Planning on purpose

The first step in framing out a market for review is to identify the boating activities to which the facility will provide access. The boating activities in a particular area will not change with the addition of a new facility. If the marina is 1.5 hours to the nearest ocean inlet, then that facility will not cater to an active sport fishing community. If there are fixed bridges or restrictive waterways, then the size of boat will be determined by those limitations.

Recognizing that different boaters have different needs is an important step in the planning process. For example, a fishing customer base and a family cruiser customer base will drive activity to the property at different times of the day. The services provided and the hours of operation must be matched to the customer base.

Having an existing customer base in the market makes research much easier than targeting potential customers in an emerging market. To identify demand in emerging markets, those with limited or no water access infrastructure, that takes qualified expertise. There are a number of empty, dilapidated marinas in obscure locations that were developed on unrealistic market expectations. A proper amount of research may have shown that resources should have been spent in better locations or targeted to a different market.

The best ways to conduct research is to assume that you don’t know anything about the customer or the market. Let the market tell you what it wants. Don’t try to force personal expectations or ideas out into the market. It will not work. Projects are often hampered when decision-makers impart their concepts of boating or the market onto the facility.

For example, we once worked with owners who were having a problem with their restaurant tenant. The owners had solicited an upscale restaurant operator to sign a long-term lease based on the owners’ preference for dining. The restaurant was failing.

After reviewing the market and speaking with boaters, it became clear that there was more demand for a casual dining experience than a high-end restaurant. The owners’ expectations were not in line with the market, and the restaurant struggled to survive. If the market had been systematically reviewed with an open mind, the marina could have avoided a costly mistake and delivered the services demanded. The lesson here is: Don’t assume you understand the market and, in some cases, hire an unbiased party to review the market.

Conducting market research goes beyond asking the marina across the lake what the cost of dockage is this season. Take an inventory of the services provided in the market and identifying the services that the facility could provide to the overall market. Take some time to identify any new marina developments, or the expansion and reconfiguration of existing facilities. Keep in mind that no two marinas are alike — and that the services and amenities that the neighbor offers, or is adding, may not be what every marina needs. The goal is to identify where the facility fits in, or will fit in, to the overall market.

Some items to look for on the waterways include the location of fuel docks, haul out and service facilities, successful restaurants and popular destinations. Continue »