Why might it be difficult for potential Asian Buyers of pre-owned yachts to realize both the strength of their Bargaining and purchasing power?
A deficit of reliable information, in particular on the situation of the second hand market, makes it extremely difficult for the vast majority of the yacht buyers to realize a proper assessment of the market. When a buyer does not have on a given market a full knowledge on the price of the products which he wants to buy, it is evidently not possible for him to negotiate and purchase at a right price exercising his full bargaining power.
Surprisingly enough, potential yacht buyers are, in general, not made adequately aware, about the effective level of depression of the boat market.
The professionals and the specialized reviews remain generally very discreet in relation to the extent of the crisis that is indeed not often evoked, or if so only mildly with an excess of moderation that is clearly out of sync the real extent of the crisis.
The exact same yacht, ie same yacht’s name, can be offered at as many prices as there are brokers selling the yacht.
Similarily, two almost similar yatch models (comparable like with like : brand, year, general conditions, etc…) can be offered at price differentials that can reach up to 50%.
When conducting our search for you we will be able to show you plenty of such examples, just to make you realize how it would be difficult, based on the offers made, to determine the right price of a yacht.
The offer prices in the various Medias are in most cases totally out of touch with the effective and final possible transaction price.
The various chronics related to the “Boat of the month” found in any specialized magazines, all based on knowledgeable comments of market professionals, are also other forums to give in one way or another, what is not, we regret to say, anything else but a misrepresentation of the market.
For instance, a reputable magazine had presented as THE OPPORTUNITY OF THE MONTH and strongly recommended, with convincing arguments, the fantastic purchase of a Princess 42 (less than 13 meters with Flybridge) at the same price however as we had just bought… a Princess 60 (more 18 meters with Flybridge) for one of our Asian clients (FOB price indeed, excuding cost of transportation and delivery)…!
The case is interesting and very illustrative as it is not very frequent to have all the tangible facts which can allow meaningful comparisons, beyond all reasonable doubts, between 2 products: the same brand, the same timing of the negotiation / purchase and much more…
No objective factor could justify such an amazing difference: the year of manufacture was exactly the same, the Princess 60 which we had bought for our client had less engine hours than the one recommended in the said chronicle (860 engine hours vs 1200 engine hours), she was owned by the same owner since the beginning (vs 3 owners in the “Boat of the month”), and her condition could not be better as nothing had to be done on the yacht which we bought for our clients.
However for the same price 2 totally different classes of products were at stake; a mere coastal cruiser on one side i.e. the Princess 42, and on another a product constituting a true yacht, the Princess 60.
This case could seem so unbelievable as to seem like a funny story, if it was not however for the buyer who ended up paying his dream at a high price or having deprived himself of the opportunity of owning an even bigger and better yacht for the same price as what he had paid for a less desirable offering.
This story illustrates further the difficulties for the yacht buyers to assess the effective value of the yachts which are displayed to them through various channels or media and subsequently their difficulties to be able to efficiently use their bargaining power.