Doug, I think we've taken up all the bandwidth on this NG we should on
this subject...rec.boats.building still has the lowest trash-value ratio
of any NG...I'd like to help keep it that way, and this has wandered
considerably afield from anything to do building or repair. If you want
to move the discussion to email, I'll be glad to continue it:
peg(dot)hall(at)sbcglobal(dot)net.


Peggie



Peggie and Doug, and to all that have added...

This has been fantastic! I've forwarded this thread to my cousin
Jerry, hoping he'll respond when he gets back from vacation. I'm no
boat builder, but I've learned a lot from this thread. I'd wish you all
could keep adding. after all, this IS a NEWSGROUP isn't it???

Wasted bandwidth? LOL! At least theres no 340+ posts on trashing
jet-ski'rs!

Tim

wrote:

Doug, I think we've taken up all the bandwidth on this NG we should on
this subject...rec.boats.building still has the lowest trash-value ratio
of any NG...I'd like to help keep it that way, and this has wandered
considerably afield from anything to do building or repair. If you want
to move the discussion to email, I'll be glad to continue it:
peg(dot)hall(at)sbcglobal(dot)net.



Peggie




Peggie and Doug, and to all that have added...

This has been fantastic! I've forwarded this thread to my cousin
Jerry, hoping he'll respond when he gets back from vacation. I'm no
boat builder, but I've learned a lot from this thread. I'd wish you all
could keep adding. after all, this IS a NEWSGROUP isn't it???

Wasted bandwidth? LOL! At least theres no 340+ posts on trashing
jet-ski'rs!

Tim


Now that all the theorists have had a say, I'd like to jump in with a few words.

I've been doing what your cousin is thinking of doing for 10 years now.

Is it a viable proposition ? Not if you intend it to be your only source of
income, and certainly not if you have no prior experience in the work.

I've kept at it because I love the work, and I am officially retired, so the
boat work is secondary income.

"Word of mouth" has generated a lot of customer repair work, which is nice, but
it takes time away from the rebuild projects.

When I resell a boat I generally get around double current market price for it,
*AND* I have a waiting list of buyers. BTW, I specialize in FRP sailboats.

Even at that, I consider myself lucky if I clear actual expenses over the life
of the rebuild. I say "actual" expenses because I do not draw pay, so my labor
is not accounted for.

One has to be extremely careful in choosing a boat to rebuild. It has to be a
popular brand/model and it has to be one that requires the least amount of work
possible consistent with the purchase price. I have been unlucky just once and
that was a boat I intended to keep for my own use (eventually cut up for
landfill). Some of the cost was recovered in selling off parts from it, but I
still lost money overall.

One must do a first class job, otherwise word will get around that your jobs are
slipshod and you'll quickly lose business. With all my rebuilds (as opposed to
repair jobs) I strip to a bare hull and rebuild from the ground up. All
electrical is renewed, as is all plumbing, and running rigging. Every fastener
in the boat is discarded and replaced with new. All tabbing is renewed and
every manufacturing defect (and there are always a lot of them) is corrected as
a matter of course. Any other item that I consider is past its prime, or that I
can not refurbish, is replaced with new. Usually the boat receives a full paint job.

Some examples are on my website, www.anzam.com .

An earlier respondent advised against getting a "Resale Certificate" because of
the hassle involved... That is just pure bad advice... You *must* arrange to
buy at at least wholesale due to the high markups on anything to do with our
business (read "Marine")... Certainly you might be able to arrange some small
discount for things like fasteners but you won't get a meaningful discount on
higher ticket items unless you can prove you are in the business and the first
item of proof requested is your "Resale Number". Usually, a pre-requisite to
obtaining a resale number is having a business license.

Taxation implications are such that you have to have a reasonable accounting
system in operation and if you set that up correctly, doing the State Sales Tax
reporting is not an item. Just make certain you keep absolute track of sales
tax received so you don't spend it on other items.

Financing the business can be a problem. When rebuilding for resale you have to
allow for the fact that you'll be putting out money for at least 12 months
before you see any income. Fortunately, I am able to take advantage of the
continual zero APR offers I get from card companies which allows me to change to
a new card every 12 months and never have to pay interest.

If your cousin cares to contact me direct I'll be more than happy to answer any
specific questions he might have.

Regards,

Brian C

Brian Cleverly wrote:

An earlier respondent advised against getting a "Resale Certificate"
because of the hassle involved... That is just pure bad advice... You
*must* arrange to buy at at least wholesale due to the high markups on
anything to do with our business (read "Marine")...

Having been both a wholesale distributor and a mail order retailer,
you're right...BUT--not everything is cheaper wholesale. The discount
retail prices can often be less than dealer price (toilets are just one
example)...so while I agree that getting a sales tax certificate isn't
optional, it essential, it also pays to shop the discount retail prices
instead of blindly buying everything wholesale. With a tax #, you can
buy most things retail without also paying the sales tax...if you have
to pay it, you can deduct it from either the quarterly sales tax owed or
on your business income tax return. Which makes the other thing you
advised--a good inventory based accounting system--absolutely essential.

--
Peggie
----------
Peggie Hall
Specializing in marine sanitation since 1987
Author "Get Rid of Boat Odors - A Guide To Marine Sanitation Systems and
Other Sources of Aggravation and Odor"
http://www.seaworthy.com/store/custo...0&cat=6&page=1
http://shop.sailboatowners.com/books...ku=90&cat=1304

Peggie Hall wrote:
Brian Cleverly wrote:


An earlier respondent advised against getting a "Resale Certificate"
because of the hassle involved... That is just pure bad advice...
You *must* arrange to buy at at least wholesale due to the high
markups on anything to do with our business (read "Marine")...


Having been both a wholesale distributor and a mail order retailer,
you're right...BUT--not everything is cheaper wholesale. The discount
retail prices can often be less than dealer price (toilets are just one
example)...so while I agree that getting a sales tax certificate isn't
optional, it essential, it also pays to shop the discount retail prices
instead of blindly buying everything wholesale. With a tax #, you can
buy most things retail without also paying the sales tax...if you have
to pay it, you can deduct it from either the quarterly sales tax owed or
on your business income tax return. Which makes the other thing you
advised--a good inventory based accounting system--absolutely essential.


Absolutely agree on all points Peggy...

I didn't mean to imply wholesale was the only way to go... In fact I've been
known to buy via Ebay on more than one occasion when the high bid was under the
best I could get elsewhere.

Brian C

Some examples are on my website, www.anzam.com .

Brian, that's nothing short of impressive!

I'm glad you posted the work.