Is it easy and profitable to import boats and resell them?
I'll try and keep this short and sweet. Boats and yachts aren't exactly something you can bring in by the container load, stack on a shelf and sell like lollypops. It's speculative by nature, can be seasonal and is the mercy of exchange rate fluctuations, prevailing market conditions and economic sentiments. Moreover it involves goods which depreciate in value rather quickly.
Most people look purely at the face value of what looks like an attractive proposition; that is that boats overseas appear much cheaper than their Australian counterparts. What many people do not realise and sometimes don't investigate, are all the costs involved in what is a long and arduous process.
Importing and exporting any product involves risk. You can get the wrong product, a damaged product, or no product at all! At each stage of the import process, there are risks and there are associated costs. Here are just a few to consider:
- Exchange rate risk - you might win, but you can lose on the flip of a coin!
- Marine survey - an absolute must and money well spent, but still a cost
- Pre-shipping costs - any cleaning of the vessel required for Customs clearance
- Pre-shipping costs - protective wraps over the boat and labour to prepare the vessel
- Pre-shipping costs - cradle construction and or fitting, lift fees, handling charges
- Pre-shipping costs - transit insurance for trip to port of origin (export)
- Transport costs - to move the boat or yacht to its port of origin for shipment
- Shipping Charges - port and terminal charges, handling, crane lift/loading etc at BOTH port of origin and destination ports
- EXTRA port and handling charges - because the rates have gone up since you got your quote 2 or 3 months ago. Sorry to say, but it happens and you DO NOT have a leg to stand on when it does.
- Transit insurance - to cover damage or loss of the vessel whilst in transit at sea
- Customs charges - fumigation costs plus GST
- Import duties and taxes to import vessel - varies according to the country
- GST - levied on the imported value of the boat which includes the port and terminal charges!
- Transport to your marina berth or the vessel's new home
- Comprehensive insurance on the vessel
- A marina berth or dry storage whilst you try to find a buyer!
- Any repairs or service costs required or recommended in the marine survey to bring the vessel into saleable condition (if used)
- Your advertising costs to market, promote and sell the boat or yacht
- EXTRA cash - sorry, but you will need money over and above what you budget for!
If you budget for $25,000 costs (excluding the boat, I mean), have at least $10,000 - $15,000 additional cash in the kitty, bare minimum. If you budget for $50,000 import costs, I'd be wanting access to another $50,000 risk money sitting there waiting to go. You might feel you are being held to ransom if the port charges end up being higher than stated. Let me tell you that you don't have much choice. When someone tells you it's X thousands of dollars per day storage fees while you debate the charges, you pay the money and get your boat out of there, quick smart.
Good luck to any moron who wants to take on multi-billion dollar corporations in the courts. Otherwise, be on the front foot - pay the fees and get her out as quickly and as expediently as possible.
In the meantime, the vessel is depreciating the longer you hold it. If you can't sell her for what you expect or can't sell her at all, you're stuck with her. And if that's the case, I hope it's a boat you really like. Otherwise you've bought the proverbial hole in the water with no end in sight, baby!
Have I put you off? I hope I've opened some eyes. If you love boats/yachts and have double what you budget for then maybe you'll still have a shot at it. Just don't be too disappointed if your expected profit dissipates gradually...or very suddenly.
