Winnipesaukee Forum - View Single Post

jrc · 03-13-2009, 07:48 AM

The reductions are hitting the small owner earlier and harder than the large marinas.

Think about it. If you have 100 slips rented out for $3000, you can make $300K. Now if you leave 10 empty you still make $270K. If you lower your rate to $2500 and fill all the slips, then you only make $250K.

Now if you only own one or two slips to rent out and no one is calling at $3000. You have a choice of $0 or lowering your price.

So look to condo based marinas, where there are many owners competing for you business. The big guys will just ride out the downturn with a few empties rather than erode there perceived value.

03-13-2009, 07:48 AM	#24
jrc Senior Member Join Date: Apr 2004 Location: NH Posts: 2,689 Thanks: 33 Thanked 439 Times in 249 Posts	The reductions are hitting the small owner earlier and harder than the large marinas. Think about it. If you have 100 slips rented out for $3000, you can make $300K. Now if you leave 10 empty you still make $270K. If you lower your rate to $2500 and fill all the slips, then you only make $250K. Now if you only own one or two slips to rent out and no one is calling at $3000. You have a choice of $0 or lowering your price. So look to condo based marinas, where there are many owners competing for you business. The big guys will just ride out the downturn with a few empties rather than erode there perceived value.