WEBVTT - Luxury Spending on Lamborghinis and Superyachts 0:00:00.080 --> 0:00:03.640 You're listening to Bloomberg Business Week with Carol Messer and 0:00:03.720 --> 0:00:08.080 Bloomberg Quick Takes. Tim Stinovic on Bloomberg Radio. I love 0:00:08.119 --> 0:00:10.639 talking about high end cars and we've got a great 0:00:10.640 --> 0:00:14.440 guest to do that. What about supercars? Supercars work for me. Um. 0:00:14.480 --> 0:00:16.640 Just a couple of days ago, our next guest came 0:00:16.680 --> 0:00:18.959 to really came back to a company he knows well, 0:00:19.200 --> 0:00:22.680 having been president and CEO of automobile. My saying it right, 0:00:23.440 --> 0:00:27.920 Automobile Lamborghini from oh five to back in the top spot. 0:00:28.280 --> 0:00:30.720 So great to have with us. Stefan vin Colman. He 0:00:30.880 --> 0:00:33.519 is president CEO of the company and he's here in 0:00:33.520 --> 0:00:36.360 our Bloomberg Interactive Broker studio. He's also president of Bugatti. 0:00:36.440 --> 0:00:39.120 So you've got a lot under your plate. Are on 0:00:39.159 --> 0:00:42.400 your plate? How are you? I'm fine, Actually have to 0:00:42.479 --> 0:00:46.839 say that I'm not anymore. You are beginning of November, 0:00:46.920 --> 0:00:51.160 so it's one months now that I'm dealing only with Lamborghini. 0:00:51.200 --> 0:00:53.159 So I'm happy forgive me because I was trying to 0:00:53.760 --> 0:00:55.840 to make some sense of some of the changes and 0:00:55.840 --> 0:00:57.960 all of this is under volks back and correct, Yes, 0:00:57.960 --> 0:01:01.360 it's under So tell us about the environment right now? 0:01:01.400 --> 0:01:04.440 What are you seeing in terms of demand? You know 0:01:05.280 --> 0:01:08.200 what we're interested in. Uh, it seems like consumers are 0:01:08.240 --> 0:01:11.679 out there shopping, specially wealthier customers. What are you seeing. 0:01:12.240 --> 0:01:16.039 So after the first and second wave of COVID, the 0:01:16.160 --> 0:01:22.840 market in luxury and supersports cars it was coming back tremendously. 0:01:23.400 --> 0:01:27.200 And this year we will have a record here and 0:01:27.720 --> 0:01:30.760 if you buy a Lamborghini today, you will get the 0:01:30.840 --> 0:01:35.480 delivery only in December two, so we have one year 0:01:35.520 --> 0:01:39.760 waiting time. We increase production already twice. But also the 0:01:40.080 --> 0:01:42.920 super sports car business or the luxury business is not 0:01:43.000 --> 0:01:47.240 only about delivering fast, it's about not running for the peaks. 0:01:47.520 --> 0:01:50.880 Is about producing less than demands. So when people usually 0:01:50.880 --> 0:01:55.000 wait anyway to some extent, right that they wait and 0:01:55.040 --> 0:01:57.320 they're willing to wait, and this is good because there 0:01:57.400 --> 0:01:59.240 is no other way. What about when it comes to 0:01:59.280 --> 0:02:01.720 prices and speci typically raw materials. We talked so much 0:02:01.720 --> 0:02:04.160 about inflation. That is the narrative right now when we 0:02:04.200 --> 0:02:06.520 look at many parts of the global economy, how are 0:02:06.560 --> 0:02:09.160 you dealing with higher prices? How high have they become 0:02:09.240 --> 0:02:11.800 for inputs? And are you passing those along the customers? 0:02:12.520 --> 0:02:15.080 But generally I have to have to say that we 0:02:15.160 --> 0:02:18.239 are okay. So we are not passing anything to the 0:02:18.320 --> 0:02:23.120 customers on higher material costs right now, and we are 0:02:23.200 --> 0:02:27.320 not suffering like other commonuffectures about the shortage of the chips. 0:02:27.720 --> 0:02:30.520 So here we are well treated by the folks one 0:02:30.600 --> 0:02:34.160 group being a small company, and this is an advantage. 0:02:35.040 --> 0:02:39.000 So at time being, there is no let's say, critical 0:02:39.080 --> 0:02:42.800 point in this sense for us as Lamborghinis and your 0:02:42.800 --> 0:02:45.399 problems that are but no problems at all. You never 0:02:45.440 --> 0:02:47.800 know we have here and there's some it's always with 0:02:47.880 --> 0:02:50.720 suppliers and with supply chain that there are things are 0:02:50.800 --> 0:02:56.400 not going accordingly and prices rising, But we have not 0:02:56.600 --> 0:03:00.560 inflated our prices higher than the normal and normal state. 0:03:00.639 --> 0:03:03.680 So this is not something we are taking advantage of. Stephen, 0:03:03.760 --> 0:03:06.240 we were talking Tim and I with another global auto 0:03:06.280 --> 0:03:08.680 executive who's been in the industry a long time, has 0:03:08.760 --> 0:03:11.600 had different spots around the globe. YouTube you were at FIAT. 0:03:12.200 --> 0:03:14.919 You understand this world, you understand it from several different 0:03:14.919 --> 0:03:19.120 market advantages. Um, I'm curious, he said to us. It's 0:03:19.160 --> 0:03:21.400 kind of one of the most exciting times in terms 0:03:21.400 --> 0:03:23.600 of some of the disruption that's going on the move 0:03:23.600 --> 0:03:26.320 towards electrification. There's a lot going on in the industry. 0:03:26.520 --> 0:03:28.560 How do you kind of sum it up in terms 0:03:28.560 --> 0:03:29.959 of what's going on right now? And he's got a 0:03:30.000 --> 0:03:33.280 big smile for everybody on real have to say that 0:03:33.520 --> 0:03:36.120 for us, on one hand, it's a great advantage that 0:03:36.200 --> 0:03:38.560 the market is booming. So this gives us the peace 0:03:38.600 --> 0:03:42.000 of mind at least, I think for the two to 0:03:42.080 --> 0:03:45.320 concentrate on what is coming next. As you said, is 0:03:45.320 --> 0:03:48.240 a desruptive time, is not an evolution anymore, so you 0:03:48.280 --> 0:03:51.080 have to make a clear cut and to think about 0:03:51.120 --> 0:03:54.960 what is coming next. We are already on the way 0:03:55.040 --> 0:03:59.440 to hybridize all our lineup. Hybridized means that you still 0:03:59.440 --> 0:04:02.000 have and on combustion engine and the cars will be 0:04:02.040 --> 0:04:06.800 plugged in hybrid. We will maintain our icon our engine, 0:04:06.840 --> 0:04:08.720 which is an I Can the V twelve, So this 0:04:08.760 --> 0:04:10.880 will be a complete new engine. And I know you 0:04:10.920 --> 0:04:12.920 talked with our Matt Miller, who we always talk about, 0:04:12.920 --> 0:04:14.760 who loves supercars and all said, well, how can you 0:04:14.760 --> 0:04:16.960 have a supercar without the engine noise? Right like that 0:04:17.120 --> 0:04:20.279 is such a big component of it. Yes, and and 0:04:20.480 --> 0:04:23.200 so we will keep it and all the lineup will 0:04:23.240 --> 0:04:26.680 be hybridized by the end of twenty four and this 0:04:26.800 --> 0:04:29.480 is enabling us to reduce the CEO two emissions and 0:04:29.560 --> 0:04:32.680 comparison of today by at least fifty So this is 0:04:32.680 --> 0:04:37.080 a good step to start with. What comes after is 0:04:37.080 --> 0:04:41.039 a full electrification. Ever we will we see that we 0:04:41.080 --> 0:04:43.320 will have a Force model. Today we have three models, 0:04:43.320 --> 0:04:45.560 so they will all be hybridized in the second part 0:04:45.600 --> 0:04:48.640 of the decade. We're looking forward to have our first 0:04:48.680 --> 0:04:53.120 full electric car and we want to have let's say 0:04:53.120 --> 0:04:55.680 a split of the lineup two supersports cars and two 0:04:55.680 --> 0:04:59.719 more versatile cars. And the supersports cars we want to 0:04:59.760 --> 0:05:02.640 keep with internal combustion engine as long as possible, maybe 0:05:02.680 --> 0:05:07.559 with synthetic fuels. Would Lamborghini ever go fully electric, Yes, 0:05:07.560 --> 0:05:10.640 as I said, there is for the more daily usable 0:05:10.680 --> 0:05:13.960 car like us. No, I mean like not even offering 0:05:14.000 --> 0:05:17.880 an internal combustion engine vehicle as as um. But this 0:05:17.960 --> 0:05:20.880 is something we have to see after twenty depends a 0:05:20.880 --> 0:05:24.040 lot about what the legislator is going to tell us 0:05:24.040 --> 0:05:29.280 how emissions go, emission goal goes ahead, and if there 0:05:29.360 --> 0:05:32.080 is an opportunity for for synthetic fuel, if there are 0:05:32.279 --> 0:05:34.799 synthetic fuels in the future, which I see you two neutral, 0:05:35.240 --> 0:05:38.120 then there's a good opportunity that we stay with the 0:05:38.160 --> 0:05:42.920 super sports car also after thirty with internal combustion engines. Steven, 0:05:43.360 --> 0:05:45.200 what do you hear from your clients about I mean, 0:05:45.200 --> 0:05:47.760 obviously they're watching the trends in terms of electrifications, and 0:05:47.800 --> 0:05:51.400 we're seeing sophisticated cars on that front come along or increasingly. 0:05:51.720 --> 0:05:54.800 But I'm curious the people who buy your cards, do 0:05:54.839 --> 0:05:59.520 they really want an electric Lamborghini. They want the peace 0:05:59.600 --> 0:06:03.640 of mind of more sustainability, and we have to deliver 0:06:03.720 --> 0:06:06.000 the promise and we have to keep the promise that 0:06:06.680 --> 0:06:09.760 the performance and the design a better than the generation 0:06:09.839 --> 0:06:14.239 of today. If these two things go together, then for hybridization, 0:06:15.040 --> 0:06:17.920 there is no issue. They are going to follow us. 0:06:18.040 --> 0:06:20.719 And we see this also because we do testing, we 0:06:20.760 --> 0:06:24.280 do clinics, and this is something which is already digested. 0:06:25.080 --> 0:06:31.000 So it's done. Corses left the barn, we cannot roll back. Well. Well, 0:06:31.040 --> 0:06:32.960 the other thing is, let's not forget and let's be fair. 0:06:33.040 --> 0:06:36.200 I mean, regulators, policymakers write the world. We understand the 0:06:36.240 --> 0:06:38.919 importance of kind of moving in this direction and that 0:06:38.920 --> 0:06:41.520 that's just the way it is. Yeah, we cannot move 0:06:41.520 --> 0:06:44.919 out we have a social responsibility, even though with our 0:06:44.960 --> 0:06:47.400 cars we are not changing the climate. But I think 0:06:47.400 --> 0:06:50.200 that everybody has to do He's part of the of 0:06:50.320 --> 0:06:54.400 the business. And I think that this is important also 0:06:54.400 --> 0:06:57.920 because it's more and more important not what you think 0:06:57.960 --> 0:07:00.520 about your the cars, but what your neighbor think about 0:07:00.560 --> 0:07:02.600 the car, So you always have to have the thumbs up. 0:07:02.920 --> 0:07:05.920 This is important. Hey, how do you keep the Lamborghini 0:07:06.000 --> 0:07:08.920 driving experience with the hybridization of one of these vehicles? 0:07:09.040 --> 0:07:11.160 Because you think about a hybrid car right now, I 0:07:11.160 --> 0:07:12.680 mean you know when it's you know when it's there 0:07:12.680 --> 0:07:15.120 because it's it slows down and stop signed the engine 0:07:15.120 --> 0:07:18.320 turns off right and then starts back up again and 0:07:18.400 --> 0:07:20.680 it has a unique sound. How do you keep the 0:07:20.720 --> 0:07:26.080 driving experience the Lamborghini driving experience? Driving experience? So performance 0:07:26.080 --> 0:07:30.679 will be always our top priority. And when we speak 0:07:30.720 --> 0:07:35.320 about hybridization, we speak yes about range extender, but it's 0:07:36.080 --> 0:07:40.120 even more about a booster. So it's increasing the power 0:07:40.120 --> 0:07:43.120 of the engine. The way to power ratio is even 0:07:43.160 --> 0:07:45.240 better than the one today, so the car will be 0:07:45.280 --> 0:07:48.800 more performing and you still will have the sound of 0:07:48.840 --> 0:07:51.520 the engines where you have today. So this is positive. 0:07:51.680 --> 0:07:54.040 At least for the next year. You talked about strong demand. 0:07:54.040 --> 0:07:56.440 Have you been surprised at how strong that demand has been. 0:07:56.480 --> 0:07:58.720 I think certainly at the beginning of the pandemic, nobody 0:07:58.800 --> 0:08:00.640 knew how this was going to play out. Nobody had 0:08:00.640 --> 0:08:03.559 the crystal ball. We we hadn't seen this before. I'm curious, though, 0:08:03.960 --> 0:08:05.960 when did you start to say, Okay, wait a minute, 0:08:06.000 --> 0:08:10.800 things will be okay. After summer last year. After summer 0:08:10.880 --> 0:08:14.640 last year, when we recognize that this was a constant 0:08:14.920 --> 0:08:17.200 flow and it was going up and up and up 0:08:17.200 --> 0:08:21.120 every every month. We are selling workers than we can deliver. 0:08:21.200 --> 0:08:24.280 And this is as we speak, still ongoing. Do you 0:08:24.280 --> 0:08:26.320 have the workers you need to do everything? That's another 0:08:26.320 --> 0:08:28.240 thing that we've certainly seen on a global level. We're 0:08:28.240 --> 0:08:30.160 certainly seeing it here on a job's day in the 0:08:30.240 --> 0:08:32.640 United States, where we're still we have a lot of 0:08:32.640 --> 0:08:35.480 companies that are looking for workers. Now we are we 0:08:35.559 --> 0:08:37.840 are fine. We are said we it's clear that we 0:08:37.880 --> 0:08:40.600 are in a in a phase of of of change. 0:08:40.640 --> 0:08:43.840 So competences are going to change, and we are only 0:08:43.880 --> 0:08:48.200 also looking for a new type of business or jobs. 0:08:48.320 --> 0:08:52.480 And this is not happening happening overnight. So we have 0:08:52.679 --> 0:08:56.120 enough enough time to adapt to the new situations. So 0:08:56.280 --> 0:08:59.160 this is okay, how are you bringing that next generation 0:08:59.679 --> 0:09:02.520 of Amborghini buyers? How do you bring in millennial car? 0:09:02.600 --> 0:09:04.600 You just drive up to their door. You just drive 0:09:04.640 --> 0:09:06.880 up to their home, Tim and he just is their 0:09:06.920 --> 0:09:09.760 difference though? Is there a difference in in what potential 0:09:09.800 --> 0:09:12.560 customers who may be able to afford the Lamborghini in 0:09:12.559 --> 0:09:15.400 their twenties and thirties one right now, or or how 0:09:15.440 --> 0:09:17.200 you want to reach them now? So then when they 0:09:17.200 --> 0:09:19.360 are in their forties and you can't afford this, they 0:09:19.360 --> 0:09:20.719 can buy one. And I think about We had a 0:09:20.720 --> 0:09:23.520 conversation with a senior executive at the Beers and we 0:09:23.600 --> 0:09:26.360 talked about that a younger generation not so interested in diamonds. 0:09:26.360 --> 0:09:30.120 So what are you saying interesting experiences than things for example? 0:09:30.200 --> 0:09:32.400 But I can tell you that if you look in 0:09:32.480 --> 0:09:35.760 the into the social media, we are the highest by 0:09:35.800 --> 0:09:39.440 far in the in the supersports car business or also 0:09:39.520 --> 0:09:41.920 in the majority of the car business. So there is 0:09:41.960 --> 0:09:45.320 a lot of interest of the younger generation. And our 0:09:45.400 --> 0:09:48.520 brand or brand to school or brand is young design 0:09:48.520 --> 0:09:51.640 and performance a top They will not sit at our 0:09:51.679 --> 0:09:54.720 table if you don't speak about systemain ability. This is clear. 0:09:55.840 --> 0:09:57.960 They want to have a sustainable car, they want to 0:09:57.960 --> 0:10:00.720 have a digital, digitalized car. These are the two things 0:10:00.720 --> 0:10:03.480 which have to work together. And then design and performance, 0:10:03.480 --> 0:10:07.359 which is let's say the most important thing in Lamborghini. 0:10:07.920 --> 0:10:10.480 These things have to fit. Yeah, it's I gotta say, 0:10:10.480 --> 0:10:13.800 I got a nephew who who's young, and we definitely 0:10:13.800 --> 0:10:16.880 have no problem with one of your cars, whether or 0:10:16.880 --> 0:10:20.960 not it was hybrid version. Exactly exactly what do you get? 0:10:21.080 --> 0:10:24.319 What's the benefits? I think there's some thoughts about we're 0:10:24.320 --> 0:10:27.480 seeing a lot of unlocking a value among companies where 0:10:27.520 --> 0:10:30.640 you spin out certain brands. You're under the Volkswagen brand, 0:10:30.640 --> 0:10:34.240 there's many many different brands under the VW umbrella. You know, 0:10:35.120 --> 0:10:37.240 what's the benefit of being under that umbrella? Are there 0:10:37.240 --> 0:10:40.000 benefits to also spinning it out and unlocking some value 0:10:40.000 --> 0:10:43.040 there from an investor perspective, so a spin out is 0:10:43.040 --> 0:10:45.480 not planned. What the benefit is is clear that there 0:10:45.480 --> 0:10:51.520 are synergies in terms of suppliers. If we are asking 0:10:51.559 --> 0:10:55.760 a supplier to produce I don't know, ten tho pieces 0:10:55.840 --> 0:10:59.560 a year or a hundred thousands, you have a different 0:10:59.640 --> 0:11:03.360 level leverage, different price, different quality. This is one thing. 0:11:04.040 --> 0:11:07.120 Then in terms of the platforms, in terms of all 0:11:07.160 --> 0:11:10.960 the things which are under the hood which are not 0:11:11.080 --> 0:11:15.480 perceived as brand relevant, are things which are helping, like 0:11:15.760 --> 0:11:18.800 electronic platform like air conditioning. There are a lot of 0:11:18.800 --> 0:11:22.040 things which are high investment and nobody knows about that. 0:11:22.640 --> 0:11:26.720 And we deliver our quality, which is in our type 0:11:26.720 --> 0:11:31.199 of business unique and this therefore the benefit for us 0:11:31.440 --> 0:11:34.840 is really important. I just want to ask about the 0:11:34.840 --> 0:11:38.640 connection between marketing and what you did at our buzzle 0:11:38.720 --> 0:11:41.160 recently and how you can draw a line from that 0:11:41.240 --> 0:11:45.960 to selling more vehicles. But if we do things like 0:11:45.960 --> 0:11:49.240 our bossle, it's because the community is very close to 0:11:49.240 --> 0:11:53.520 our customers. Our customers go there, so having your opportunity 0:11:53.559 --> 0:11:56.160 to speak to them in an environment which is not 0:11:56.280 --> 0:12:01.840 typical automotive driven is important. To stay present in the 0:12:02.040 --> 0:12:04.400 in the mind of the people and also to be 0:12:04.520 --> 0:12:08.280 part of the crowd. And this is not about selling cars, 0:12:08.280 --> 0:12:13.080 but this is about creating. After the let's say they sales, 0:12:13.200 --> 0:12:15.640 the most important thing is to create community, to have 0:12:16.600 --> 0:12:19.720 events to go on and off the race track, and 0:12:19.760 --> 0:12:22.560 also things like art bars are important that you go 0:12:22.640 --> 0:12:25.480 to dinner together, you you get to know them and 0:12:25.880 --> 0:12:28.760 you are in the environment they appreciate. Haven't been at 0:12:28.760 --> 0:12:30.439 our pals like I can see how it's a perfect fit. 0:12:30.520 --> 0:12:33.120 He just got about twenty seconds here. Geographically, where do 0:12:33.120 --> 0:12:36.079 you sell the most Lamborghinis in the US? The US 0:12:36.280 --> 0:12:39.680 and China is number two? China's number two. All right, um, 0:12:39.720 --> 0:12:41.160 we're gonna leave it on that now. Thank you so 0:12:41.240 --> 0:12:43.080 much for finding time for us and have a great, 0:12:43.120 --> 0:12:48.040 safe holiday season. Really appreciate it. Stefan VN Coleman. He 0:12:48.160 --> 0:12:51.520 is Presidency of Adomabili Lamborghini, joining us right here in 0:12:51.520 --> 0:12:54.520 our interactive broker studio. Last month, Bloomberg was out with 0:12:54.559 --> 0:12:57.760 the story is pretty cool about how the billionaire economy 0:12:57.800 --> 0:13:00.079 was cool if you're a billionaire, how the billionaire to 0:13:00.160 --> 0:13:03.000 me is booming, with demand for super yachts, mansions, and 0:13:03.040 --> 0:13:05.680 planes soaring, driven by cheap debt and rising wealth. The 0:13:05.800 --> 0:13:08.599 number of super yachts sold this year alone this is 0:13:08.600 --> 0:13:12.800 at least through mid October, increased by about sixty five 0:13:13.520 --> 0:13:15.400 three from the same period last year's. According to some 0:13:15.440 --> 0:13:18.840 research from super Yacht Times, more than a quarter of 0:13:18.840 --> 0:13:22.480 those purchases were for new vessels. About that tim Well, 0:13:22.640 --> 0:13:24.800 people who have the money want to be able to 0:13:24.840 --> 0:13:27.839 afford or want to be able to go and yacht 0:13:27.840 --> 0:13:30.160 in luxury. Yeah, no doubt about it. Well, Stephen Myers 0:13:30.160 --> 0:13:32.360 knows about what's going on. He's the founder and CEO 0:13:32.559 --> 0:13:35.679 of the multiple listing service provider Yatko. He joins us 0:13:35.720 --> 0:13:38.520 on the phone in Miami. Hey, Steven, uh so delighted 0:13:38.559 --> 0:13:40.640 to have you here with Tim and myself on Bloomberg 0:13:40.720 --> 0:13:44.480 Business Week on Bloomberg Radio. How are you. Thank you 0:13:44.559 --> 0:13:46.280 very much for having me. Yeah, I'm doing great. I'm 0:13:46.280 --> 0:13:49.280 actually literally sitting by the doctor the pay in Miami 0:13:49.320 --> 0:13:53.079 Beach um for Art Basil and surrounded by the sunset 0:13:53.080 --> 0:13:57.480 Harbor Marina and lovely, lively sunny afternoon. Art Fossil is 0:13:57.520 --> 0:13:59.560 really cool. It's a perfect place to sell you super 0:13:59.640 --> 0:14:03.120 yachts And just gonna put that out there pretty dark. 0:14:04.280 --> 0:14:06.240 So listen, I'm a sailor. I've talked to a lot 0:14:06.280 --> 0:14:08.719 of brokers in the industry of the past year. They 0:14:08.760 --> 0:14:11.840 have been super, super duper busy during the pandemic. What 0:14:11.920 --> 0:14:14.760 have you been seeing specifically, Yeah, I've been in the 0:14:14.800 --> 0:14:19.040 industry for over thirty years, um, and I've we've never 0:14:19.080 --> 0:14:21.640 seen anything like it. Um. You know, it's far sur 0:14:21.720 --> 0:14:25.640 passes two thousand and seven. Uh in the boom there. Um. 0:14:25.720 --> 0:14:28.440 And you know it's a very cyclical industry. However, it's 0:14:28.480 --> 0:14:32.640 been very solid and uh, you know, the trends have 0:14:32.760 --> 0:14:35.640 just been upwards. Um. The challenge that we now faces 0:14:36.040 --> 0:14:40.160 is inventory. Uh. You know, the the pre owned inventory 0:14:40.280 --> 0:14:43.360 dried up um after there was a rush on pre 0:14:43.400 --> 0:14:49.400 owned inventory. Uh during COVID. Obviously people wanted to to 0:14:49.600 --> 0:14:53.200 isolate themselves um and lockdown themselves on. You know, there's 0:14:53.200 --> 0:14:54.760 no better place to be than on a on a 0:14:54.880 --> 0:14:58.200 boat or a yacht, especially during a pandemic. I'm just 0:14:58.240 --> 0:15:01.880 going to point out, but go ahead, absolutely, and that 0:15:01.960 --> 0:15:04.680 trend is going to continue. Uh. The new vote sector 0:15:04.720 --> 0:15:09.080 in has absolutely been on fire, as well as as 0:15:09.120 --> 0:15:12.360 the luxury yacht charter business as well that's now out 0:15:12.760 --> 0:15:17.440 pretty much sold out through um and uh you know, 0:15:17.520 --> 0:15:20.480 continuing on, what are you seeing from from boatmakers about 0:15:20.480 --> 0:15:23.440 how they're able to meet demand or or how wait 0:15:23.480 --> 0:15:26.960 times have changed due to this unprecedented demand. Yeah, well, 0:15:27.000 --> 0:15:29.720 I think there's a trend more towards you know, uh, 0:15:30.360 --> 0:15:35.920 less customization, more production obviously because it's a faster production time. UM. 0:15:36.160 --> 0:15:40.080 But um, but you know, certainly the custom projects are 0:15:40.080 --> 0:15:43.320 continuing and as we get into um, you know, the 0:15:43.400 --> 0:15:47.840 half a billion dollar plus yacht market that's coming. Um. 0:15:47.880 --> 0:15:49.880 You know that that's certainly a long lead time. But 0:15:50.480 --> 0:15:53.560 right now most of the most of the semi custom 0:15:53.640 --> 0:15:57.960 custom builders are are looking at you know, uh, sold 0:15:57.960 --> 0:16:01.080 out for the next five years, um, until they find 0:16:01.440 --> 0:16:04.480 additional capacity. Well, it really talks about the wealth creation 0:16:04.520 --> 0:16:07.880 certainly too within within our world. Um, what about Stephen 0:16:07.960 --> 0:16:10.360 in terms of their access to the supplies. I mean, 0:16:10.400 --> 0:16:13.880 a beautiful boat, you're talking about tike, you're talking about 0:16:13.880 --> 0:16:15.800 great woods, You're talking about a lot of stuff. It's 0:16:15.800 --> 0:16:18.840 also a it's you know, the bigger you get. It's 0:16:18.840 --> 0:16:22.640 basically a floating city. Um. Are you guys able to 0:16:22.680 --> 0:16:25.840 Are the builders able to get everything that they need? Yeah, 0:16:25.840 --> 0:16:27.920 it's a challenge, but I think, uh, I think that 0:16:28.000 --> 0:16:31.400 the industry is able to meet those challenges. Um, you know, 0:16:31.480 --> 0:16:34.000 because we're we're not looking at the volumes of the 0:16:34.040 --> 0:16:36.680 housing market and so on and so forth. So it's 0:16:36.840 --> 0:16:40.360 it's it's a challenge, but I think that the industry 0:16:40.680 --> 0:16:43.800 it's not holding things back to the extent of other industries. 0:16:44.000 --> 0:16:47.440 What about when it comes to resales, Uh, that the 0:16:47.480 --> 0:16:51.480 problem there is is lack of inventory. Um. Now people 0:16:51.520 --> 0:16:54.080 are willing to sell. But you know, if if somebody 0:16:54.160 --> 0:16:58.720 was willing to sell for twelve million, you know a 0:16:58.800 --> 0:17:01.960 year ago, now I like fourteen millions. So we've actually 0:17:02.000 --> 0:17:06.640 seen fifty nine on our yacht co dot Com MLS database. 0:17:06.640 --> 0:17:10.119 We've actually seen fifty nine price increases just in the 0:17:10.119 --> 0:17:13.200 past month, which is unheard of. Um. Normally a price 0:17:13.280 --> 0:17:17.760 increase in yachting is an anomaly, um, and it usually 0:17:17.800 --> 0:17:20.800 doesn't send a good signal to the market. But um, 0:17:20.840 --> 0:17:23.080 you know, for the first time in my career, uh, 0:17:23.560 --> 0:17:27.280 we're seeing you know, an extraordinary number of price increases 0:17:27.280 --> 0:17:31.000 on a regular basis. Tim's really curious about what, Yeah, 0:17:31.119 --> 0:17:33.080 how do you find people to work on these boats 0:17:33.160 --> 0:17:35.879 right now? Because we see a labor shortage happening in 0:17:35.920 --> 0:17:38.119 many different industries. But if you are one of those 0:17:38.160 --> 0:17:39.920 people who's lucky enough to get your hands on on 0:17:39.920 --> 0:17:41.520 one of these yachts, how hard is it to get 0:17:41.560 --> 0:17:46.639 a crew? Yeah, I mean, the the availability is there. Um, 0:17:46.680 --> 0:17:49.479 you know, the the the usual channel is to go 0:17:49.520 --> 0:17:53.119 through a professional crew agency. Um. There's a good pipeline 0:17:53.640 --> 0:17:57.400 and um, you know, the the the the real thing. 0:17:57.720 --> 0:18:00.440 I guess the big difference UM in the yachting industry 0:18:00.520 --> 0:18:02.800 is that which I think also attracting a lot of 0:18:02.800 --> 0:18:06.520 people to you know, to their boats and to purchase 0:18:06.560 --> 0:18:09.760 and charter is the fact of a secure environment where 0:18:10.040 --> 0:18:12.520 you know, you can control the environment of the people 0:18:12.560 --> 0:18:15.719 that you're in. There's defind boundaries UM and you know, 0:18:15.800 --> 0:18:19.720 making sure that everybody is vaccinated U on board, etcetera. 0:18:20.240 --> 0:18:23.960 So we're seeing people with spouses that that aren't even 0:18:24.240 --> 0:18:27.040 so interested in the in the boating program that suddenly 0:18:27.359 --> 0:18:29.760 are now spending the majority of their time on board 0:18:30.200 --> 0:18:33.040 UM and uh, you know, spending less and less time 0:18:33.040 --> 0:18:36.280 at home and more time on board. Uh. And of 0:18:36.640 --> 0:18:40.240 going to further and further remote locations like the Antarctica 0:18:40.440 --> 0:18:45.600 and Antarctics and um Norway for example, just far, far 0:18:45.720 --> 0:18:49.920 reaching places, but the crew are there um and UM. Yeah, 0:18:49.960 --> 0:18:52.439 So we're not seeing a major problem in that respect. 0:18:52.640 --> 0:18:53.879 In my next life, I think I just want to 0:18:53.880 --> 0:18:56.959 be a crew member of a gorgeous yacht and just 0:18:57.040 --> 0:18:59.560 kind of sail the world. Stephen, Hey, sit tight for 0:18:59.680 --> 0:19:01.840 Zeke and Uh, I know you're there in Miami. We're 0:19:01.840 --> 0:19:03.119 gonna do a little bit of news and we'll come 0:19:03.119 --> 0:19:05.520 back and talk some more. We are talking with Stephen Meyers. 0:19:05.720 --> 0:19:10.600 He's the founder and CEO of Yacco. You are listening 0:19:10.600 --> 0:19:13.359 to Bloomberg Businesspeak. Still with us. Is Stephen Meyers, founder 0:19:13.400 --> 0:19:15.440 and CEO of Yako, still with us on the phone 0:19:15.440 --> 0:19:17.680 in Miami. All right, Stephen, I've been on your website 0:19:17.720 --> 0:19:21.480 checking out. No, no, no, I'm good. I'm good. I'm 0:19:21.480 --> 0:19:26.159 actually really good, right, um? But did I am? And 0:19:26.200 --> 0:19:27.879 I was just looking at some of your different boats. 0:19:28.000 --> 0:19:30.240 You guys, though, actually do have a fair amount of 0:19:30.240 --> 0:19:38.280 boats listed. Yes, Um, However, that inventory is definitely down worldwide. Um. 0:19:38.320 --> 0:19:41.680 You know, at any given time, we typically have over 0:19:41.720 --> 0:19:46.879 ten thousand UH Central exclusive listings for sale. Um. And 0:19:46.920 --> 0:19:53.000 at the moment we're you know, probably seeing decrease um 0:19:53.080 --> 0:19:57.960 in in actual volume of availability of yachts for sale. 0:19:58.000 --> 0:20:01.240 So it is significantly down. Um. But you know, I 0:20:01.280 --> 0:20:03.880 think I think within the next twelve months we'll we'll 0:20:03.920 --> 0:20:07.840 start to see more, you know, inventory increasing as the 0:20:08.400 --> 0:20:11.240 as the new boat availability comes back on, you know, 0:20:11.400 --> 0:20:15.119 comes back available and starts cycling again. I'm looking at 0:20:15.119 --> 0:20:18.040 this old criss craft Man that is just gorgeous Criss 0:20:18.080 --> 0:20:24.240 crafty uh an old woody. Um, I'm curious he's buying. Uh. Well, 0:20:24.280 --> 0:20:27.399 we're seeing uh, we're seeing actually a big increase of 0:20:27.880 --> 0:20:30.560 new twenty to thirty year olds coming into the market 0:20:30.640 --> 0:20:34.080 from tech and crypto and blotching and yeah, so we're 0:20:34.080 --> 0:20:35.840 seeing that. Um, you know a lot of them are 0:20:35.840 --> 0:20:41.520 starting off with with chartering. In fact, um uh yeah, so, um, 0:20:41.600 --> 0:20:44.800 we we're seeing that and uh yeah. In fact, I 0:20:44.840 --> 0:20:47.960 was gonna say that I actually, um, I have a 0:20:48.000 --> 0:20:51.400 boat here that was in Miami about seven years ago, 0:20:51.560 --> 0:20:54.679 and there was a very famous um founder of a 0:20:54.720 --> 0:20:57.159 tech company that I was seeing the roster of the 0:20:57.160 --> 0:21:00.520 people that chartered, you know, uh, my boat, and it 0:21:00.600 --> 0:21:03.280 was it was somebody very famous, but it's usually in 0:21:03.320 --> 0:21:06.439 our industry we kind of try to always respect confidentiality, 0:21:06.440 --> 0:21:08.679 so I won't mention the name, but it was. It 0:21:08.720 --> 0:21:14.720 was a household name, and I was very surprised. And anyway, 0:21:14.880 --> 0:21:17.960 I'm sure he's onto much bigger, better things than uh 0:21:17.960 --> 0:21:21.000 than my uh my day boat, but it was it 0:21:21.080 --> 0:21:23.840 was nice to see, uh, you know, in the emergency 0:21:23.840 --> 0:21:26.480 of the new market that's coming, uh that's coming into 0:21:26.520 --> 0:21:29.560 the industry. Well, let's stock price range here in terms 0:21:29.560 --> 0:21:32.520 of most expensive boats that you have available on yacht 0:21:32.520 --> 0:21:35.960 co and and also what we perhaps consider entry level, 0:21:36.000 --> 0:21:39.560 what's the range? Well, I mean, you know, entry level 0:21:39.600 --> 0:21:42.359 can can be you know, we we have boats that 0:21:42.400 --> 0:21:45.840 are tenders to yachts, etcetera. So you know, you could 0:21:45.840 --> 0:21:48.800 be looking at anything as small as a ten thousand 0:21:48.840 --> 0:21:51.880 dollar tender all the way up to you know, we're 0:21:51.920 --> 0:21:55.199 we're getting close to the you know, going over the 0:21:55.240 --> 0:21:57.640