How to invest in yachting business and how much profit to expect from your boat given to a yacht charter company for managing.
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The Yakulis Company is a company that was founded in 1980
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It's a family company, it's founded by my father. We are currently owned or operate 400 boats
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which are located around Greece, Turkey, Croatia, Italy, south of France, Malta and the Caribbean
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The company is listed in the country listed in the country. The company is listed in the stock market since approximately 15 years ago
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And we are participating in a chain of marinas in Greece as well
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which managed four marinas, Zeyrida in Piraos, Corfu Marina, at Kov, Lefkas Marina, and Kalamata in Kalamata
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the year 1995 with the base in Pula, that was the first base for Euro Marine. During the years
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we opened new bases in Biograd, Split and Dubrovnik. Now today our biggest base is located
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in ACI Marina Split with more than 40 boats in that marina. Also, we have more than 20 years of
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experience in the industry. Also, among charter business, we have, we have more than 20 years of experience in the industry. Also, among charter business, we also handle the sales for Jeannot brand, Janot and Prestige Motor Yacht
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Orvas is company, found in 1992, and it is part of Orbico Group, one of the largest international distribution network
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We are specialized in luxury accommodation, such as hotels, luxury villas, which we have been
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in pool, apartments and boats. Regarding Yacht Charter, as Orvas Yachting as a brand
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he specialized for sailing boats, motorboats and bullets. The bones that we are proposing, we are suggesting to include in the world
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in a management, in a charter management system. They are from the most famous boat builders
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like Bavaria, like Janot, Benetot, Dufur, and the Catamaran as well, which is a significant part of the market right now
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We are offering boats from Lagoon, from Funtempajou, from Bavaria, Nautitech, from Bali, Catamaranas as well
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Today, the prices of boats, they range in the, The model, of course, they range from 100,000 euro up to 1,500
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It depends the budget of the customer that he would like to invest
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And the own choice, I mean the own preference, what kind of body he prefers
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He prefers a catamara or a monoharl and the specific brand of course
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For some people they are preferring more the French boats than the German boats and the other way around
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Our most successful model for Charter Management is Sun Odyssey 449 It equipped with four cabins It actually equipped with three cabins and one lateral cabin with bugbeds So it easy to sell it as a three boat and as a four boat
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The price of that boat with charter equipment included and transportation to Croatia
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it's around roughly 200,000 euros excluding VAT. In our charter fleet, the most profitable yacht model would be LAM 50, and the price for the new one would be approximately 220,000 euros
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in the market and which are the most cost effective boats for somebody to buy
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to invest. It is nowadays the beginning of the big boats, the size of monoharoles like Bavaria
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46, like Oceani's 45, like Sanodisi from 69. And in terms of catamaran, like the Lagoon
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450, like the Bavaria Noti-Tech 46. These boats are the most cost effective
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They produce the ratio of production. It's much higher than in bigger boats or in smaller boats
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So this is definitely the size of boats that we are suggesting to our customers
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Regarding the way of buying a boat and putting in charter management, our company is offering three different programs to our investors
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With some of them, they are quite unique since the competition is not offering the same
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So within these three different management possibilities, in the first possibility, the customer get a fixed rate of 90% calculated over the value
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of the boat. On the second possibility which he pays a partial payment, he received nothing
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of course, because he has not paid the boat. And on the third possibility, we divide the
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charter revenues, 30% for our company, for our brokerage and marketing expenses, and 70% is
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for the account of the owner. The charter management fee is divided in the 35% for the charter operator and 65% to the yacht owner from the achieved price
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And ratio of revenue is between owner and the charter company 70% 30%
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The first and most popular program is a program on which the investor, the buyer, he pays 100% the value of the boat
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And then our company undertakes all kinds of expenses and all kinds of risks during the operation
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The operation period is rather classical for six seasons, five and a half years
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and within this period we pay to our investor a fixed revenue of 9% a year over the value of the investment
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So this is in reality, it pays back to the customer approximately 50% of the value of the boat
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The second program which is also very popular and still for five and half years the The customer pays a partial value of the boat which amounts to approximately 55
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It depends the model, it can be a little bit more, a little bit less
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And then our company undertakes again all kinds of expenses and risks during this period
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And the customer at the end of the management and the end of the five and half years period
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he gets the boat fully paid, in the good condition, everything working without any technical issues. issue
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The third way, which is the way that most of the companies they are offering in their
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customers, is the open management. In this case, the customer has to pay all the expenses of the board and he has to get
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of course all revenues, all kinds of charter contracts. They are paid to him and at the end of the season there is the calculation, expenses
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minus überall, revenues minus expenses, and then there is a result. to the owner which is flexible and depends to how well the boat has been chatted out
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and how many how many weeks it has done and of course on the level of expenses
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The Eurocosts for the jeanauts for nine it's roughly around 11,000 euros
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which included yearly birth insurance and other costs of maintenance, charter permits and so on
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Annual costs for owner are approximately from 6,000 to 8,000 euros. Regarding the chattel production, normally the customer can expect about 20 to 25 bookings per year
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Usually the bookings are one week duration, so in reality we are talking about 20 to 25 weeks of chattering per season
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Roughly 449's achieves around 20 weeks per year. It's sometimes more than 20 weeks and sometimes a bit less
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Medium price for that vote is around 3,000 euros. Expected income of the Janot 449 is around 25,000
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euros to the owner roughly. Starting price for Elan 50 is 3,000 euros per week, and the high season price is approximately 6,000 euros per week
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So we could say that approximate price would be 4,000 euros per week
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With those prices, the annual revenue would be approximately from 65,000 euros to 75,000 euros
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So the revenue that the customer can expect from a boat, it varies, it depends the program, as I explained you before
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On Bavaria 46 for example if we choose a fixed revenue program then the customer has to get approximately 25 euro per year net of every expenses that he can that he will get every year
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You have to be aware that in this cost model that last approximately six years
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every year a price of boat is decreasing. We could say that it's approximately 2%
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five to seven years we usually don't provide discount on the charter weeks. After
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let's say two years we usually give 10% early booking discount as a standard
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When the boat it gets older for let's say after seven to eight years we usually increase
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that discount or we are regulate the price by reducing the price
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Usually the price, when the boat is new, up to five years
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usually we increase that price from 1% to 3% due to the general inflation
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Regarding the production of the boat after several years of chartering, the true is that the value of the chartering week is decreasing as much as the
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the boat is getting older. Actually, we consider two ages, which are really there is a drop down in the price
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A boat up to four years old, considering on the same price level
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Between four and six years old, there is a drop down in the price of approximately 7%
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And after six years old, we expect to have another drop down on the price of another 7%
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So, regarding the guaranteed center program we're offering, with the customer pays in full in the boat, and gets a fixed revenue, he pays a partial payment
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We are offering also a significant good owner usage for the customer
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He can use his own boat or any similar boat in our fleet, in a different base
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between three weeks in the mid-season and six weeks in the low season
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or a combination between the two. On top of that, he can have four weeks more additionally
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in a last minute use. It means the boat has to be available one week before departure
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From these four weeks, two weeks have to be used exclusively on his own boat
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on his own boat, but the other two weeks it can be used on any other boat of the flip
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in any other base, so this is quite advantages for the customer
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