Marina Dock Age, January/February 2000

Think Before You Add an Amenity
by Dennis P. Kissman

Today we often hear that boaters want more out of their marina than just storage. This is particularly true as boating has evolved into a family activity. Many people advocate adding costly amenities such as swimming pools, playgrounds, tennis courts and picnic areas. They imply that adding such amenities could benefit the bottom line.

The dictionary defines “amenity” as: 1) the quality of being pleasant or attractive, agreeableness; 2) something that contributes to physical or material comfort, or 3) a feature that increases attractiveness or value of a property.

There is no mention that an amenity must be a physical improvement. The definitions don’t specify any costs associated with an amenity.

AMENITIES MAY NOT BE EXPENSIVE

Before you spend a lot of money on amenities, examine areas that may have the greatest financial impact with the least investment in both time and money. It could be as simple as adjusting your operating hours. Or, you might try negotiating a better price with your fuel supplier and pass the savings along to your customers. Could your marina be more hospitable to pets? Would a small laundry with washtubs and soap be useful? What about a simple shower facility? Or, how about the friendliest, most helpful staff within miles? These ideas could have a far greater impact on your profit than undertaking a major investment.

Let’s assume that you are considering adding a swimming pool. Now the question is, do the cost and risks justify the return? This is not an easy question to answer, nor should it be taken lightly.

Once you have come this far in your thought process there is another fatal assumption that one usually makes. That is, the greater the cost of the amenity the greater return that should be expected. The most important thing to understand is that the cost of an amenity has no direct relation to the return it can generate. Having said that, how does one evaluate the return on the added amenities?

HERE’S THE EQUATION

First, consider the ways amenities could increase profitability at your marina. One way is to increase occupancy, assuming you are not already full. Other ways include increasing dockage rates or selling more goods or services.

On the other side of the equation, an amenity may help you reduce costs. There are a few general points to consider when making your economic evaluation.   Continue »