Questions for beginner

[John Lane]

John Lane:

You may want to prepare a business plan of sorts. In it you can include answers to the questions you’ve posed,(including input from this discussion), create a relatively detailed accounting of what each boat would cost to make (material costs, labour, other costs/overhead), and use it to compare to similar boats on the market and their prices, materials etc, or for comparing costs of different materials and methods of production for your own boat.

It doesn’t have to be fancy - I did most of this kind of work in Excel (or on a similar spreadsheet) and often included in my workbook a sheet which listed “competitors” or similar boats with their specs. It is a useful exercise even for someone who doesn’t plan on pursuing the venture full time, and is a great way to plan for contingencies before they become unpleasant surprises.

When it’s all said and done it can be used as a scorecard, to see how things are going, and help you determine if there’s room for product (or cost) improvements.

Good luck!

Thank you so much! This is so helpful. It sounds like I need to do more research before ever even spending any money. My passion is micro boats like layout duck hunting boats (really more like a wide version of a kayak) but the market is so saturated with these. Micro fishing boats might be something I look into. Maybe a 1 person boat that is only around 10' long. Thank you again

 

[John Lane]

Here is an example of the layout duck hunting boats I am interested in producing. They range from 7ft kayak style all the way to 12ft boats.

Here is the micro fishing boat I am interested in building. Although I don't know if there is a market for these.

This one below is goofy and might not be a market for them but they are cute little boats.

 

[bajansailor]

The dog in the duck boat looks very keen, and is probably getting impatient - "let's go!" he says.....

Have you seen the range of duck boats designed by Sam Devlin?
Duck Boats | Devlin Designing Boat Builders https://devlinboat.com/shop/duck-boats/

That microfishing boat shown above is very narrow, and has a very high centre of gravity with the driver standing up like that - it looks like it would not be difficult to capsize it accidentally.....

Re the previous boats that you built, which were sold for the cost of the materials only, how many hours typically did you spend on each boat, and what were the approx material costs?
How much are you hoping to charge for your labour per hour to build these boats?

As you mention above, the market for small boats is rather saturated now, and I am sure that many are being sold for peanuts or literally being given away on places like Craigs List et al.

 

[gonzo]

Those duck hunting boats like you show sell for about $1000. The cheapest I saw is about $500. That is a difficult market to break into. The production cost is probably half of the retail price. Also, when you sell a boat there is a warranty to think off. You need to have some capital in reserve in case there are any claims.

 

[seasquirt]

Maybe build something you really like, and want to keep, give it everything you need / want, use it and refine it, calculate a profitable retail price for it including your costs and labor, and if other people are impressed and ask you about it and where to get one, then maybe you have something to sell. In my previous suggestions, I meant built in secure storage for shot guns and ammo, and whatever else you may need, for in case you or customers tip it over. Losing a favorite gun by accident or theft would be annoying. A small waterproof built in box for mobile phone, keys, smokes, etc., a cup holder, tray for duck whistles and decoys, rack for cartridges, deck side holes for camo supporting arches; and ask the dog what he would like, - water bowl, snacks, somewhere to shake dry, etc. People love their animals, and pets are a huge multi billion industry so maybe cater to that sector too. If you're not a keen shooter, ask several what they would like in a duck boat. You need a market, not a white elephant, or you're just hobby building for yourself. The cute tug shaped boat is impractical, unless as a kid's cubby house. You could get lucky with a design, look at the Optimist sail boat, ugly, slow, almost useless, but world wide thousands of them are used on weekends and raced.

 

[BlueBell]

What questions should I be asking?

All the ones that are relative to your objective.
You'll figure it out.

Question for you: Why didn't you charge for your labour when you sold your previous boats?
That's concerning.

 

[John Lane]

The dog in the duck boat looks very keen, and is probably getting impatient - "let's go!" he says.....

Have you seen the range of duck boats designed by Sam Devlin?
Duck Boats | Devlin Designing Boat Builders https://devlinboat.com/shop/duck-boats/

That microfishing boat shown above is very narrow, and has a very high centre of gravity with the driver standing up like that - it looks like it would not be difficult to capsize it accidentally.....

Re the previous boats that you built, which were sold for the cost of the materials only, how many hours typically did you spend on each boat, and what were the approx material costs?
How much are you hoping to charge for your labour per hour to build these boats?

As you mention above, the market for small boats is rather saturated now, and I am sure that many are being sold for peanuts or literally being given away on places like Craigs List et al.

I am looking at the duck boats by Sam Devlin now and these are exactly what I am looking for. I might build one of his for myself and see how I like it.

I probably had 20-25 hours in each boat. I would hope to make around $50-$60/hour since I would have an LLC and would be paying taxes on everyhting I make. Cost of materials was around $250 per boat

 

[John Lane]

Those duck hunting boats like you show sell for about $1000. The cheapest I saw is about $500. That is a difficult market to break into. The production cost is probably half of the retail price. Also, when you sell a boat there is a warranty to think off. You need to have some capital in reserve in case there are any claims.

True. The Beavertail Final Attack is around $500. I think it is rotomolded. Theres no way I could beat that.

Four Rivers (the boat I showed above) sells their small layout boats for $2,500-$3k each. They are fiberglass and are VERY well known in the industry... Reputation is something I wouldn't have being a new company though so I couldn't expect to sell at the price point.

Labor and materials would put me at roughly $1,600 per boat. Anything over that would be profit. I would just have to decide what kind of margins I need for the business to make money.

 

[John Lane]

Maybe build something you really like, and want to keep, give it everything you need / want, use it and refine it, calculate a profitable retail price for it including your costs and labor, and if other people are impressed and ask you about it and where to get one, then maybe you have something to sell. In my previous suggestions, I meant built in secure storage for shot guns and ammo, and whatever else you may need, for in case you or customers tip it over. Losing a favorite gun by accident or theft would be annoying. A small waterproof built in box for mobile phone, keys, smokes, etc., a cup holder, tray for duck whistles and decoys, rack for cartridges, deck side holes for camo supporting arches; and ask the dog what he would like, - water bowl, snacks, somewhere to shake dry, etc. People love their animals, and pets are a huge multi billion industry so maybe cater to that sector too. If you're not a keen shooter, ask several what they would like in a duck boat. You need a market, not a white elephant, or you're just hobby building for yourself. The cute tug shaped boat is impractical, unless as a kid's cubby house. You could get lucky with a design, look at the Optimist sail boat, ugly, slow, almost useless, but world wide thousands of them are used on weekends and raced.

Thats a great idea. My wife encouraged me to do that as well. Of course it's always different hearing it from someone besides your wife lol

Good point on asking other duck hunters what they would like in a hunting boat.