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Perfect Pedigree
Michael Verdon
02/02/2004
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But Gilbert adds that the smarter yards build up their own pedigrees in order to maximize the value of existing yachts. "Most build only three or four new boats each year, so they’re not really marketing to sell new product," he says. "What they’re really doing is supporting their used boats by establishing the pedigrees. That keeps them as sound investments for resale, and existing customers will come back to them for new builds."
Gilbert also notes that many yacht buyers don’t want to wait two or three years for a new build, so the used pedigree yacht market remains strong. "The secret to the resiliency of mega-yacht pricing is time," says Gilbert. "The higher a yacht’s
pedigree, the more time it probably took to build, and by extension, the more time it would take to recreate the project."
Friedman notes that prices for older pedigree yachts are often directly connected to the pricing structure of future builds. "You’re likely to pay more for a 2001 Feadship, for instance, because its value has been dragged along by the pricing for a new 2004 build," he says. "That’s not just Feadship. It’s a common practice."
Both Friedman and Gilbert emphasize that pedigree status is not easy to come by. "You don’t invent it overnight by sleight of hand," says Gilbert. "You earn your stripes by building dozens of boats for happy customers over a long period."
A Lineage Restored
Burger’s long-standing reputation as a boat builder, dating back to the 1860s, was one reason why David Ross chose to invest in the ailing yard in 1992. "Burger has the longest, deepest pedigree of any shipyard in North America," he says. "It also had fourth- and fifth-generation craftsmen working there. We found both of those factors very attractive. "
Those craftsmen had all been laid off when the previous owner closed down the yard in 1990, notifying workers by fax that Burger was out of business. But the craftsmen were so dedicated to the yard that, 16 months later, 147 of the 167 original workers told Ross they would leave their new jobs and come back. "You can’t buy that kind of dedication," says Ross.
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