Possible New Dive Boat Venture...

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Something that might address both of your problems would be what i would call having a "Crew", or a group of people that you go diving with often. When your crew books the boat, i would say 3 or more people, the boat goes where you want to go that day, and ever time your crew books the boat you would get more of a discount until you reach a certain level, lets say Chis_b's 75%. This way you would have more commraderer and maybe there could be some kind of competition we can work out between crews for a free trip. BTW if i can i would like to make the boat a spearfishing boat also.

Why not just say it's $480 (for example) for the boat trip mid-shore, $420 iinshore and $540 offshore. Then, if the "crew" is only 4 people, they can still go (paying $80/person). If they book all 6 spots, then the cost might be reduced some percentage.

If they take 4 spots and allow you to book the other 2, then they get the pro-rated cost of the trip.
 
As expected, this has been an interesting thread. Many thanks GLENFWB and paulwall for the kind comments. Dr Dive is back at Seville, behind the Fish house, after a brief stint at another marina due to oil booms across the harbor entrance. It is lobster season PW, but spinys have been in short supply since Ivan. Also, due to increased federal permit enforcement, where we can lobster legally is limited. We can talk more about that in another thread.

Back to the original thread topic, there have been some interesting thoughts and suggestions. I can't speak to them all, but will comment as I can.

Some sort of flat rate pricing was suggested, as well as a pre-pay plan. I believe Capt. Gary tried that once, perhaps he can speak directly to it. It does make the bookkeeping tricky. Most of the suggestions included some significant price reduction as well. My thoughts are that if per trip prices are a major issue, then paying for 5 or 6 trips in advance makes price more of an issue. In addition, if, over the course of the season, you are unable to make even one of the pre-paid trips, you've wiped out most of your "savings". In addition, you have to have some way of tracking how many trips are used/remaining. I'm in favor of affordable pricing, but after having kept my pricing static for several years, even during the summer of $4/gal gas, I'm hard pressed to see significant price reductions as viable. There have been several operations over the years who have offered cut-rate (cut-throat) pricing and they are all out of business at this point. Charter operations are a business and there are many costs that factor into the pricing equation. In addition, it's not just the hours the customer is on the boat that factor in. There are many additional hours involved for the captain and crew to have the boats ready and in good condition for you while aboard. I have to agree with kalik that $85 is still cheap, all things considered. Also, bear in mind that most charters in vacation destinations have a 2 - 4 mile run to the site. For most operations in Pensacola, and this would be true for FWB unless you tied up at Destin Harbor, you have a longer run than that just to get to the Gulf, then the "short" run to the dive site.

Destination selection also seems to be a major concern. An upcharge to be able to call the destination as well as group preference in calling the destination have been suggested. Site selection is based on several factors. Captains share information and trip reports to have the best chance of putting customers in the best conditions for the trip. It is unfair to the customers to put the responsibility for site selection on them without benefit of the "inside information" the captains have regarding conditions. As a customer, I would be unhappy if, after learning that the first guy to sign up, or the guy that paid the extra fee had picked a site with lousy conditions, and I'd had to go there because of that. As a captain, I'd be embarrassed to admit that I'd put a boat load of customers on a bad site because I took extra money to let somebody else do part of my job or because luck of the draw had put his name first on the sign up list. We always ask for input from customers regarding preferred sites and try to honor any specific requests as much as possible. It's tough sometimes, but we try.

I hope the thread continues and hope I don't seem too negative regarding the suggestions made. I'm always interested in ways to improve the charter experience and to serve customers better. That being said, I have to stay in business to be able to do that. I hope the ongoing thread helps Whyphysco sort out the particulars in deciding on starting the venture. After making the initial investment to earn your Captain's license, you're just getting started. I'd be happy to chat offline with you if you have specific questions. I enjoyed the support and assistance of several captains as I was getting started and am happy to share information if I can.
 
As a 3 year charter operator here in Panama City I remember when I had many of the same questions, particularly about costs. I also thought that a 6-pack is the way to go and you can cater to more experienced divers and offer them more "fun" and out of the way trips that the other guys don't go on. As a new operator, good luck! Most experienced divers who want those trips already have either a friend with a boat or a charter they use. As a 6-pack you simply cannot take more than 6 so if you have 3 people booked at $80 each and a family of 4 wants to join you'll be turning them away. You'll end up running lots of trips with 2 and 3 people for a long time before you can build up your reputation and clientele to get more. The "experienced" diver you are looking for is probably about 10% of the total market (probably less).

I opted to run a 36' newton so we could take a full openwater class and even a few singles. Nowhere is it written that you have to operate a large boat as a cattle boat. We just reduced our capacity on our COI from 20 divers to 14 (we already capped our trips at 15) so we can get our reef fish permits transferred so that we can now spearfish in federal waters on a charter.

Point being, as a business you don't want to limit your ability to adapt by focusing on a niche market. We run as many spearfishing and offshore trips here as the next two operators combined, but our bread and butter is the same to trips to either the Black Bart or the Strength/Red Sea area because thats what the average customer wants and can safely dive.

FYI we let the first person to book each trip pick what kind of trip and suggest the sites we run to which is pretty much the standard here in Panama City and I'd assume elsewhere in the Panhandle.

Are you planning on having a deckhand/DM? How much will you pay them? Fuel isn't a tough bill to pay since you are earning money if you are burning fuel. Insurance on the otherhand is a nightmare.
 
Here are the basic numbers I ran on new inspected vessels, you all may find them interesting. I was off on some of them but all in all they have worked out to be about right. As a 6 pack that could be trailered your costs would be significantly less but you earning potential would be way lower.
 

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This has been such a helpfull thread, everyone has had some awesome imput and it is helping me out alot.

Here is a question, what limits how many divers a boat can have, as far as coast guard regulations go? One of the boats i am looking at is a Topaz express 37'.

PatmyGreen, that layout was awesome and i thank you for sharing it, it seems that if i can fit a few more people on my boat it might become something easier to handel on the finacial end.

I have a friend who is a captain already who is helping me with some of the particulars, but out of courtesy i have not asked him how much he used to get paid. when i worked as a deckhand i worked for tips during the trip and got paid an hourly rate for set up before and clean up after the trip. How does everyone else work the pay with deckhands and captains if you don't mind answering on here? Or please send me a PM. If i have half the luck with this venture as i have had getting advice i wouldn't have a problem getting started.
 
I'm on the high end of the payout here in Panama City as I pay my DMs $85 a trip or $100 if they also have a 100 Ton Captain's License. That way I can get off the boat and dive too everynow and again. They make tips on top of that. I am pretty selective about who I hire though and what they are in charge of but I believe it is easily worthwhile in the quality of the trip they deliver. Other operators here pay nothing, $25, or some % of the revenue.

For a charter take more than 6 passengers the vessel in question must be a USCG Inspected vessel as governed by Sub-Chapter T. A Topaz is not an inspected vessel. The three big names in inspected dive boats are "Delta", "Newton", and "Island Hopper" although there are other options. PCDC here has converted oil field crew boats that have been running charters forever.
 
Also an inspected vessel requires a master Captain, with a tonnage rating in excess of the vessel as opposed to a simple 6 pack (OUPV) license.
 

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