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On 26 May 2005 07:35:10 -0700, wrote:

3) Stop raising rates when that 10% vacancy realized, and check the
bottom line. Empty slips require fewer services so expenses will be
down, and the increased revenue generated by the higher fees calculated
to drive away 10% of the business will increase the monthly net
substantially.

I actually had to sit down and work this out because something didn't
seem right. I made a few calls and received some basic information,
then worked off my services bills as a baseline.

I can't make the numbers work out for some reason unless you jack up
the higher end boat (like the 35-50 foot category) slip/services rates
by more than ten percent - closer to twenty. Even then the bottom line
wasn't effectively affected by the loss of business assuming stable
costs. That was based on a marina with 250 slips and I figured 1/3
20-30 foot, 1/3 30-40 foot and 1/3 40 foot and up - which is about
what my marina has slippage for.

What I suspect you might lose is the lower tier boats (20-30) and
that's where you make most of your money because you can fit more than
one boat per foot (length of pier) rather than the behemoths that take
up more space.

I'd like to see his numbers if you happen to have them - you have my
email addy. I'm only curious because I can't make them work - I must
be missing something.

Later,

Tom