All the right moves

Now more than ever, marina operators are looking at economical and practical development projects to increase business.

To offset challenges presented by tighter budgets for development projects, the majority of marina operators are scrapping major expansion plans in favor of new initiatives designed to attract consumer interest and revitalize profitability at lower costs.

While a few select, larger marinas expect to move forward with capital improvement projects in 2012, current trends indicate most marina operators are focusing on smaller-scale, annual renewal projects that may make the difference between attracting new customers and losing them to the competition.

At Skipper Bud’s Pewaukee, Wis., location, management recently remodeled its showroom with a stronger focus on selling marine accessories. This, along with various sales and marketing promotions (such as Web blasts to its customers), led to an increase in business in the showroom by 40 percent in the last 12 months. Other examples of renewal projects at Skipper Bud’s locations in the Midwest include the addition of floating patios for slips, barbecue grills, even sunshade and picnic areas. The bathrooms and boater’s lounges have also been upgraded.

“With limited funds for expansions and/or major upgrades, determining what is most important to the customer is essential,” says Mike Pretasky Jr., president of Skipper Bud’s. “There are a lot of small things that can be added to the amenities that don’t cost much. It’s the overall perception people get from the marina. It’s the look and feel. Customers need to see change and forwardness. As long as you are doing something, there will be results.”

Plans for 2012 include the installation of new 30-foot slips at Skipper Bud’s Scorpion Bay location in Morristown, Ariz. To prepare for this project, the company measured demand for these types of slips within its market. Based on Pretasky’s forecast, the project will potentially result in a 25-percent increase in occupancy in the first 12 months.

“We see a demand there, and we are acting on it,” says Pretasky. “The main thing is we have studied what the market will bear. Marinas shouldn’t overbuild what they need. It’s all about doing the research and buying the product right.”

Maintenance: Invest now or pay more later
Many marinas overlook the impact of deferred maintenance at their marina. Slips, power pedestals, fuel docks, showrooms and even access ways should be maintained on a regular basis to increase longevity and save on repairs or expensive upgrades. Money spent now can mean huge savings later.

At Brewer Yacht Yards, property maintenance is high on the priority list. Plans are in the works to complete dredging projects at a series of its properties this year, according to Jack Brewer, founder and president. He says it’s essential for a marina’s survival and “just good business.”

“Primarily, we replace a certain number of our floats every year at our properties (approximately 300-500 floats) as well as the several smaller amenities,” says Brewer. “We have a great deal of money invested in our properties and just want to maintain them in top condition. The better condition of the property, the better customers we are going to attract.”

Brewer also explained that Brewer Yacht Yards has a strong emphasis on customer service and constantly devises new methods to better serve its customers with convenience and practicality – at a significantly lower cost. For example, the company recently installed a breakfast stand on one of its properties to offer light breakfast and lunch fare at very inexpensive prices – a simple, economical project that proved effective for its customers.

“Conveniences are something we are always working and expanding on,” says Brewer. “We introduced the breakfast stand as a service to our customers at a relatively low cost. But we are providing a service to our customers and in turn, it helps us create demand for our slips.”

Improvement done right
When capital improvement projects are essential for marinas, establishing long-term plans and defining development goals are often effective strategies to avoid breaking the bank.

A prime example is Emeryville Marina based in Emeryville, Calif., on San Francisco Bay. Following the acquisition of the facility by Marinas International, a master plan was developed and the marina began a long-term facelift project involving the upland areas and all three of the marina’s basins. Eight years later, the company just completed rebuilding the south basin with a new fuel dock and new slips ranging from 40 to 80 feet. For 2012, Marinas International plans to renovate the central basin.

“The marina had an existing situation that needed physical capital expansion from an improvement standpoint. Obviously, this has been a long-term plan, but it has paid off for us,” says Gilbert Welch, vice president of expansion and planning for Marinas International. “We have enjoyed a high occupancy rate at the marina so far and one of the reasons is because people have constantly seen us improving.”

Westrec Marinas’ facilities are constantly being upgraded, according to vice president Jim Frye, and while the company is currently working on an extensive project at its 31st Street Marina in Chicago, Ill., a facility doesn’t necessarily have to set a large budget for an expansive project to experience increased sales or consumer interest.

For instance, much of Westrec Marina’s annual investment in recent years has been to its docks and facilities. The company is always looking at amenities that are affordable and broaden the experience for its customers. In fact, at one of its locations, the company has recently invested in enhancing the social amenities of the facility with captain’s lounges and easier access to WiFi.

“It’s not often enough that marina operators look beyond their own perception of their facility,” says Frye. “They need to take a look at the marketplace when considering moving forward with a development project. They should look at other facilities to see what slips are sold out and which marinas have a combination of slips and why. With a little research, they can learn a lot. One needs to spend as much time as they can to understand the marketplace to determine the need for a capital investment project.”

Results listed here are from a survey of marina operators conducted in November 2011 by the Association of Marina Industries, which will unveil the full results during a presentation at the 2012 International Marina & Boatyard Convention, Feb. 1-3, in Orlando. The survey received 202 responses (48 percent from the South, 20 percent from the North, 17 percent from the West, 8 percent from the Midwest and 8 percent international). For more information on IMBC, go to www.marinaassociation.org/imbc.