Sea of Plenty
Kadey-Krogen Yachts will start selling its new 55-foot Expedition at the end of the year. Price tag: $1.9 million. The company's yachts, which start at $800,000 and can run more than $2 million, are flying off the, ahem, docks, as the wealthy continue to spend freely even amid a downturn.
The 12-person, Stuart (Fla.)-based company, which also has offices in Annapolis, Md., and Seattle, saw sales increase 20% last year, to about $13.4 million. Meanwhile, sales of cruisers in the $500,000 price range were down 26%, says the National Marine Manufacturers Assn.
Given that first-quarter sales surpassed 2007 numbers, Kadey-Krogen is looking to bring in $18 million in 2008. Most of its yachts go to baby boomers seeking an alternative to the traditional second home.
Each Kadey-Krogen cruiser is made to order, and the larger ones feature appliances by Viking and Miele. They also come with a $30,000 decor allowance: "If [clients] want custom gilted rugs, leather chairs, granite countertops, they get them," says Larry Polster, one of the company's three owners. This year, Kadey-Krogen plans to ramp up advertising and add even more custom touches, which have included a Nitrox dive compressor for a scuba lover and specialized drawers to protect prized china in rough seas. A recession regatta, anyone?
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