7. Turnaround Fees
Each time your vessel goes out on charter there are expenses associated with this. They include, but are not limited to, laundry, cleaning, check out and check in, charter briefings, etc. At present the average cost of each turnaround is $500 per week.
8. Consumables
Following each charter your vessel is cleaned and all consumable supplies are replaced including toiletries, cleaning supplies, bug spray, propane and charcoal, etc. Many companies break this out from turnaround fees whilst others include both fees together.
9. Taxi Transfers
Many charter companies provide free taxi transfers from the airport to their base for their charter guests and then bill these costs to the yacht owner. We felt this was a cost associated with the charterers' vacation, not the operation of the yacht so we charge the guest, not the owner. This is a saving to you of around $3,000 per annum.
10. Fuel Costs
With all our power cats we charge the user the costs of the fuel, not the owner. This is a saving to the owner of almost $12,000 per annum
11. Insurance
Charter companies' offer different levels of insurance coverage and this will affect the premium your are charged. This may vary from
1.5% of the hull value up to over 2%. The insurance is arranged directly between the Management Company and the insurance
Broker and is paid directly by the management to the broker. All paperwork, renewal coverage and claims are then handled directly
by the Management Company and the owner is relieved of this burden.
12. Dockage
Dockage is charged on a monthly basis at a fixed monthly rate regardless of whether your vessel is at the dock or on charter.
This ensures a guaranteed space for your boat at all times and ensures that your vessel is not left unattended at anchor or on
a mooring for long periods of time.
13. Parts
Breakdowns are inevitable no matter how well maintained your vessel is. Parts are replaced as necessary and are budgeted at 2% of the retail cost of your vessel per annum over a 4-year period. This number is not guaranteed and can obviously be higher or lower.
14. Maintenance Labor
All labor expenses to replace defective parts and carry out routine maintenance are charged at an hourly rate as required. As with parts this is budgeted at 2% of the retail cost of your vessel per annum over a 4-year period. This number is not guaranteed and can obviously be higher or lower.
15. Annual Haul Out
Each year in the fall your vessel will be hauled out for an annual inspection, bottom cleaning, anti-fouling and waxing in order to keep it in the shape it should be. This is forecast to cost around $50 per foot.
16. Licenses and Permits
Operating a vessel in the Caribbean requires various permits and fees. This applies to all vessels and is forecast to be around $1,000.
17. Marketing Fees
In addition to charging to manage your vessel some companies charge a fee to market it for charter. This fee can be a fixed amount or as high as 10% of the annual charter revenue The Catamaran Co charges a one time marketing fee of $7,500, and is not paid by the buyer of the yacht.
18. Mortgage Costs
In terms of cash flow these are the payments required to be made each year to cover the interest portion of the mortgage payment on the vessel.
19. Owner's Usage Weeks
It is assumed that the owner will use his yacht 6 weeks per annum. This total value is calculated by multiplying the average weekly charter rate by the 6 weeks of usage. These weeks can be used by the owner or sold or given to anyone the owner chooses. Take as many weeks as you want, when you want. We do not put restrictions on your usage.
20. Net Benefit
This represents the total benefit in terms of cash flow and charter usage to the owner each year.
FINANCING DETAILS
21. Yacht Price
This is a suggested price for a suitably equipped private owner's yacht, commissioned, cruises equipped and delivered to the owner's chosen location.
22. Owner's Down Payment
Under normal circumstances a yacht purchaser puts down a deposit of 25% of the fully equipped and delivered purchase price of the vessel. Other programs are available upon request.
23. Mortgage Financed
This is the balance of the purchase price financed by a reputable financial institution. The Catamaran Company uses NationsBank, Bank of America, Debis Financial and several other lenders.
24. Interest Rate
This is obviously variable and subject to change but for the purposes of this exercise the rate is assumed to be 7 99%.
25. Mortgage Term
The normal marine mortgage is for 15 years and this is what has been used in this example. Please be aware that 5, 10, 12 and 20-year plans are available depending on an owner's requirements and the bank's financing requirements.
26. Monthly Payment
This can be calculated from any normal amortization table using the amount financed, the interest rate and the loan term.
Other Points of Interest
Tax Benefits
Your tax benefits are the same no matter which company you choose to manage your yacht. None of the charter companies have any special dispensation from the IRS and the IRS does not differentiate based on which company you have signed up with, the results are the same.
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Guaranteed Income Program
This program is designed for those individuals who are interested in having a commitment from
the charter company as to the income to be received over the course of the management agreement. 
This program provides a fixed monthly income whether it is in month 1 or month 48 of the term of the agreement. This smoothing is much more like a mutual fund rather than purchasing today's "hot" stock. You receive the same payment whether there has been a down turn in charter activity or not. No one can predict the impacts of weather, economics, or rate discounts within the industry, projected into the future. In effect, it is then the charter companies burden to produce rather than yours.
Usage is structured to an annualized up to six weeks per year with only turnaround fees and CDW as the costs per charter week.
Important Note:
This Program is available for select models only. Please consult me as to which models are currently available.
Highlights of the Guaranteed Income program:
Receive a monthly payment for up to 48 months which equates to the mortgaged amount, based on 25% Down @ 8.5% for 15 years.
The Catamaran Company pays for all the expenses, from dockage to insurance, maintenance inclusive.
Maintain the Yacht in the fleet from 12 to as much as 48 months. We only ask that you give us 90 days notice.
Use your Yacht for up to 6 weeks per year.
Each usage week shall be billed at 12 USD per foot for turn-around fees and 30 USD per day CDW. This maybe added into the complete price if so desired.
50%-50% Revenue sharing program. United States Ports.
This program has been created to meet our need for yachts in stateside locations which currently includes Fort Lauderdale and soon to be released Annapolis Maryland on the Chesapeake. This program follows along the same guidelines as that of it's sister 77%-23% of the Caribbean with the exception of the percentage and the fact that turnaround fees are not charged to completed charter weeks outside of owner usage.
With the ability to provide stateside base locations via a cooperative network of charter companies through- out the U.S. this allows owners who are interested in a more regional (closer to home) concept to be made available.
Luxury Crewed Yacht Ownership
This program is designed for those individuals who are interested in the truest sense of charter yacht ownership, 
owning and operating an active business around a Captain and crew maintained Yacht. The Catamaran Company has developed one of the most complete packages available to sell, commission, staff, maintain and book Crewed Charter Catamarans anywhere in the world.
Our marketing department can tailor market plans to meet specific interests where theme styled charter activity might be of interest. From scuba, windsurfing, specialty fishing adventures to underwater photography as an educational, informational styled vacation make up current and past business opportunities created and supported by The Catamaran Company.
Highlights of the Luxury Crewed Yacht Program:
Virtually an unlimited opportunity to choose between Privilege, Fountaine Pajot and Lagoon's larger yachts and to create the justification to own and sail one of the premier yachts in the world and to own and operate one of the most exciting business opportunities in the leisure industry.
Receive charter income based on the industry standards of gross revenue per charter less normal booking fees (15 to 20%) and minimum management fees of 5% after the 1st years start-up. This is your business therefore cost of operation are at the owner's expense.
The Catamaran Company, in it's management fees, will handle as much or as little of the day to day operation of the business as you so choose.. We can provide crew selection to paying the bills all inclusive. From our base in Tortola BVI expect excellent service in working with your Captain and crew in providing the greatest charter in the Caribbean.
Your usage is at your discretion, it's your yacht and your business, you direct how this yacht is to be used.
Performa's available upon request.
Please understand that it is recognized that there is "Pride of Ownership" where the cost is not a factor and there are those who really do not care what it costs; they are only interested in having their own boat for their own pleasure. That is "Yachting" and thank you for your interest, please consider me when selling or buying your next Yacht!! Owning a vessel for charter requires the right profile of an individual who accepts the fact that others will use his or her Yacht as a method to substantiate ownership and is more interested in maximizing the experience when the time is available to go yachting.
to offer just about any variation of management programs available, please review these programs as ours but remember that our competitions are the same just with a few different twists, evaluation of the choices breaks down to basic factors depending on the type of program. As far as Taxes as they apply to owning a business. Please remember that it is a function of you and IRS, any charter company has the same potential to offer the same "points" necessary for an accountant to determine active vs. passive income which is the key to the tax issue, though one company over an other may capitalize on tax implications it is available to all who wish to consider the opportunity and available via the choices of the different charter companies.
There is much to look at in evaluating each option, but first lets try to define a few methods for this review. I like to begin with the Gross Profitability Factor. This GPF is simply the anticipated averaged value of one weeks worth of gross charter revenue divided by the overall anticipated value of the vessel completed and delivered charter ready. As an example, if a Privilege 51 costs $600,000 and charters for an averaged $13,000 a week it has a 2.1% GPF; where say a Lagoon 570 at $900,000 with a $17,000 averaged week carries a 1.8% GPF; the bottom line with the better return comes from the Privilege 51. The higher the percentage the better the financial opportunity. There are a number of factors to take into consideration, ie. hard cost of operation, marketing and management fees, but in either case of the above noted choices the expense side is about the same any way you cut it. Using the GPF works then, when looking at new or used choices and can be further applied whether looking at Luxury Crewed Charter choices or Bareboat. Please give me a call if you wish to discuss in detail how this information can be packaged to arrive at a conclusion that makes sense for you. Contact John G. Anderson,