North South has been in the business of Yacht Management in
the British Virgin Islands for thirty years.
Many different programs have been offered to the yacht owner by the
various companies operating in the BVI.
Some
have been more successful than others.
Although we think that most programs are reasonable we have
decided that the best program is the simplest one and of the one that we have
chosen we have two variations.
In our first program, North South becomes a partner in the
operation of the Yacht. We share in
the profit or the loss of the operation of the boat. In the second program, we do not share in the operation but
strictly operate the yacht on behalf of the owner while charging a management
fee. In both programs, the owner is
solely responsible for cost of ownership (mortgage payments) and insurance.
The owner is also solely responsible for any upgrades or additional
equipment installed on the boat, at his request.
We prefer that the Yacht does not have her own dinghy.
Should the owner prefer that his dinghy be used, there will be an
additional charge per month.
May things are common to both of our programs.
We keep each boat separate, with no pooling of costs or income.
The maintenance expenses, the repair expenses, the replacement expenses
and the Government license fees along with dockage, customer turnaround and
dinghy use fees are all charged to each boat and reported to the owners
quarterly. Revenue less a marketing
and sales cost of 20% is assigned to the yacht and reported quarterly.
This is where the programs diverge.
In the partnership program, the owner and North South share equally in
the profit or the loss of the boat. There
is an equal risk and an equal reward for both participants.
In the Management Fee program, North South adds a management fee of the
greater of 10% of the Gross Revenue or $400 per month.
The owner is responsible for everything and has a greater upside and a
greater downside, while North South has a fairly predictable income.
In both programs, the owner can use his boat as much
(subject to prior commitment) as he wants, acting reasonably, and pays a per use
fee directly to North South of the normal turnaround fee charged by North South
on his particular boat. This fee
covers all the normal pre and post use preparation, cleaning and use of the
North South equipment, linens and galley equipment.
Our contract is renewed annually on May 1 and is
subject to a 60-day cancellation period with the party canceling being
responsible for the costs of moving any future commitments on the boat to other
yachts or any other costs associated with cancellation.
Each yacht
prior to being accepted into the program must be evaluated by a North South
person. In the Management Fee
program, since the owner is paying all the bills, we don’t worry to much about
work required to get the boat in charter ready condition.
However, in the Partner program, the owner may be responsible for certain
repairs or updates prior to the yacht entering the program.
IT'S BEST ON A BOAT
