Need advice on charter business plan

[Eduardoandrade]

I see several posts and advertising of privates catamarans in BVI doing charters all inclusive for around 14k week!!!
If they has so many competitors, why they keep this rates so high?!!

[mstrebe]

Originally Posted by Eduardoandrade

I see several posts and advertising of privates catamarans in BVI doing charters all inclusive for around 14k week!!!
If they has so many competitors, why they keep this rates so high?!!

Because the cost of doing business is very high?

[belizesailor]

Originally Posted by mstrebe

Because the cost of doing business is very high?

Costs are high and the market will bear the price. Why would you sell any good or service below market price?

[rpmbnsf]

Honest question here...

If the plan was to buy a boat new and turn it over every 5 years for another new one (not saying its practical or not..just that's the stated plan) how is it the maintenance cost per year would be 100K?

" Maintenance - $5k per year is lala land. Figure closer to $100k. New sails for this baby probably will cost say $40K. NOt to mention new lines, blocks etc etc etc."


I'm really interested to know, are you saying you need to replace the sails every year and standing rigging? I'm not expert at all but everything I'm hearing is sails last average 5 to 8 years and 10 to 15 for the rigging. If that's the case what exactly would be costing that much to upkeep on a brand new boat. I have no doubt things break and engines / compressors etc need servicing but I'm still not seeing anything that would cost 100K to upkeep every year on a new boat. I can see if your owning a boat for 15 years say...then you need to figure in probably replacing the sails 2X and rigging once ..that would lead to those years to be much higher in maintenance costs.

So again, not doubting what is being said but just looking for actual examples - so often i hear these very high numbers of yearly costs being thrown around but having searched i have yet to see examples to back it up. in fact I have seen examples of cruisers keeping expense logs showing much less costs then I would have thought. I also understand a lot of variables need to be taken into account, in this case being a new boat I would think maintenance cost would be way lower then if taken an average over a 10 or 15 year period or if comparing to an older boat (10 years old or so).

[alansmith]

Like that old song " money for nothing ... Chicks for free!"

No matter what ideas we may have there are few that are ordinal. Which means there are always other ducks ahead of u laying in the golden egg.

[carstenb]

Originally Posted by rpmbnsf

Honest question here...

If the plan was to buy a boat new and turn it over every 5 years for another new one (not saying its practical or not..just that's the stated plan) how is it the maintenance cost per year would be 100K?

" Maintenance - $5k per year is lala land. Figure closer to $100k. New sails for this baby probably will cost say $40K. NOt to mention new lines, blocks etc etc etc."


I'm really interested to know, are you saying you need to replace the sails every year and standing rigging? I'm not expert at all but everything I'm hearing is sails last average 5 to 8 years and 10 to 15 for the rigging. If that's the case what exactly would be costing that much to upkeep on a brand new boat. I have no doubt things break and engines / compressors etc need servicing but I'm still not seeing anything that would cost 100K to upkeep every year on a new boat. I can see if your owning a boat for 15 years say...then you need to figure in probably replacing the sails 2X and rigging once ..that would lead to those years to be much higher in maintenance costs.

So again, not doubting what is being said but just looking for actual examples - so often i hear these very high numbers of yearly costs being thrown around but having searched i have yet to see examples to back it up. in fact I have seen examples of cruisers keeping expense logs showing much less costs then I would have thought. I also understand a lot of variables need to be taken into account, in this case being a new boat I would think maintenance cost would be way lower then if taken an average over a 10 or 15 year period or if comparing to an older boat (10 years old or so).

You're perfectly correct in that if you start with something brand new- maintenance should (note the should) be low the first 5 years or so.

But the kicker is that this is a charter boat. Charter boats get run down much faster than an owner boat. The other issue (as someone pointed out) is that any maintenance done on this boat will be hired help. Labor dollars add up very quickly. 5K (as noted in the original plan) doesn't really buy anything.

[valhalla360]

At $23k/wk, the customer is going to expect a boat in top end condition.

You are probably looking at a wax job every 2-3 months. That alone could eat up $5k/yr.

Upholstery will get worn and torn. It will need repairs and replacement.

If there is wood, expect to have it refinished or at least touched up every 6months.

You will need minor gel coat repairs regularly as customers drop hard objects.

They will burn out water pumps by leaving them on after the tank runs dry. Expect expensive overnight delivery and customs clearance because the next charter customers are due tomorrow and the local chandlery doesn't have the part you need.

You will need the bottom cleaned probably monthly.

They will break lightly built shelves, TV's, etc...

If it can fall overboard, expect customers to do so.

Captain & Cook are going to be going full out just keeping up with the guests and when they do get a day off they will want it off, so don't expect them to do all this work.

Expect expensive yard rates for work and expect low quality that needs to be overseen and redone.

$100k may be a bit high but $5k isn't even close.