Well I think you are making my point for me. Is water
front real estate in Florida
that much cheaper than Seattle or Baltimore
? Who has more boats per capita? Who has more marina space. I will be willing to bet it is Florida. While that price may seem dirt cheap
to you, with the wage differential between the Northeast and Florida I'd be willing to bet that in relative terms it is the same cost. Making it just as expensive for Floridians as for those in Annapolis
. There are not thousands of boats waiting for slips, nor thousands of slips waiting for boats. The supply and demand is fairly constant. So with supply and demand in equilibrium prices should be relatively constant over a large area. This is not the case.
As for Salty Sams having a town monopoly that was the point of my post, a monopoly negates the market forces, especially when the government, local or otherwise is involved in owning the land or the business as is the case here in the Northwest. And it's my experience that certain businesses just do not react to the traditional market forces that we were taught about in Economics. The selling and distribution of fuel
is a prime example. 4 companies own all the refining, distribution and most of the point of sale
outlets. Only in ones wild imagination can one concieve of a situation where there is competition or market forces at play in the price of gasoline. At least not on the point of purchase
end. As in some other sectors of the economy it would take a literal earth shaking sea change of forces, ie a severe depression, to radically affect prices in any meaningful way. The other side of the coin is charging
what the market will bear. Determining what the market will bear in a sector such as pleasure craft is very tricky and not easily pinned down. With multi million dollar homes and boats being sold at a higher rate and in greater numbers than ever before in this countrys history
, is it possible that that aberration is skewing the market, especially in places like Seattle and the Northeast, to the large boat owner and his/her wallet? The building of "Resort", "Destination" marinas all over this country and in places like Costa Rica
would argue YES to that question. Is that a response to market forces or an aberration of them? I think it is an aberration. The vast majority of boat owners own boats under 40 feet and most of those are 30 and under.
And yes those with money
have power and execise it. Just ask anyone in Seattle about our new Football stadium that was voted down in a referendum not allowing any public money to be used and built anyway, mostly with public financing
, because Paul Allen (of Microsoft and Seattles Biggest Real estate developer) wanted it.