is sold as-is/where-is. Within 1 to 3 weeks the sale is concluded, and the broker has no further obligations with that buyer. BUT . . .when ordering a new boat -- and especially if, following the order, the boat must then be built [thus giving you the chance to select what cushion fabric you want, which engine size, the interior layout, etc.], the ordering/build process may take from 3 to 12 months. And THEN, I, as the dealer, am obligated during the ensuring 1-year warranty (the hull/deck itself is likely to have a 3-to-5 year warranty). So, all in all, a new boat is a way, WAY bigger time commitment for the dealer . . . yet the sales commission comes nowhere close to offsetting the much longer time involvement as compared to the standard 10% commission for a used-boat sale. Nonetheless, while used-cat sales make for sense...and cents....I do like the satisfaction of helping a client acquire a new cat that's been "semi-custom built" for him/her.) So, back to the notion of why "introductory price" deals on new cats can often be an even better deal than buying "used." First, some examples: -- The introductory price for the first ten PDQ 32s was $99K. Within one year that model's price had risen nearly 20%. (Result: Buyers of any of those first 10 models were able to sell the boat just 36 months later for MORE than they paid for the boat.) -- The Catfisher 32 catamaran debuted in the U.S. (1985) at $60K. Within one year the boat was priced at $85K, more than a 40% INCREASE. (Within 3 years the price was up to $105K) -- The Lagoon 38 had a special, introductory price of $165K. Within 18 months it was over $200K Ten years later, the buyers of the introductory priced model can STILL resell their cat for $40K MORE than they initially paid for the base boat! (AND, meanwhile, they've enjoyed 10 years of great boating!) -- The Lagoon 40 had a special, U.S.-introductory price, for the first 5 models sold, of $300K (ex-works) at the beginning of this year. Within 7 months that had risen to $333K. Again, those "introductory" buyers are going to be able to use their boats for 2-to-4 years . . .and THEN sell them for more than they initially paid! -- And I recall that both the Glacier Bay 34 and the TomCat power cats had similarly exceptional introductory offerings. People buying only a year or two thereafter could only WISH that the price then available was anywhere close to the special "early-bird" prices first offered. The early-bird buyers of each of those above models -- because they took advantage of special, introductory pricing -- got NEW cats at a LOWER price than buyers a year or two later could find among even "used" models of that boat. This is why I continually counsel would-be buyers -- whether of brands that my company reps, or brands repped by other dealers -- that the buyer's BEST purchase ploy is to keep an ear out for all-new models offered at special, introductory pricing. Dollar for dollar it works out to being a better deal than buying "used", whether a year, or two, or three AFTER that introductory pricing has ended. Why do builders offer these special introductory prices? Simple: (a) They want to amortize, as quickly as possible, the cat's much higher (than a monohull's) tooling costs (a monohull is a much simpler shape, and hence the tooling costs much less); (b) They want to lure would-be buyers from established competitors' already-available models; (c) They want to "prime the pump," and create sales activity for their new model -- selling the first 5 is often more difficult than selling the next 5 models. In addition, early buyers may be able to get a manufacturer to pay a "rebate" in exchange for the new owner's boat being used (displayed) at a boat show. (By the way, what might you be able to negotiate for that type of rebate? In my experience, if you make your new cat available for exhibition at a substantial-size boat show, you can negotiate a fee of between a 1% and 2% of the cost of the boat and its factory-provided equipment. So, exhibiting your new, XYZ cat (list price of $200k plus $35k in factory-supplied options), should garner you a check for between about $2,300 to $4,700. (Not bad for letting the dealer show your boat for 4 or 5 days.) Similarly, since the initial inquiry here was about the Coastal Cat 34, you should be able to earn between about $3,100 to $6,300 in exchange for allowing your new Coastal Cat 34 to be displayed at a boat show. Things to keep in mind with such an agreement? I'd recommend that you stipulate the following: (a) The dealer pays all expenses moving the boat FROM your dock to the show, and then FROM the show back to your dock. (b) Be sure the dealer has insurance that indemnifies you in case of any accident. (c) Check to see if your name can be included on the dealer's rider-policy. (d) Get written confirmation that the dealer will clean your boat, INSIDE & OUT, _after_ it's been returned to your dock. (e) Be sure the dealer confirms he'll pay for any repairs (although, in my experience, boats suffer virtually no wear-n-tear at a boat show -- but to ensure that, you may wish to stipulate that the dealer ALWAYS has someone aboard your boat during the show. You also could stipulate a "NO shoes, NO food, NO beverages onboard" policy during the show, too.) (f) Oh, and it wouldn't hurt to agree that you get your money THE DAY THE SHOW BEGINS. Once the show's over -- and especially if the dealer didn't take any orders -- you could find that payment from him is suddenly a lot slower "getting into the mails." Other ways to get your boat to "help pay its own way"? Have an agreement with the dealer that he can show your boat, dockside (at your slip), a couple of afternoons per month. What might you ask in return? First, I'd try to arrange for a long-term agreement -- say 6 or even 12 months. As for the sum paid to you, I'd recommend something like this -- for every $100K that the boat costs, you might ask for a monthly payment of about $250. So, for a $400K boat you'd earn $1,000 per month. And I'd make that agreement so that you earn the money whether or NOT the dealer actually shows your boat to anyone in any month. You could also stipulate that he seek to give you a day's notice, when possible, before showing the boat. In exchange, he may ask you to give HIM a day's notice if you're going out in your boat. But I'd definitely create the agreement so that, generally speaking, he's working around YOUR boating-use schedule, not vice-versa. In short, the monthly payment you earn in exchange for allowing the dealer to show other would-be buyers your boat a couple of days per month, should easily cover your monthly moorage-and-electricity. . . . and maybe a professional cleaning each month, too. Of course, a dealer has need of only ONE such vessel in any particular area, so such an arrangement would be offered on a first-come/first-served basis. Why would a dealer offer the above? He's really just moving "beans from one pile to another." That is, is he orders a display boat himself, he has a set "cost" for doing so. This includes a special loan, with, perhaps, quarterly balloon payments, and maybe a final pay-off 12 months down the road (with a big penalty if he doesn't sell the boat within those 12 months.) So, by giving you back much of the profit earned for your sale (via that $1,000-per-month payment to you), he saves himself from extending his credit line the $400K price if HE had had to order that boat. (Such demonstrator models are also known as "floor models" because they are displayed on his showroom floor.) Another concern: the dealer orders the model he THINKS will be the most likely to sell. But invariably, if he orders a 3-cabin model, the subsequent would-be buyer wants 4 cabins . .. or different cushions. . . .or different engine sizes. . . and so on and so on. Thus, to "get rid of" that demo model, the dealer may have to "eat" some of his sales commission. And, what if another "2009" hits him. THAT is the primary reason that so many dealers went out of business this year. As soon as sales decreased, they could do the math -- there was NO WAY that they were going to be able to "move" (sell) the many demo models they had. In fact, there was a very good boat dealer along the Pacific Coast -- one with more than a dozen different models of sailing and power yachts, with a half-dozen store fronts -- who typically did $50,000,000 to $60,000,0000 in sales each year (yeah....a MAJOR player in the boating industry), who went out of business for that very reason. And they hadn't gone broke. They simply saw how much sales had fallen, calculated how many of their floored boats with 1-year payments due many months into the future . . . and said to themselves: "Why burn through all of our money; we should close the doors now." And a week later they did. But, getting back to your 'happier story' -- what OTHER ways are there to get your boat to "earn its keep"? It's not uncommon for a dealer to pay another dealer a 1% "finders fee." That is, if a dealer calls me and says, "Hey, I've got a guy interested in getting a cat, but we only sell monohulls. Here's his name and number.", I'll ALWAYS send that other dealer a 1% fee if the name he gives to me ends up buying a boat. So, if YOU send your dealer a lead who subsequently buys a boat, there's no reason YOU shouldn't earn that same finder's fee, right? So, keep some brochures onboard our boat, with your dealer's card stapled on it. And keep a list of folks who, viewing and admiring your boat, you then give a brochure to. I mean, if you can earn $2K to $4K just for handing a guy a brochure, why not, right? Of course, if you choose to become a sort of "Owner-Rep" for the brand you bought, then -- in the case of a few dealers I know (of which I'm one) -- you'll find you can earn substantially more than just a 1% "finders fee." First off, let me note: this is NOT an option that many will find interest in. Having said that, though, I've had guys who bought cats from me who, serving thereafter as an "owner rep" for the region in which they kept their new cat docked, and devoting no more than 2 hours (literally) per week contacting other interested cat clients -- these guys earned as much as $30K to $40K per year! Was this unusual? Yes -- $10K to $20K per year is more likely. But in the case that comes to mind of one guy -- his regular job was as a civil servant in his mid-size town's bureaucracy (south of L.A., California) -- he was so quiet and self-effacing. But the man LOVED his cat (which he kept at Dana Point Marina), and when he talked about it to other would-be buyers (prospects who might be leery or aloof when faced with a salesman), they were charmed by this owner's huge delight with his own boat. His enthusiasm was contagious. And that was despite this owner being anything but glib or "smooth." He spoke very quietly, occasionally stuttered when excited. But again, he LOVED his boat. And he took such obvious pleasure in showing and demonstrating it to others. I think that the would-be buyers came away thinking, "Hey, here's a guy who put his money where his mouth is . . . and he LOVES his boat. This is a guy I can believe!" (Meanwhile, in return, I included him in my advertising; I attended his boat shows and helped him close sales; and I regularly encouraged him during our ongoing phone chats.) Is this a way for YOU to "get rich?" Most likely not. But then again, at 2 hours per week, for say 50 weeks per year, that's about 100 hours of your time. Now if that can translate into "only" $10,000 for you, you've averaged $100 per hour. For the meek city-hall worker (above) who earned $30K in 100 hours per year, that comes out to $300 per hour. And, in this current economic situation (or at ANY time), who can look down their nose at $300 per hour? (In return, a dealer who will NOT make use of a satisfied and enthusiastic buyer's assistance is simply missing out on a great deal for himself!) Well, I'm sure that's more than enough rambling about the "inner workings" of a cat dealership . . . and matters financial. Smooth Boating, Rod Gibbons Cruising Cats USA > > Today's Topics: > > 1. Coastal Cat 34 -- outboard-powered catamaran > (Bruce.D.Graham@jci.com) > > > ---------------------------------------------------------------------- > > Message: 1 > Date: Fri, 6 Nov 2009 12:40:08 -0600 > From: Bruce.D.Graham@jci.com > To: power-catamaran@lists.samurai.com > Subject: [PCW] Coastal Cat 34 -- outboard-powered catamaran > Message-ID: > <OFD9324DC9.5CE64795-ON86257666.00126493-86257666.00668DD9@jci.com> > Content-Type: text/plain; charset="us-ascii" > > Any word on the Costal Cat hull deliveries? > > Bruce Graham, LEED AP > President, Projects/Design and Construction Services - Americas > Global WorkPlace Solutions > Building Efficiency > (630) 990-3646 - direct > (847) 682-2066 - cell > (630) 990-2300 - fax > > > End of Power-Catamaran Digest, Vol 55, Issue 1 > **********************************************