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The anchor holds
entrepreneurs by Janet Leiser | Senior Editor
A boat repairman mortgages his home to pay the patent costs on an anchor designed to replace the same old style that has been around for centuries. Hunter Anchors might be coming to a store near you soon.
Mike Moran spent most of his life on the water in Florida, boating from Key West to the Panhandle. He noticed that boaters, even those with million-dollar vessels, seemed to have the same type of rusty anchor that doesn't catch easily on the bottom and is even harder to retrieve.
There had to be a better way.
Moran, who has repaired boats and refinished props for 37 years, designed an anchor out of stronger steel, 238,000 PSI versus 80,000, and he built a slide on the shank to make it easier to pull up from the bottom. Just reverse the boat's direction, drive by the anchor and pull.
The anchor is even bullet-proof, Moran says, holding up a piece of metal that withstood 20 mm shots from a piercing rifle, the same type used in the Iraqi war.
Moran and his wife, Gail, spent several years documenting the design and submitting paperwork to the U.S. Patent Office. They hired a patent lawyer for the final part of the process.
It has been a little more than a year since Moran, 55, received the patent for the anchor, which he named after his 17-year-old son, Hunter. And most of the buzz in the boating world has been positive. He has even received endorsements from coastal conservationists since the anchor is less likely to damage the sea floor, especially coral reefs.
Hunter Anchors is gearing up for major production.
Several national boating companies are interested in retailing the anchors, which are made of galvanized steel or stainless steel and range in size from to small to extra large. A large one cost as much as several thousand dollars.
One California retailer has requested the anchor to try it out. If the chain likes it, which to hear Moran talk is a cinch, it is expected to order at least 10 anchors for each of its 423 locations. That's a few thousand more than Moran and his three employees can make by hand in a short period of time.
So Moran, whose business is based in Pasco County's New Port Richey, is talking to several nearby manufacturers that can produce the anchors quickly.
He expects to start production within several months, if the bank he's talking to comes through with a $500,000 line-of-credit. The bank has already requested five large stainless steel anchors to place in its Tampa Bay area lobbies.
One banker told Moran he expects his venture to make him a multimillionaire, he says, adding: "I've heard it enough I'm starting to believe it. It has been a long time coming."
Like father, like son
Moran's father, Jack, a design engineer, invented the first nitrogen freezer for shrimp boats in the 1960s, he says. He also made airplane wings, and parts for helicopters and missiles at his St. Petersburg shop, where Moran worked during summers and after school as a child.
In 1970, Jack Moran moved to the Florida Keys, taking his son, a new high school graduate with him.
For about 20 years, father and son ran a machinery shop in Key Largo to repair boat propellers.
It was there that Moran began thinking about how he could design a better anchor, one that would be easier to use and wouldn't cause damage to the coral reefs. But he didn't bring the idea to fruition, at least not then.
He and his family moved to New Port Richey in 1990.
The Tampa Bay area is also home to many boaters, who enjoy the Gulf of Mexico and other waterways so Moran decided he could make a good living here. He also knew the area was rocky. It'd be a great place for a propeller repair shop.
And Moran has done well, he says. But he knew he'd never get rich repairing boats and props.
"I've learned through the years, you have to use your head as well as your hands," he says.
In 2000, he applied for the patent, sharing the secret only with his wife and son.
"I had to do it in secrecy," he says.
For sale
Moran started selling the patented anchors last year. He attended boat shows in St. Petersburg and Fort Lauderdale.
He smiles as he recounts how most people respond to the anchor.
"Everyone says, 'Oh my God, that's so simple,'" Moran says. "You can't believe no one has thought of it sooner."
Clerks at the U.S. Patent Office checked records dating back to 1846 looking for a similar patent without finding one, he says.
Hunter anchors are 18% to 20% more expensive than competitors' products. But he says it's because he uses a stronger steel that costs more.
"I'm trying to get the reputation that I have an anchor that just won't break," he says. "If they break, I'll give a brand new one to the original owner. I'm not scared they'll break."
More than 20 articles about the anchors have appeared in boating magazines within the past year. "I haven't bought one ad," he says.
He has sold anchors to boaters in New York, on Florida's East Coast and out west in California, to name a few.
One customer has bought five Hunter's anchors, including a custom one for the man's son, who has a 40-foot vessel. It has the son's name, as well as the names of his children on it.
"People just love these anchors," Moran says, beaming with pride. "You don't know how many people come in here and get excited because they see a little guy came up with something, and now they're going to come up with something."
When Moran starts manufacturing the anchors in bulk, he expects costs to remain at about the same level. Steel is about 25% to 35% cheaper when bought in bulk, which he says will offset the manufacturer's costs. A truckload of steel costs about $40,000 to $60,000.
As far as the costs of growth, Moran expects to get bank credit, and he has heard from investors interested in his company.
But he doesn't plan on giving up control. Not unless he hears the right price.
"I'm sitting in a pretty good position," Moran says. "For the first time in my life, my timing is right."
Environmentally friendly
Moran says the anchor's selling features are that it's mostly indestructible and easy to use. But he expects the anchor to be even more popular because it doesn't harm the sea bottom or coral reef like other anchors.
"It's going to save the reefs," he says. "Everyone is worried about the environment."
There are nearly 1 million registered boats in Florida, Moran says, adding, "I'd like to sell an anchor to each one.'
By his calculations, if 100,000 Floridians go boating each weekend and they pull up their anchors three times daily. "That's 300,000 holes in the bottom," Moran says. "About 100,000 of those are protected corals. I'm going to reduce that by 90%."
He's not sure how far along in the manufacturing process he'll get before someone buys his patent, which is good for 20 years.
"I'm not going to take $2 million," he says. "But I would sell if the price is right. It could be worth $500 million in the life of the patent."
Moran has already applied for another patent. This one will be a required item for boats. But he declined to discuss it. He also has ideas for about five or six other patents.
"For once in my life I'm going to be able to step back and not have to do it all with these," he says, holding up his hands.
REVIEW SUMMARY
Who. Mike Moran
Industry. Marine design/manufacturing
Key. Moran's new, improved anchor costs about 18% to 20% more than his competitors' products, but it comes with a lifetime guarantee and it doesn't damage coral reefs.
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