Economy, fuel prices worry some boating businesses

[Sam]

Fuel prices have put a damper on recreational boating for some, but with the busy season just gearing up, there's still hope that business will stay above water. "It's no higher than last summer," said Mike Bradley, director of boating industry services for North Carolina's Small Business and Technology Development Center. "I can't imagine that unless there's an overall increase _ disproportionate and unexpected increase _ that it's going to hurt the boating industry." Bradley said that recreational boat sales are down, but the slump can't be solely attributed to fuel costs. Recreation business in general, he said, has slowed, partly because of the economy.


"There are concerns that are legitimate," he said. "And one of them is, 'What does it cost me to play?' If I think it will cost me more to play, I'm going to play less." Christina Heath, manager of Rudee Tours at Rudee Inlet near Virginia Beach, said she is crossing her fingers that business will be what it was last summer, when steep gas prices didn't put a significant dent in tourism. Heath said that fees were raised a few dollars on their dolphin and fishing headboat tours to keep up with fuel costs, but people kept coming. "As far as we go, it hasn't really made a difference yet," she said. "It might this summer. We'll see."


That's not the case with Tony Wooddisse's Camden, N.C., boat-servicing business, Shore Flyte, where fuel prices have had a "tremendous" impact on business. "It's virtually stopped everybody boating _ everything up to 30 feet," he said. "It doesn't affect the wealthy." Wooddisse said that the Ford plant closure in Norfolk probably can be blamed for part of the 40 percent downturn in his business since late 2005. Anyone still boating, he said, is cutting back on use.


Marinas in his area charge about $3.20 a gallon for gasoline and $3.40 a gallon for diesel. Most vessels bigger than 28 feet use diesel, he said. A small boat, he said, may use about 40 gallons of gas a day. But a 30-footer with twin 250- horsepower outboards can burn about 300 gallons _ worth at least $1,000. And no alternative boat fuels seem to be around the corner.


"It's looking inevitable that there's going to be a dramatic downsizing in the industry," Wooddisse said. "Probably starting with sales. Then people like me."
These days, inshore charter captain Lee Johnson, who runs the Gouger out of Oregon Inlet Fishing Center on North Carolina's Outer Banks, thinks twice before chasing fish. But there's a fine line between saving fuel and losing business.
"Maybe in years past, you would've run there," he said. "But now it gives you pause. I think in the long run, that can hurt you." Aaron Midgett, manager of Teach's Lair Marina in Hatteras, N.C., where diesel costs $2.59 a gallon and gas costs $3.25 a gallon, said that the marina's 85 slips are booked into June.


"They're a little concerned," he said about the anglers. "But they're still fishing."
It's the full-time owner-operator charter guys who are taking the hit, said Rick Caton, captain of the 42-foot Free Agent out of Manteo, N.C. "I'm not changing my prices this year _ I'm going to suck it up," he said. "It's terrible. You try and keep your prices in line so everybody can afford it. "The profit margin just gets thinner and thinner all the time."

Source

[TOO EZ]

Hmmmmm..........

Interesting Read........

However, I disagree.

Boating is a WANT not a NEED. Therefore, people that can Afford a Boat and/or Boat Payment or Payments can afford to purchase fuel. Where there is a WILL there is a Way.

I do think our Economy has slowed down. Wages remain the same, Cost of living has Increased, Commonities have increase, etc... That being said - I think people that purchased boats that were STRETCHED to begin with BUT got a Loan because Banks were VERY Giving 12-18 months ago will GET OUT of Boating.

There will Always be a Market for EVERY kind of Boater. From a 10'er to a 100'er.

Work will continue in the boating market. I personally think owning a business that is related to the Boating Industry would be or Could be a Steady business to be involved in.

Just my 2 cents and my thoughts on the article.

[TOO EZ]

"It's looking inevitable that there's going to be a dramatic downsizing in the industry," Wooddisse said. "Probably starting with sales. Then people like me."


Sales are Down and have been down for a Long time for boats. But, it's also the size of the boat to consider also.
Example:
29' Blackfin took almost 16 months to sell and I basically GAVE the BOAT Away. 30K under Appraisal.

40' Ocean Sold in 2 months with a 15K loss from Appraised Value.

Point being - The 30' and Under is Sluggish. The 40' and over is pretty strong. And I also understand NEW YACHTS (2-3-4MILLION ++) is also a Strong Market.




These days, inshore charter captain Lee Johnson, who runs the Gouger out of Oregon Inlet Fishing Center on North Carolina's Outer Banks, thinks twice before chasing fish. But there's a fine line between saving fuel and losing business.
"Maybe in years past, you would've run there," he said. "But now it gives you pause. I think in the long run, that can hurt you." Aaron Midgett, manager of Teach's Lair Marina in Hatteras, N.C., where diesel costs $2.59 a gallon and gas costs $3.25 a gallon, said that the marina's 85 slips are booked into June.


One Will NEVER GET RICH in the Charter Business.... People that Charter their boats do it because -
- They LOVE to Fish or Watch people Fish
- The $$ often offsets the boat Expenses.
- The Affluent use it as a Write off for T&E

Unless your a Marketing GURU like the Canyon Runner - running a Charter business barely puts food on the Table.

[old_bald_guy]

My pontoon sales this year have exceeded all prior years. The price of gas is not a concern to prospective buyers of these boats. They are an economical alternative to high power heavy F/G boats and offer an excellent platform for the local bays which surround my dealership.

[Randy Stinchcomb]

yup, doesn't bother me in the least. I'll still pay the price for 1 of my hobby's
now the race-car, well I guess it will sit for another year at Jason's shop in Norfolk and will act as an excuse for me to-go down and visit the Tidewater area

[TOO EZ]

Originally Posted by old_bald_guy

My pontoon sales this year have exceeded all prior years. The price of gas is not a concern to prospective buyers of these boats. They are an economical alternative to high power heavy F/G boats and offer an excellent platform for the local bays which surround my dealership.

O.B.G.

I think you are in a Great market!

Selling a 29' Boat for 80K w/ twin inboard Dsls and a Tuna Tower is a Hard sell when someone can buy a BRAND NEW boat for 80K!

Carolina Skiffs (as an Example) is 6-8 weeks Behind on shipping! Smaller boat market is great!

Good Luck Old Bald Guy with your Year! That is Great News to hear!! We are swamped as well... Differant industry.

[Bohica]

Originally Posted by TOO EZ

O.B.G.

Good Luck Old Bald Guy with your Year! That is Great News to hear!!

Yeah that's great! More newbies in IRI....lol.

My 22' Pontoon runs all day long and sips gas. I probably fill the tank 2-3 time a season. No worries here.

[old_bald_guy]

Originally Posted by Bohica

Yeah that's great! More newbies in IRI....lol.

My 22' Pontoon runs all day long and sips gas. I probably fill the tank 2-3 time a season. No worries here.

Just watch that E-10 junk. You don't want to store the fuel very long even with Stabil.