Norm Ambrose comments on Boating broking scene

by Bob Wonders on 24 Jun 2008 Norman Ambrose, a partner in the Ausail Pathfinder Marine Group, is one of the industry’s most talented brokers with more than 30-years hands-on experience. Ambrose leaves nothing out as he outlines the problems facing the boat brokerage industry.

A former director of the Boating Industry Association of NSW and chairman of the Marine Brokers Association (1995/96), Ambrose has had a long association with the US-built Catalina Yachts and is recognised by that company as its top international dealer.

It’s now just over 12 months since Ambrose formed an alliance with another well-known industry identity, Richard Pym, currently vice-president of the BIA of NSW and his partner, James Mark Anthony, at present serving on the board of the Marina Brokers Association.

As Ambrose proudly points out, the three men between them can look back on more than 80-years combined experience.

Professionalism is a word frequently tossed around of late; however, it is very much a word that sums up the operations of the Ausail Pathfinder Marine Group.

Norman Ambrose comments on the ‘state of the nation’ as far as the brokerage business is concerned.

He says 'The marine brokerage business is going through a major transformation as customers recognise the importance of;

'Professional brokerages with full customer assurance and infrastructures that can provide on-going customer support

'Fully accredited marine brokerages with industry self-regulation and BIA audits to ensure customers are protected.

'Policing of second-hand dealer licences under the Fair Trading Act together with associated documentation affording additional protection to consumers.

'Multiple brand marketing and selling so that customers can be offered a choice from the one brokerage and marketing and advertising costs associated shared across the multiple brands.'

Ambrose says the upshot of the above is that many small brokerages will close over the next few years and the day of the broker, his 'office' the back of a boat. Mobile phone to the ear, no financial backing and no formal accreditation is over. Equally, failure to provide full warranty, service and full customer assurance will see the old order disappear from the industry. The days oif near enough is good enough is OVER!'

Ambrose say the Ausail Pathfinder Marine Group has recognised all of the above and we have implemented a number of strategic initiatives in the last 18 months.

'These include - Modern offices on marinas with professional and experienced staff to assist customers, customer service and assurance programs to provide on-going warranty, service and customer protection, the establishment of a National Dealer Network to assist in the positioning, targeting and empowerment of the brands we represent.


' Marketing of multiple brands, including sail and power, to cover many sectors of the market and socio-economic demographics

'Enrolment and graduation of BIA accreditation programs for company principals and sales staff

'Self-regulation and full customer boat handling and safety courses

'A strong internet presence, including hyperlinks for the customer from our company website and from manufacturer’s websites with a high level of information for all brands we represent.

'We believe the implementation of these structures has led to our company being recognised recently as Doral International Dealer of the Year, Catalina International Dealer of the Year and Carver International Dealer of the Year for Customer Assurance and Excellence.

'Of course, many changes have been made necessary because of the hard economic times the industry is currently experiencing.

'The facts are that we are a recreational industry relying on disposable income and this has been hard hit by a high interest rate (a 22-year high!), rising fuel prices, falling house prices, a falling share market and a tightening credit market.

'A somewhat spectacular demise of many apparent blue chip financial and property groups with exposure to margin calls, the sub-prime crisis and debt requiring re-financing have all added to the problems.

'In the past 18 months there has been an unprecedented level of dealer receiverships and outfit closures, with probably more to come as the above factors bite into the disposable income of families.

'The resource boom in Queensland and Western Australia has helped protect the top end of the market, but even this sector is showing signs of slowing.

Ambrose says 'It is the 'middle' market that has been hardest hit, the ‘dad, mum and the kids’ who are usually active in the powerboat side of the market are feeling the effect of high interest rates and rising fuel costs in particular.

'Consequently, sales of powerboats in the sports cruiser sector have plummeted and even the formerly recession proof ‘tinnie’ is feeling the squeeze.

'Making things in the sports cruiser sector even tougher was the number of ‘Dad and Dave’ operators who, armed with superannuation payouts headed off to the United States, cheque books in hand and contracted ‘Miami Boat Show Fever’.

Ambrose believes these operators have overloaded the market with ’06 and ’07 models, the end result leaving these importers reverting to receivership or distress/panic sales of boats below cost.

' The second hand market is showing a serious weakness with the high Australian dollar and new boats selling below cost leading to a market glut.

'Needless to say, many present boat owners are entitled to feel hardly done by and lack confidence in the industry.

'Imagine the owner of a brand new boat suddenly coming to grips with the fact that the boat he purchased less than two-years ago is now being sold at 30-to 50 percent less than he paid!

'There is certainly a major rationalisation occurring and some brands are disappearing from the market, many unlikely to return.'

Since the close of the 2008 Sanctuary Cove International Boat Show (May 25) the Ausail Pathfinder Marine Group has sold $4.5 million worth of vessels, including Carver, Doral and Catalina.

Ambrsoe said this afternoon 'This has resulted in the sale of the company’s total stock of powered vessels and as a consequence we have decided not to exhibit our power brands at the ’08 Sydney International Boat Show (July 31-August 5).

'Our reasoning is that we would only be able to offer ’09 models that have not yet arrived while competing against 'fire sale prices' on older competitive brands.'

The Ausail Pathfinder Marine Group enjoyed a highly successful Sanctuary Cove show against the background of a strong Queensland economy.

Ms Sharon Day, vice-president of Catalina Yachts USA, was a visitor to the show and named the group Catalina International Dealer of the Year for the fourth time.

Ambrose sums up 'I believe we have recognised early that dark clouds were looming and have implemented the necessary measures to protect the group and its customers.

'With our locations, financial backing, sales structures, self-regulation/accreditation and customer assurance programs we are ideally poised to continue expansion when better times return.'