Interview with Merk & Merk – CEO Julian Merk
In this interview, Julian Merk, founder and CEO of Merk & Merk Yachting Boutique, gives us a rare behind-the-scenes look at not only the day-to-day life and work of a yacht broker, but also talks about the future trends in yachting:
Let’s start the interview by looking back how it all started. Where does your enthusiasm for yachts, boats and water sports actually come from?
I think this enthusiasm is definitely family-related. My parents were already on the water a lot and I grew into it bit by bit as a child and sailed a lot from an early age. This ultimately led to my decision to train as a boat builder. My father already had a boat repair company in Germany, where I also worked from a young age. Eventually, we decided to move the company to where most of our orders came from. So we moved to Croatia and founded “Merk & Merk” in 2004. Originally, we focused on repairs and manufacturing of teak decks.
What does a typical work day as a yacht broker look like?
(laughs) Basically, you have to be willing to do any kinds of work, even as a general manager. One day you’re at the Cannes Yachting Festival or the Monaco Yacht Show, for example, and the next day you’re standing on a yacht with a cloth in your hand, making it shine and preparing it for the handover to the client. I think the most important thing is the hands-on mentality and enjoying working with clients. As a yacht broker, you are not “just” the salesperson for many clients, but a social point of contact inside, and also outside the marina. Especially in our industry, personal contact is everything and you have to be aware that the line between work, fun and leisure is often blurred.
What aspect of the work do you like best?
Most definitely the contact with people – both, internally with the team, as well as with cooperation partners and subcontractors, and of course with the customers. We are a long-established team and have built long-standing relationships with the majority of our clients. I am very lucky to have a job where the work doesn’t feel like actual work. Selling boats feels like a huge pleasure, because the entire process brings such a great sense of accomplishment. Regardless of the money you make from it, it is nice to see that customers have such great confidence in you.
Do you own a boat yourself privately? If so, which one?
Yes – a Beneteau 44, a sailboat. However, unfortunately, it is used way too little, because I mostly take care of the boats of others (laughs). In the past we were on the boat a lot. The time on board is an absolute highlight for the whole family, and especially the family vacations on the water are a nice time out and bring us great joy.
Is there a special yacht on your personal wish list that you are particularly fond of?
The Solaris 60 already comes very close to my idea of a “perfect yacht” and meets my personal taste very well. In terms of performance and quality, she really is the absolute ultimate. In the niche of performance cruisers, she is the “best buy” in terms of price-performance ratio.
What has changed in the industry since the start of the pandemic?
Since the 1st lockdown in March 2020, there has been no constant bookability in our service business. This means, that we have only been able to plan about 2 weeks in advance. For comparison: before Corona, it was already fixed at the beginning of March, which boat would run through our service slot in which calendar week until July. With the lockdowns and unpredictable travel restrictions, we have experienced partial operational chaos.
In terms of sales, we have seen a very exciting development since the outbreak of the pandemic. There is significantly more movement than before, even though site visits were often not possible due to travel restrictions and social distancing. With a lot of creativity, we came up with new ways to carry out boat inspections, which are especially important for pre-used boats. Initially, we surprised ourselves how well video tours worked for us and the buyers. Prospective buyers are guided via the screen and given a tour of the boat. It is important to give them the feeling as if they were on board themselves. To reveal all defects immediately and openly is crucial in order for the clients to build trust. Yacht Video Tour: Dehler 46
Also very interesting to observe was, that about two-thirds of the buyers were making a first-time purchase. Many people who have long wanted their own boat have finally decided to buy because of Corona and the associated, few vacation opportunities.
What is the first step to becoming a yacht owner? What advice do you give to your clients during the initial consultation?
The first step is the inquiry from the potential customer. This can be a general request that does not yet refer to a specific boat, or, in some cases, a very specific model is being requested.
The initial inquiry is followed by a lenghty conversation. If not in person, then on the phone or, as it became fashionable last year, via Zoom. In doing so, I take at least an hour and just listen: What do you want to do with the boat? Who is coming along on the trips?
I get to know all the ideas and requirements that the client has for its future boat. After I have listened to all of this, the part where the trust is based on follows: friendly, sincere advice on which boat would be best for them. And that recommendation often has little to nothing to do with the original inquiry.
How difficult is it to respond to wishes of the super-rich? What are their requirements compared to other clients?
The client must always feel that he has made a good deal, whether he is buying a smaller boat or a luxury yacht. In this respect, customers hardly differ, no matter how much money they have at their disposal. The bigger the budget, the more expensive toys they buy (laughs). But they all have one thing in common – the pure joy of dangling the feet from aboard their own boat while drinking a cold beer or a glass of wine. Regardless of budget, clients also like it when things are being kept simple. I don’t know any of my customers who doesn’t enjoy cevapcici and a freshly tapped beer (laughs).
How long does the sales process usually take?
From the first meeting, to the order, to the delivery, it can often take 2-3 years. Thus, many close relationships develop. It can also happen you meet people at a trade show and have a boat sale within 24 hours. The classical process to the conclusion of a contract, however, usually takes months to years, especially if you order a new luxury yacht that is configured according to your wishes.
Is there a special highlight among your sales?
I can remember some highlights (laughs, not sure if and what story to tell). One story in particular has stuck in my mind.
It was my first major boat and I had made an appointment with the customer in Mallorca, however, at that point, we were not sure if we would actually meet the potential buyer that day, so we got comfortable in a nice little restaurant. Two bottles of wine later, the customers, a very nice Czech couple, told me that they were now ready to meet and thereupon joined us at our location.
A very funny evening developed and finally we went on the boat, which also had a well-stocked fridge. The next morning, despite a long night, I was early at the harbor when the customer suddenly texted me: “Let’s meet in 30 minutes in front of my new boat”. He then signed the boat’s exposé and I set off for home, with a piece of paper in my luggage that was ultimately worth several millions (laughs).
Which boat would you advise if someone came to you today with several millions?
The question-and-answer game is always the same, regardless of the budget and scale of the boat. I would probably try to get out everything there is to know about the requirements over a glass of wine. A lot can be deduced from that. If, for example, you want a sailboat in the Mediterranean, the market is already extremely limited. I then bring in my suggestions, which are then worked through. On the basis of these examples, which are probably 5-6 ships at the beginning, it is determined what you like and what you would like to see in person. It is possible that already the first boat is a hit, but it can also happen that several visits are necessary until you have found the right one for you.
Explore our yacht portfolio here
Which new trends are emerging in the yachting sector? What will be relevant in the future? What has changed in the last decade?
Basically, you can say that boats, no matter what kind, are becoming more and more extreme. Design-wise, completely new paths are being taken, and concepts are being completely redesigned to create more living spaces. Light and living space – two components that are indispensable in modern ships.
Proper living and usage concepts have emerged, not to mention the increasingly interesting usable outdoor spaces. About five to ten years ago, for example, the kitchen was located in the lower deck. Today, all modern boats, from about 50 feet, have the kitchen on the upper deck. While in houses the kitchen has long been considered the center of life, this concept has now been adopted on boats, which has become feasible with significantly more glass surfaces and more air conditioning.
Another point that has changed enormously is that newer ships now all have a stabilization system. Thus, the target group has expanded and now also includes people who actually had problems with seasickness.
In general, it can be said that the ships of today can no longer be compared with those of 10 years ago. Concepts have changed completely, new industry standards have been developed, and function often comes before design.
Personal yacht-consultation
Are you looking for your new dream yacht? Take the opportunity to talk to Julian about your future, potential new boat over a glass of wine! We are looking forward to hearing from you. Send us a request for a non-binding consultation and we will get back to you within the next 24 hours!