Paying marina fees up front.

doris

doris

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Morning chaps.
Premier, as I suspect most other marinas, are taking payment for next year before the end of December to allow clients to utilise the lower vat rate. Furthermore to pay for two years is simply double the single year rate.
One year up front for a 2 1/2 % net saving is about on the button for current interest rates. If Premier doesn’t go bust it is marginal unless there is big inflation liked price hiker next year.
Thoughts
 
I pay up front for both swinging mooring and winter storage ashore, I always thought it was normal practice. Once you're into the cycle it's just an annual bill, I don't think it really matters where in the cycle I pay, but summer mooring holders do get a substantial discount on the winter storage rate.
 
MDL are doing the same for 2010 if you pay in December. I don't know when the mooring year starts for Premier, but MDL starts in April, so the payment would be 3 months early - which I think is worth 2 1/2 %?
 
Clyde Marina is offering the same also their prices for 2010-2011 have not increased from the previous year.
Good on them I say.
 
doris said:
Morning chaps.
Premier, as I suspect most other marinas, are taking payment for next year before the end of December to allow clients to utilise the lower vat rate. Furthermore to pay for two years is simply double the single year rate.
One year up front for a 2 1/2 % net saving is about on the button for current interest rates. If Premier doesn’t go bust it is marginal unless there is big inflation liked price hiker next year.
Thoughts
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We looked at this, but concluded it was not worthwhile, especially with our contract running from August 1st - the monies that will pay for or marina fees is currently earning more than that in various accounts. The only real benefit to us would have been the "feelgood" factor of having paid up for the next 18 months.
 
doris said:
Morning chaps.
Premier, as I suspect most other marinas, are taking payment for next year before the end of December to allow clients to utilise the lower vat rate. Furthermore to pay for two years is simply double the single year rate.
One year up front for a 2 1/2 % net saving is about on the button for current interest rates. If Premier doesn’t go bust it is marginal unless there is big inflation liked price hiker next year.
Thoughts
Click to expand...

Pay as i do by credit card for the whole year. one then gets cover from the cc Co & up to 7 weeks free credit to boot
 
We had this deal on offer last year at Yacht haven... they offfered the opp to pay for up to 5 years in advance at the lower vat... and a further percentage discount on top of that for each additional year..... plus a discount on our current year if we had already paid...

I bought one extra year... so paid until May 2011 saved something like £800 overall on the two years... so that was around 10%... which I thought was a very good deal!

I would push for a additional discount for the second year... say 5%... if they are just alllowing you to pay at the lower vat... its not costing them anything and they have some of your dosh in the bank for what... 18 months??? I would say in the current market... thats gotta be worth 5% for a business right now.
 
The more important question surely is will the operators remain solvent during the period of berthing that you have paid/are paying for, or will you become just another unsecured creditor?
 
Mayflower

I'm at Mayflower (Plymouth)
They also offer a pay in December option at base , whilst all the other options , like paying monthly etc. cost more.
Also you can save the 2.5% AT
 
sailorman said:
Pay as i do by credit card for the whole year. one then gets cover from the cc Co & up to 7 weeks free credit to boot
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Premier do not take credit cards for yearly berthing fees. Normal way is to pay two months early for an extra 2.5% discount so our contract is up to 1st April, in effect for paying a further month ahead you save total of 5%
 
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doris said:
Furthermore to pay for two years is simply double the single year rate.
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This will work to your disadvantage if you are away for more than 30 consecutive days; the cruising credit you gain from the next and the following year is carried forward to the *third* year.

As a general observation, Premier in 2008 had interest charge of £4.5m on a turnover of £30m with a bank facility of £45m at LIBOR+0.8%+variable charge - approx 6.5-7.5% - and when I was told of this deal and knowing what I do, I thought it a very poor offer. If all took it up, most of their debt would be wiped out and a loss of £0.5m would become a profit of £2m.

So, no, I don't think much of it and feel they're pushing their luck ....
 
NDH said:
Premier do not take credit cards for yearly berthing fees.
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This is another change (this year) which I feel quite strongly about. Whereas, there is no real risk of Premier going under, I would still have liked the protection that a CC affords.
 
I'm surprised that no marina seems to reward customer loyalty by offering increasing discounts after 1+ year of berthing, particularly as most marinas now seem to have more berths than boats. Say 5% discount for second year, 10% for third year up to a maximum of maybe 20% after 5 years. Surely keeping existing customers should be a higher priority?
 
Likelihood of insolvency?

Pinnacle said:
The more important question surely is will the operators remain solvent during the period of berthing that you have paid/are paying for, or will you become just another unsecured creditor?
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There is no extra risk in the current climate, all the time the marinas are full. ie revenue is consistent, and there are no significant cost increases.
 
MoodyNick said:
There is no extra risk in the current climate
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where a marina company has acquired additional facilities in the last 4 or 5 years years and, as most seem to have done, financed the purchase with bank borrowing then there might be a problem if the current value of the asset is below the purchase price even with a consistent income stream. That was Anglo-Irish bank's mantra even up to the very day the Irish gov nationalised them ...!!
 
doris said:
One year up front for a 2 1/2 % net saving is about on the button for current interest rates. If Premier doesn’t go bust it is marginal unless there is big inflation liked price hiker next year.
Thoughts
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Isnt the RPI negative at the mo? Shouldnt you get a reduction in mooring charges next year?
 
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