YACHTING PARTNERS INTERNATIONAL EDITIONS AUTUMN 2008
16
on the market, frustrates sellers and creates an overly
opportunistic scenario.
Matt and Alex both cited a case whereby a broker in 2006
over-priced a 43m at US $12.4 million,after the YPI Brokerage
guys had realistically figured that US $8-8.5 million would
be a better number; suffice to say they lost the battle. For
19 months the yacht remained for sale, until the frustrated
client finally appointed YPI Brokerage with a price tag of
US $8.9 million. Within a few months the sale of the yacht
completed at US $8 million.
The overpricing process no doubt cost everyone involved
time, marketing and the ongoing operational costs; a cost
of approximately US $2 million was Alex's best estimate � an
expensive exercise in both time and money. The conclusion
to this debate came in the way Alex described their policy:
"All our brokers are employed and salaried, and we as a
company believe in delivering a warts-and-all approach, a
candid opinion on the true value, rather than delivering the
answer the owner wants to hear. This may have lost us deals
in the past, but it has retained our integrity and professional
relationships with key clients."
When asked how honest a broker should be, the team
decided that this varied dramatically across the globe, but
in their minds it was clear that a good broker should be
comfortable with delivering the client as much information
that was deemed worth delivering. But perhaps more
importantly, Matt added, it is vital that you tell a client what
you believe is the truth or the facts; the problem is that with
such vast amounts of money at stake, it is easy for the less
scrupulous brokers to be attracted by the fees and to say
whatever is necessary in order to close a deal. This clearly
leads to mistrust and frustration with clients when things go
wrong or the client expects to resell for a reasonable price,
only to discover he has bought a sinking asset.Unfortunately
for houses of integrity like Yachting Partners International,
these un-savoury characters can in fact create negative
associations to the term `yacht broker' and those owners
who have had their fingers burned tend to judge a whole
host of brokers in the same vein. Honesty and integrity are
two key facets of the Yachting Partners mantra and as Alex
highlights,it is one that ensures they can deliver on promises
time and time again."It is an approach",he smiles,"that has
won us more referrals than it has ever lost us deals."
Client loyalty is a key aspect of developing a market and
the reputation for a brokerage house. When asked how he
thinks a client should choose a broker and indeed, how a
broker should go about retaining a client � the conversation
with Alex turns to the "Yachting Partners' History Book" and
he reminiscently describes his first-ever deal for his then
fledgling company in 1973. Putting two clients together for
the sale of an 85ft Feadship � a Greek and a Swiss client
� the deal went through based on trust without the aid of
lawyers and a contract. These clients continued working
with Alex and using the Yachting Partners' full spectrum of
services, until their old age eventually precluded further
yachting. During those years they referred numerous
friends onto Yachting Partners helping the Company grow
It is an approach," he smiles, "that has won us
more referrals than it has ever lost us deals.

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