No Surprises! Fractional yachting budgets all the costs so there are no surpises!

Part 1 in a Series of Articles on the Advantages of Fractional Yachting

Any time you start something new, you are bound to learn things along the way. When we started Signature Yacht Shares, we anticipated some challenges specific to the fractional world, such as scheduling the use of the yacht or creating equitable payments from each shareholder. We knew that we would have to be creative and open-minded with this new form of yacht ownership. We figured that one of the easiest things to do would be to put a budget together and give customers an “easy monthly payment” that would cover all the costs. Boy, were we wrong!

The problem has not been our ability to determine the fixed operating cost of boating - after 25 years in the industry we know what things cost. What we discovered is that customers don’t like knowing these costs! As a fractional operator it is important that we know our costs so we can properly budget for them.

As an example, we have a 39’ Tiara Convertible based in Ft. Myers. The fixed operating costs run about $1,200 per month per 1/8th share. When most people see that, they think “that’s expensive”, but is it really? It not only includes the slip fee, on-going cleaning, and general maintenance but other items including the insurance premiums, bi-annual trips to the boat yard, monthly weather subscriptions, diesel engine oil changes, engine repair reserves, soft goods reserves, and miscellaneous items.

Most solo boaters only consider the recurring monthly costs in the monthly budget. “One-off transactions” such as an engine breakdowns, yard bills, or oil changes are not typically considered part of the monthly budget. At Signature Yacht Shares, we plan for these one-off transactions and spread them out evening throughout the year and shared equally by the shareholders. For example, a $5,000 yard bill only costs $52 per month per shareholder. A $9,000 insurance premium only costs $94 per month per shareholder. When budgeted and shared, the cost of yachting is manageable.

No boater likes bad surprises, such as an unplanned engine bill. Fractional yachting budgets for all the costs of boating to give you peace of mind financially. And, remember, you never pay more than a fraction of the cost!

Contact Matt Condon (850) 259-9900 www.signatureshares.com