Proprietary Buyer’s Yacht Rating System
Buyer’s Personal Yacht Rating Program
An Analytical & Uniquely Thorough Approach to Finding your Proper Yacht
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The following two Tables present an example exercise conducted between our Client and The Exchange Staff that uses the Market Survey & Database to logically analyze the broad array of yachts that are available on the market between 60 foot and 100 foot that meet a certain personal listing of criteria that the Buyer has set, based on consultation with the Staff, as a definition of his idea of what His Proper Yacht should be.
Thus, the first step in using the Yacht Rating Program is the creation for our Client of his own personal listing of criteria for rating his ideal yacht. For this particular example Buyer, we have established 14 distinct primary characteristics of a Proper Yacht, as follows:
PRIMARY CHARACTERISTICS OF A PROPER YACHT
- Beautiful & stimulating aesthetics both with respect to the exterior and interior.
- Pedigreed Designer & Builder.
- Comfortable & stable platform at sea.
- Excellent but not racing type of performance.
- Easily sailed by two people.
- Interior volume and support systems capable of supporting extended offshore activity.
- High quality both in construction execution & precision engineering.
- Ergonomically well planned, luxury interior accommodations for three couples, with relatively equal sleeping arrangements, of a character befitting your station in life.
- Aesthetically and ergonomically appealing to the female perspective, so she will participate willingly in the pleasures of yachting.
- Minimum requirement for crew, with respect to operations and maintenance.
- Functional draft.
- A toy in great shape and ready to go, rather than a “project”.
- A purchase price that reflects an already depreciated value, with potential for appreciation in the future.
- A yacht that simply fits the Buyer, rather than the Buyer having to fit to the yacht.
The Primary Characteristics Of A Proper Yacht will vary greatly depending on each Client and whether his interest is in a Motor Yacht or Sailing Yacht.
Now, it is important to realize that there are very few yachts in the 60 foot to 100 foot range that actually meet all of the above referenced criteria of what a worthy yacht is for this particular Client. The one criteria that is most difficult to find is Number 8, related to interior accommodations for three couples in relatively equal luxury.
The next step in using the Yacht Rating Program is the application of the above Primary Characteristics of a Proper Yacht to the Market Survey & Database.
RATING SYSTEM ~ FIRST DRILL-DOWN
Click to see Spreadsheet .
This Spreadsheet is a derivative of the full Market Survey & Database and represents a first drill-down from the original spreadsheet, which displayed all yachts that exist in our international universe database, which fall into the desired length range. The present spreadsheet sorts down from the total yachts listed in the 60 foot to 100 foot range to 31 yachts that represent the best of the yachts for sale, based upon the collective judgment of The Exchange Staff after consultation with our Client. We then have added to the Yacht Rating Program format, in columns A through P, a very informative matrix for analysis of the above referenced 14 characteristics which constitute this individual Client definition of a Proper Yacht. The function is as follows:
- Column A: Q Rating, which is an overall quality rating of the construction quality from the particular shipyard, with a rating of A being 1st Tier quality, B being 2nd Tier quality and C being 3rd Tier quality. All of the yachts represented met the first drill-down requirement of being basically quality yachts. But, there is within such characterization the A rating as best, the B rating as very good and the C rating as good.
- Column B: Rating Total, which is the sum of the figures found in each Row from Column C through Column P.
- Columns C through P: Numbered 1 through 14 at the top heading, each column corresponds to the above referenced 14 characteristics of what represents a Proper Yacht. Within each cell, there is a number, either 3, 2 or 1. A number 3 rates the yacht as complying with the specific characteristic. A number 2 rates the yacht as it being unknown or not sure whether the yacht complies with the characteristic. A number 1 rates the yacht as not complying with the characteristic. Thus, the number 3 found in Column C, Row 2 says that Ipanema does meet characteristic Number 1; i.e. beautiful & stimulating aesthetics, etc. These rating designations are value judgments made by either our Client or the Staff.
The yachts are then sorted into those with the Total highest rating down to the lowest rating, as reflected in column B. The yachts at the top of the Spreadsheet best represent those yachts that meet the personal criteria of our Client and his definition of what is a Proper Yacht.
The next Spreadsheet represents the final sorting based on the Buyer definition of what is a Proper Yacht.
RATING SYSTEM ~ SECOND DRILL-DOWN
Click to see Spreadsheet.
The following shows the analytical thought process that the Staff and the Buyer used to arrive at a final report defining which yachts best met his personal criteria.
- Since all of the yachts listed on the spreadsheet are good yachts, the key controlling element that we started with was Column M, criteria number 11 of draft. This element is really the only one that is a simple mathematical determination, so it is a good starting point. The break point we used, based on the dictate of this Buyer, was basically 9.5 feet, or less as being functional by the standard of most experienced yachtsmen. A draft of 9.5 feet or less got a rating of 3. Thus, the yachts with a rating of 1 were sorted to the bottom of the Spreadsheet, as reflected in Rows 35 through 45. This element thus excluded several really great yachts, like Cyclos II and Amarant A.
- The next most controlling element was Column J, criteria number 8, which is the requirement of relatively equal luxury accommodations for three couples. Compliance with this requirement gives a yacht a rating of 3. You will also note that there are really only five yachts that get a rating of 3 in this category and that passed the draft sorting of having a 3 rating in Column M, criteria number 11 for draft. A rating of 2 means that the yacht provides accommodations for two additional couples to sleep together in some level of comfort. Some of the yachts we rated 1 could arguable have a rating of 2. For example, the Little Harbors that we rated 1 in this category do have twin cabins forward with berths that can accommodate two people sleeping closely together. This is one of the areas where value judgment comes in and someone else might rate the yachts differently.
Another important element is Column O, criteria number 13, which is depreciated value. What we mean by this element is that, if a proper and aggressive negotiating strategy is executed with respect to the particular yacht, the Buyer can probably purchase the yacht at a price that represents the bottom level of the yachts historical depreciation and may move higher with time and inflation. This element obviously has something to do with age and original quality/pedigree. A newer yacht will move through a certain period of years wherein it will inherently continue to depreciate. Great yachts ultimately get to a point wherein the trend changes direction, if the yacht is well maintained, and begins to appreciate. A rating of 3 in this category means that the yacht is at its bottom with respect to depreciation. A rating of 2 means that it is a tough point of analysis and depends somewhat on how successful an aggressive negotiating strategy is. A rating of 1 means that because of issues related to quality/pedigree of yacht or age, the Yacht is still depreciating.
CONCLUSION TO RATING SYSTEM: Based on the above examined sorting sequence, the Buyer sees that there are really only five yachts, as reflected in Rows 3 and 7, that truly meet his personal criteria for what a Proper Yacht is from his individual perspective. He can then focus very efficiently on these yachts or he can broaden his personal criteria and create another sorting report.
In consultation with The Exchange Staff, this rating system is quite simple to construct and allows the Buyer to approach the market from a thoroughly analytical approach. Our Staff does almost all of the work. This approach allows the Buyer to orchestrate a very efficient search for his Proper Yacht covering the broad array of all yachts on the market and to not waste time going to see yachts that look pretty in pictures but, upon inspection, clearly would have never met his personal criteria. The key is the ability that the Market Survey & Database Rating System gives the Buyer to analyze and compare in-depth characteristics of all yachts in great detail and then quickly sort a broad array of yachts, as opposed to simply looking at a small number of separate brochures and specification sheets presented to him by a broker and trying to correlate which have the right draft, the right accommodations, etc.
Thus, The Exchange provides to the Buyer a service that educates him in the broadest possible manner about the market as a whole and allows him to quickly drill-down to those yachts that have the serious potential of meeting his needs. This service is quite distinct from the general brokerage process of showing a client only a small portion of what is on the market and often only that which is easily accessible to the broker.