Off The Hook Yachts: From College Side Hustle to Major Player
Jason Ruegg transformed his college side gig into a $68 million publicly traded enterprise, recently celebrated as the largest used boat dealer in the United States, marking the occasion by ringing the closing bell at the New York Stock Exchange.
His venture, Off The Hook Yachts, buys about $100 million worth of used boats annually. It operates predominantly online, marketing itself as the “Carvana of boats.”
After raising $15 million through an initial public offering in November, the company was in a position to boost its inventory financing to $60 million, effectively more than doubling its purchasing capacity.
Starting at 23, Ruegg was inspired by years of boating on the Chesapeake Bay with family. He dedicated considerable time learning about the industry, often dragging his father along to boat shows to absorb the details.
“By the end of college, I was managing about 30 to 40 boat transactions each year while also studying accounting,” Ruegg recalled. “I did the math and realized I was earning far more than I ever would as an accountant.”
Now, Off The Hook Yachts refreshes its inventory five times annually, far exceeding the standard in the industry, and it can make offers on boats within 30 minutes, sometimes clinching deals within a single day.
The company’s website utilizes an AI system developed by its team to efficiently connect buyers and sellers and gather data on sales across various platforms.
“Think of it as a trading forum,” said CEO Brian John, 57, who originally hails from Long Island and now resides in Jupiter, Florida. “Buyers are on one side, while we have a team of 60 brokers on the other, working continuously to communicate over the platform.”
“This system has become so intelligent that it links various brokers together. For instance, if a new boat enters our inventory, it can notify a broker about a customer who might be interested,” he explained.
Off The Hook Yachts also has an in-house closing team to take care of all paperwork, including finance assistance for buyers, ensuring a streamlined process.
“We handle everything, making it incredibly easy for our customers,” Ruegg noted.
The company made headlines recently by placing a 40-foot boat adorned with its logo on Wall Street and ringing the closing bell. However, Ruegg’s path to entrepreneurship hasn’t always been straightforward.
Initially, he had to borrow funds from family and friends during the early phases, eventually securing a transformative $1 million credit line. But, he faced challenges; a bank’s decision to exit the marine sector almost derailed his plans.
“After long waiting, I got the heartbreaking news that not only did they decline our credit increase, but they also wanted us to liquidate inventory and close down,” Ruegg said.
Determined, he reached out to a former bank representative at a new bank and flew to meet the CEO. Within a month, Off The Hook Yachts was offered a $12 million line of credit.
“It was surreal. My prior bank had a downturn, and here I was able to secure almost double what I initially sought,” Ruegg shared.
Despite rising financial anxiety among consumers, John reports that OTHY has maintained strong performance, achieving profitability for the past 13 years.
“Interestingly, downturns in the boat market work in our favor. Traditional new boat dealers struggle with used inventory,” John remarked, suggesting a “recession-proof” business model.
Ruegg noted a shift in consumer behavior, where those typically buying new boats are now leaning toward used options.
“Sales are booming. December was the best month in our history,” Ruegg indicated. “We’re adapting our prices to accommodate the current economic climate; people’s finances are tight, and we get it.”
Plans for expansion are underway. Apart from its three locations in Wilmington, North Carolina, the company is set to open a second headquarters in Jupiter, Florida, on February 15.
Still, John emphasizes that the company remains mostly virtual, boasting brokers extending from upstate New York to Tennessee.
“Being a virtual company is essential to our identity. We aspire to be the Carvana for boats—you can sell your boat from virtually anywhere,” he stated.
Currently employing around 100 people, the company has ambitious goals of reaching 1,000 employees by 2027 and expanding its inventory to 20,000 units within a year, as per Ruegg’s vision.
