Adrian Stott wrote: > If supply exceeds demand, then providers will drop their prices to > attract custom until the price is below their marginal cost of > provision. Then they will withdraw from the market. Unless these low > prices attract more demand, that is.
Here are some thoughts for you to pull apart... It would appear that the first thing to happen with oversupply is that brokerage sites re-locate to the empty new marinas, with the hope that you will take them up on a mooring at that site after you have bought a boat from them. With the "no private sales" clause in most marinas, this then becomes self-perpetuating....to a point. Boat prices (especially with less desirable barges, wide-beam narrowboats and suitable liveaboard narrowboats) are also held artificially high at the moment, as many of these boats are sold with "residential moorings", some simply being on towpath moorings! When the boating recession *really* arrives it will be free-fall for everyone connected with the waterways....a bit like the "credit crunch". -- Neil Arlidge NB Earnest - Out of it. Wildernii Mini Me - Now back to being wheely good fun. Follow the travels of TNC, now in Ireland http://www.tuesdaynightclub.co.uk/tour.html
