Broker Closing Costs

[avb3]

Originally Posted by hellosailor

I suspect that boat builders, unlike the automakers, have a lot less "power" in their franchises. Existing dealers from "other" brands probably aren't allowed to carry the competition, so if a builder pulls a franchise, in this market who are they going to sell it to?

Agreed, but not all brokers are even representing new yacht builders. The point I was trying to make was that sales process with many auto dealers is a lot more customer centric than it used to be, mostly because consumers demanded it. The manufacturers programs were to address consumer issues.

Even automakers have problems with franchise performance. Their terms may bind the dealer tighter, but a dealer really has to do something grossly criminal before their franchise can get pulled. There are apparently a host of state and federal regulations governing franchises as well, so even if a builder wanted to pull one and give it to the guys across the street, that could be a costly mistake.

A manufacturer has a host of ways to 'discipline' a wayward dealer before pulling a franchise.

As example, Dealer A is not complying with the way manufacturer wants to market vehicles. That dealer may find his quota being raised. Dealer A doesn't meet quote, oh well, guess Dealer A does not get the hot selling vehicles in the quantity or the timeliness that he expects. Dealer A will not get the dealer rebates because he did not meet quota. Dealer A may not get the co-advertisement programs because quota was not met. And Dealer A really can get hurt should the manufacturer lower Dealer A's ability to self regulate on warranty claims. Dealer A may have to get items either pre-approved, or, in the worse cases, send in the old part before payments.

And those are only some of the sticks manufacturers have and that I have seen applied.

Auto dealers have a real incentive to comply with manufacturers coercions.

And I don't see the boating industry as having the kind of bucks the automakers have to spend on researching customer behavior, sales programs, etc.

They don't, but brokers certainly can implement CRM systems and invest in sales training for staff beyond what the broker himself knows. I am not talking about learning how to close, but how to develop product knowledge, including sub-systems, understanding customer concerns, and learning to deal with customers who often may know more then the sales person about a particular boat, as is often the case now with the internet in the car business.

I get the sense that the boat brokerage system is living in a similar era that used car lots were back in the 1950's. Those tactics don't work any more in the car business nor in the boat business.

[ArtM]

Originally Posted by skipmac

That is no more correct or true than saying all power boaters are rude, arrogant twits that fly around leaving a giant wake and all sail boaters are lazy, drunken bums.

?? <hic> What do you mean by thish?

[skipmac]

Originally Posted by ArtM

?? <hic> What do you mean by thish?

I guess I should have clarified, all of them except me.

[skipmac]

Originally Posted by hellosailor

"asked him to notify me if he found any +/- 40', center cockpit, cutter or possibly sloop rig. He came back to me with a 40', aft cockpit ketch."
And you didn't ask him, full of innocence and grace, if it would be a big deal to move the cockpit to the center of the boat and get a trade-in credit for the extra mast?
See, the world if full of endless amusement, if only you open your arms to it.<VBG>

The offer was so off the wall I was left speechless and missed the opportunity. And in retrospect a lack of response might have been the best tactic.

If I had replied in any way, even how you suggest, it would just have encouraged him and next thing he would have been trying to sell me a (oh the horror) a power boat.

[Cheechako]

If you are selling a boat for say, $100k, and you accept an offer for $100k, that is the sale price the state sees.. is it not? he buyer pays tax on that price. The broker receives his funds out of the total sale price...right? If tax was paid by the seller on that it would have been taxe twice. Been too long I guess... I dont remember paying sales tax in Fl when selling a boat there two years ago...

[hellosailor]

"sales process with many auto dealers is a lot more customer centric than it used to be,"
Damfino, but I knew it ages ago, and I've experienced it this year, and I can't see much difference in how the salesmen work. (And yes, that's across a number of brands and products.) In some ways the auto business might be worse than it use to be, and worse than the boat business, because NO ONE leaves the showroom without being turned over to a manager, who also calls after the salesman calls, and anyone who does buy a car has to listen to the "aftersales" pitching horribly overpriced warranties and upgrades. Pinstripes, paint, alarm systems...Aftersales has really been big in the auto market for 30-odd years now, I don't think boat brokers have quite gotten on that bus yet.

When someone asks me about a private extended warranty I say "You mean the factory warranty is no good? This thing isn't reliable? I'm not sure I want it" and few of them are prepared for that.<G>

[Factor]

Originally Posted by The Blue Heron

Factor,

"Certainly Australian Multihull brokers are all wonderful. Thats my anecdotal evidence. My anecdotal evidence suggests that some customers have little or no morals as well."

so by not withholding your full disclosure, YOU are a broker, so you would naturally find yourself to be honest. Funny I doubt you could stay in business long insulting your customer base. Good luck with that. You prove my point.

I see the concepts of irony and wit are wasted on you as well as the concepts of statistical research. I didnt insult my customer base, I won't deal with a dishonest buyer.

[avb3]

Originally Posted by hellosailor

...............anyone who does buy a car has to listen to the "aftersales" pitching horribly overpriced warranties and upgrades. Pinstripes, paint, alarm systems...Aftersales has really been big in the auto market for 30-odd years now, I don't think boat brokers have quite gotten on that bus yet.

When someone asks me about a private extended warranty I say "You mean the factory warranty is no good? This thing isn't reliable? I'm not sure I want it" and few of them are prepared for that.<G>

That 'after sales' sales is very important to a dealer. I know of one dealer who sold his new cars at very little profit, sometimes making only $150. On the new car.

He averaged almost $2100 in the overpriced after sales alarms, warranties etc.

His philosophy was sell as many as possible, hope the deals were not cash deals, and make it up 'in the box' and by feeding his service department.

The interesting part was that he had the highest CSI rating of all his competition in that jurisdiction. Part of that was that he offered free oil changes when due, and hoping to pick up service work. He also had one of the highest repeat customer ratings... obviously he was doing something right.

[Coops]

Originally Posted by Factor

I see the concepts of irony and wit are wasted on you as well as the concepts of statistical research. I didnt insult my customer base, I won't deal with a dishonest buyer.

Perhaps your boat's name gives a little clue.

Coops.

[Factor]

Its a Noonuccal word meaning calm water.

[Coops]

Not according to google it's not. It only means what i thought it meant.

Coops.

[Factor]

Well obviously Google knows more about my boat than me. Stands to reason really, only the other day Larry Page was down here polishing it. Wasn't near as good at the job as the Woz though. I take it you speak Noonuccal, - hell do you even know where the Noonuccal people come from? It may also mean other things yes. And that might be a very cool and happy coincidence, but it was named for a particular reason, in honour of a friend of mine and a very great man.

But WTF would I know, its only my boat.

[The Blue Heron]

"But WTF would I know, its only my boat. "

Not much apparently...

Youre a funny guy though.. I doubt you would ever turn down a buyer period... Love the laying the morality of the deal on the buyer. So the buyer has to be the honest party... LMAO.

[The Blue Heron]

"Its a Noonuccal word meaning calm water."

Thought you guys down under spoke "English"..?

[Cheechako]

Originally Posted by hellosailor

"
When someone asks me about a private extended warranty I say "You mean the factory warranty is no good? This thing isn't reliable? I'm not sure I want it" and few of them are prepared for that.<G>

ah yes... a man to my own way of thinking....