Go fast boat rental as a business model......
04-02-2014, 05:22 AM
#13
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04-02-2014, 07:50 AM
#15
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I dont know, I guess it could have its market. Fractional ownership almost makes more sense and I know thats already happening in more clubs.
Problem is do the math if you live in the north you got about 16 weeks of boating, say you go out 12 times. That would be 18 grand a year plus gas. Anybody can be in a pretty good performance boat for 30 grand. Assuming zero down at 6.75% interest my payment would be 590 a month with after 5 years that boat costing me roughly 35 grand. So a year that boat cost me roughly 7 grand a year, plus annual maint, insurance, repair, which gets me to 10 grand a year. If I boat for five years going out 12 times renting that rental cost me 90,000 with nothing to show.
Now for the guy that owns a 150k boat it might make sense or the guy that goes on a vacation to make a one or two day trip of it, sure I could see it. But in the long run in just about anything renting hardly ever makes sense financially.
Problem is do the math if you live in the north you got about 16 weeks of boating, say you go out 12 times. That would be 18 grand a year plus gas. Anybody can be in a pretty good performance boat for 30 grand. Assuming zero down at 6.75% interest my payment would be 590 a month with after 5 years that boat costing me roughly 35 grand. So a year that boat cost me roughly 7 grand a year, plus annual maint, insurance, repair, which gets me to 10 grand a year. If I boat for five years going out 12 times renting that rental cost me 90,000 with nothing to show.
Now for the guy that owns a 150k boat it might make sense or the guy that goes on a vacation to make a one or two day trip of it, sure I could see it. But in the long run in just about anything renting hardly ever makes sense financially.
04-02-2014, 07:57 AM
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I would say no I would not be interested. Even with all the payments and maintenance money that is spent, I see myself better off owning. We spend a lot of time on the water in the summer generally every Friday Saturday and Sunday, I wouldn't be able to do that if I was renting a boat and I would not have the freedom to do or go where I would like, and be able to stay out as long as I would like. By owning a boat I'm able to go by my rules not someone else's.
04-02-2014, 08:02 AM
#17
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Matt Trulio's article on Baja mentions they are getting into the rental business with a boat club. So on that thought, how many OSO members would consider go fast boat rental as an alternative to actual ownership.
Pros:
1. Pay only when you use it (great for up north boaters)
2. No truck/trailer/storage expense
3. Limited exposure to rebuild/ repair costs
4. Limited insurance costs
Cons:
1. You are limited by rental program rules/availiabilty
2. No customizing/naming vessel
Now from a math perspective. Even if the boat is $1500 a day (sounds pricey right) if you took your current boat costs and divide them by the amount of hours it could be competitive. 3000 insurance, 1500 fluid/tune up/batteries, 500 trailer tags/maintenance/tires is 5K plus 9K in payments ($750 month)with nothing broken. If you put 14K out every season yet only use the boat for 25 hours a season that is $580 an hour with no rebuilds, no blown drives, no exhaust replacement etc. So if you eat a set of headers, rebuild the drives you could easily surpass the $1500 a day in usage costs for a northern boater.
So now the boats......obviously the boats would be used, light on power so your fantasy of a 47 Apache with triple 1000's is out.
30 Mystique/ 35 Café Racer/ 38 TG/ 31/35/42 Sonic type stuff - Old School straight bottom Vees, Big dockside impression, safe enough vessel to handle (no step bottoms, no superfast Fountains
). Would you pay $1500 a day to run one of these rigs? Spend $3000-4500 to run it on a poker run (Cheaper than hauling a boat out of the Midwest)?
Smaller single engine stuff (25 Outlaw, 26 Sonic, 28 Sunsation)........$1000 a day?
Center Consoles- 30 Scarab Sport, 27-33 Concept type stuff $750 a day?
Want to have a good time, drink? Add a captain to any of the boats for $300-400 a day?
Anyone see this as a viable rental business? Would Searay/Formula cruisers be viable?
Look at the carrying costs: Some of these boats could be bought for mid-30's, rent them 20-30 times and you got all your investment back. Some of the issues like accidents, theft, damage, illegal activities would be tough to manage but if it was a "club" idea where you had a pool of members then they might care for the stuff better. The boats could be moved for the seasons, LOTO summers, avoid FL hurricane insurance issues, winter boating in Florida to get more usage.
Now for the lake guys that camp on the boat all weekend or simply raft off this would be a tough sale but for someone to go out for 6-8 hours, burn some fuel (not included), get some sun and bring it back in one piece it would be a nice day!
Pros:
1. Pay only when you use it (great for up north boaters)
2. No truck/trailer/storage expense
3. Limited exposure to rebuild/ repair costs
4. Limited insurance costs
Cons:
1. You are limited by rental program rules/availiabilty
2. No customizing/naming vessel
Now from a math perspective. Even if the boat is $1500 a day (sounds pricey right) if you took your current boat costs and divide them by the amount of hours it could be competitive. 3000 insurance, 1500 fluid/tune up/batteries, 500 trailer tags/maintenance/tires is 5K plus 9K in payments ($750 month)with nothing broken. If you put 14K out every season yet only use the boat for 25 hours a season that is $580 an hour with no rebuilds, no blown drives, no exhaust replacement etc. So if you eat a set of headers, rebuild the drives you could easily surpass the $1500 a day in usage costs for a northern boater.
So now the boats......obviously the boats would be used, light on power so your fantasy of a 47 Apache with triple 1000's is out.
30 Mystique/ 35 Café Racer/ 38 TG/ 31/35/42 Sonic type stuff - Old School straight bottom Vees, Big dockside impression, safe enough vessel to handle (no step bottoms, no superfast Fountains
). Would you pay $1500 a day to run one of these rigs? Spend $3000-4500 to run it on a poker run (Cheaper than hauling a boat out of the Midwest)?Smaller single engine stuff (25 Outlaw, 26 Sonic, 28 Sunsation)........$1000 a day?
Center Consoles- 30 Scarab Sport, 27-33 Concept type stuff $750 a day?
Want to have a good time, drink? Add a captain to any of the boats for $300-400 a day?
Anyone see this as a viable rental business? Would Searay/Formula cruisers be viable?
Look at the carrying costs: Some of these boats could be bought for mid-30's, rent them 20-30 times and you got all your investment back. Some of the issues like accidents, theft, damage, illegal activities would be tough to manage but if it was a "club" idea where you had a pool of members then they might care for the stuff better. The boats could be moved for the seasons, LOTO summers, avoid FL hurricane insurance issues, winter boating in Florida to get more usage.
Now for the lake guys that camp on the boat all weekend or simply raft off this would be a tough sale but for someone to go out for 6-8 hours, burn some fuel (not included
), get some sun and bring it back in one piece it would be a nice day!Ever seen how a rental PWC boat is driven? Take a look at how beat up the rental boats in Key West present.
No way the equipment would hold up; and if well funded enough to take care of the maintenance...
...the attorneys would be cutting into that funding sooner than later.
You could probably get away with a "Hionas & Cecil rob Peter/pay Paul Business Model" for 18-24 months...
but then in two years we'd be calling it a "Jupiter Sunsation Business Model".
04-02-2014, 08:13 AM
#18
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Ever seen how a rental PWC boat is driven? Take a look at how beat up the rental boats in Key West present.
No way the equipment would hold up; and if well funded enough to take care of the maintenance...
...the attorneys would be cutting into that funding sooner than later.
You could probably get away with a "Hionas & Cecil rob Peter/pay Paul Business Model" for 18-24 months...
but then in two years we'd be calling it a "Jupiter Sunsation Business Model".
No way the equipment would hold up; and if well funded enough to take care of the maintenance...
...the attorneys would be cutting into that funding sooner than later.
You could probably get away with a "Hionas & Cecil rob Peter/pay Paul Business Model" for 18-24 months...
but then in two years we'd be calling it a "Jupiter Sunsation Business Model".
High performance boats can be destroyed much easier than entry level boats. A bad impeller can destroy a high performance engine in seconds, low performance engine will run much longer hot. That Baja is equipped with an OB for ease of maintenance and repair. The concept isn't a bad idea if you consider a performance CC with little vinyl and smart craft outboards, someone is Miami/Keys is already doing this. Docking and grounding will be major worries, the boats will take a pounding and look like a nascar after a short track race in no time.
04-02-2014, 08:20 AM
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I dont know, I guess it could have its market. Fractional ownership almost makes more sense and I know thats already happening in more clubs.
Problem is do the math if you live in the north you got about 16 weeks of boating, say you go out 12 times. That would be 18 grand a year plus gas. Anybody can be in a pretty good performance boat for 30 grand. Assuming zero down at 6.75% interest my payment would be 590 a month with after 5 years that boat costing me roughly 35 grand. So a year that boat cost me roughly 7 grand a year, plus annual maint, insurance, repair, which gets me to 10 grand a year. If I boat for five years going out 12 times renting that rental cost me 90,000 with nothing to show.
Now for the guy that owns a 150k boat it might make sense or the guy that goes on a vacation to make a one or two day trip of it, sure I could see it. But in the long run in just about anything renting hardly ever makes sense financially.
Problem is do the math if you live in the north you got about 16 weeks of boating, say you go out 12 times. That would be 18 grand a year plus gas. Anybody can be in a pretty good performance boat for 30 grand. Assuming zero down at 6.75% interest my payment would be 590 a month with after 5 years that boat costing me roughly 35 grand. So a year that boat cost me roughly 7 grand a year, plus annual maint, insurance, repair, which gets me to 10 grand a year. If I boat for five years going out 12 times renting that rental cost me 90,000 with nothing to show.
Now for the guy that owns a 150k boat it might make sense or the guy that goes on a vacation to make a one or two day trip of it, sure I could see it. But in the long run in just about anything renting hardly ever makes sense financially.
Would be very cool to travel to further away boating areas and check them out without towing/driving the whole way.
04-02-2014, 08:22 AM
#20
how would you handle a customer going out for the day and it breaking down?? would you give them a refund? i don't think it would be profitable enough to be a business unless you have your own personal capitable and willing to take the risk with your own money. If you needed a loan to do this I don't think it would work over the long run. if you figure advertising have a full time mechanic a rescue boat and employees not to mention a place to keep them. there was an organization in Maryland that rented cruisers a few years ago. i don't know if they are still around or not however I have not heard anything about them since i found it on a website.
