Complete Story
08/15/2018
Boathouse Auctions
The Opportunity
The pre-owned boat market is strong, with annual U.S. sales exceeding $6 billion, however, this large market does not serve all vessels and owners equally. In the case of larger, higher-priced, or specialty yachts, despite sustained marketing campaigns, brokers may still struggle to find a buyer within a reasonable timeframe.
YachtWorld Market Index data has shown ‘average days on market’ exceeding one year in many such cases and sometimes more than two years. Such extended days on market burdens owners with depreciation and high carrying costs. In such circumstances, buyer urgency can be low, as they may be encouraged to hold out – as they wait and hope for successive price reductions.
A New Approach
Boathouse Auctions is a new online yacht auction platform solving the problem of time. Acting through established channels and relationships which protect brokers, owners and buyers, Boathouse Auctions works exclusively through yacht brokers to aggregate high-quality vessels from motivated sellers. Boathouse Auctions improves liquidity in the market for vessel owners, respecting the time-value of money and owners’ alternative uses of capital.
Protecting Brokers
Both listing and selling brokers earn their customary commission. Owners choose the date they would like to sell their vessels and, with advice from their brokers, are able to set reasonable reserves. Full details of each boat are given on the auction site, which includes photo galleries and pre-sale surveys by accredited surveyors paid by the sellers. There are no fees to list or sell a vessel, buyers are prequalified, and everyone on the platform is anonymous.
Transparency, Efficiency, Liquidity
Rather than sellers negotiating down, reducing asking prices over an uncertain and potentially long period of time, Boathouse Auctions’ approach is to offer vessels at realistic reserves, so that buyers bid up prices over a relatively short and defined timeline.
Prospective buyers compete for vessels on an open and fully transparent platform where all information and bids are visible. Motivated buyers can purchase high-quality yachts at attractive prices, but to do so must act with urgency and diligence. There is a short, fixed timeline and all sales are final and unconditional. There is a modest 5% buyers’ premium payable on each sale.
Building a strong Auction Market together
Boathouse Auctions promotes its service through brokers, traditional media, and corporate partnerships with firms serving qualified higher income and higher net-worth clientele. Together, this builds a strong auction marketplace and helps brokers to access new buyers.
Boathouse Auctions Calculator
Boathouse Auctions’ customizable ‘equivalency calculator’ shows when Boathouse Auctions can be the optimal choice. Based on owners’ inputs and requirements, and their professional yacht brokers’ recommendations, the calculator objectively shows the opportunity costs and the financial impacts of time on the net proceeds.
Launch Schedule
Boathouse Auctions is first introducing the auction platform to professional Yacht Brokers and will proceed to a public launch in the early Fall. Should you have a motivated owner with a high-quality yacht, we’re happy to discuss the approach in more detail. Please contact Boathouse Auctions.
Executive Team
- Jack Mahoney: CEO - Jack has 25 years of entrepreneurial, investment, and corporate experience. Jack was an executive with Russell Investments for 10 years. He previously worked at Gartner, Inc., a global research and advisory firm, managing some of their largest clients. Prior to Gartner, Jack launched and ran a successful B2C Start-Up in San Francisco.
- Peter Amos: COO - Peter is a Yacht Broker and also manages brokerage operations. Peter chairs YBAA’s Social Media Committee. He has held executive positions, as well as serving on corporate boards, including several Start-Ups. He has served as a Mentor at the Yale Entrepreneurial Institute and holds several US and European patents.
- Captain Chris Tibbe: Marine Advisor – Growing up on boats, Chris has always been deeply interested in boat design, construction and operation. Chris has worked in the marine industry in virtually every capacity. He holds a USCG 100-ton license.
To sign up for the email list to receive notifications of all news and events, click here.
To discuss this opportunity further, including placing a listing into auction, contact Jack Mahoney (203) 530-3870 or Peter Amos (860) 304-1399.
