Marina Dock Age, July/August 2001

Making the Best of a Tough Situation
by Dennis Kissman

Have you tried to get a loan or refinance your marina lately? Unless you’re willing to sacrifice your first born, and probably more, you most likely don’t stand a chance in today’s tight financial market. All the lenders in the U.S. that had specialized in this type of loan are out of the marina lending business. Local lenders will give you lip service, but when it comes to actually writing the check, they have more excuses than the amount you want to borrow. Or they tack on demands so high they guarantee your failure.

There is no easy solution to this problem, and I do not see it getting better in the foreseeable future. Without being too bearish on the issue, I believe it is going to get worse before it gets better. In my opinion, we may be looking at a two-year downturn.

This is a good time to maintain good customer contact. Enough gloom and doom. We are in this situation now, so let’s make the best of it. What I want to concentrate on here is identifying and assessing your resources. The first one is your customer base. Your customer is at your marina for a reason. Take the time to learn what that reason is and make sure it doesn’t change during these times. Remember the famous saying about customers: It costs five times more to attract a new customer as it does to retain an existing one.

DON’T ALLOW YOUR CUSTOMERS TO BECOME LIABILITIES

Keep in mind that your customer’s situation may change during these times, as well. Watch for changes in his boating frequency, payment pattern, and condition of his boat. Changes in any of these areas should immediately raise a red flag. This is a critical time to maintain good customer contact. Your customer may be very sensitive about his situation and embarrassed to talk about it.

Now is the time to put forth the customer service we all talk about in this industry. But don’t go so far as to carry his burdens for him, including his financial obligation to you. You are not the bank. What happens when your lender expects his loan payment and you come up short? You’re in the same boat, so to speak, as your customer. In fact, your customer is no longer a resource if he doesn't pay his bill, and he becomes a liability. Continue »