Management of marinas offers situations that can be advantageous and profitable—provided the correct steps are taken. Dockage or storage rates are a perfect example. Many marinas base their dockage and storage rates on what their competitors charge rather than on what they need to take in for a desired level of profitability.
Entries in 1995 (5)
Have you determined just how many customers you might lose or how many new ones you would need to attract to maintain or exceed your previous level of slip revenue? What effect would an increase or decrease in slip rates have on your customer base? To determine the impact of these changes, use a break-even analysis, basically what change in occupancy can take place without a change in revenue.
Have you ever wondered why a customer will choose one slip over another when given a choice, even though the slips are identical in size and price? The answer is simple. It better suits that customers boating needs. Imagine yourself in a similar situation. You walk into a hotel and are given a choice of rooms: a room with an ocean view and an identical room overlooking the parking lot with the trash containers below. Which would you choose?
This article, by Dennis Kissman, was published in Marina Dock Age - July 1995. When negotiating the sale of a marina, there is usually a wide variation between what the buyer and seller think it is worth. This is not much different from most other real estate transactions with one important exception: There are no comparable marina sales on which to base your opinions. Therefore, to make a deal, both the buyer and seller must realize what they are buying and selling.
As marina operators, we recognize the importance of using comparative information as a means of measuring a marina’s performance. Since there are no "industry standards" to compare results to, we establish our own historical data or goals to compare current results. This article explores several of those strategies.