Making the Most Out of Your Marina’s Pricing Strategy
Every marina is different so it’s important to find a pricing strategy that works best for your marina. The five pricing strategies you can use at your marina are pay-by-slip, pay-by-foot, hybrid, pay-by-square foot, and dynamic pricing. Here's a rundown of each:
For a high occupancy marina that's a hive of activity, charging by the slip length simplifies the sales process.
The issue with charging by the slip is that although customers with boats shorter than their slip pay for the full length, revenue is left on the table by not charging larger boaters overhang fees, if you're area allows them.
Setting your price based on the length of your customers' boat is ideal for a marina with a lower occupancy and nearby competitors. Prices will be more affordable for boats smaller than their slip and larger boats with overhang will generate additional revenue.
The goal when using pay-per-foot is to maximize your potential revenue by having a negative slip differential. Slip differential is the difference between the size of the slip and the boat. A 36ft boat in a 40ft slip has a 10% (4ft) slip differential.
Our marina management tool Swell Advantage benchmarks your maximum potential revenue and suggests boat movements to help you reach it by reducing slip differential.
Whichever is greater
To capture the most amount of revenue at your marina, you charge boaters by the slip with additional fees for any overhang. This popular strategy is ideal for marinas with slips that are in high demand.
To reach maximum potential revenue with the whichever is greater model, you’ll need a negative slip differential in your marina. As mentioned above, this can be achieved with the marina management tool Swell Advantage.
With wider boats growing in popularity, we believe the future is charging boaters by how many square feet they take up in your facility.
This pricing strategy will be helped by using a modular docking system that's guided by intelligent technology that suggests dock layout adjustments to fit existing and incoming boats.
This strategy will maximize revenue and take full advantage of your property. Although the technology to do this is not currently available, we believe that this will make a big impact on marina performance in the future.
Lastly, dynamic pricing is adjusting the per slip fee based on the desirability of the slip. Things like proximity to the marina entrance for sailboats, nice sunset views, proximity to washrooms, or a municipal outflow are all things that can affect the desirability of a slip.
The easiest way to do this is rate each slip in the marina for desirability on a scale of 1-10 or 1-5. You can then convert the score into a multiplier that you apply to the initial linear ft, square ft, or by-the-slip slip fee to get the final amount. The range that you play with will depend on the difference between your most and least desirable slips of the same general dimensions in you marina.
This strategy can be used in conjuncture with any of the other strategies in this article. A system like Swell Advantage can help you set up and manage a dynamic pricing regime.
Did we miss anything related to marina pricing? Let us know how you’ve been making the most out of your marina’s pricing strategy by emailing us at email@example.com or calling us at +1-888-908-7858.