Prices not going down??

[geoleo]

Dear Sailors, The $ dollar is supposed to be "KING" stocks have collasped, interest rates at all time lows, gold is down, the dollar is up UP on all currencies worldwide , the euro is headed for par with the dollar, the pound is way down too, oil is down 53% in 2 weeks. Yet marine stuff is same old high price. Defenders big sale is pathetic usually offering around 10-15% off a fake list price. Used sailboats are still way up there too and asking prices are the same. Why is this ? Is every seller hoping beyond hope OR is their business still doing great with old prices?

[fcftampa]

Patience.

[Opie91]

Originally Posted by geoleo

Dear Sailors, The $ dollar is supposed to be "KING" stocks have collasped, interest rates at all time lows, gold is down, the dollar is up UP on all currencies worldwide , the euro is headed for par with the dollar, the pound is way down too, oil is down 53% in 2 weeks. Yet marine stuff is same old high price. Defenders big sale is pathetic usually offering around 10-15% off a fake list price. Used sailboats are still way up there too and asking prices are the same. Why is this ? Is every seller hoping beyond hope OR is their business still doing great with old prices?

Hmmm priorities........

[Wotname]

Curious - exactly which dollar are you referring to?
Last time I checked, there were more than 20 to choose from.

[Boatguy30]

They obviously have a ton of stock with their typical low margin. They do drop ship some stuff, but they have a huge warehouse and lots of staff. Maybe people are still ordering boat parts. Going to come a time when the electorate decides how much of this they can stomach. I've seen estimates could take 18 months to tamp this out fully with revolving cycles of lock downs in certain areas.

[Island Time O25]

Originally Posted by Wotname

Curious - exactly which dollar are you referring to?
Last time I checked, there were more than 20 to choose from.

The OP probably meant it as in "cash is king". So any dollar will do. May be except the Zimbabwean one.

[Orion Jim]

This pause in the industrialized nations economies is the result of the pandemic. Once this threat is stabilized and those afflicted are responding to treatments the economy will return to a generally prosperous level.

[HankOnthewater]

Yes, above posts are correct. Remember, virtually all the boats on the market now, were listed before Covid-19. Reality will be that actual prices will be much less than that.
And as always, brokers like to list boats at high prices, and not divulge the real selling prices. It will take a while for that to change, possible never. Brokers will always list boats at market price plus a few $000. And boatowners...... selling a boat at 50% less then they purchased it for? They are likely to try to get close to their purchase price as possible, and as time moves one, the actual possible selling price will reduce each month.

And talking about dollars, if you have US $$, then shopping in NZ or Oz is becoming very attractive..... if only crossing borders would not be as hard.

If you have patience and money...... soon it will a buyer's market, much more than ever before.
Just my view, not backed up by scientific evidence.

[smj]

Originally Posted by Orion Jim

This pause in the industrialized nations economies is the result of the pandemic. Once this threat is stabilized and those afflicted are responding to treatments the economy will return to a generally prosperous level.

Will be Interesting to see what happens as many have said the economy was flattening out before the virus.

[Island Time O25]

Originally Posted by Orion Jim

This pause in the industrialized nations economies is the result of the pandemic. Once this threat is stabilized and those afflicted are responding to treatments the economy will return to a generally prosperous level.

May be. Or may be not.

The pandemic will surely be used as an excuse for the recession but even before it started there were clear and unequivocal signs of the bubble in both the stock market and the real estate sector. At least in the US (not familiar with other countries' situations). The virus made for the hard pop rather then a slowly deflating bubble.

The problem for the whole economy (and not just the marine retail) is the so called downward rigidity of prices. Which are quick to rise but very slow to adjust downward to keep the balance with the lowered demand.

As a society we have lost the ability to be flexible economically and rely on other mechanisms to achieve price-demand equilibriums. This price inflexibility necessitates major jolts once in a while which we call "recessions' or even "depressions". By price I mean not only the prices at the retail level but all costs - labor, materials, logistics, etc.

[BugzyCan]

Lots of boat owners can weather this storm without issue, but there will be some fire sales coming up, I have no doubt. Keep an eye out for "must sell" ads., there are certain to be a few, or perhaps even a torrent.

This will get a lot worse before it gets better.

[Chotu]

Originally Posted by Orion Jim

This pause in the industrialized nations economies is the result of the pandemic. Once this threat is stabilized and those afflicted are responding to treatments the economy will return to a generally prosperous level.

This is exactly why.

Everything is paused. When we’re through this, it’ll come back. Economy had decent fundamentals before the virus.

[sailorcherry]

Originally Posted by geoleo

Dear Sailors, The $ dollar is supposed to be "KING" stocks have collasped, interest rates at all time lows, gold is down, the dollar is up UP on all currencies worldwide , the euro is headed for par with the dollar, the pound is way down too, oil is down 53% in 2 weeks. Yet marine stuff is same old high price. Defenders big sale is pathetic usually offering around 10-15% off a fake list price. Used sailboats are still way up there too and asking prices are the same. Why is this ? Is every seller hoping beyond hope OR is their business still doing great with old prices?

I think the answer you are looking for is the USD is the safe haven currency. It was in 08, in the beginning. What other dollar, in this situation, looks safer? It is a global virus.

People are hoarding cash - liquidating anything that's instantly liquidable and/or made the most profits; boats are neither.

My opinion is once the stimulus takes off, then the dollar should devalue and certain currencies will stabalize. Those certain ones with lower debt:gdp ratios and/or strong manu countries and not like US, >70% GDP consumer spending based economies. In particular gold and silver should rocket launch from stimulus (look at 2010-2011) and in this case obviously some healthcare suppliers and companies hired to partner with. Silver lining here may be we become a much stronger manufacturer from this and show our ability to evolve, adapt and therefore continue to lead the global economy.

You're just asking this question far, far too soon. Stimulus hasn't happened, were on lockdown essentially and there's been no bottom in the markets. Who has time to update their ebay ad on a yanmar part in FL when they are spending night and day trying to decide which bills to pay, job loss or not, kids, school work, illness, basics shopping, getting home and of course managing their stock account?

PS - Let's try to stay positive, be kind and not be selfish hoarders.

[valhalla360]

US & Europe only really got impacted about a week and a half ago (economically)...it will take a little while for sellers to capitulate to the new situation.

Probably for a month or two, you won't see a lot of impact as sellers hold out hoping things will settle down.

If it stretches out to 3-4 months with the economy largely shut down, expect big cost cuts to happen as people use up reserves and need cash flow to keep afloat.

If you are sitting on cash reserves right now, you are in a great position. We got lucky (no claim to special knowledge or foresight). We were looking at moving from semi to full retirement with limited access to our retirement accounts as we are too young. As a result, we had set aside a nice chunk in CDs to carry us through the next 3-5yrs. As a result, we aren't under immediate pressure to touch the market based investments and we can re-purpose a portion of that money if the right deal comes along.

[Mike OReilly]

Patience buddy, patience. The sky has only just started to fall. Gotta give people time to adjust.